1

Case Study Apple Inc

PREPARED BY: Md.shahidul Islam ID#12102496 Nazmul Hasan Nahid ID#122020 2 !ai"##z $asnim E%a ID#12202069 &ha"min A'(a" ID#1220206 PREPARED )#": M#ham*d An+a" H#ssain

EXECUTIVE SUMMARY
Apple designs, manufactures and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals and networking solutions. Apple have clearly stamped there presence in the IT world for well over a decade. In order to remain competitive in the market, Apple utilises many different information systems, involving several stakeholders in each. One of their main functions is the Apple online store. This feature alone requires the integration of many different information systems. It is important that the Apple website maintains the image they are trying to portray to their customers as well as maintaining customer security at all times.

TABLE OF CONTENTS

INTRODUCTION
Apple designs, manufactures and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals and networking solutions. This report will look at the main activities of Apple and the information systems they utilise. It will then explore, in detail the online purchasing function of the Apple website. The official Apple site is in the top !! most visited sites in the world. A b !e" #!st$ y $" Apple "#$ "## "+! "+""/ ""$ ""# % &tephen 'o(niak and &teve )obs introduced Apple % it was a failure % Apple *omputer was incorporated % Apple II launched ,this was a success % Apple introduced their first mouse driven computer, the .acintosh % ""$% 0$+ million lost % Acquired 1e2T % &teve )obs returned to Apple as *3O to reorganise and get rid of some unsuccessful product lines % Agreement with .icrosoft% .& Office used on .ac 4*5s % i4od first introduced % Acquired 4ower&chool and &pruce Technologies which expanded their market % Apple *omputer, 3ricsson and &un .icrosystems formed alliance to deliver multimedia content to wireless devices % Acquired 4rismo 7raphics, &ilicon 7rail and 3magic % iTunes music store launched % &igned licensing agreements with 8 of the largest 3uropean independent music labels, adding tens of thousand of new tracks to the iTunes store % -th 7eneration i4od introduced % i4od included in car stereos including Audi, 9onda and :olkswagen % introduced mobile phones with iTunes in collaboration with .otorola and *ingular 'ireles % i4od integrated with in%flight entertainment systems; Air <rance, *ontinental, =elta and 3mirates % changed name to Apple Inc % i4hone launched % .ac>ook Air introduced

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MAIN ACTIVITIES OF A%%LE

Apple strives to provide innovative products and solutions to their customers. The markets Apple services include consumer, small and medium enterprises, education, government and creative industries. They have a ma?or focus on research and development, aiming to stay at the forefront of the ever changing industry. Apple5s motto is @Think =ifferentlyA.

Apple % $ducts
Apple sells its products worldwide through its retail stores, direct sales force, online stores and third party wholesalers. They also sell products of third parties that are compatible with Apple products. Apple has five main product lines; . =esktops - i.ac - e.ac - .ac mini - 4ower .ac - .ac 4ro - 2serve 6. 4ortables - .ac>ook - i>ook - .ac>ook 4ro - 4ower>ook 8. i4od products - i4od &huffle, 1ano, *lassic and Touch - i4hone - i4od accessories - iTunes &tore - i4od services - i4od accessories -. Other music related products and services - hardware accessories of Apple - hardware accessories of third parties - wireless connectivity - networking solutions /. &oftware - operating system and application software - Apple*are - Internet services

