AT MACY’S INC.

KIMBERLY WATSON

MIS 535 Managerial Application of Information Technology

Professor W. Freer

APRIL 2013

TABLE OF CONTENTS

Abstract……………………. Pg. 3-4

Customer Retention………… Pg. 4-5

Brief Overview of Company Pg. 5

A. Discussion of Problem Pg. 5-6

B. Cost of Company………..Pg.7

C. Explain Assumptions. Pg. 7

Cost of Analysis of Business Problem Pg. 8-9

A. Benefits of solving the problem Pg. 9

B. Direct and Indirect benefits Pg. 9-10

C. Financial Graphs Pg. 10-12

Overview of Technology Pg. 12-13

A. High Level solution overview Pg. 13

B. Cost of Technology Pg. 13

C. Network diagram Pg. 17

Implementation of Technology Pg. 19-20

A. Business/Technical Pg. 20-21

B. Timeline Pg. 20-22

References……………….Pg. 24

Appendices……………….Pg. 25

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1. Abstract

As technology leaps forward, we find it integrating in every aspect of our lives. New behaviors

form and become insidious to the point where service providers need to run to catch up with the

changing expectations of their customers (McManus, 2012). The influx of implementing

technological access to services, and retail in particular has opened a window of opportunities:

channels for convenient purchasing, direct contact with a range of customers through social

media, and directed advertising (McManus, 2012). However, the customer is the decision maker,

so, a technology upgrade is needed to create the best shopping experience. The scope of my

project is to show how information technology can help a retail company retain customers by

meeting their every need. The subject of this project will the implementation the Macy’s Men

Clothing Seeker, through Macys Systems and Technology (MST). The MST is a consolidated

diverse data processing operation of Macys’. This has been long recognized in the retail industry

for its leadership position in technology, MST provides an integrated line of high performance

retail and data warehouse systems for use at all level within Macys’. An increase in customer

satisfaction, cost, and retention is their top priority (www.macysnet.com).

Implementing the Macy’s Men Clothing seeker will allow Macys to be a virtual retailer.

The clothing seeker will allow customers to create a personal profile and interact with a virtual

person of their choice. The person will guide them on how to chose a suit according the vendor

(brand) size, and color. Secondly, the customers will a choice a sport coat or a blazer to match a

pair of dress pants and jeans. After the customer have created the perfect clothing line, then the

clothes will be shipped to the customer from MacysNet. The goal of implementing the

technology can help Macys fulfill its statement: Only One Star Can Put It All Together”.

Increasingly, new technology offers the resources to meet the varied needs of the retail industry.

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As technology continues to play a vital role in providing access to information, our customers’

expectations continue to demand increased access to technology. An integral part of fulfilling our

mission is providing the hottest trends, styles, and fashion advice virtually. Successful

integration of technology into our department store requires ongoing training for all supervisor’s

and managers. Macys provide their customers with access to information, regardless of the

means or the format.

The company’s technology infrastructure has grown over the years, and it is now a must

and serves their retail needs well. Looking forward, they are faced with increased in online and

in-store/online sales, decrease in using paper, eliminating POS systems, and laying off

employees likely for at ten years to come. Therefore, carefully planning is a critical for success.

Customer Retention

A corporation that establishes customer retention and loyalty embodies positive repeated

behavior, where loyalty reflects relationship development and retention reflects relationship

continuation. Customer retention is an essential part the customer relationship, and customer

experience management must take this into account (Ayanso, Anteneh, & Lertwachara, 2010).

The emotions evoked by a customer experience act as a chief mediator for customer retention.

When combined with an organization’s strong reputation and recognized expertise, Customer

emotions are the chief determinant of customer retention. Without the emotional bond necessary

to retain customers, customer loyalty is impossible. Interactions that evoke negative feelings;

stress or manipulative tactics negate trust. For example, the number of online sales can plunge

drastically over time when customers do feel appreciated. Failure to craft a deliberate customer

experience puts organizations at risk for doing just that. The first in creating strong customer

retention is to engage management by asking whether it has deliberately designed a customer

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experience. If the answer is “yes,” then the next step is to evaluate the delivery, consistency and

overall effectiveness of this customer experience. In such cases, accuracy of measurements has

been the most significant challenge to evaluate the effectiveness customer experience design.

