Starbucks Coffee and Information Technology

Starbucks Coffee

Food Manufacturer

•         The idea of the siren used in the Starbucks logo originates from Herman Mellville’s Moby Dick

•         She is designed to mesmerize the coffee drinkers; to “lure them to the cup”

•         A slightly different logo was created for each coffee, and appeared beside it on the menu board as well as on the package of the coffee.

 

Mission Statement

Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

Here are the principles of how we live that every day:

Our Coffee

It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done.

Our Partners

We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.

Our Customers

When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.

Our Stores

When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity.

Our Neighborhood

Every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business. We can be a force for positive action – bringing together our partners, customers, and the community to contribute every day. Now we see that our responsibility – and our potential for good – is even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead.

Our Shareholders

We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks – and everyone it touches – can endure and thrive.

Company Executives

Howard Schultz

Chairman, president and chief executive officer 

Cliff Burrows

President, Americas

John Culver

President, Starbucks Coffee China and Asia Pacific

Jeff Hansberry

President, Starbucks Channel Development, Seattle’s Best Coffee

Arthur Rubinfeld

President, Global Development

Michelle Gass

President, Starbucks Europe, Middle East and Africa

Annie Young-Scrivner

Global Chief Marketing officer and president, Tazo

Troy Alstead

Chief financial officer, Chief administrator officer

Paula Boggs

Executive vice president, general counsel and secretary

Peter Gibbons

Executive vice president, Global Supply Chain Operations

Stephen Gillett

Chief Information Officer, Executive vice president, digital ventures

Kalen Holmes

Executive vice president, Partner Resources (Human Resources)

Vivek Varma

Executive vice president, Public Affairs

Mary Egan

Senior vice president, Global Strategy

Years Stayed in Business

40 Years in Business Operation

Starbucks Corporate Strategy

n  Continue the focus on growth

n  Establish a leadership positions with company owned stores in key markets- USA, Japan, Australia, UK

n  Pre-emptively enter and aggressively grow in all targeted markets

n  Leverage the brand into new product categories and channels

n  Continue operations improvement

n  Growth through innovation

n  Develop and maintain leadership talent

n  Maintain our values, culture and guiding principles

                         

Products and Services

Coffee: More than 30 blends and single‐origin premium arabica coffees.

Handcrafted Beverages: Fresh‐brewed coffee, hot and iced espresso beverages, coffee and non‐coffee blended beverages, Vivanno™ smoothies and Tazo® teas.

Merchandise: Coffee‐ and tea‐brewing equipment, mugs and accessories, packaged goods, music, books and gift items.

Fresh Food: Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups.

Consumer Products: Offered in Canada, China, Denmark, Finland, Germany, Ireland, Japan, Korea, Mexico, Norway, UK and U.S. Products include:

Coffee and Tea: Whole bean and ground (Starbucks and Seattle’s Best Coffee brands), Starbucks VIA® Ready Brew, Tazo® tea filterbags and tea latte concentrates.

Ready‐to‐Drink (RTD): Starbucks® bottled Frappuccino® coffee drinks, Starbucks Discoveries® chilled cup coffees, Starbucks Doubleshot® espresso drinks, Starbucks Doubleshot® Energy+Coffee drinks; Seattle’s Best Coffee® Iced Lattes, Tazo® bottled iced and juiced teas.

Starbucks® Ice Cream: Super‐premium coffee and coffee‐free flavors.

Brand Portfolio:  Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea and Torrefazione Italia Coffee.

Corporate Headquarters

2401 Utah Avenue South Seattle, WA 98134-1436, USA

 Our Stores

Our stores are a neighborhood gathering place for meeting friends and family. Our customers enjoy quality service, an inviting atmosphere and an exceptional cup of coffee.

Total stores: 17,018* (as of July 3, 2011)

Argentina, Aruba, Australia, Austria, Bahamas, Bahrain, Belgium, Brazil, Bulgaria, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Egypt, El Salvador, England, France, Germany, Greece, Guatemala, Hong Kong/Macau, Hungary, Indonesia, Ireland, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, New Zealand, Netherlands, Northern Ireland, Oman, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Scotland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United States and Wales.

Business Organization

          

Community involvement

We believe in being good neighbors.

Every Starbucks is a part of a community, and we’re committed to helping neighborhoods thrive wherever we do business. It’s a commitment rooted deep in our heritage and the belief that we can use our scale to be a catalyst for positive change.

Global Month of Service

We’re proud to share extraordinary results from our Global Month of Service this past April. A sincere thank you to the thousands of Starbucks partners (employees), customers, community members and local organizations from around the world who joined together, as change makers, to take action and make a positive impact in their neighborhoods.

What We Accomplished in April

·         Nearly 60,000 volunteers participated from across 30 countries on 4 continents

·         More than 252,000 people globally benefited from our service

·         More than 1,400 community service projects completed

·         More than 156,000 hours of service contributed in just 30 days—that’s equivalent to 76 people working full-time for a year

·         Approx. $3.3 million (USD) of financial value invested in communities through service*

These achievements are a powerful reminder of what we can accomplish when we work together for a common good.

