Structured Process Analysis

 

For this project, we have selected Inventory as Lululemon’s structured business process. A structured business process is defined by the book as a standardized process that involves day-to-day operations and is formally defined (Kroenke & Boyle, 2020). In other words, this process is consistent and does not allow for flexibility. To ensure this process is carried out consistently every time, Lululemon provides every store with a “Big Book of All Things”, which is a guide of standard operating processes with a step by step walkthroughs to eliminate mistakes.

“Scope refers to the boundaries and extent of the system being developed. It defines what the system will and will not do, the users it will serve, and the processes it will support” (Kroenke & Boyle, 2020, p.28). The scope of Lululemon’s inventory process includes receiving shipments, tracking inventory levels, replenishing items as needed, and conducting regular counts to ensure accuracy. This process helps stores have products available for guests and that inventory data remains up to date. 

Inventory being a structured process ensures accuracy and can help eliminate mistakes, as mentioned above. This system allows inventory levels in real-time and allows educators on the floor to quickly locate products, not only in their stores but also in other stores or online, providing a better experience for guests. For product operations educators, who work in the back, it helps predict product shortages, restocking and prevent overstock. This process also enables a better understanding of inventory needs, aligning decisions on stock levels with demand.

Some issues with this process include stock discrepancies, educators often need to locate a product that appears available in the system but can’t be found in the store, wasting the guest’s time. Additionally, when guests place orders online, some products show as available in the system but are actually sold out in store, leading to order cancellation after they place the order. Another issue is that educators sometimes forget to move products from the back of house to the floor, which leads to discrepancies in inventory levels. 

NEDAP ID CLOUD

An information system or IS is “a group of hardware, software, data, procedure, and people components that interacts to produce information” (Kroenke & Boyle, 2020). For its inventory Lululemon uses Nedap iD Cloud with a key focus of having real-time inventory data used both in stores, online, and app to give an overall easier shopping experience. For the 5 components starting with software, it focuses on organizing and making products easy to find from style to size. Nedap explains the types of hardware used are RFID technology, desktops, and tablets/handheld devices. The data within this system is the different product numbers of each product to track every single item whether it is there or not. The procedure for humans is to read the data given from the IS and let the customer know where they can find it, or when they can get it. Lastly, the people mentioned before there are those who use the system, but there are also those who work with computers to try to perfect the system so that no item is questioned of its availability, or slower updates.

An information silo as defined by (Kroenke & Boyle, 2020) is a condition that exists when data are isolated in separated information systems. There is no information silo within this IS, but it does eliminate it as the focus for it is there every platform physical or digital stays updated and always knows what information to give about any product. There is no issue with this IS system only improving on what lululemon had before to eliminate the problem of misinformation.

CRM, ERP & EAI

CRM stands for Customer Relationship Management. A system used to manage customer interactions, improve customer service, and support sales and marketing.

ERP stands for Enterprise Resource Planning. A system that integrates core business functions such as HR and supply chain management.

EAI stands for Enterprise Application Integration. A technology that connects different enterprise systems to ensure seamless data exchange between applications.

Some of the major ERP vendors include SAP, Oracle, Microsoft Dynamics, and Workday. Lululemon uses ERP (enterprise resource planning) because it allows for more flexible financial forecasting and better financial models. The company uses different enterprise applications, including:

·        Microsoft for different business functions.

·        Workday for HR and payroll

·        ADP and Dayforce for payroll processing and workforce management

·        Oracle for financial management and other business processes

INTER-ENTERPRISE INFORMATION SYSTEM 

An inter-enterprise system IS is an information system that allows data exchange and collaboration amongst numerous organizations. This type of system supports business partnerships, shared business and data processes, supply chain management, etc. Furthermore, yes Lululemon has an inter-enterprise IS system, this is because the company operates globally and on a large scale. This allows for coordination between suppliers, store locations a much more.