2. Brief Overview of Company Macy’s, Inc., originally Federated Department Store and an American multinational holding

company headquartered in Cincinnati, Ohio. Macy’s is the owner of department stores Macy’s

and Bloomingdale’s, which specialize in the sales of women and men clothing, footwear, and

accessories. The company also sells bedding, furniture, jewelry, beauty products, and

housewares. Private brands have been receiving increased attention from retailers due to the

increased control they have over the production and distribution of their own line. Macy

Corporation operates approximately 850 stores in the United States; its namesake locations and

related operations account 90 percent of its revenue. The company is well known for its

prominent flagship store located throughout the country, most notably those of Macy's in New

York. In October 2012, the company generated $2,403.00 in gross profit, $2,078.00 in expenses,

and in January 27, 2012, their revenue was $145,000. To that end, Macys must work to prioritize

servers and the technology that supports them. The loyal customers who shop at the department

store will be our main focus and shape our technology device to serve them.

A. Discussion of Business Problem

Retailers have the opportunity to hire, train, and develop people to become the best selling

store associates (Lollar, James G, Beheshti, Hooshang M; Whitlow, Brenton J, 2010). The

employees are at the forefront of the selling floor everyday advertising and marketing Macys

merchandise to customers. As technology grows rapid among consumers, the need for a store

associate becomes extinct and puts a strong demand to create interactive technology to keep

customers. Retailers have the opportunity to engage and, ultimately, convert today’s mobile and

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connected virtual shopper by embracing the technology used by these shoppers (Osyk, Barbara

A, & Vijayaraman, B, 2012). On the other hand, this creates a problem for the store associates

who are use to engaging in face-to-face conversations with people. Customers are not receiving

enough one-on-one interaction from store associates in selecting a suit, sport coats, and slacks

according to their preference and style. The store associates are not explaining in detail about the

products. Macys need to use different information technology to attract more younger and older

consumers to buy their merchandise and uses their services. First, Macys is not generating

enough money in sales from their merchandise because the suits are being manufactured in the

same in color and brand, the material is cheap, not of good quality, and not lasting that long for

customers to wear during the years. Secondly, The pricing of the merchandise is within range of

$200-400 for a suit, but customers are not going to purchase a high product with cheap material.

Despite a downturn in the economy, Macy’s, Inc. has been able to grow revenues from $26.4B to

27,7B. Most impressively, the company has been able to reduce the percentage of sales devoted

to selling, general, and administrative costs from 31.36% to 30.64%. This was a driver that led to

a button line growth from 1.3.B to $1.3.

Without Macys men clothing seeker

After Macys Men clothing seeker

Labor cost (400*1200) 480,000 480,000Hardware and software 30,000 30,000Telecommunications costs 20,000 25,000Maintenance, tools, bigEquipment 7,000 8,500Utilities 3,000 8,100Expenses 540,000 551,600

Opportunity Loss 0 11,600

Total operating expenses 532,000 532,000

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B. Cost to the company

Macy’s customer base is going to increase greatly because the men clothing seeker offers many

options of style in clothing for each type customer. With this technology, consumers can more

easily find what they want, compare it with other items, get recommendations from friends,

family, buy from within the store, and tell each other about the experience afterward (Schaefer,

Wanner, Grinyer, 2011). The balance of power has clearly shifted from suppliers and consumers.

In response to this dramatic change, Macys have successfully transformed their retail business

model to stay relevant to their customers. For example, Apple has morphed from a PC maker to

an entertainment giant, while Ryanair is making its airfares virtually free by covering costs with

adjacent fees from travel-related services (Scaherer, Wanner, Grinyer, 2011). After the Macy

men clothing seeker is implemented in every Macy store, the number of customers is going to

increase by 35-50% per year. By the year 2018, the Macy men-clothing seeker will be the e-

retailer virtual merchandise device in all of Macys stores. The corporation revenue will by 89%

to 559.3 million from the $295.5 million a year earlier.

C. Explain Assumptions

Once the Macy men clothing seeker has been in use after the five years, then the device will

continue to be a primary virtual tool for all customers to use to shop with. Women will be

become confident in shopping for their significant other because the touch screen is going to

guide the customer every to choosing the correct garment type they desire. International Macy

customers will be open to using the clothing seeker because there is going to be a button to click

to switch from English to Chinese, Spanish, German, etc. making shopping more understandable

to comprehend.

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3. Cost Analysis of solving the business problem Fundamentals business catalysts drive the adoption of the Macy’s Men Clothing Seeker: 1) How

to render more value in terms of greater revenues or stronger loyalty, 2) The need to understand

how information flows within the system because of compliance requirements (Allen, 2007).