Our Commitment as Corporate Citizens

Now, more than ever, communities are relying on the private sector to share resources and help drive meaningful change. At Starbucks, we’ve always valued community service, and our partners have been fostering this “culture of good” since we opened our first store in 1971.

Organizations such as HandsOn Network, UK Youth, Volunteer Canada, and Charyou, have also been instrumental in our efforts to help tackle social challenges and improve economic opportunities in communities where we do business.

Starbucks research and development

Starbucks research and development teams are responsible for the technical development of food and beverage products and new equipment. The Company spent approximately $6.5 million, $7.2 million and $7.0 million during fiscal 2009, 2008 and 2007, respectively, on technical research and development activities, in addition to customary product testing and product and process improvements in all areas of its business.

Tom Jones, director of coffee research and development for Starbucks Coffee Company, poses with the real ingredients that are mixed in to the coffee in Starbucks Natural Fusions, a new line of naturally-flavored packaged coffee. Starbucks Natural Fusions starts with high quality Arabica coffee and is blended with natural flavors and real ingredients such as vanilla, cinnamon and nutmeg. This new line of naturally-flavored coffee will be available in the coffee aisle where consumers buy groceries beginning in June.

Role of IT Division/Department

Starbucks relies heavily on information technology systems across its operations, including for management of its supply chain, point-of-sale processing in its stores, and various other processes and transactions. The Company’s ability to effectively manage its business and coordinate the production, distribution and sale of its products depends

significantly on the reliability and capacity of these systems. The failure of these systems to operate effectively, problems with transitioning to upgraded or replacement systems, or a breach in security of these systems could cause delays in product sales and reduced efficiency of the Company’s operations, and significant capital investments could be required to remediate the problem.

The IT professionals here are doing some pretty amazing, innovative, industry-leading work.

There are more than 650 people at Starbucks providing technology solutions that help our partners work more productively, make our stores run more efficiently and invite our customers to connect more closely.

Sang C., a principal enterprise architect, has worked here for more than 13 years. Stephen B. says that innovation is what he most enjoys about working at Starbucks. Annette M. to Starbucks: “I was intrigued by the business model and leadership team – and I wanted to learn more about this company in my own backyard.”

Sen W. is a solutions architect and technology enthusiast who chose Starbucks for the “chance to work on cool technologies and platforms such as social media and mobile.”

And here are some more of the fine folks in Starbucks IT:

Chris N. describes himself as a “problem solver,” so he’s happy to lead a team of functional analysts.

Senior functional analyst Cindy S. says she came to Starbucks because, “I was looking for a company with an energetic atmosphere and an environment that’s open to new ideas and isn't afraid of change.”

Seujan B. is a QA testing leader who appreciates that quality runs throughout Starbucks.

Information Technology Organization

Technology and Starbucks

Starbucks uses technology in many ways; they use Information Technology, Wi-Fi, and all their business is done both internally and externally.   A big part of being a   great leader for a Starbucks   is the employee’s ability to recognize when they need the right tools to do their jobs correctly and efficiently. Technology has allowed Starbucks to plan, lead, and control, organize employees, costs, and supply link. Starbucks has utilized technology to its fullest potential. Starbucks has accomplished this in two ways, strategic and operational plans. Planning is used in the hiring, an opening of a new store, and even in the creation of new organizations. Technology is what   makes Starbucks thrive in a very large competitive world. Starbucks uses the internet   to advertise when they are in need of new managers and employees.

Starbucks' efforts to improve business process efficiency led to a loss of store flavor.  In its zeal to efficiently open and operate tens of thousands of stores, it found ways to tightly and effectively seal massive quantities of coffee and installs new, more efficient coffee-making machines. The result—the stores didn't smell much like coffee and they didn't feel intimate, unique or high-end anymore. One of Starbucks' biggest problems was self-inflicted: It had opened too many U.S. stores, proving, that endless growth is as much a myth as the bottomless cup of coffee.

 Good IT systems fueled that expansion to more than 14,000 Starbucks locations. Starbucks made use of technology to expand quickly—in fact, better than most companies. They had strong real estate, location management and selection systems to help identify demographics. That was how Starbucks used IT to gain bigger and bigger economies of scale.

 Now that retailing systems and applications have become more mainstream in the retail industry, it's more than likely that Starbucks management will lean heavily on IT to help enable the turnaround.

One way for IT to make that happen is to aggregate and mine its data from customer payment cards (referred to as loyalty cards) and examine buying patterns. In turn, Starbucks can determine how employees can better serve customers and what new products customers will buy—and gain more share of their wallets.

            Most retailers—95 percent, according to RSR data—aren't doing anything with this type of data right now.  IT's data can help with new product efforts, which is key to increasing the value of each transaction.