Sta&e#$lde s
<or each activity undertaken by Apple, there are many stakeholders. The stakeholders and their issues for Apple online are shown in the rich picture on the following page. Cust$'e s >rowse the Apple website to look for products they want to purchase. They can use online help manuals or submit an enquiry if they have any problems with the website or any products they purchase. Acc$unts and B!ll!n( 4rocess the payments from the customers. It is important that they verify the authenticity of all transactions. % $duct Manu"actu e s 4roduce the products as specified by Apple. Through communication with the warehouse and monitoring of sales, they know how much of each product to manufacture. )a e#$use <ills orders made via the website and ships products to the customers. They also monitor stock levels and keep the manufacturers up to date. Syste' Ad'!n!st at!$n *reates and maintains the website. They ensure the usability of the website and are on standby to fix any problems that occur. Tec#n!cal and % $duct Supp$ t Are available to help with any customer concerns or problems with products. C$'pet!t$ s 'ill be keeping a watch on the activities of Apple and looking for opportunities to gain market share. Inte net % $*!de 4rovides the internet on which the website is based. They need to ensure the connection is reliable in order to keep Apple as a customer. Apple and CIO )eb +$*e nance and %$l!cy There are policies in place regarding content on the web. 4eople monitor the site to ensure it complies with these regulations.

INFORMATION SYSTEMS USED BY A%%LE

The information systems Apple uses include; Cust$'e e(!st at!$n database 'hen they make a purchase, customers create an account with Apple. *ustomers can opt in to receive marketing materials from Apple. Apple keeps the information of their customers on file for future reference. This also makes the purchasing process easier for return customers as they do not need to re%enter their details. T a!n!n( and ce t!"!cat!$n Apple training and certification to their customers. They maintain a database of courses undertaken by Apple users and IT professionals. Onl!ne s#$pp!n( *ustomers are able to browse and purchase products online. This function is explored more throughout this report. D!scuss!$n "$ u's Apple provides and monitors a discussion forum for customers. This allows people to discuss their experiences with each other and share knowledge. De*el$p'ent, $pe at!$nal esea c# Apple constantly follows both information technology and business developments across the industry. This allows them to keep in touch with their competition. S$"t-a e d$-nl$ads. updates and supp$ t Apple uses their website as a platform to provides customers with access to downloads, product updates and technical support. O (an!sat!$n C#a t $" Sen!$ E'pl$yees / c$ntact !n"$ 'at!$n0 Apple utilises an organisation chart and contact information for employees. The senior employees organisation chart is available for the public to view via the website. 1!st$ !cal t ansact!$ns / "!n!cal database Apple keeps a record of all transactions. They can use this history to help them develop strategies for the future. In*ent$ y 'ana(e'ent database Apple has an inventory management database. This allows them to keep track of their stock and manage the flow of products to accommodate demand. Tec#n!cal supp$ t ep$ t!n( syste' 2Apple e3pe t4 p$ss!bly !nclud!n( Apple maintains a frequently asked database of most asked troubleshooting questions and a repository for technical issues to help their technical support staff answer enquiries.

ONLINE %URC1ASIN+ )IT1 A%%LE

% $cesses The main processes required for the Apple &tore are; *reation and management of client accounts &hopping basket *redit card security system &hipping and distribution Inventory monitoring The Alter5s work system framework on the next page explores the various roles and processes involved in the online purchasing system. Comprehensive PESTEL analysis: Figure 1: PASTLE Framework for Apple Inc

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1, The following two pages show the processes involved with making an online purchase with Apple.com. &cenarios where the customer has an account with Apple and when they do not are provided.

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The diagram on the next page shows the process from the order being placed through to delivery of the item.

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)ebs!te E*aluat!$n 5 Apple0c$' Apple have clearly stamped there presence in the IT world for well over a decade. Bnown for there sheik cosmetic computer products filled with innovative technology, there web presence shows nothing less. <rom the moment you enter the home page you5re presented with simplicity and visual appeal. The main page provides a large, clear and easy to distinguish menu, visibly representing what Apple offer Cimage belowD.

=ue to the si(e of the site, Apple has offered the @searchA functionality within the menu. This gives users the ability to navigate through technical support documentation and the site with ease, saving time and a few extra clicks. The 'ebsite &tandards Association Inc. C'&AD is an organisation which has been setup to identify the minimum website standards that websites should practice to assist and educate internet users about how to get the most out of there website. *riteria '&A match against areE >usiness purpose .arketing Fseability andE Technology If this is anything to go by, apple have gone above and beyond with there innovative website design making the site prominent and purposeful with there web presence. An example of this is theE % $duct b $-s!n( 'enu CbelowD; >rowsing products has never been easier than before, simply scrolling the vertical slide beneath product gives users quick access to various product categories making the online shopping facility comprehensive and easy to use.

