Systems for a Retail Store Nostalgic Record

¶ … Systems for a Retail Store Nostalgic Record Store Information Systems Proposal Benefits and Drawbacks of Information Systems Comparison of Cost and Benefits Any new store will require a series of accounting, e-commerce, finance, customer relationship management (CRM), pricing and services applications to ensure it stays profitable. When the products being sold are highly unique, as is the case with nostalgic music, the role of these systems becomes even more critical.

It is the goal of this proposal to define five specific systems needed to operate the store profitably, in addition to listing the strengths and weaknesses of each. The five systems needed to successfully run the nostalgic record store include: Small Business Accounting System Low-end, preferably Software-as-a-Service (SaaS)-based CRM system E-Commerce Web Store Transaction-oriented Point-Of-Sales System Merchandise Inventory Management and Pricing Software System Both the benefits and drawbacks of each of these systems are analyzed in this proposal.

Benefits and Drawbacks of Information Systems Each of the five systems mentioned in this proposal fulfills a vital function for the overall profitable operations of the store. The benefits and drawbacks of each are analyzed here. The Small Business Accounting System is crucial for tracking expenses, being able to generate financial statements and determining if the store is making a profit or not. It is highly advisable to use an online system such as SAP OnDemand or NetSuite, two very wlel-known and respected systems that specialize in small business accounting.

Both of these systems are delivered over the SaaS platform. The benefits of these systems include the ease of use, relatively rapid time to get them up and running, and the low cost of maintenance. The disadvantages are that they are often difficult to keep updates with the latest cost information, a challenge for computer-based accounting systems for decades (Wichmann, 1983). In addition there is the downside risk of not having Internet access when reports need to be run. The second system is the low-end Software-as-a-Service (SaaS)-based CRM system.

The advantages of this type of system includes the ability to track customer purchases, see what customers are most and least interested in, and also create more effective marketing campaigns based on insights gained from the analytics modules many CRM systems include.

The biggest disadvantages of these types of systems is the continual updates and maintenance they require to be useful, the high costs of maintenance fees for software upgrades, and the lack of adoption in many companies who spend an exceptionally high dollar amount for these systems only to see them not used (Sarapovas, Cvilikas, 2008). The third system the store need is an e-commerce storefront and catalog management system.

The advantages of this type of store include the flexibility of selling to nostalgic music fans located far away from the store the potential of using the e-commerce website to also promote the store via social networking, and the ability to launch new music products quickly and get Search Engine Optimization (SEO) for the website using specific keywords.

The disadvantages of this system including the intensive level of upkeep required to keep the catalogs and content current, the high cost of transaction fees if many products are sold, and the cost of maintenance for higher-end systems (Sarapovas, Cvilikas, 2008). The fourth system the store will need is the transaction-oriented Point-Of-Sales System. The benefits of this systems are the ability to track sales automatically, have transactions recorded in the accounting system, and reduction in inventory management errors.

The costs or disadvantages of this system are the relatively high lease costs, the need for integrating these systems into the overall accounting and financial management systems, and the need for creating specific product and pricing records. The final system that needs to be considered Merchandise Inventory Management and Pricing Software System.

The advantages of this system include the ability to track inventory positions of specific titles and collectable records and music memorabilia, closer management of costs and inventory positions on each specific item, greater analytics into how product and pricing strategies affect over inventory management as well.

Like other systems, the disadvantages of this type of software is that for it to be effective, it has to be integrated to the accounting and financial management applications, and it must have a continual flow of inventory information, pricing and costing to be fully effective. There also needs to be a continual update of pricing information on this system as well to ensure it delivers a high degree of value over time.

Conclusion All five systems are critical for a company to succeed, and for a small business like a record store selling niche-based products focused on nostalgia, they are critical. Table 1, Comparison of Costs and Benefits, shows the potential vendor and appropriate cost and benefits to the store of each system mentioned in this proposal. The Return on Investment (ROI) of these programs must be taken into account from a cost-saving and potential.