Information Technology in business Operation

               From the Midwest to the Middle East, Starbucks is one of the most widely recognized names in coffee. The company began as a single store in Seattle's Pike Place Market in 1971 before going global in the 1990s. As of the time of publication, you can find a Starbucks in more than 16,000 locations across the world. While well-known for its caffeinated concoctions, Starbucks has also been recognized for its innovative use of technology.

Social Media

In June 2010, Starbucks was named the most popular social media brand, according to a snapshot taken of its fans, followers and subscribers by Famecount, an online statistics and analytics provider. Starbucks social media space includes technology like its website and social media platforms, including Facebook, Twitter and Foursquare. According to a February 2010 article in "AdAge," Starbucks was able to use social technology to its advantage and bring customers back to its stores by giving them an online space to submit ideas and provide feedback on the brand and their experience with it.

Mobile App

After a two-year pilot period, Starbucks launched a nationwide mobile payment app in early 2011. The app is available for iPhone, Android and Blackberry, and, according to a June 2011 article on "Mashable," it can be used at 9,000 Starbucks locations. To use the free app, you simply add your Starbucks card number. From there, you can use the app to make purchases, track your rewards and check your balance. You can also find which Starbucks stores will accept mobile payments.

Brewing

In 2008, the "Seattle Times" reported Starbucks' recent purchase of the Coffee Equipment Co., a small company known for its single-cup coffee maker known as the "Clover." The Clover uses precise technology and a calculated algorithm to brew coffee within one degree Fahrenheit of its ideal temperature and produce the ideal flavor. It also controls how long the grounds and water interact and the flow of water brewing. Clover units are connected via Ethernet port so that the Starbucks network can manage the diagnostics and details of each unit.

Starbucks Digital Network

Starbucks can serve as makeshift office and meeting place thanks to the free, unlimited Wi-Fi available in its stores. In October 2010, the company made a move to expand its online offerings to customers with the Starbucks Digital Network. According to Starbucks, the news, entertainment and lifestyle channel was available in 6,800 locations as of March 2011. The digital network is a partnership of Starbucks and Yahoo, and delivers premium content from sites like "USA Today," "Wall Street Journal," ESPN, Nick Jr. and more to laptops, tablets and smartphones. When you connect to Starbucks' free Wi-Fi, you're greeted with the landing page for the digital network that allows you to check in with foursquare, log in to your Starbucks card and more.

IT Benefits   

Logistics

In retail, good service is paramount for customer loyalty. But when a supplier is knocking at the back door with a delivery during business hours, sometimes a retail clerk has to momentarily neglect a customer to receive it.

 For the omnipresent coffeehouse chain Starbucks Corp., radio-frequency identification technology could help address those types of dilemmas. Sean Dettloff, manager for partner and asset protection at Starbucks, told attendees at the national Cargo Security Council Radio Frequency Identification conference Monday in Long Beach, Calif., that the company is considering using RFID to help with deliveries.

 Using a card, the supplier would gain access to an RFID-enabled system that records the time, disables the alarm, and confirms a supplier's identity before it unlocks the door and lets the person in. Ideally, the system also would record the inventory that's being delivered.

Supply Chain

                              Starbucks began using HighJump Software’s Internet-based Supply Chain Execution Software solution to automate its product distribution network. This software provides warehouse management and data collection solutions that can be easily and precisely tuned to fit Starbuck’s operational needs in its three primary U.S.-based distribution center. They will connect the new Brazil warehouse and distribution center with the same technology to streamline business-to-business transaction in real time.

Profitability

Starbucks announced that it has processed some 26 million payments from its mobile apps since the beginning of the year, accounting for $110m in revenue. That's only a drop in the bucket compared to the $11.7b it did in revenue last year, but it still represents five percent of the total Starbucks card business for the year. Starbucks also sees this part of its business accelerating — six million mobile app transactions were processed in the last nine weeks, double the previous nine-week period. 

While plenty of banks and technology companies are hard at work on mobile payments, Starbucks' strategy of charging ahead by integrating its app onto the existing payment card system seems to be working — iPhone and Android users currently pay by just scanning barcodes, leaving the door open for a future upgrade to a more seamless transaction system.

Yearly Budget

Starbucks, a US-based roaster and retailer of specialty coffee, has announced plans to invest in information technology systems as part of its fiscal year ending September 30, 2011 capital expenditure plan of approximately $550-600 million.

The fiscal 2011 capital expenditure plan will include systems and technology investments; remodeling, refurbishment expenses and equipment upgrades for existing company-operated retail stores; and new company-operated retail stores.

Current IT Project

Starbucks will soon be launching a new mobile app in the UK, which allows its users to buy drinks just with their phones.

The app, which is set to enter the UK market on the 5th of January, has already proved successful in the US, as more than 20 million transactions have been made since June. The purpose of creating a mobile payment app is to reduce transaction times and hopefully eliminate many of the long queues you find in more popular stores.

