BUSINESS OPERATIONS AND SYSTEMS

BUSINESS OPERATIONS AND SYSTEMS

Introduction

OpenTaste is an innovative online market for fresh products with a huge customer base in Singapore. As such, the firm has developed an effective produce logistics for perishable produce in Singapore. OpenTaste gathers its produce from over 200 farms and food manufacturers in the Southeast Asian region. The company has a competitive advantage over its competitors since it delivers products within the shortest time possible hence governing a huge customer base. Furthermore, the prices for the products are relatively low, helping the company develop a unique online platform to sell fresh products. At the click of a button, customers can purchase dairy, meat, and other farms produce at the convenience of their homes. Therefore, innovative logistics has helped the business develop a strong online marketplace for its fresh products.

Business Model and its components

The value proposition model has been considered to evaluate the case for OpenTaste since it provides value for its customers through auto-pilot and online platform strategies (OpenTaste, 2019). As such, the company considers customer value proposition based on its four main components: recap needs, solution, differentiation, and proof. The recap needs to ensure that the business of the organization is on the right track and that the customer’s primary needs are not neglected. The process starts by recapping the needs of the customer. Also, the solution component ensures that the highlighted problems are articulated based on the customer needs at OpenTaste. The solution might not include every single feature and every single reason for implementation; hence the most important criteria that serve the needs of the customers are implemented in the system (Goyal, 2019, pp. 1).

Besides, differentiation provides a competitive threat as a major factor for organizations to cope with market challenges. The solution should be different from its competitors to increase provide value to customers. Hence, the organization should work on improving customer needs, rather than focusing on the other aspects of their business. Finally, proof helps document the system, and the test cases for the system are to be designed so that there is ample proof for the implemented solution, and a scope for system improvement. Hence, all the steps are very necessary for the development of a strong Value proposition (Mahajan, 2016).

Soft System methodology and evaluation

The soft system methodology has been used to evaluate the system utilized at OpenTaste (Islam, 2018, pp. 1). The methodology has been used for fostering the learning process at OpenTaste and mitigate problems that arise in the organization. Customers shop online with OpenTaste since the firm allows its customers to purchase fresh and high-quality products from a worldwide farmers market. Hence, the customers have the products delivered to their doorsteps within 36 hours from the time of harvest (Goyal, 2019, pp. 1). The soft systems methodology stands to evaluate the issues the company would face if they introduce hybrid systems and facilities. As such, the operation strategy performance model outlines that the firm needs to provide initial awareness of the introduced concept but would be too costly (Islam, 2018, pp. 1). Consequently, the company would be faced with challenges while striving to improve their operations to achieve a collective approach to physically providing fresh products to its customers.

Issues faced by OpenTaste

Aging Population

There is a huge challenge for the organization as it is located in Singapore, and there has been a huge growth in the number of aged people in the country. The youngsters in the country are very informed about the newest technologies, are very tech-savvy, and are in fine tune with the world’s global consumer habits. The older demographic forms the customers for OpenTaste and make regular deals with the company (Cheng, 2019, pp. 1). However, keeping things simple for the organization involves the various complex procedures to be integrated into the system, which poses a huge challenge for the organization. Currently, the organization has an internal analytics team that would be able to go through the data that have been generated from around half a million customers (OpenTaste, 2015). Hence, this high level of data requires analysis within a very short time that would be very difficult for the organization. Hence, this is a major challenge for the organization.

Barriers to adding new technology:

The organization faces challenges in the integration of newer technology with the older system already present in the organization’s business. The company faces the challenge both from the perspective developed by customers and the internal staffs. The customers are generally hesitant to use services that are introduced by the companies in the first place. Hence, performing any activity that is associated with the organization and newly introduced is generally challenging for OpenTaste. For instance, the customers did not accept the introduction of the self-check-out counters by OpenTaste hence the failure of this type of project (OpenTaste, 2019, pp. 1).

Introduction to hybrid facilities

The use of hybrid facilities within the OpenTaste has been developed hence a requirement of combining the inputs, states, outputs, and the other system dynamics being adopted (Hoffman, 2019, pp. 1). There has been the use of finite-state logic so that the company can govern the continuous physical procedure. As such, the company aims at building hybrid systems from scratch and complete the work at a discrete side (Beckett, 2019, pp. 1). The hybrid system would provide physical stores while still ordering foods online at OpenTaste. As a result, the customer value model shows that the company has to innovatively utilize technological developments and communication to address its inability to adapt to on-demand services at its outlets (Mahajan, 2016, pp. 1).