While these concerns underlie the value-driven justifications for the adoption of the men clothing

seeker technology, they do the financial impact of their implementation of such technologies,

specifically in labor-and process-intensive applications. The corporate executives, managers, and

supervisors who understand the level of investment involved with implementing the Macys men

clothing seeker device focus significant attention on their potential return on investment (ROI)

(Allen, 2007). This is especially the case in the initial implementation of such technologies,

specifically in labor-and process-intensive applications (Allen, 2007).

Developing an effective virtual e-shopper should include the impact of implementing

such solutions on both costs and revenues. While it may be challenging to project the revenue

impact systems that enhance an organization’s ability to provide improved customer service or

that enable it to manager increased numbers of customer transactions are those that are likely to

have the highest return. For example, financial organizations like banks, insurance companies,

and mortgage lenders, gaining competitive advantage and increased sales are key factors in

deciding to move forward with the Macy’s men clothing seeker.

Cost factors involve both operational and capital expenses. Cost comparisons should span

all costs, including for

Employees

Space

Information routing distribution

Equipment

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Communications

Scatter graph: Cost analysis

The values production represents the amount of merchandise produced by how much it sells and

accumulate over time according the total costs. The Macy men clothing seeker will sell $5,000 of

suits, pants, sport coats, blazers, etc.… and make $30,000 in total costs. As more merchandise is

sold to the customers, the company will break even at $60,000 with production at 15,000. This

tells us that certain products are selling more and generating more revenue. For example, the

Tommy Hilfiger navy 42 R blazers are sold more than our Tommy Hilfiger suit separates.

A. Benefits of solving the problem To meet their mission of owning today’s virtual shopper, Macys must continually adopt

innovative interactive technology. Adding new technology will cut workforce tremendously

forcing people into unemployment, reduce the use of paper, plastic, Point of Sales systems at

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each register, and improve outcomes. Enhancing the customer information technology

infrastructure further benefits the retail community at large through customer intimacy. One

benefit of solving the problem is allowing us to see what areas need improvement and which

ones do not. Many issues will impact the degree to which the corporation will achieve the

expected benefits from the implementation of a technology solution. In some cases, the

expectations themselves are unrealistic and in other cases incorrect solution is implemented.

B. Direct and Indirect Benefits-

With the Macys’ men clothing seeker, more people can be reached rapidly and their response can

also be felt immediately. The direct benefit of this technology is focused communication,

disciplined monitoring, reduced risk, reduced cost, and improved service. In addition, this will

help us sustain and survive competition. The company accounts and customer records can be

easily stored and accessed increasing market penetration of the business. Macys’ global

collaborations and partnerships are easier to start and maintain benefiting everyone involved in

international business. Costs of production have fallen dramatically due to automated processes.

Research and development has become far more advanced than ever, and this leads to the

invention of ground- breaking technology.

The indirect benefit of the Macy men- clothing seeker is Iterative Process Refinement, where it

will create the information and analysis. Secondly, Business knowledge capture will add value

and allows us to monitor every aspect of what customers are choosing, buying, and rejecting.

Thirdly, Succession Planning Data: we will be able to identify the critical areas of how are

customers responding to a certain item in another state or country.

C. Financial return-graphs

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Each year, paper and Point of sale systems costs 400,000 and represents 8% of operating

expenses. By implementing the Macys men clothing seeker the company will save shipping on

costs, labor costs, and eliminate sales jobs. The implementation of the Touch screen will cost

approximately 50,000 for the first year and the maintenance, the protection, usb cords, plugs,

wires, and the updating about $4,150 each year. The company will save 250,000 every year. The

Macy’s men seeker is an excellent tool to have increase and establish business relationships.

Secondly, this also contributes to environmental preservation in addition to major business

benefits like improved efficiencies, convenience, and employee satisfaction. These graphs and

table below give an insight about how the website will be very advantageous to Macys.