Earlier in the year there were rumors that Starbucks would be one of the first brands in the UK to accept contact-less NFC payments, which have already been introduced in the US. However, it seems Starbucks doesn't want to wait for that kind of technology to come over to this side of the pond and has instead decided to go its own way for now.

 According to Brian Waring, VP of marketing and category for Starbucks in UK, they wanted to find a way for them to pay in the quickest way possible. Because there customers want it, they have created their own custom-built mobile payment technology rather than waiting for the near field communication technology which is currently not widely available. They are always thinking of new ways to add value to our customers and give them more reasons to choose Starbucks.

The app will be available for iPhone devices and will allow customers to integrate their Starbucks Card to make payments by using a barcode that's scanned at the till. This will also mean users are more likely to make use of their Starbucks Card rather than stuff it in their wallet and forget about it, with it they can check their balance and collect rewards. The My Starbucks Reward initiative, which basically allows loyal customers to get free stuff for buying so much corporate coffee, has only just been launched in the UK and will likely play an important part in encouraging more people to make mobile payments too.

The app is set to launch on the 5th of January 2012 in all 700 of the brand's little green stores.

Hardware Infrastructure

Hardware components of the computer system used in Starbucks

 There are two types of modem: The speed touch cable modem and the ISDN (integrated services digital network) modem.  The speed touch cable modem and the ISDN connect the store computer system to the STARBUCKS retail network.

 The Retail Network is the communication access between the store and the internet.

 This allows the management work station to send and receive large quantities of data and information.  There is a wireless internet provided by T-mobile, which allows customers to connect to the wireless network.  There are two pieces of equipment; the Cisco Router and the Cisco Wireless access point.

 Connected to the computer system there is a Printer used to print reports of any nature, and a cash scale which counts Cash in a faster way and more accurately, mainly it is used to count the tills and at the end of this process all data are sended to the system.  At the Point of sale there are two small printers where all receipts come out, and two (chip and pin) credit and debit card machines. 

To protect retailers, a new security system has been designed for cards which will use a smart chip.  When customers pay using one of these cards, rather then signing a confidential security number (PIN) is entered.

Starbucks Outsources Infrastructure

Starbucks has selected Unisys to provide information technology services supporting the coffee company's aggressive global expansion.

The company wanted to simplify the deployment and management of standard IT infrastructure services used in international Starbucks retail stores, support centers, and manufacturing facilities as part of its sourcing strategy. 

Under the terms of the agreement, Unisys will support Starbucks operations in several countries including: retail stores, regional and district support centers, and manufacturing facilities.

The range of IT management and infrastructure services encompasses service and help desk services to single-point-of-contact assistance; data center services, network and server monitoring and support; equipment procurement, configuration and maintenance, as well as asset tracking and installs, moves, adds, and changes (IMACs) for a wide range of devices.

It will also include business continuity and recovery consulting services and global program management to plan, implement and coordinate service delivery. The vendor will additionally provide IT security services for Starbucks North American operations.

Software Infrastructure

The Online Order System for Starbucks

NCR – POS Hardware & In-Store Technology

In April 2003 Starbucks Corp. signed a four-year contract to have NCR Corp. maintain unit-level, point-ofsale- system hardware and other in-store technology at its 3,700-plus coffee bar locations in the United States, Canada and the United Kingdom, NCR said. NCR’s contract covers Starbucks' IBM POS terminals, back-office network components and peripherals. The vendor said the agreement was signed following a test last fall involving 100 Starbucks units.

Microsoft Sharepoint Server 2007

Starbucks has a corporate Web portal that is sectioned into a partner portal that employees access in the corporate and field locations, and a store portal accessed by employees in the retail stores. The store portal was implemented in 2003, and since then has progressed from a non business-critical tool to the primary means for communications between the corporate office and its stores, replacing previous paper based correspondence. As a result, the store portal visits per week have risen over 190% from 60,000 visits a week to approximately 175,000 visits per week. Additionally, the need for partners to create and have access to business analysis reports, the latest business news and updates, comprehensive search results and training material, has increased. Insufficient reporting and search functionality, portal instabilities, and capacity limitations prompted Starbucks’ decision to redesign the store portal to allow its partners and employees to operate more effectively. As a participant in the Microsoft® Rapid Deployment Technology Adoption Program, Starbucks deployed Microsoft Office SharePoint® Server 2007 to create a separate and stable store portal environment that would help reduce inefficiencies at peak site traffic times by streamlining business processes and incorporating effective monitoring and reporting. The new portal is accessed by approximately 24,000 users in more than 6,000 stores across North America and Canada.