'&A visual standards layout state a site must be the followingE =ecorative and functional &ufficient text si(e 3asy layout andE Image use

1/ The image above taken from the .A* category of the Apple site clearly shows decorative and functional, effective si(ing of text, good layout and sufficient image use by all means which satisfy the visual appeal and standards of the site. It is evident Apple have researched there market and have a good understanding of what there prospective buyers require. There innovative ideas and current stand on the IT market proves Apple are here to stay. &ystems innovation is sought to be a crucial aspect of an organisations direction and goals. The definition of innovation states @a new way of doing somethingA, this can be through gradual, radical or revolutionary changes by thinking, products and processes with the organisation. Online transaction processing systems are innovative systems which allow organisations to conduct 3%commerce. 'ithout innovation and change the system would fall behind and fail to meet demands of global changes. It5s important to ensure organisations approach and direction should include the following when developing information and technical strategiesE Assist in supporting core technology of the business Innovations that support administration of the business andE Innovations which are imbedded within the core of technology they use The online transaction system can provide statistics from products being purchased in combination with decision support software to pro?ect and report market trends to allow strategical product base giving the organisation market advantage.

Secu !ty and Inte( !ty $" Data Apple store online offers customers the option of purchasing products online. As with many other online stores they provide this service with the proviso that the customer register with the site first. This serves two purposes, the first is that it enables Apple to track its usage, what is being purchased and the number of customer currently using the system. As well as this it enables the company to store information about the customer that can be used for research and advertising in the future. The second reason for having customers create accounts is that it enables the customer to enter their information once then simply use their login details again for future purchases. This saves the customer time and also provides a level of security for the customer by requiring a password to be created on the account. &ecurity on systems such as this must be up to a standard that provides complete security and piece of mind for the customer when giving out personal details. The focus of many security applications is the security of the customers credit card details. It wasn5t that long ago that it was simply not save to purchase over the internet due to hackers being able to access and use credit card information sent over the internet. The use of encryption and the introduction of security packages on every home computer has lessoned this risk however online stores need to take this to a higher level to protect

1 their customers. As the Apple site stores the information for later use by the customer they must ensure that no one will be able to access the information at any point for the life of the company. Apples privacy policy as outlined on the Apple website reads as follows. @Apple5s *ustomer 4rivacy 4olicy covers the collection, use, and disclosure of personal information that may be collected by Apple anytime you interact with Apple, such as when you visit our website, when you purchase Apple products and services, or when you call our sales or support associates.A This policy then goes on to outline why the information is collected and how it will be used. A particular point in this policy is the use of security software for use with credit cards and also how the user can help protect them selves. @The Apple Online &tore and iTunes &tore use &ecure &ockets Gayer C&&GD encryption on all web pages where personal information is required. To make purchases from the Apple Online &tore or iTunes &tore, you must use an &&G%enabled browser such as &afari, 1etscape 1avigator 8.! or later, or Internet 3xplorer. =oing so protects the confidentiality of your personal and credit card information while it5s transmitted over the Internet.A

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Alter. 6!!", .odelling information systems, Gecture notes distributed in the topic Information &ystems in Organi(ations C$8-+D at The Fniversity of *anberra, *anberra on $ .arch. Apple *omputer, Inc. Cn.d.D. =atamonitor *ompany 4rofiles Authority. Hetrieved .ay 6, 6!!" from 3>&*Ohost database. Apple Inc C6!!"D. Apple store. <irst viewed .ay /, 6!!", web site; http;IIwww.apple.comI 'ebsites standards association. C6!!"D. :iewed .ay /, 6!!" web site; http;IIwebsitestandards.orgI

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