This document outlines an internet-based business model for selling shoes globally through 10 companies. The business aims for superior customer service and discusses challenges like expansion against competitors like Amazon as well as benefits like quality service, efficiency, and reputation. Core values around maintaining customer experience and transparency are emphasized.
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Kirby mt400 unit1
1. Shawn Kirby
MT400
August 15, 2012
2. INTERNET BASED BUSINESS
BPM PRO AND CONS
BPM MODEL
MISSION GOALS AND STRATAGIES
3. Location Internet
Size 10 Companies
Business Area Global
Business Goal Superior Service
Objective Shoe Sales
4. Challenges Benefits
Expansion Quality Service
Amazon.com Efficiency
Restructure Reputation
7. http://knowledge.wpcarey.asu.edu/article.cf
m?articleid=1736
http://about.zappos.com/zappos-story/in-
the-beginning-let-there-be-shoes
Jeston, J. & Nelis, J. (2008). Business Process
Management: Practical Guidelines to
Successful Implementation, (2nd ed.).
Burlington, MA 01803: Elsevier Ltd.
http://knowledge.wpcarey.asu.edu/article.cf
m?articleid=1736
Editor's Notes
#3: We are examining Zappos.com an internet business founded in 1999 by Nick Swinmurn. The success of this internet business is traditional customer service with a lot more customer service but primarily a company culture that steers clear of the internet blog of like or dislike. We could say that this company is not interested in selling shoes at first but is mainly interested in developing a relationship with the customer. So this is the ultimate customer experience. The employees are happy and the customers are happy and the results are 840 million in gross merchandise sales in 2007 (Carey, 2009). The basic online BPM is applied and with a promise to the customer that if its advertised its in stock. The merger with Amazon.com poses some challenges to the BPM with the new expansion in July of 2009 (Zappos, 2012). This addition to the Zappos family caused a restructure that spawned ten separate companies for Zappos (Zappos, 2012). This could trigger a new approach to the current BPM to ensure stability. The BPM model will still focus on company culture and the customer experience and shares these values with Amazon.com, Inc. Zappos is only concerned with one goal superior service to the customer that allows for future expansion based on this fundamental concept. References:http://knowledge.wpcarey.asu.edu/article.cfm?articleid=1736http://about.zappos.com/zappos-story/in-the-beginning-let-there-be-shoesThe Mission Statement for Zappos is not about the Zappos products but who they are selling the product too. They are trying to build a unique relationship with the customer and the customer is the mission statement. Zappos mission is to give the best customer service and the ability to sell any product to the customer. So superior customer service guided by 10 core values that helps their employees achieve this goal and keep their cliental coming back. The Goals of Zappos are to win the customer and by achieving this they will be able to sell any product to them. They also go by the motto of there is no I in team and how teamwork has established the company and allowed it to market more products. The goals are to deliver core values and a WOW experience. The employees are encouraged to be adventurous and create a positive team to further growth. These values allow the goals of the company to become a reality. Zappos uses a well designed web site and utilize blogs to communicate. This would be the only company that uses twitter and does it successfully. The balanced scorecard is the cost of doing business and customer satisfaction.
#4: The location is an online business that was started with the concept that 30% of all retail transactions will be online (Zappos, 2012). The customer will be the main focus. A very simple but effective strategy they still maintain. To indicate the size of Zappos they have restructured in to ten separate companies with an addition of Amazon.com. They are a global online business that provides core values in their culture. The main objective you would think would be to sell shoes but it is secondary in the sense of a bigger goal. That is develop a relationship with the customer give them the ultimate experience and keep them coming back for more. The Merger with Amazon will create complexity and a BPM model will allow for a process layer and application of different strategies if applicable (Jeston, J. & Nelis, J, 2008). ReferenceJeston, J. & Nelis, J. (2008). Business Process Management: Practical Guidelines to Successful Implementation, (2nd ed.). Burlington, MA 01803: Elsevier Ltd.
#5: The challenges that face Zappos and Amazon are not the service they provide but the expansion of the business. This merger has restructured Zappos into ten different companies and could impact the quality of customer service. The BPM will be tested to the fullest in its online approach to the customer service experience. The current BPM and the addition of these individual companies will rely heavily on the culture of this unique company and how well this current BPM is implemented. The benefits of these changes offers Zappos to provide the same superior customer service and prove that even with expansion the current BPM has the correct structure and backbone to withstand the expansion. The efficiency of their service will be centered on the central core of the process model that will come initially from their customer service desk and how the order is handled and entered into the system to create the correct flow. Any incorrect data input will be received by the accounts department to retrieve the correct information. We can also anticipate front end processor problems with transactions due to environmental or hardware issues. The reputation of each company has been established and is essential to maintain that status. In avoiding major issues both companies will enjoy future profit earnings and allow to apply a more complex business structure when needed.
#6: The overall model of Zappos really starts with the company culture. The process is in place as any other business model would function online; I would divide the concept of the BPM of Zappos into two fundamental aspects. The software or the process it takes for the service to flow from the initial order to the customer receiving the product. The software can make up the overall flow and efficiency and how this process is actually performing and should be measured. The employees, customers, equipment, and shipping departments will make up the hardware of the process. Breaking this process down will allow better troubleshooting in strategic changes to the BPM. Zappos is opposite in the tradition of many things and uses this transparency to gain an advantage and manage the business externally with the help of its vendors. If you were to say that is not the way to run a business Zappos would say this is the only way to run our business. The culture of this company has a blend of ten core values they have created to provide the best customer support which include: deliver "wow" through service, embrace and drive change, create fun and a little weirdness, pursue growth and learning, do more with less, be humble (Carey, 2009). Referencehttp://knowledge.wpcarey.asu.edu/article.cfm?articleid=1736
#7: My intentions of this power point are to gain an understanding of the BPM that is used by Zappos internet based company. The goals were to gain a full understanding of how a company such as Zappos has used a very traditional approach to the customer and has captured the hearts and mind of their cliental. Additionally Zappos breaks all the rules and gives us the understanding that maybe rules are actually the problem with the way companies approach the BPM. This is not to say that the process that Zappos uses is superior above all others but simply put it just works. We see how this type of company has put customer service above all and included their employees on that same list. The reputation has been established and the efficiency of the service has been consistent. The goal is to find the looming problem that nobody sees coming and develop a contingency plan to solve any BPM errors that may arise at Zappos and enhance the process more so. Part of Zappos organizational strategy is a 10 core value approach with their employees. They want to deliver a WOW experience and give the best service that is possible but they go further than that. They encourage change and the ability to adapt to the customers needs and basically have fun doing it. They are also advised to have an open mind and create different and better processes as needed. The idea here is basically a very simple approach and to be honest with the customer and have a sense of passion for your job. One BPM model does not fit all and this is why the core values give Zappos the flexibility to continuously change and adapt.