TopBike Introduction: Herbert Owns And Manages A Bicycle Sho ✓ Solved

TopBike Introduction: Herbert owns and manages a bicycle shop

TopBike Introduction: Herbert owns and manages a bicycle shop called TopBike and has commissioned a feasibility study to examine improvements to the information system and to develop a TO-BE system specification. Based on the description of the current system and excerpts from the business plan, examine the feasibility of possible improvements and develop a model of the TO-BE system specification.

Paper For Above Instructions

Introduction

This study assesses a small bicycle retailer facing competitive pressure and rapid expansion. TopBike currently relies on largely manual processes for sales, stock control, repairs, and invoicing, with a plan to double turnover within three years. Given Herbert’s loan, existing stock management weaknesses, and the proposed outsourcing of IT development by Ged, the feasibility analysis considers whether a computerized stock control and order processing system is technically and economically viable, and how a TO-BE model should be specified to support the shop’s growth goals. The analysis draws on the provided system description and the business plan excerpts to identify core requirements and risks (Laudon & Laudon, 2020; O’Brien & Marakas, 2019).

Current System Overview

TopBike operates with a mix of in-store sales, telephone orders, and repairs, with stock controlled via manual card indexes. Sales are recorded in a sales book, receipts issued, and stock deductions performed at day’s end. Stock accuracy is unreliable, raising concerns about stockouts, theft, and reordering decisions. Repairs and custom-built bikes are tracked in separate lists, with quotes prepared by staff and payments expected at collection. Telephone orders rely on price and stock lists, and a designated staff member compiles stock and issues invoices from a counter/in-office workflow. Invoices and back orders are stored in paper records, with monthly debt reconciliation and occasional delayed repeat invoices if staff are unavailable. The business plan envisages expansion funded by a loan of £200,000 and includes a modest initial IT investment (approx. £5,000) with ongoing operating costs (£2,500 per year) and a potential for online advertising and an Internet site (Appendix excerpts).

Problems and Drivers

Major issues include: (1) inconsistent stock records leading to frequent stockouts or overstock; (2) lack of real-time visibility into sales, inventory, and back orders; (3) potential for misappropriation or human error affecting stock and debt collection; (4) a rudimentary ordering process that delays replenishment and customer satisfaction; (5) risk associated with relying on a part-time or under-trained staff member for critical IT development (Ged’s proposal). The business seeks to improve efficiency, accuracy, and customer service while supporting growth to £800,000 turnover per year as suggested by the bank-backed plan (Turner, 1997; Laudon & Laudon, 2020).

Feasibility Analysis (TELOS)

Technical feasibility: A small, integrated POS and stock-control system with barcode scanning, centralized stock data, and real-time sales processing is technically viable for a shop of this size. The hardware requirement (two PCs, peripherals, barcode readers, printers) aligns with Ged’s suggested investment and can be designed with modular components to minimize disruption. A web-enabled storefront could extend reach, but integration with back-office stock and invoicing must be carefully planned to avoid data silos (Sommerville, 2011; Turban et al., 2018).

Economic feasibility: The project must be assessed against the £5,000 initial IT investment, £2,500 annual operating costs, and potential efficiency gains from accurate stock, faster invoicing, and improved debt collection. If turnover doubles as planned (to £800,000 within three years) and wastage/stockouts decline, a positive ROI is plausible, but benefits must be quantified through a cost–benefit analysis, including training, maintenance, and any outsourcing costs. The existing loan structure creates pressure to deliver measurable savings and revenue growth within a reasonable payback period (Khosrow-Pour, 2018).

Operational feasibility: The organization must manage change, train staff, and establish governance around sales, repairs, and back orders. A phased implementation with clear user roles, security controls, and an audit trail is essential to minimize resistance and ensure data integrity (Avison & Fitzgerald, 2003).

Schedule feasibility: Ged’s two-month development window is optimistic for a reliable, integrated system, including data migration, testing, and staff training. A staged rollout, with a pilot in the counter area followed by full deployment, would reduce operational risk (Schwalbe, 2015).

Legal and security considerations: The TO-BE design should incorporate access controls, data backups, and protection of customer information to comply with basic data protection requirements and to safeguard financial data in the event of staff absence or turnover (Kendall & Kendall, 2016).