Similarities and difference of the business models

OpenTaste utilizes flexible auto-pilot and online platform models in marketing its fresh products in Singapore. As such, the models compare since they utilize tracking technology to deliver food products to their customers’ doorsteps. The models have utilized modern technological developments to promote their effectiveness and efficiency while delivering fresh farm produce within the shortest time possible (Living, 2019, pp. 1). Also, the models compare because they have increasingly narrowed their delivery time and ensuring their clients are better informed on approaches to be used by the company. So, the models ensure they provide big incentives that lure potential customers into shopping with the company. Therefore, the company has provided straightforward ventures required by modern companies to market their products through online means.

On the other hand, the models contrast since the auto-pilot model allows for re-order and modification of customer-orders at any time. However, the online platform model utilized by OpenTaste has minimized opportunities to modify specific orders to the short delivery times expected by the customers (Sek, 2017, pp. 1). Hence, there have been huge disparities between the two models because OpenTaste has embarked on strategies to eliminate the middle man. Instead, the company has developed a community-centric approach, thus downplaying the role played by the online platform model.

Appropriate solutions

OpenTaste should improve its produce and food delivery platforms to increase its competitiveness in the market. As such, the delivery platform would be capable of easing how customers select and buy products from the company. Therefore, the company should ensure that the delivery platform utilizes a decentralized inventory and delivery chain to serve its customers (Cheng, 2019, pp. 1). As a result, the company would be capable of connecting the highest quality farmers to competent food makers in Singapore. The initiative to improve the efficiency of the food delivery platforms is to lower the cost to shoppers hence increasing their loyalty to the company products. The company should improve its food delivery platforms since the current customer digital presence does not meet the required client experience. So, the development of the decentralized inventory and delivery chain stands to provide unique and innovative means to serve the huge customer base in Singapore.

Moreover, OpenTaste should utilize the social aggregating delivery system to provide its customers with high-quality products at competitive prices. Based on cost, the social aggregating delivery system is the best strategic approach since locally grown would be available to the customers within just 24 hours (OpenTaste, 2019). As such, the company would be able to provide unique and innovative services hence increasing its competitiveness and helping its customers select and buy products from the company. Hence, the company stands to safeguard its long-term sustainability in the Singaporean market due to its ability to provide customers with a satisfactory experience (Sek, 2017). So, the firm would be capable of addressing client needs that are required in the customer value chain required to achieve long-term market sustainability. Thus, customer value while making online purchases would be achieved since the online platform business model addresses pertinent issues in the delivery chain.

Response to the parcel conundrum

The parcel conundrum makes the easy and efficient process of online ordering meet the realities in the real order delivery process (Bomford, 2012). The case portrays the dark side of the online business conducted by various types of organizations such as OpenTaste. In the described case, Richard Wilding is a victim of this parcel conundrum (Bomford, 2012). In the scenario, the customer was expecting a parcel from the company for a week and did not receive it. However, the box was later discovered from a hedge near their house. Also, the customers have been quoted saying that they do not have any hedge around their house, and hence the delivery of the order was done half a mile away from the house. As such, various companies have missed the delivery card and have made claims that their delivery was successful despite evident failures.  OpenTaste has developed some business strategies so that they would be able to make some changes in the delivery process hence providing a satisfactory customer experience (Glykas, 2013, pp. 10). The organization has decided physical centers where customers can pick fresh products instead of being delivered to their doorsteps.

Part 2

Root Definition

The root definition provides information about what the system does, how it does, and how it is being done.

The iDine system aims at providing immediate customer satisfaction by providing them with an automated touch screen system.

CATWOE

The full form of CATWOE is Customers, Actors, Transition, Weltanschauung, Owners, and Environment.

Rich Picture

Problems and Solution

The main problems that are faced by the organization are after the customer places an order, makes the payments, and provides the delivery address. The organization does the shipping from there end (Friend & Jessop, 2013). However, the problem arises after shipping is done, and the delivery is lost before the customer receives it. The customers of the organization are unsatisfied with the services of the organization.

