red cliff wines business informatics

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Executive Summary

The ollowing report is based on Red Clif Wines. Red Clif Wines was recentlypurchased by Sally Spoljaric and in that time we hae already addressed some o thesales issues that were !awed. "y also coming up with uture strategies and ocussingthese# sales are already on the improe which is allowing the ocus to go orward ontothe uture growth and plans.

$lready Red Clif Wines has approached other bouti%ue wineries in the area with theproposal to hold their wines and sell them collectiely and share the costs. Red ClifWines is also proposing to include in its new &'Commerce platorm a website where itwill also the other bouti%ue wineries wines or sale. "y haing this proposal it wasidenti(ed that the )normation System platorm is not ade%uate and this report

addresses this current de(ciency# loo*s at what )normation System is ade%uate andhow it will be implemented. )t will also loo* as to how this can be integrated with the &'Commerce site and how Social +edia can help promote the business.

The report loo*s at the (rst stage project o building a Restaurant , Cellar -oor andimplementing the )normation System and the &'Commerce. This would help tostrengthen Red Clif Wines in not only the local region but also urther as the local areao +ildura and it surrounds has approimately /00#000 isitors per year.

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Table o ContentsExecutive Summary 1

1.0 Business Information System Proposal 4

i +ildura and 1ocal $rea2

ii 1ocal )ndustry 3

iii )nrastructure 3

4. Power 3

5. Postal and Telecommunications 6

/. Cable and )nternet Serices 6

i Transport6

Red Clif Wines Proposal 6

1.1 Business Information System 7

4.4.4What business )normation System will you implement in your business7

4.4.5 What are the bene(ts o your proposed inormation system or your business7

4.4./ What s*ills will you and your staf re%uire to use and support this system 7

1.2 Business Strategy

4.5.4 8sing Porter9s :alue Chain +odel# what strategies will you use in your businessor competitie adantage ;

1.! "ata an# $no%le#ge &anagement 10

4./.4 8sing +icrosot $ccess# create an &ntity Relationship -iagram o a database oryour business 40

4./.5 Create a business process map that uses inormation rom this database 44

1.4 Social 'omputing 12

4.2.4 What social networ*ing strategies will you use or your business 454.2.5 Why are these strategies important 42

1.( E)*usiness an# E)commerce 1+

4.3.4 What e'business and e'commerce solutions will you implement 46

4.3.5 What are the ethical issues you need to consider when implementing thesesolutions 47

1.+ Information Systems %it,in t,e -rganisation 1

4.6.4 8sing +icrosot &cel# create an eample o an accounting report that you woulduse in your business 4;

4.6.5 &plain the importance o this report and how this will be used in yourorganisation 4 Picture o +ildura Rural City by local goernment map 2

=igure 5> Picture o Shire o Wentworth local goernment map 3

=igure /> &stimated ?ardware , Sotware costs ;

=igure 2> Porters Chain +odel SW@T $nalysis or Red Clif Wines 40

=igure 6> &R- database o ordering process 44

=igure 7> "usiness Process +ap 45

=igure ;> ?ootsuite Plans A )nclusions 42

=igure =aceboo* Sign )n Page 43

=igure 40> $ge -istribution on Social Betwor*s A @nline Communities 43

=igure 44> Twitter Sign 8p , 1ogin )n Page 46

=igure 45> &.Pages )ntegration with uic*boo*s 47

=igure 4/> )ncome Statement or the Dear &nding /0 Eune 5043 4 :ine Planting and approimate Sales rom Dield 50

=igure 43> Wage A Salaries &stimates 50

=igure 46> Wor* "rea*down Structure 54

=igure 47> Fantt Project Chart 54

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1.0 Business Information

System ProposaliMildura and Local Area+ildura is located in Borth Western :ictoria approimately 325*m rom +elbourne and/


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3igure 2 Picture of S,ire of /ent%ort, local government map

ii Local Industry+ildura is *nown or been a major producer o Citrus ruits# wine and grape production.