Technologies Currently Deployed/Used:

SQL; XML; HTML; DHTML; CSS; Java Script; Ajax; RDBMS; DB2; Apache; WebSphere; WebSmart IDE iSeries/System; C#; ASP.NET; CLR; VS.NET; Windows; Cisco IP; Microsoft Sharepoint Server 2007; BMC Remedy IT Service Management; Oracle Process Manufacturing; Oracle Discrete Manufacturing; Oracle Financial Applications; Oracle Purchasing; Oracle Inventory; Oracle iSourcing; Oracle iProcurement; VMWare Virtual Servers; Windows Server technologies, including 900+ servers (450 physical, 450 virtual),

Business Intelligence:

Oracle 10G RAC, Ascential Data Stage XE data warehousing solutions for ETL, and Microstrategy for Information Delivery; Oracle Business Intelligence Enterprise Edition (OBI EE) (Siebel Analytics);

Starbucks Coffee Company ltd uses a Management information system called IRIS. IRIS stands for Intelligent Restaurant Information System.  This tool provides the Managers with the information needed to run a successful business.

 The IRIS System is made up of two components:

 1. The Point of Sale System (POS) or front of house till system; in addition to regular register functions offers some functions to be accessed only by Store Manager(SM), Assistant Manager(ASM) and Shift Supervisor(SS), with the correct security level.

 2. The Manager Work Station (MWS) or back of house computer system compiles and reports all store information to effectively manage all aspects of store business.

 It displays all the different functions available on the Information System (IRIS), some of which are only accessible by partners with the correct security which consists in typing the correct username and password.

            The Point of sale consists in two touch screen tills used by deployed partners that need to insert their username and specific password before to start.

 From the Point of sale, managers can access different manager’s functions menu, such as paid in and Paid Out, and Refund to customers.

 These manager functions are security measures for cash management and inventory control in the store.

            Paid in and paid out occurs when money is taken from the till to buy items necessary for the store operations and/or any kind of emergency.

 Other functions such as Cash Skim, Void transactions or refunds occur when money is given back due to complaints or customers are returning faulty merchandise.

 The point of sale is used also to record wastage.  In conclusion, most Point of sale functions are related to customer service, sales, refunds, discounts, voids.

By ringing items through the tills, data such as time, customer transaction, quantity of food and drinks sold, quantity of wasted items, are transferred to the Management Work Station where data are stored, analyzed and produced in form of reports, graphic, charts or diagrams.

The Manager Work Station can be accessed in the office where there is a computer connected to the intranet, a private communication channel for employees to access the organization network that resembles the internet.

 To access the system it is required to sign in with a password and the partners ID. The system recognizes security level and allows accessing the function assigned to the security level.

The normal partners can just access the time punching option, which is that function that record staff punches in and out for breaks and shift.  A start of day and end of day is run into the system on a daily base.

 Shift managers can access cash management functions that are used to count tills, modify or correct transactions and to prepare daily bank deposit.  A menu of available reports is available on a report menu.

 The Store manager can access these reports to track sales, find out customer transactions within different hours range, to check sale by product category, to record wastage, to carry a financial audit.

 All this information is relevant for Store Managers to identify business requirements and customer needs, to identify peak time in the store, to increase or amend product ordering, to control wastage and track stock and decide whether is necessary to cut labor.

 Managers can access staff information and personal details in the work station, they can insert new partners, terminate partners, maintain employee records, track employee‘s training and process payroll.

 The payroll process transfers information to the support centre in order to pay partners.

 Store Manager and the shift supervisors can use the IRIS System to process electronic ordering for food, stationery, packaging.

 The IRIS System can also use e-mail set up for communicating with London Support centre and other stores within the district and others.

The presence of a Management Information System in Organizations of different nature, facilitate the role and the functions of different managerial level

 In STARBUCKS the Iris system provides a number of reports that can be used to help to manage store profitability

            These reports can be viewed on the computer monitor or can be printed for review or archive.

            Store Managers can use the Management information System to prepare short term budget to plan long term profit and prepare proper forecasts.

            The Iris system helps the managers to identify customer needs trough accurate reports, so to implement sales and marketing strategy and to plan production based on actual demand.

 The Iris system can be also accessed to check and monitor inventory.

               IT development - Starbucks is always looking to develop and improve its Internet facilities. Starbucks launched its first-generation e-commerce Web site in 1998. In late 1999, Starbucks decided the site needed a major upgrade to enable new functionality and prepare for long-term growth. To achieve these goals, Starbucks upgraded to Microsoft Commerce Server 2000, one of the key Microsoft .NET Enterprise Servers.  As a result, scalability and performance have improved, and the company now has the  tools it needs to profile and target customers, analyse site data, and deliver new  features to the market in the shortest time possible.

Mobile Application

Starbucks is coming on every bit as strong as its coffee in the realm of mobile payments.

On Wednesday, the coffee giant announced that it is expanding its mobile payment system across the US – a move that augments the service’s availability to 6,800 Starbucks stores and roughly 1,000 Target-based locations.

As a result, smartphone users equipped with an iPhone or BlackBerry can now fund their in-store purchase directly from their handset.