Years

Revenues(5% Annual Growth)

Expenses (2% Annual Growth) Profit

Revenues with Technology (5% - Growth)

Expense with technology

Profit with Technology

Year 1 6,400,000 $ 7,600,000 1,000,000 $ 5,400,000. 6,672,000 1,700,000

Year 2 6,820,000 $ 7,732,000 2,188,000 $ 5,820,000 6,408,864 2,422,136

Year 3 8,261,000 $ 6,866,640 2,394,360 $ 7,261,000 8,537,041 2,500,000

Year 4 8,724,050 $ 7,003,973 2,520.077 $ 7,724,000 8,667,782 3,106,218

5,607,380.08 $9,728,354

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Year 1 Year 2 Year 3 Year 4

Revenues 1000000 1100000 1210000 1331000

Expenses 900000 972000 1049760 1133740.8

Profit 100000 128000 160240 197259.2

$100,000.00

$300,000.00

$500,000.00

$700,000.00

$900,000.00

$1,100,000.00

$1,300,000.00

Financials w/o Technology

Year 1 Year 2 Year 3 Year 4

Revenues 1000000 1200000 1440000 1728000

Expenses 1100000 972000 1049760 1133740.8

Profit -100000 228000 390240 594259.2

$(300,000.00)

$300,000.00

$900,000.00

$1,500,000.00

$2,100,000.00

Financials with Technology

Axis Title

4. Overview of Technology

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I will recommend the company to use the MacysNet, a business service site to design the Macy’s

Men Clothing seeker because it make the implementation more easier through Macys (MST)

system and technology. This program is going to help customers personalize and choose from

the system how they want their suit to be fit, made (brand) and the color, etc. This system is

going to enhance the in store shopping experience by personalizing the customers’ suit, sport

coat, and dress pants according to what they choose. Retailers such as Macys’ have brought into

the CRM concept, but they have not fully implemented into their CRM/touch screen systems

(Higgins, 2010). A corporation that takes advantage of customer data collection, internet-based

customer engagement tool, and the use of technologies to measure the effectiveness of marketing

controls will be ahead of the game (Higgins, 2010). Since, Macy’s systems and technology

consolidates the diverse data processing operations and recognized in the retail industry for its

leadership position in technology. MST is going to provide an integrated line of high

performance retail, electronic commerce, and data warehouse for the services and products that

are going to be featured on the Men’s’ clothing seeker.

The new program is going to be featured on a 42-inch, vertical touch screens in the men

suit departments at Macy’s. The Macys men’s clothing seeker maps out a shopper’s journey to

find the best fit and the perfect suit, sport coat, blazers, and slacks to make recommendations

based on inventory availability. The technology tool is going to capture and connect customers

with a virtual person that is going to guide them from the beginning on proper vendor is for their

body type, designer for every shape and size. The men-clothing seeker will be a very great asset,

increase sales, and change consumers spending behavior. Once the Macy’s men clothing seeker

becomes popular, customers become empowered and knowledgeable their style and preferences.

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This program is designed to give customers more options and flexibility when searching for that

particular product they want and need.

A. High Level solution overview-

Implementing a touch screen technology that integrates information streams collates and

organizes that information makes the device accessible for the public. This specialized touch

screen will capture relevant data about the customer and integrate it into dynamic cloud based

data repositories that can be reclassified in analytics toolsets for use in data visualization,

predictive analytics tools, and other decision support systems. To maximize agility and reduce

costs, the touch screen will operate in a distributed environment.

B. Cost of Technology (Capital, operating expenses)

Capital Expenses Monthly Operating Expense

Cost of Touch screen 2,500Purchase $50,000 Maintenance $400Installation $2,000 Upgrading $600Upgrading $600Printer, scanner, other hardware 1,500

Total Cost $52,600 Total Cost $1,000

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Appendix 1.

Appendix 2.

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Appendix 3

The Touch screen is going have a resistive touchscreen composed of multiple layers separated by

thin spaces using indium tin oxide (ITO) layers. In addition there are going to be different

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standards such as 4,5, 8 wire types and each will have advantages. Secondly, the resistive touch

screen is going to be where users User Presses Down

Contact is Made

Uniform Voltage on First Screen for X

Same on Second screen for Y

Happens instantaneously

The disadvantages to this are that it not going to be as accurate, multi-touch much more complex,

usually no discretion between stylus and hand, and more pressure needed.

Year 1 Year 2 Year 3Technology budget

Software Procurement 155,000 155,000 155,000Remote Access to Network Resources 13,000 13,000 13,000Virtual Learning Opportunities 22,000 22,000 22,000Instructional Software 110,000 110,000 110,000

Hardware, Facilities, Networking 454,000 454,000 454,000Equipment Components, Back-up devices, UPS backup Units 38,000 38,000 38,000Servers (5 per year) 40,000 40,000 40,000Network Switches, Routes 30,000 30,000 30,000

Operation, Maint, Upgrade, Communications 239,000 239,000 239,000Maintenance and Support (Anti-Virus, Firewall, Novell) 199,590 199,590 199,590Internet Service 4,000 4,000 4,000Access TV/Video Upgrade 15,000 15,000 15,000