There are many arms and wineries within the region and the other main boost or theeconomy in the region is Tourism. The tourism mar*et is mainly domestic and isestimate to hae approimately /00#000 isitors to the region and hence why +ilduraboasts the third busiest airport within :ictoria. There has been a push in recent timesto target the tourism mar*et particularly as a ood loerGs destination which wor*s handin hand with the wineries within the area. The local area is well sericed by means oacilities or the community# but more needs to be done to help the armers within theregion all o the time rather than some o the time which is what has been happeningwithin the region in the past. This is why we beliee that there is also a mar*et or acellar door and a restaurant to capture the tourists that come within the region.

"y also been in this region it also means that i Red Clif Wines epands in the mannerthat the business owners hope it would then there are plenty o purchase opportunitieso other wineries in the area that they will be able to epand to also.

iii Infrastructure

1. PowerPower or the region is receied through the national grid and there are numeroussubstations within the region which allows a high reliability o the networ*. Thereis a Concentrator Power Station located in the region which is a 4.3 megawattdemonstration plant. )t was proposed to be epanded to a 400 megawattconcentrated photooltaic solar P: system# but this was abandoned in $ugust5042 due to goernment changes in policy and reduced inestment opportunitiesH+ilduraregion.com.au# 5043I.

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$s Red Clif Wines grows itwould also be important to loo*

at the purchase o a bac* up Fenerator to ensure business is not disrupted in thecase o any outage. $llightSy*es hae options or this which would then ensurereliable power no matter what the situation.

2. Postal and telecommunicationsTelecommunication inrastructure is proided by Telstra by means o (ed lineand mobile phone coerage. There are other proides who also proide mobilephone coerage howeer it may not span the whole region. Postal serices in+ildura itsel is sericed by three $ustralia Post outlets with option o &pressPost serices aailable to send within :ictoria or net day deliery.

3. Cable and Internet ServicesTelstra also proides inrastructure or $-S1 broadband internet serices. Thereis also a proider called Beighbourhood Cable which proides )nternet# :o)P# Pay'

T: serices. Pay'T: serices are also aailable by Satellite by =otel Hpreiously$ustarI.

iv Transort Services+ildura is uni%ue in the act that it has had no passenger rail serices since 4


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will establish the brand o both RedClif Wines and the other wines been

sold.

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1.1 Business Information

System

1.1.1#$at business Information System will you imlement in yourbusiness%

To ensure ultimate surial to the bouti%ue wineries o the area Red Clif Wines ofers asolution that allows all o these businesses an option to share costs o storage and stafthat they usually would hae to underta*e on their own. "y sharing these costs it willhelp to ma*e all o the bouti%ue wineries more competitie against the larger wineries.

The )normation System that will be implemented within Red Clif Wines is a unctionalarea inormation system H=$)SI. $ =$)S wor*s by generating reports in each o its

unctional areas ie. $ccounting# +ar*eting# ?uman Resources and Production ,@perations +anagement. $ll o these unctions will be important to the current anduture growth o not only Red Clif Wines# but also the other bouti%ue wines who theywould be in partnership with.

The =$)S system that Red Clif Wines will purchase is uic*boo*s as it also allows otherplug ins to other types o systems which could be lin*ed in as we go orward.

1.1.2 #$at are t$e bene&ts of your roosed information system foryour business%

The bene(ts o the proposed =$)S System will not only bene(t Red Clif Wines but alsothe other bouti%ue wineries within the area. )t will allow trac*ing o inentory and the

alue o the inentory that is currently on hand# or Red Clif Wines it will allow to seethe pro(tability o the business and also what it will need to charge out to the otherbusiness in proportion to their share o the storage acility. =or Red Clif Wines it willalso allow proper input o sales and purchases made# and all transactions in a singularplace rather than by a manual system.

"y haing this system it will mean less errors in what stoc* is currently been held notonly by Red Clif Wines but also by the other bouti%ue wineries. $ccurate charging outo wines to clients , customers# accurate supplier inoices inputted ensuring allaccounts are settled on time# and most importantly able to trac* reenue and epenseso the business and the worth o the business at any point in time. With also lin*ing this

in to the e'commerce side it will allow constant updating o the website to show theaccurate stoc* holding so that customers hae con(dence in ordering the online site.