Starbucks customers who download the free Starbucks Card Mobile App now have the ability to pay for their purchase simply by holding their phone directly in front of a counter-top scanner.

“Today, one in five Starbucks transactions is made using a Starbucks Card and mobile payment will extend the way our customers experience and use their Starbucks Card,” said Brady Brewer, vice president Starbucks Card and Brand Loyalty.

Starbucks reports that its customers have successfully adopted this technology in test markets in Seattle, Northern California, New York and hundreds of select Target stores where Starbucks has set up shop.

According to the caffeine juggernaut, more than one-third of U.S. Starbucks customers use smartphones, of which nearly three quarters use BlackBerry smartphone or iPhone mobile devices.

Starbucks mobile apps are the fastest way to pay, so join the mobile payment revolution now with your Android phone.

You can:

check your balance

look up your My Starbucks Rewards Stars

reload on the fly with any major credit card

find the nearest Starbucks location and

pay for your Starbucks beverage with your Android mobile device!

Starbucks Information Security

Handling Secret or Private Information and Records

It is the responsibility of the individual in possession of all hardcopies of documents containing private or secret information to ensure that the hardcopies are secured or disposed of properly.

• Making or printing additional copies of private or secret information requires prior approval from the information owner.

• Printers, copiers and fax machines are not to be left unattended when private or secret information is being reproduced.

• Access to hardcopies of secret information should be kept to a minimum and limited to authorized personnel only. Unauthorized individuals are to be escorted while in a room or area containing secret information.

• Hardcopies containing secret information are to be stored in a secured room or area or in locked file cabinets.

• All paper waste generated in the course of handwriting, copying, printing, and faxing private or secret information is to be destroyed in accordance with the Records Management Handbook.

• When documents, including working drafts and/or notes, containing private or secret information are no longer required and the retention period for such documents has been met, documents will be destroyed under the provisions set forth in the Records Management Handbook.

Information sent via fax will include a standard Starbucks fax cover page with a disclaimer that the information sent is for the use of the intended recipient only. Private or secret information will not be faxed without following additional security precautions, such as:

• sending only to known locations, where the physical security and monitoring practices of the receiving fax machine are known;

• relying on preprogrammed (and tested) fax numbers set on the sending machine, to reduce dialing errors;

• not sending to unattended fax machines, or where the physical security of the receiving system is unknown. Call ahead to let the receiver know the fax is being sent so they can pick it up upon receipt.

• including a "confidentiality request" that information sent to an incorrect destination be destroyed, and requesting notification to the sender of such errors; and

• not leaving a fax unattended unless the fax machine is located in a physically secure area.

Verbal Communication

Verbal communication discussing private or secret information should be conducted in isolated locations that are not susceptible to eavesdropping. This requirement extends to all telephone conversations.

Appropriate Business Use

While the Starbucks electronic communications systems are intended for business use only, Starbucks recognizes the occasional need for personal use of certain resources, including the Internet and email. Additionally, Starbucks recognizes the critical role of the Internet and email for providing equal access to partners unable to obtain information through auditory channels. Users authorized to access these resources may make incidental and occasional personal use of these resources when done in a manner which does not affect productivity or job performance or place an undue burden on network resources, as long as the conditions outlined below are met.

Personal use of Starbucks electronic communications systems may be allowed provided the usage:

• does not violate either Starbucks Mission Statement and Guiding Principles or the Standards of Business Conduct;

• is not for the purpose of accessing, downloading, storing, or otherwise processing information of a non-professional manner, which is sexually explicit, violent, vulgar, criminal in nature, intimidating, defamatory or otherwise unlawful or inappropriate material addressing age, gender, sexual orientation, race, religion, political beliefs, national origin, or disability;

• is not for engaging in illegal, fraudulent, or malicious activities;

• does not harass, intimidate, or threaten any other person;

• does not infringe on the privacy or intellectual property rights of other individuals or organizations;

• does not support, solicit, advertise, or promote commercial ventures, outside organizations, or other non-job related undertakings;

• is not for political or religious activity, lobbying, or debate; or for activities on behalf of any organization having no affiliation with Starbucks;

• is not for unauthorized personal activities, including gambling, day-trading,

web-based chat (web-based chat may be considered excessive if it results in substantial use of system capacity or has a negative impact on an individual’s productivity);

• is not for the purpose of solicitation of a personal business or for personal gain;

• does not involve sending, forwarding, redistributing or replying to communications promoting lotteries, or “pools” based on chance, or chain letters; and

• does not interfere with the proper functioning of Starbucks information technology resources, or unreasonably interfere with the ability of others to make use of Starbucks computer resources.

Where possible, such use is to be limited to non-business hours. In all cases, accessing, distributing or storing obscene, profane, abusive or otherwise offensive material using company-provide network resources or while using company owned information technology resources is prohibited.

Partners and contingent workers may use Starbucks electronic communications systems in support of company-sponsored or company supported events, groups and activities.