Proposed TO-BE System Model

The TO-BE model envisions an integrated, modular information system with real-time data across core business areas. Central components include a relational database capturing customers, inventory items, suppliers, sales, back orders, invoices, payments, repairs, and service orders. Modules would include:

• Sales and Point-of-Sale (POS): Real-time processing of in-store and telephone orders with barcode scanning, customer receipts, and automatic inventory deduction.
• Inventory and Stock Control: Real-time stock levels, automatic reordering thresholds, supplier management, and back-order tracking.
• Purchasing and Reordering: Supplier order generation, tracking of receipts, and automatic stock adjustments when deliveries occur.
• Repairs and Custom-Builds: Quoting, parts usage, labor tracking, and integration with stock adjustments and invoicing.
• Invoicing and Debt Management: Generation of invoices, payment tracking, and automated repeat invoices when necessary.
• Web Storefront and Order Integration: Online orders synchronized with back-office stock, pricing rules, and customer management.
• Reporting and Analytics: Real-time dashboards for sales, stock turns, debts, and profitability; management reporting.
• Security and Audit: Role-based access, change logs, and regular data backups.

The architecture could be implemented as a two-tier (local server plus client PCs) or a three-tier (web-based front-end with a centralized back-end database) solution. A small business-friendly approach is to start with a robust, on-premises system for core operations, with a phased move toward a connected online presence as confidence and data quality improve (Satzinger, Jackson, & Burd, 2012).

Data model overview (high level): Key entities include Item (SKU, description, price, cost, barcode, supplier), StockCard (item, date, quantity, transaction type), Customer (name, address, contact, credit terms), Invoice (invoice number, customer, date, total, status), Payment (invoice, date, amount, method), Order (order id, items, quantities, status), BackOrder (order, expected date), Repair (job id, item, parts, labor, VAT, status), and Supplier (name, terms, contact). Relationships support stock movements, sales, purchases, and revenue recognition, facilitating analytics such as stock turnover and aging debt.

Implementation Plan and Risks

A phased implementation is recommended. Phase 1 focuses on core POS, stock control, and invoicing for in-store transactions, with data migration from existing stock cards and sales records. Phase 2 adds telephone orders, back-order management, repairs, and the integration with the existing business plan’s forward-looking goals. Phase 3 extends to an online storefront and supplier portal. Training, change management, and a dedicated implementation sponsor are essential to success (Schwalbe, 2015).

Risks include over-reliance on Ged’s development capability without formal software engineering processes, potential data migration challenges, and underscoped requirements. Mitigations include external validation of the initial design, phased testing, data cleansing activities, and establishing governance for ongoing system maintenance. A detailed risk register should be created to map likelihood, impact, and mitigation actions (Avison & Fitzgerald, 2003).

Expected benefits include increased stock accuracy, improved cash flow from timely invoicing and debt collection, better customer service through faster order fulfillment, and scalable support for growth to the planned turnover target. A formal cost–benefit analysis should quantify benefits from reduced write-offs, fewer stockouts, and improved labor productivity against implementation and maintenance costs (Khosrow-Pour, 2018).

Conclusion

Given the operational constraints and growth ambitions of TopBike, a controlled, modular IT solution to replace manual stock cards and fragmented ordering processes is technically feasible and economically justifiable, provided the implementation is carefully planned, staff are trained, and governance is established to manage risk and ensure data integrity. The TO-BE system, with real-time inventory, integrated sales and invoicing, and web storefront capabilities, supports Herbert’s expansion strategy while addressing fraud risk, debt management, and customer satisfaction.

References

• Laudon, K. C., & Laudon, J. P. (2020). Management Information Systems: Managing the Digital Firm (16th ed.). Pearson.
• O'Brien, J. A., & Marakas, G. M. (2010). Introduction to Information Systems (11th ed.). McGraw-Hill.
• Stair, R., & Reynolds, G. (2019). Principles of Information Systems (14th ed.). Cengage.
• Turban, E., Pollard, C., & Wood, G. (2018). Information Technology for Management (10th ed.). Wiley.
• Sommerville, I. (2011). Software Engineering (9th ed.). Addison-Wesley.
• Pressman, R. S. (2014). Software Engineering: A Practitioner's Approach (8th ed.). McGraw-Hill.
• Schwalbe, K. (2015). Information Technology Project Management (8th ed.). Cengage.
• Avison, D., & Fitzgerald, G. (2003). Information Systems Development: Methods in Action. Addison-Wesley.
• Jackson, P. (2011). The Analysis and Design of Information Systems. Springer.
• Brooks, F. P. (1995). The Mythical Man-Month: Essays on Software Engineering. Addison-Wesley.