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High Level approaches

Macy’s technology is major role and enabler, speeding up of processes and delivering

cost savings. The challenges that Macy are going to face is first transparency and tracking which

were the organization needs greater transparency between systems and better tracking to

integrate systems form manufacturer through to consumer to obtain customer and sales

information. Secondly, Customer Data, the Information overload is a challenge for retailers

because they need to collect and sift through data to convert it into useful information in a

customer centric industry. Introducing this technology through Macys Net will require an

estimate of 175,000 in cost. The cost are going to be time frame is going to be 5 years. The

Macys men clothing seeker is going to benefit the company by remaining updated on the latest

fashion trends, drive business forward, sustainability, and survive competition.

c. Network diagram

The touch screen is going to require the following parts:

3M Micro-Touch screen sensor

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32" W 16:9 32.39"

17-9121-205 None None 8" Flex Tail

17-9121-226 EXII-7760UC USB 8" Flex Tail

17-9121-227 EXII-7720SC Serial 8" Flex Tail

USB or serial touch screen controller USB or serial cable to connect the controller to the PC Double-sided touch sensor mounting tape

The touch screen is a display that can detect the presence and location of “touch” within the

physical constraints of the display area. Usually that is accomplished by the use of a person’s

finger or a plastic stylus. A touch screen primarily consists of three integrate components: a

sensor, a module, and a display. The touch screen sensor is the key component of the device, it

allows the position of a finger or stylus touch to be identified and communicated to the

underlying system. The touch scree module includes the touch screen sensor, a controller IC, and

software. The touch screen display consists of the module integrated with a display panel.

Although there are great benefits to the touch screen, but the device present limitations such as:

Can’t be used with a glove hand and not stylus, and requires periodic recalibration.

(www.touchscreensolutions.com). The benefit of this touch screen is:

1. Low Cost. It is relatively easy and inexpensive to implement.

2. Durable. There is no physical contact between the camera and the pointer. Therefore, the

functionality of the screen will not deteriorate due to wear and tear. Even when the screen

is scratched or broken, the touch function will still work.

3. Easy to scale up. The complexity and cost of existing touch screens increase quickly

when the screens become larger. For example, when the size of a screen doubles, its

viewable area quadruples, so is the material used and the computing power needed.

4. Multi-touch. Existing computer software can easily detect and follow multiple image

features. It will be easy to include multi-touch functions. Combined with virtual force, the

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multi-touch function can make inputting more versatile and powerful.

5. Compact and light weight. Comparing to the existing optical touch screen using behind

screen or user side camera, this side camera method is compact and can save precious

space.

Retrieved information from www.google.com/patents. On April 16, 2013.

Benefits of the technology

The Macy’s men clothing seeker is essential benefit to the customer because the customer with

the tip of a finger creates a suit that is perfectly made for their figure. The new technology

benefits Macys by allowing the organization to work efficiently and to maximize inventory. In

the retail business, managers look for ways to do more in changing specific areas that could

generate more money. For example, the men suit are tailored more to a European and tapered cut

for men who are medium and slim, not for husky and or thick figures. With the men clothing

seeker, all types of men with figures will be able to utilize this tool in the store. Technology is a

key factor in achieving high performance for retailers. The touch screen can help the company’s

technology base enhance overall performance. Today’s retailer such as Macy’s will be able to

transform their IT capabilities for a number of reasons. Such as to aggregate and analyze

customer data to enhance differentiation, to increase the company’s ability to respond to a

rapidly changing market place through enhanced flexibility and speed. To operate effectively,

Macy’s men’s clothes seeker is going to ensure the most effective use of stock and to support

optimized business processes. This new technology will allow also customers to search for

clothes by price of $101 and above between $71 and $100 under $70. Customers will be able to

search for the styles by entering a style number.