Using Email

Electronic messages are considered company property and subject to monitoring, auditing and discovery acts. When composing electronic messages, users are responsible for complying with all policies and standards related to corporate communication.

• The use of 'auto-forward' rules to send business email to non-Starbucks email account(s) is forbidden.

• Users are advised that offers and contracts made by email may be considered legally binding. For this reason, offers and contracts are only to be sent by authorized individuals.

• Personal messages should be marked as such by both sender and recipient so that it is clear that the email is not issued on behalf of Starbucks.

Starbucks electronic mail systems are not to be used to:

• send chain letters;

• solicit for political candidates;

• engage in any illegal, unethical or improper activities;

• further any non-Starbucks business; and

• disseminate internal mail addresses of partners and contingent workers, including to entities or external mailing lists.

Using the Internet

Access to the Internet via the Starbucks electronic communications systems is available to those partners and contingent workers that have received their manager’s specific authorization.

Starbucks prohibits downloading information that does not directly relate to Starbucks business, unless identified as an accommodation, authorized by Information Technology, for a partner with a disability. Starbucks does not permit the download or installation of software (including screensavers or games) from the Internet.

Users may not attach, connect, or otherwise use an alternate Internet service provider connection on any component of the Starbucks electronic communications systems unless expressly authorized by the Information Security Steering Committee and properly protected by a firewall or other appropriate security device(s).

Users may not use the Starbucks electronic communications systems to visit or view any web site or download any information which is or contains illegal, defamatory, obscene, or offensive material or which would violate Starbucks equal opportunity and/or anti-harassment policies.

Users should not use the Starbucks electronic communications systems to publish any material on the Internet which relates to Starbucks or its customers, or post any such items on newsgroups, list servers, chat lines or web pages, unless authorized to do so. Users should not use the Starbucks electronic communications systems to create web pages for personal use which refer to Starbucks without prior authorization, nor represent themselves as a Starbucks partner or contingent worker in online journals or blogs and will be held accountable for material that reflects poorly on or is embarrassing to Starbucks.

Users may not use the Starbucks electronic communications systems in any way that would infringe upon the intellectual property or other rights of another person. Even though freely accessible, much of the material on the Internet is protected by intellectual property laws. Unless otherwise noted, all material on the Internet (including, but not limited to, software, photographs, and other such data) is to be considered copyrighted work. Therefore, users are prohibited from using the Starbucks electronic communications systems for downloading such material and/or modifying such files without permission from the copyright holder and approval from the Information Security Steering Committee.

Virus Protection

It is the responsibility of the partner and contingent worker to ensure virus scanning is enabled and running on their assigned laptops or desktops. If the partner or contingent worker has any reason to believe the process is not running properly, the user should contact the Enterprise Help Desk immediately.

Possession or development of viruses or other malicious software is prohibited. Non-compliance with this requirement can result in disciplinary action up to and including legal action and termination.

If a virus is suspected on a system, the user should disconnect the system from the network immediately, and notify the Enterprise Help Desk. It is the responsibility of the user, with appropriate technical assistance, to ensure that the virus has been successful removed before reconnecting to the network.

Passwords

A poorly chosen password may result in compromising the security of the Starbucks electronic communications systems. Because passwords are the front line of defense for securing critical information, active management of passwords is required.

Password Composition

All user level passwords will have the following characteristics:

• a password will have minimum length of 8 characters (for applications that do not support 8 character passwords, use the maximum number of characters possible);

• passwords will use a combination of upper and lower case characters, and where supported will also include either a number or a “special” character; and

• password selection should attempt to avoid words found in an English or foreign dictionary.

Additionally, passwords cannot:

• contain any username, or any part of a username;

• contain computer terms and names, commands, sites, companies, hardware, software, etc;

• be personal information such as names, names of family members, pet names, fantasy characters, birthdays, home addresses, telephone numbers, anniversaries, etc.;

• be based on words that are easily associated with Starbucks such as Coffee, Mexico, Latte, etc;

• be a word or number pattern such as abcdefgh, 123456789, qwerty, etc.;

• be any of the above preceded or followed by a digit(s) such as Coffee3 or 3Coffee; and

• be passwords used as examples in this or any other document discussing passwords.

It is recommended that the creation of passwords be based on a phrase, title, or some group of words that can be easily remembered. For example, the phrase might be: "This May Be One Way To Remember Passwords" and the password could be: "TmB1w2Rp!”

Password Protection

Because passwords provide access to Starbucks resources, all passwords are to be treated as private information and are to be protected as follows:

• Do not write passwords down unless they can be stored securely (encrypted, kept in a locked drawer or cabinet, kept in a password protected file, etc.).

• Do not talk about a password in front of others.

• Do not share passwords over any medium with anyone, including managers, administrative assistants, or family members. If someone requests your password(s), refer them to this document and immediately notify someone at the Enterprise Help Desk.

• Do not configure a system or application for automated entry of a password.