As a solution to the problem, the organization has planned to implement different centers in different locations where the customers can pick up their fresh produce. (Gorod et al., 2014, pp. 4).

Business Process plan

As-Is

In As-Is 5, the customer accesses the system online from any type of device that he has access to. After this, the customer surfs through the organization’s website and looks for the items of their need (Friend & Jessop, 2013). After getting a suitable product, the customer then adds the product to the cart. After the product has been added, the cart checks out of the system, and the order is sent to the organization’s sales department. The sales department then checks the database available to see if the requested product is available in the stock or not and hence makes a decision accordingly. If the product is unavailable, the customer’s request is canceled (Living, 2019, pp. 1). In case the product is available, the sales department forwards the order to the shipping department. The shipping department fetches the item from the green produce warehouse and forwards the order to the delivery department with all the necessary information made available to them. The delivery department then contacts the delivery companies and the forwards the fresh produce. The main task of the delivery department is to check the products and pack them accordingly so that it is presentable to the customers. The customers would be able to get the delivery from the package service companies.  The courier company cannot be trusted at all times; hence, sometimes, errors in the management of the parcels take place, creating discomfort at both ends: the customers and the organization. Hence, the organization needs a solution for this process.

To-Be

The to-be process of the OpenTaste has been implemented to improve the current procedures followed in the organization. The organization has improved its delivery process with the implementation of the new system in their business model. In the new model, the customer comes online to view the products provided by the organization. The customers then surf through the products to select a product and make a choice (Living, 2019, pp. 1). After the customer has selected the product, the customer then adds it to the cart. During this process, the salesperson is notified by the system, and the salesperson thus receives the order (Muller, 2018). The order is then checked by the salesperson to see if the product is available. In case the product is unavailable, the salespersons reject the order, and the information about the product being out of stock is displayed to the customer. The customer then no longer can add the product in the cart, and he surfs for other products (Gorod et al., 2014).

In the scenario where the product is available in the salesperson approach, the shipping department, which receives the product from the warehouse, packs it according to the customer’s requirements. The parcel is then dispatched to the delivery department for dispatching of the parcel.  In the To-Be process, the organization has replaced the inclusion of the external courier services with its services. They have set up their distribution centres for the customers where the customers are notified once their parcels arrive. In this system, after the product is ready, the customers are notified to ease the delivery process. The customers are instructed to collect their parcel within 14 days of arrival. If the customer does not collect their product within 24 days, then the product is returned to the warehouse, and their order is canceled.

Part 3

Description of the New System of OpenTaste

The new system would be integrated with the old system; however, only the system’s delivery procedure would be changed. Hence, all the previous functionality in the old system would be maintained along with the system’s implementation, which would have a modified delivery system (Sedosheva, 2011).

Resources required

The resources required for the development of the system are several fresh produce farms that can be used as the distribution center for the customers. The customers would be able to visit the delivery centers and pick up their fresh products. In addition, the organization would also require several human resources to be allocated in the distribution centers (Clarke, 2010).

Cost of implementation

The cost incurred for the development of the system involves the cost of the acquirement of the warehouse and the procurement of the employees who are required to be allocated to the system. Besides, the cost for the improvement of the system is also very important, and hence there would be cost considerations regarding the development of the new systems (Tarigan & Widjaja, 2012).

Performance model

The performance model is used to evaluate the performance of the new system implemented for the OpenTaste. The performance model which is to be considered for the evaluation of the system should include customer satisfaction, sales growth, and customer feedback as the measure for the evaluation of the system for the OpenTaste company (Clarke, 2010). The metrics obtained here would be used as a benchmark, and the organization would like to attain that benchmark for the development of the system.

Balance Scorecard

(Tarigan & Widjaja, 2012)

Conclusion

The report outlines the business model adopted by OpenTaste to achieve market sustainability in Singapore. The soft system methodology exemplifies some of the challenges that the company would be facing and provide the right course of action, which must be followed by the management. Response from the parcel conundrum stipulates to provide long-lasting solutions that the firm must adopt to address problems they are currently facing in their marketing environment.  Besides, the root definition aims at providing the customer with immediate satisfaction hence raising their value in the fresh produces company. Finally, the final part describes the new system which must be adopted by Opentaste to achieve their set goals and objectives in Singapore.

References

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