Please Use A Browser That Supports Canvas 630 Residency P

Please Use A Browser That Supports Canvasits 630 Residency Project

Please use a browser that supports "canvas" ITS 630 – Residency Project Circuit City was an American consumer electronics company founded by Samuel Wurtzel in 1949. By 1990s, Circuit City became the second largest consumer electronics store in the United States with annual sales of $12 billion. On March 8 2009, Circuit City shutdown all its stores. On January 8th at the 2018 Consumer Electronics Show in Las Vegas, Circuit City CEO announced a comeback and relaunch of Circuit City into “a dynamic, a social-focused e- commerce site” and a new business strategy for its retail stores. In this case study, assume that Circuit City hired you as the new chief information officer (CIO) to help relaunch the company into a global e-commerce multinational company.

Create a PowerPoint presentation containing the IT strategic plan that will address Circuit City e- commerce initiatives. The following information should be covered in the presentation:

1. History of Circuit City
2. What were the issues and challenges that caused the collapse of Circuit City in 2009?
3. What are the issues and challenges with Circuit City 2018 latest e-commerce initiative?
4. Discuss the major competitors in global e-commerce.
5. How would IT deliver value to the business?
6. Propose the IT infrastructure required to support global e-commerce
7. Propose the IT budget for the e-commerce initiative
8. Discuss the IT-based risks associated with global e-commerce
9. Discuss how IT can leverage innovative technologies such as social media, big data and business intelligence to provide value to the business
10. Discuss the future or emerging technologies that would be leveraged to give Circuit City a competitive advantage.

Paper For Above instruction

Introduction

Circuit City’s journey from inception to its resurgence offers valuable insights into the dynamics of retail and e-commerce. Founded in 1949 by Samuel Wurtzel, the company's prominence grew over the decades, positioning it as a major player in consumer electronics retail. However, its collapse in 2009 underscores the challenges traditional brick-and-mortar retailers face amidst evolving consumer preferences and technological landscapes. The 2018 relaunch as a social-focused e-commerce platform marks a strategic shift towards integrating digital innovation to regain market relevance.

Historical Overview of Circuit City

Circuit City was established as a pioneering retailer in consumer electronics, expanding rapidly across the United States. By the 1990s, it operated over 700 stores, with an annual sales revenue of approximately $12 billion. The company was renowned for its wide product selection, competitive pricing, and customer service. However, it faced stiff competition from emerging big-box retailers like Best Buy and online platforms such as Amazon. Internal management issues, inventory mismanagement, and an inability to adapt swiftly to technological changes contributed to its decline, culminating in the closure of all stores in 2009.

Challenges Leading to Circuit City's Collapse in 2009

The failure of Circuit City can be attributed to multiple factors. A significant issue was its failure to innovate and adapt to the digital age swiftly. The rise of online shopping platforms disrupted traditional retail models, and Circuit City's late transition to e-commerce hampered its competitiveness. Additionally, poor financial management, high operating costs, and declining customer satisfaction due to subpar service levels further impacted its performance. The economic downturn during the 2008 financial crisis also exacerbated the decline, leading to bankruptcy and store closures, marking one of the largest retail failures at the time.

Current Issues and Challenges in the 2018 E-commerce Initiative

The relaunch efforts face several hurdles. Building a robust and user-friendly digital platform that replicates or surpasses the in-store experience is complex. Ensuring supply chain synchronization for real-time inventory management is critical, especially for a global scale. Customer acquisition and retention in a highly competitive online market require innovative marketing strategies and personalized shopping experiences. Moreover, integrating social media and community engagement features adds complexity but offers opportunities for brand loyalty. Data security and privacy are paramount, necessitating stringent cybersecurity measures to protect consumer information against increasingly sophisticated threats.

Major Competitors in Global E-commerce

Global e-commerce is dominated by giants like Amazon, Alibaba, and Walmart, which leverage extensive logistics networks, AI, and data analytics to optimize sales and customer experience. Amazon’s dominance in logistics and cloud services provides significant competitive advantage. Alibaba’s strength in the Asian market and its integrated ecosystem of shopping, payments, and cloud computing make it a formidable competitor. Walmart, traditionally a retail giant, has made aggressive investments in online presence through acquisitions and technology adoption. New entrants and niche players specializing in specific verticals also threaten established players, underscoring the importance of innovation and agility in the digital marketplace.