1.1.3 #$at s'ills will you and your sta" re(uire to use and suort t$issystem%S*ills that would be re%uired to support this system is to hae at least one staf memberthat is pro(cient with the use o $ccounting based systems. ) they hae *nowledge onthis then they should be able to train anyone else successully in this. The support canbe by urther training o staf as necessary and by support rom the sotware proider inecessary.

The training is important to ensure that all systems operate properly to gie accuratereports not only or the "usiness @wners o +ildura Wines but to the other bouti%uewineries holding their stoc*s at Red Clif Wines and their sales. $s the sales will be

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done as a collectie as well# it will beimportant to be able to gie sales

(gures less their costs and or this to be paid out on am agreed time whether that isonce a wee* or ortnight. $ccuracy o inormation regarding clients is also crucial toensure delieries are correct in terms o product and address deliery details. Thislin*ed with the e'commerce side will ensure greater eJciency which is already beenshown since the purchase o Red Clif Wines.

Propose# 6ar#%are Soft%are 'osts

Pro#uct

8uant

ity

'ost per

unit

9otal

'ost

?P 43'P555$K 3L4#2;;.00

L7#220.00

)T Specialist ' including Cabling , Setup46hours

L;0.00

L4#5;0.00

=uji Kero Wor* Centre 2430WS $2 +ono+ultiunction Printer 4

L5#2


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1.2 Business Strategy

This section uses Porters :alue Chain +odel or competitie adantage to eplain thecompetitie adantage o Red Clif Wines and its plans. $dditionally# this sectionproides a SW@T analysis o the strengths and wea*nesses opportunities and threatsor deeloping a Red Clif Wines within the region.

1.2.1 Using Porter's Value Chain Model, what strategies will you use in yourbusiness for competitie adantage!

3igure 4 Porters ',ain &o#el

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3igure ( S/-9


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3igure + E" #ata*ase of or#ering process

1.".2 Create a business process map that uses information from this database.nclude a transcript for the process map

The business process map below or Red Clif Wines shows the manuacturer andreceiing o the wines rom the other Wineries in the area# to the customer orderingprocess and then the despatch o the item. This business process map epands uponthe inormation system# as at this stage the inormation system cannot measure theamount o grapes grown and then pic*ed prior to been ermented and then bottled.

The )normation system will pic* up at the point o where the Wines are bottled andthen will be imputed into the inentory at this stage.

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3igure 7 Business Process &ap

1.# Social $omputingSocial computing can be used as an adantage to trac*ing towards the uture plans oRed Clif Wines. "y getting more brand awareness out there it will allow the business tohae a target audience out there when it (rstly opens the Cellar -oor and thensecondly when it epands to include a Restaurant out there. "y also haing arestaurant onsite# it will allow to hae a unction room as well and to be able to cater orlarge groups o tourists and unctions in the area. )n the cellar door and restaurant# theonly wines that will be used are those by Red Clif Wines and their associates. $smentioned earlier# as the +ildura and Wentworth region attracts isitors in ecess o/00#000 people a year# it will be important to hae a social networ*ing strategy that notonly targets the tourism mar*et in the area# but also local proiders to also reer people

to isit Red Clif Wines. )t is enisaged that these will come primarily rom theaccommodation proiders.

1.(.1 )hat social networ*ing strategies will you use for your business!The largest ood and wine estial in the region is held in +ildura on the wee*end priorto the +elbourne Cup H$rtsmildura.com.au# 5043I. This ensures that the region willhae maimum amount o tourists in the wee*end as a lot o people that lie in+elbourne also ta*e the +onday of the day beore +elbourne Cup -ay to create a longwee*end. This +elbourne Cup wee*end apart rom Christmas and &aster would be thebusiest in tourists in the area or the year. $s the estial is well established Hrunningor oer /3 yearsI# there is little doubt that it will not be going ahead anytime soon. )t is

important not only to be part o the adertising or this wee*end# but also to inole itwithin our own social networ*ing strategies.