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5. Implementation of Technology

Most likely the business case for purchasing and implementing a new technology is endorsed and

supported by the CEO of the company. While this support and initial approval is extremely

important, it is equally important to obtain management’s/ support during the implementation

phase. Undertaking a project of this magnitude without support from technical, designers,

installers, and maintenance can make implementation more difficult and limit the potential for

attainting overall success. Sufficient management support is required to help ensure proper

resources and funding is allocated to the Macy’s men’s clothing seeker. Once the implementation

process begins, then management’s role shall be effectively assist in removing obstacles; help to

gain consensus on key decisions, and work towards helping the team meet key deliverables

throughout the implementation process. New technologies such as the Macy’s men clothing

seeker is an implementation that is going to be in every Macys stores because it is taking on a

new level of selling merchandising. . The introduction of new technologies impacts on how the

workforce is organized on every level. For example, sometimes-different grades of staff can be

used to undertake tasks following the introduction of new technologies. Senior people may no

longer be required if technologies can simplify certain tasks. In the same vein, this may mean

that seasoned store associates can undertake tasks previously completed by younger store

associates. Using new technologies may cut down the number of staff needed to perform tasks,

thus freeing up capacity to use skilled staff elsewhere. For instance, in Austria robotic camera

holders were used to make laparoscopic cholecystectomy feasible and safe as a solo surgeon

operation.

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A. Business/Technical approach (team)- who will install, train, other aspects of business

impacted- Before embarking on new system implementation, it should be established whether or

not the organization will require the assistance of out people to install, train, design, design

equipment, and creating visuals. Since Macys is a leader of technology and logistics,

implementing this type of technology is not a difficult milestone to conquer, but will be a change

than our standard systems. The Macy’s men clothing seeker will be better located in the men’s

department. Macy is going to hire people from an outside company to do the installing, set-up,

programming, creating spacing for the touch screen.

B. Timeline-implementation plan (high-level explanation of timeline and support)-

Following three step phase approach, the first step of phase one will be to conduct basic research

and build a library of clothes, designers, sizes, related to sustainability and CRM.

2 months 6 weeks 7weeks 6weeks 4weeks

BudgetApproval

Purchase the

software

BuildingSystem, installing hardware, software, and USBS

  Test the touch screen device

Train the managers, engineers, technology developers

Integration

The average implementation time of the Macys men seeker will be approximately 31 weeks. The

budget approval will take 8 weeks, 6 weeks to purchase software, and 7 weeks for the building.

After building the macy’s men clothing seeker, the company will have to test it, and hire an

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outside company to do the job sense it is less expensive. The company will take 6 weeks to test

the touch screen device, 4 weeks for training, and 2 weeks for integration.

Purchase: Hardware, software interactive modules, site map, equipment, servers, and usb

cables.

Building: includes the design and the production of the touch screen: review design

option, selection of design

Testing: installations/testing/proofing/ final review and approval, final changes,

proofing, and testing

Training: hiring an outside company

Integration: touch screen comes on

Closing Argument- Conclusion and overall recommendation

By eliminating some of the POS systems (point of sale), paper, and ink, the company will save

6.5% of its operating expenses. The touch screen men-clothing seeker is going to focus on high-

volume transactions and high-speed order fulfillment. We were given $300,000 to spend on is

technology will be adequate because the MST advanced support systems will be used to design

the product. The $175,000 is going to be required for use to develop and implement each

modules, system maintenance, and interfaces. In order for Macys to achieve these objectives,

online retailers must accurately and consistently perform one key task: Understand what

customers want to buy and direct them to the appropriate merchandise as quickly as possible. As

this go forth, the retailer must perform this task for their in-store and online visitors, although

doing so is more challenging in the online world. As technology leaps forward into a virtual e-

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retailer, the Macys’ men clothing seeker will become a dominant force in interacting with every

customer and bring in more online sales.

Overall recommendation- The Macys men clothing seeker will achieve benefits:

Maximize men fashion trends. Increase customer relationships, and established loyalty

with vendors. Each customer is presented with the optimal and relevant set of product

recommendations to maximize interests.

Attract visitors and convert them into buyers. Retailers must draw as many people to

their various online shopping channels as possible; present them with attractive, relevant

offers; and entice them purchase

Increase the size of each transaction. Just as in-store sales associates effectively cross-

sell buyers before purchase, successful online retailers must also cross-sell and up-sell

merchandise to online buyers to raise the average value of each transaction.

Generate sales from returning customers. Retailers must build and retain a loyal

customer base in order to sell more online merchandise, while reducing the marketing

costs necessary to attract new customers.

Retrieved information form http://www.oracle.com on April 16, 2013.

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References1. http://www.macys.com

2. http://www.macysnet.com/AboutUs/

3. http://www.accenture.com

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www.skillsforhealth.org

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Increase Shareholder Value for Insurers. Cisco Internet Business Solutions Group (IBSG).

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pp. 2-12.

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Appendices

Appendix 1 on page 14

Appendix 2 on page 14

Appendix 3 on page 14

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