Delivering Value through IT

IT can significantly enhance Circuit City’s value proposition through customer-centric innovations, operational efficiencies, and data-driven decision-making. Implementing advanced CRM systems facilitates personalized marketing, increased customer satisfaction, and loyalty. Cloud computing offers scalable infrastructure for accommodating fluctuating traffic and product data processing. Artificial intelligence and machine learning enable predictive analytics for inventory management and targeted advertising, reducing costs and increasing sales. Enhancing cybersecurity measures protects intellectual property and consumer data, building trust and compliance with regulations.

Proposed IT Infrastructure for Global E-commerce

A resilient, scalable, and secure IT infrastructure is essential. Cloud-based platforms like AWS or Azure provide flexible hosting and data storage, accommodating global traffic and data sovereignty requirements. Content Delivery Networks (CDNs) ensure fast page load times worldwide. An integrated Enterprise Resource Planning (ERP) system links supply chain, inventory, and sales data in real-time. Robust cybersecurity measures including firewalls, encryption, and intrusion detection systems safeguard sensitive information. Additionally, a Customer Data Platform (CDP) helps in consolidating customer information for personalized experiences. The infrastructure should support omnichannel integration, mobile responsiveness, and API-driven services to ensure seamless user engagement across devices and platforms.

IT Budget for E-commerce Initiative

The IT budget should allocate funds toward infrastructure development, licensing, cybersecurity, and ongoing maintenance. An estimated initial investment of 15-20% of projected gross sales revenue over the first two years is advisable. This includes costs for cloud services, hardware, software, development, staff training, and marketing technology. Continuous investment is necessary for system upgrades, security compliance, and innovation adoption. Budgeting should also consider contingency funds for unforeseen cybersecurity threats or technology failures, ensuring resilience and continuous operation.

Risks Associated with Global E-commerce

Risks include cybersecurity threats such as data breaches, hacking, and distributed denial-of-service (DDoS) attacks. Compliance risk arises from differing international laws regarding data privacy, consumer protection, and taxation. Supply chain disruptions can impact inventory availability, especially across borders. Currency fluctuations and economic instability pose financial risks. Additionally, technological risks such as system outages or failure of third-party services can disrupt customer experience. Managing these risks requires comprehensive cybersecurity protocols, legal compliance strategies, diversified supply chain management, and robust disaster recovery plans.

Leveraging Innovative Technologies for Business Value

Social media platforms serve as powerful channels for marketing, customer engagement, and brand loyalty initiatives. Big data analytics enables the gathering of vast customer data to derive insights for personalization, targeted offers, and trend analysis. Business intelligence tools facilitate decision-making by providing real-time dashboards and critical performance metrics. Chatbots and AI-driven customer service enhance user experience by providing instant support. Augmented reality (AR) and virtual reality (VR) can be employed for immersive product visualization. Collectively, these technologies streamline operations, increase customer satisfaction, and foster innovation-driven growth.

Emerging Technologies for Competitive Advantage

The future of Circuit City’s competitiveness lies in adopting emerging technology trends. Artificial intelligence and machine learning will continue to optimize logistics, personalization, and predictive analytics. Blockchain technology may enhance supply chain transparency and secure transactions. 5G connectivity will enable faster and more reliable online interactions, supporting innovations like augmented reality shopping experiences. Internet of Things (IoT) devices can provide real-time data on product usage and inventory levels. Additionally, advancements in edge computing will reduce latency, enabling near-instantaneous data processing essential for real-time personalization and security. Embracing these technologies will not only streamline operations but also create new avenues for customer engagement and experience enhancement.

Conclusion

Reimagining Circuit City's digital journey requires a strategic and integrated approach to leveraging cutting-edge technologies, robust infrastructure, and comprehensive risk management. By aligning IT with business objectives, fostering innovation, and maintaining agility, Circuit City can regain its competitive edge in the global e-commerce landscape and realize sustained growth and customer loyalty.

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