@ther strategies are to post in regards to what is happening within our own winery byposting on the social media platorms and also posting graphic photos. These can be

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anything rom the progress o thecurrent crop# to photos o barrels o

the net intages# to photos o the buildings that will go ahead or both the Cellar -oorand Restaurant# and to post details o how these are progressing and when they will beopening in uture dates. )t will also be important to *eep the website updated at alltimes not only just in terms o what products are aailable rom Red Clif Wines# but alsorom the other wineries and to *eep new inormation !owing on the website to ensurethat the ran*ing o the site is improed. +ost o these tas*s will be underta*en by thestaf onsite# particularly by the owner and in uture by any other administration stafthat are hired. This will be managed by using a social media dashboard called?ootsuite. This will allow our messages to get through to our social media platormsinstantly rather than haing to update and post on these indiidually. )t will also allowor reminders and announcements or upcoming eents# and also enable monitoring oany responses by others on any o the social mediums to be responded to in a shortperiod o time. This will ma*e the updating o these tas*s a lot easier.

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3igure 6ootsuite Plans > Inclusions

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1.(.2 )hy are these strategiesimportant!

The strategies o social networ*ing are important to create not only brand recognitionbut also location recognition. There are studies done to support that generally bouti%uewines are brought more by the local communities rather than those rom distances. Wewant to be able to tap into the mar*et so someone rom "roome letGs say isits +ilduracomes across our wines and through haing good social networ*ing strategies# they areable to (nd Red Clif Wines and then purchase online hence brea*ing this cycle.

The social networ*ing that would be most important to the age group that we would betargeting is =aceboo*. Statistics show that =aceboo* is the Social +edium used by olderusers as per the diagram below HMoetsier# 5045I.

3igure 5 3ace*oo Sign In Page

3igure 10


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=or real time messages Twitter is ery instant and used moderately by both the youngerand older generations which is also shown in the -iagram aboe. Twitter will be able tobe used particularly once the Cellar -oor and Restaurant are up to promote one ofdeals that are aailable to people to buy or use on the actual day.

3igure 11 9%itter Sign @p Aogin In Page

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1.% E&'usiness and E&commerce1.+.1 )hat ebusiness and ecommerce solutions will you implement!Red Clif Wines will be including a website with current stoc*s o not only o theirbouti%ue wines but also the other wineries in the area that they will be in associationwith. This not only strengthens the position o Red Clif Wines but also the other smallerwineries in the area# hence proiding more employment opportunities going orwardinto the uture. The e'commerce platorm Red Clif Wines will be using is e.pages whichis a shopping cart and website builder. The main adantage with this is that theapplication lin*s in with the uic*boo*s system automating the process and hence also*eeping accurate stoc* leels rom the website point o iew. )t also has the ability to

hae a customer put their details in through the website and this will also beautomatically updated in uic*boo*s. )t also has the ability to lin* in to other utureinormation systems that could be introduced to Red Clif Wines in the uture N as aneample shipping trac*ers. The other bonus or this pac*age also is that is a websitebuilder so you will be able to hae this done alongside with setting up the e'commerceside o the business seamlessly rather than haing to pay or an epensie websitedeeloper anytime you wish to update your site. "y implementing these e'commercestrategies bac*ed up by the social media push# this should ensure that the brand nameso Red Clif Wines and the other bouti%ue wineries will gain much more eposure andpurchase o their products creating a more stable leel o income that would beaailable i only concentrating solely on the tourism , local mar*et without thesestrategies in place.

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3igure 12 E.Pages Intergration %it, 8uic*oos

1.+.2 )hat are the ethical issues you need to consider when implementingthese solutions!

The ethical issues that need to be considered by Red Clif Wines when implementing thee'business and e'commerce solutions to Red Clif Wines are Taes# and Priacy threatsHThet o )normationI# and Poor Serice been the main ones HSmall "usiness 'Chron.com# 5043I. This includes how these issues are handled and that they arecomplying with goernment regulations and legislations where applicable. )t also goesurther in ensuring that the business relationship between Red Clif Wines and theircustomers is one o a trusting relationship that can be built upon and urther toenhance the business as it grows.

