Business Intelligence and Analytics
jay.996
intelligentassignment1.docxAl Nahdee’s innovative medicine application
Introduction
Al Nahdee Pharmacies is a Saudi Arabian based pharmacy. The firm has decided to incorporate a loyalty program to their clients which they plan on integrating with their transactional systems. A loyalty program for customers is usually a tool used in marketing by many types of businesses with the aim of increasing their sales and preserving their client base. Customers are more likely to maintain their relationships with businesses that care about them for being a loyal client. These programs include discounts, gift vouchers, and points being awarded to the client which they can use to purchase more products or purchase products at discounted prices.
The strategy got its perks from its introduction by big firms especially in the U.S. economy that saw clients feeling eligible to such services. Currently, most clients look for firms that have such services because they feel more taken care of and appreciated with such services available. Al Nahdee Pharmacies intends on introducing this program to their clients in order to get them more involved and also to get more clients from the program.
General Background
Al Nahdee Pharmacies is a well-known firm located in Saudi Arabia. It is accessible to 60% of Saudi’s population by just being five minutes away. It is mainly focused in the provision of different types of medicine to its local clients in the region. The firm has been able to serve people of all ages but most precisely the working class of the kingdom. This is the main target audience of this program. Besides, the audience selected understands the importance more because they happen to use it everywhere else while doing their shopping.
The firm is known for its wonderful services and its timely deliveries in cases requiring delivery. This program is a strategy the firm is taking to improve customer satisfaction as it has noted that most firms are reaping benefits from having services that satisfy their clients better than in a rival firm.
Customer satisfaction is the main objective that the pharmaceutical firm is striving for. Medicine is a very sensitive product that requires a lot of care. Those who get these products are those who actually need them. Nobody goes to the hospital for prescriptions just for the sake. Therefore, it is vital how one handles this particular group. It is important for them to feel loved and valued. That is what customer satisfaction is all about. If a sick person gets to experience that, the next month’s medical subscription is sure to be bought from the same location.
General Description of the Decision Situation
Al Nahdee Pharmacies is a well and broadly known firm in Saudi Arabia. The firm is accessible to more than 60% of its population in the time frame of five minutes. The goal is to be able to reach 75% of its population. The firm want to enhance its relationship with the customers who frequently buy certain type of products such (hair course treatment, blood pressure medicine, heart medicine, etc.). In which they will be notified before their medicine end in several days.
The firm decided to introduce loyalty programs for their clients all over the kingdom. The loyalty plan came about due to a couple of reasons. First, there was the need for the firm to expand its territory in terms of the services that it provided to its clients. Also, the strategy would fall in line with the ambitious plans of the firm to expand and grow steadily each year while providing stable quality services to their clients. The firm was focused on moving forward collectively from all angles in unison rather than focusing on one aspect and forgetting about the rest.
It was very important that the firm introduced such a strategy to their business at such a time as they exponentially grew. Customer retention is the main purpose of the program. With loyal clients who purchase products from the firm, the firm can be able to record steady growth movement over time.
Type of Decision and The Importance of a DSS for the Firm
The loyalty program was intended to be integrated with the transactional system by the firm to enable the firm to notify people for the products they buy frequently. The firm came up with the idea through the decision support system. This system is generally used to support firms in the strategies it undertakes and the process in which it can be able to integrate the decision into the final product of how it may notify the clients about their products.
DSS Project
The DSS has three main components. They are the data management component, the model management component, and the user interfaces management component. The data management component focuses on collecting data and the decision support system. This is the phase that the firm used to make the decision on implementing the strategy of customer loyalty and the collected information that it used to notify that clients and be able to provide them with the service.
The firm might have obtained the information in a number of manners. First, the firm itself had data on clients served from the past. The firm might have used this database to measure how many of its clients had requested about the program or hinted in similar products from the firm. Also, transactional methods may play a factor in this. If most patients, for instance, used credit cards to purchase their medication, then the firm would be comfortable enough to introduce such a program since from the client’s point of view, it was clear that they understood how the program works in different firms.
The firm would have done a survey externally on how much the public would be willing to accept the program if introduced. Also, how it would affect the manner in which business gets conducted: whether it would change for the better or for the worse.
The model management component is the second phase of the system. This is the stage that brings different strategies that have been concluded by them together in order to get a smooth systematic way in which the firm might offer its services. It is commonly known as the kitchen process since it prepares systems and strategies just like preparing a meal before offering it on the table.