4. Taes are the responsibility o the website owner who in this case is the businessRed Clif Wines. $s with any other business whether it is online or traditionalbric*s and mortar# the business is responsible or the collection and payment o

FST to the =ederal Foernment. FST is currently applied at a rate o 40O o theprice o the purchase sold. So i a bottle is priced at L40.00 then the sell priceincluding FST would be L44.00 with the L4.00 been the FST portion. This willthen be paid through the appropriate "$S statement that is due either +onthly#

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uarterly or Dearly dependingon the rules set out by the

$ustralian Taation @Jce [email protected]. To ta*e Priacy Threats that our customers could be eeling nerous about# there

are certain things that Red Clif Wines can do to ensure the protection o theirpersonal details and data. @n the website there needs to be a priacy policylisted that addresses what happens with the inormation that is obtained throughthe website clearly. ) the business would li*e to be able to send the customerinormation through some o the details collected# it would need to obtainpermission rom the client to be able to do this. This can be done through theinitial Sign 8p process and a chec* bo to accept urther communication romRed Clif Wines by sending correspondence through the email address that thecustomer has proided.

/. To encounter Poor Serice that customers may hae had bad eperiences in othere'commerce sites is to try and ma*e Red Clif Wines as transparentQ as possibleby giing as much details on the website to ensure that they hae con(dence intheir transactions aI been processed and bI been deliered in a reasonable timerame dependent on their location and in good order. This will be done by giingorder updates as to when the order is receied until it is despatched rom RedClif Wines. There will also at this point be a trac*ing number gien by the reightoption used so that the customer still eels that they are in control o their orderall o the way until it gets to them. The other ways that the business can be seenis by not hiding their location or contact details which they would not to doanyway as it would ta*e away rom the uture plans o the business. The wholepoint o running a successul business is to ensure that the customers are *epthappy so it is worthwhile accepting criticisms whether they are good or bad.

"y addressing the aboe issues is not just about *eeping up with goernmentregulations# but haing a business that addresses the needs and concerns o theircustomers as their main undamental and ethical concern.

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1.( Information Systems !it)int)e *rganisation

1.-.1 Using Microsoft $cel, create an eample of an accounting report that youwould use in your business!$n )ncome Statement N also *nown as a Pro(t and 1oss Statement shows thepro(tability o the business or a particular period. )t is most commonly done eithermonthly# %uarterly or yearly. )t is designed to show the current pro(tability o thebusiness and where the reenue and epenses are shown.

e# 'li= /ines Pty At#

Income Statementfor year en#e# !0 une 201(

L L L

Sales ;00#000

1ess> Cost o Foods Sold)nentory 4 Euly5042 70#000

Purchases ;0#000 430#000)nentory /0 Eune5043 30#000 400#000

ross ProCt 700#000

$dd> @ther )ncome /00#0004#000#0

00

1ess> @perating &penses

$ccounting A 1egal =ees


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The Sales (gures hae been calculatedby wor*ing out the amount o ines

planted. This is shown as ollows N the sales are not based on selling all o the winesproduced in one year as there are some wines that you will want to mature and sell ora higher price in coming years HWinespectator.com# 5043I.

/; acres o plantingyield o appro 2 tonne peracre

435 tonnes

/00 bottles per tonne

23600

bottles produced in one

intageappro alue L53 perbottle

:1;140;0009otal approximate Salesalue

3igure 14 ine Planting an# approximate Sales from Diel#

The Wages and Salaries hae been calculated as ollows. Bote that these areapproimate alues and with the warehouse staf going orward there will be anadjustment as the costs o these staf will be split with the other wineries.

/ages >

Salaries ?o of Sta= 9otal

@wner 4L400#000

Winema*ers 5L43 Salaries Estimates

1.-.2 $plain the importance of this report and how this will be used in yourorganisation.

The importance o the )ncome Statement shown in =igure 45 as it will help to loo* at thepro(tability o the business and how much money will be aailable or inestment intothe uture endeaours o the business. )t also allows urther analysis o the businesspro(tability and margins which when particularly loo*ing or uture inestment romeither ban*s or companies will be important. )t helps analyse areas o the business inwhich there decencies appearing and endeaouring to loo* at solutions prior to itbecoming a bigger issue. "etween this report and the "alance Sheet there are anumber o diferent Ratios that you can use to assess the pro(tability o the business#

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and the (nancial status in terms o theReturn on )nestment and learning as

to the actual position o the company i it needed to pay bac* all o itGs current liabilitiesat any one time.

These $ccounting reports will *eep a handle o the business and loo* at the potential onuture growth once the new plans or the Cellar -oor and Restaurant are deeloped.