In the case of Al Nahdee Pharmacies, the firm decided to integrate the loyalty plan with the transactional system. The firm reached this decision because they understood the simplicity in combining the two. The transactional system involved the means of payment for services and products at the firm. The firm accepted cash and credit cards. Al Nahdee Pharmacies introduced a different card used as a loyalty card. This card will be updated every time a client gets medical products from their stores proving that the client is part of the loyalty program. So, every time a client purchase medicines or treatments from the store, the card recodes the date of purchase and notify the client when their medicine or treatment will finish.
Intelligent Phase
The circumstances of the company was that they needed to expand its territory in terms of the services they provided, needed to reach 75% of its population , and lastly wanted to grow. The user interface management component now involves finding a target market for the program. In the case of the firm, the target market was its whole audience since all of them need medicine when sick. The target would be mostly the Saudi Arabia population since there are many branches of the pharmaceuticals in Saudi Arabia. The larger percentage of the firm clients is middle-aged but the firm chose to focus on all of its clients. A person of any age can get sick and need the pharmaceutical services.
The DSS was used because of its comprehensiveness. It involves three steps that are simply put and are easy to manipulate around. Also, the system shows clear and precise results.
Design Phase
The market might not welcome the idea with open hands. It is crucial to remember that sometimes what might seem to work in the firm’s eyes might not work in the clients’ eyes. If the activities in the market are not friendly to the system being developed, then it might be quite challenging to implement the project. The system requires one to have the card at all times in order to update it frequently. If a client forgets the card, then the purchase for the medicine will not be done simply because of the lack of the card. The customers might as well get tired of such a system. Some may voluntary neglect the card while some may lose the card. The other alternative which to install Al Nahdee app and sign up with your name and password to create an account. Then simply choose the medicine’s name with the purchase date, and it will be recorded in the system.
Choice Phase
The alternative that expected to benefit the clients and the firm in the end is developing Al Nahdee app to notify the clients. The alternative has been proven by the design phase to be more practical to use. The introduction of such app will give Al Nahdee a competitive advantage in the market place. It’s more convenient to the clients because they do not have to carry an extra thing it will be on their phone wherever they go. Also, the app allows the clients to experience the feature of self-service for the first time. With these benefits, Al Nahdee will expect to meet its goal which is to be able to reach 75% of its population.
The model used in the project is normative model. Prescriptive in that it prescribes the alternative that the Al Nahdee should take to accomplish a defined goal. Based on the information given developing the app is the best alternative. The alternative courses of action and results are known and clearly define to Al Nahdee.
Work Breakdown Structure (WBS)
The DSS was handled by a specific group of well-informed staff members that strategized the manner in which the change would be implemented in the firm. The firm then concentrated first on the most important priority which was coming up with the loyalty program. A team was created to properly analyze how the loyalty plan would be integrated with the transactional program. The team comprised of highly skilled programmers and the project manager who was to oversee the entire process. Afterwards, a different team was used to assist in bringing the two concepts into one.
Customer Loyalty Program
General DSS Background
Choice Phase
Design Phase
Target Market
Data Management Component
Comprehensiveness
BI Solutions
Customer Satisfaction
Customer Retention
Model Management Components
Interface Components
Conclusion
Al Nahdee Pharmacies has set out on a new strategy that it perceives as beneficial to its clients and the firm in general. The firm has been able to strategize and use a proper system that is better than others to integrate the loyalty program with the transaction system. This, in the very end, will lead to greater customer satisfaction and more loyal customers. When a customer is very satisfied, then will make return purchases. This will therefore improve or increase the number loyal customers for the company. The volume of sales of the company’s pharmaceutical products will increase and thus, the profitability level of the company will increase. In the end, the company will grow due to the improved performance of the company. However, this develops a new challenge for the firm. Maintaining a program is more challenging than creating one.
References
· Power, D. (n.d.). What are the components of a decision support system? Retrieved from dssresources: http://dssresources.com/faq/index.php?action=artikel&id=101
· Toporek, A. (2012, 6 25). WHAT IS A LOYALTY PROGRAM? (AND WILL IT WORK FOR YOU). Retrieved from customersthatstick: http://customersthatstick.com/blog/what-is/what-is-a-loyalty-program/
· Understanding Business Intelligence Tools. (2017, 7 19). Retrieved from selecthub: https://selecthub.com/business-intelligence/key-types-business-intelligence-tools/
· Jouini, M.& Rabai, L. A.(2016). Design Challenges of Cloud Computing. In Web-Based Services: Concepts, Methodologies, Tools, and Applications (pp. 561-584). IGI Global.
1