This will be important as the business grows to ensure that the pro(tability remains to*eep Red Clif Wines and the other businesses in the area pro(table and *eepemploying local people which has net bene(t to all o the local community. )t is alsobeen used to obtain unding or the Restaurant , Cellar -oor "uild which will costapproimately L4 million. @ this between the retained pro(ts and the owner puttingmore contribution in# the business is ater a loan o L700#000 to und this with a iew to

hae this paid of within a 3'40 year period.

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1.+ ,antt $)art - or/flo!

The wor* brea*down structure shows the goals or opening the restaurant prior to theChristmas period this year and implementing both the )normation System to thebusiness and the Social +edia strategies. This is all based on the (rst year in reallypushing the wine sales out there which has been shown in =igure 4/ and then inestingthe appropriate unds to be able to build the Restaurant and Cellar -oor to attract moreisitors to the winery and to loo* to purchase our wines and the other wineries inoled.

3igure 1+ /or Brea#o%n Structure

The Fantt Chart below shows the progress o the Restaurant build along with thestronger presence in adertising showing the introduction o the Social +edia andWebsite Strategies which o course then will couple in with the )normation SystemHuic*boo*sI.

3igure 17 antt ProFect ',art

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2.0 $onclusion

This report has outlined all o the proposed , current changes that Red Clif Wines iscurrently underta*en. This includes the introduction o an inormation system# astronger Social +edia platorm# an &'Commerce shop which can also be lin*ed to theinormation system which ensures accurate stoc* leels or customers ordering.

The report also ocusses on the urther growth , deelopment o Red Clif Wines bybuilding a Restaurant , Cellar -oor or the winery to attract the tourism mar*et that+ildura and its surrounds currently has. "y doing this it will gie more brandrecognition to all o the wineries held at Red Clif Wines and hence support the growtho local jobs in the community. The ocus has been and will be on employing staf only

rom the local area to support the local community.The report speci(cally targeted the inormation system# e'commerce targeting and thebuild o the Restaurant , Cellar -oor project. @ther uture projects mentioned at thisstage will be loo*ed at in urther analysis once the current epansion is complete.

2.1 ecommendations

The recommendation is to cap the inestment to the )normation System# &'Commerceand Restaurant , Cellar -oor at L730#000 rom loans Heither rom ban* or inestorsI#and L530#000 which will come rom the retained pro(ts and owner inestment. @ncethe deelopment o this is completed and deeloped that then other projects can be

underta*en which could include more community inolement with training ,deelopment courses in both Wine +a*ing and $pprentice Che Courses.

)t could een be urther deeloped to epand Red Clif Wines into other regional areasthat are similar around $ustralia and implement the same processes underta*en in theprojects that hae currently been underta*en.

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3.1 eferences

$rtsmildura.com.au#. H5043I.#rts Mildura /a00 ood and )ine estial. Retrieed /0+ay 5043# rom http>,,www.artsmildura.com.au,Ea'=ood'and'Wine'=estial,?@+&.asp

Moetsier# E. H5045I. ocial media demographics 23124 2( sites including 5witter,aceboo*, and 6in*edn. Venture7eat. Retrieed /0 +ay 5043# romhttp>,,enturebeat.com,5045,0;,55,social'media'demographics'stats'5045,

+ildura.ic.go.au#. H5043I. 8ur %egion. Retrieed /0 +ay 5043# romhttp>,,www.mildura.ic.go.au,@ur'Region

+ildura.ic.go.au#. H5043I. &emographics 9 tatistics. Retrieed /0 +ay 5043# romhttp>,,www.mildura.ic.go.au,@ur'Region,-emographics'Statistics

+ilduraregion.com.au#. H5043I. Retrieed /0 +ay 5043# romhttp>,,www.milduraregion.com.au,P-=s,500


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#.0 Bi'liograp)y

$ppcenter.intuit.com#. H5043I.#pps.com4 ,,appcenter.intuit.com,%uic*boo*s'online'with'epages

$rtsmildura.com.au#. H5043I.#rts Mildura /a00 ood and )ine estial. Retrieed /0+ay 5043# rom http>,,www.artsmildura.com.au,Ea'=ood'and'Wine'=estial,?@+&.asp

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