• When using an Internet browser based application (Internet or Intranet) do not check boxes that ask if you want to remember your password.

• Any password used to access Starbucks resources cannot be used as a password to access resources outside the Starbucks organization.

• The practice of using the same password for all systems to which a user has access is discouraged.

Acceptable Software Usage

Partners and Contingent workers are not allowed to install unauthorized software on any component of the Starbucks electronic communications systems. The installation of unauthorized software has the potential for creating problems affecting system stability and availability, support, and potentially introduces legal issues related to inadequate licensing. Accordingly, installation or execution of unauthorized applications including privately owned software, personal Internet service provider’s connectivity software, games, shareware, freeware, browser “plug-ins” or open-source applications including those unsolicited applications received as e-mail attachments are prohibited.

It is forbidden to copy software provided by Starbucks to any storage media, or to transfer software to others, unless authorized for internal installation or backup.

Without prior authorization from Information Security, users may not use the Starbucks electronic communications systems to obtain, possess, trade or use hardware or software utilities that could be used to evaluate, assess, or compromise (exploit) information systems security, or intercept or record electronic communications. Examples of such tools include those that defeat software copy protection, discover passwords, identify and/or exploit security vulnerabilities, recover deleted data, or decrypt encrypted files.

Adequate Licenses

Information Technology has developed procedures for the distribution and maintenance of software for authorized users. For this reason, it is imperative that Starbucks users not duplicate or distribute software or take other actions which could compromise or violate the software vendor’s licensing agreement. The department or individual that deploys or installs any software, including shareware, is required to ensure that it is properly licensed before deployment or installation. Furthermore, use of all software must be in compliance with applicable copyright laws and licensing agreements. Use of third party software in violation of these laws and agreements is strictly prohibited.

Starbucks managers and supervisors are responsible for ensuring that all software used in their Business Units or departments does not exceed licensed levels, and arrange for the purchase of additional licenses when required.

It is critical that managers notify Information Technology when a user is terminated or changes positions within the organization, in order to ensure that unnecessary software is removed from their computer, making the license available for re-use, and obtaining software necessary to meet the requirements of the new position.

Network, Computer Hardware

In order to eliminate the potential for creating system or network problems, users are forbidden from installing or connecting hardware to the Starbucks electronic communications systems without prior authorization from Information Technology. This includes computers, network hardware such as hubs, switches, routers, and Wireless Access Points (APs), as well as system hardware such as memory, hard-disk drives, network adapters, modems, and PDAs.

All wireless devices are to be approved by and registered with Information Technology prior to the use of the device in any Starbucks environment.

External mobile users are users connecting to publicly accessible wireless networks that are not part of the Starbucks network. This includes “hot-spots” such as those operated by T-Mobile in some Starbucks retail stores. External mobile users accessing public access points are effectively connected to the Internet, and should take steps to protect themselves and the information they transmit. External wireless connections will not be used to transmit internal, private or secret information unless approved encryption technology is employed to protect information in transit.

Partners and contingent workers issued wireless network adapters are responsible for ensuring that the adapter is disabled when not in use to prevent unauthorized access to the network through wireless connections.

Use of wireless technology can present significant risks to transmitted information when improperly configured or inadequately secured. Starbucks prohibits the use of wireless technology for connecting to Starbucks equipment or networks without using an approved remote access method. Requirements for accessing the Starbucks network can be found in the Mobile Computing and Telecommuting Standard in the General Standards section.

Starbucks Issued Equipment

Any items, such as laptop computers, PDAs, cell phones, data stored on these items, keys, ID cards, software, documentation, manuals etc., issued to a partner or contingent worker are considered to be Starbucks property and must be returned to their manager when requested or upon separating from Starbucks.

Unattended Equipment

PCs/laptops and servers, when applicable, should be configured with a password protected screen-saver. The screen-saver will require the entry of a password after a PC/laptop or server console has been left unattended for over 10 minutes.

Mobile Computing and Telecommuting

The storing of Starbucks information on unauthorized media or computing equipment is prohibited.  Remote access users are responsible for ensuring their systems are backed up periodically based on the value of the information on their system and the frequency it changes. Backups should be protected against theft, loss of information and disclosure of any private or secret information if lost or stolen.

Remote access users are responsible for ensuring that security measures are implemented to protect information held on or accessed via remote devices e.g. laptop computers and mobile computing devices.

Partners and contingent workers with Starbucks issued mobile computing equipment (laptops, PDAs, cell phones, pagers, etc.) are required to protect the equipment against theft and to store the equipment in a locking drawer or cabinet when being left unattended for extended periods. Protection for laptops may include the use of cable locks or any other securing mechanism that protects against theft. Incidents of lost or stolen mobile equipment must immediately be reported to Enterprise Help Desk.

Partners and contingent workers traveling with a Starbucks laptop should take reasonable precautions to protect the equipment and information against theft. Where available, room safes should be used at hotels. Laptops should never be checked as luggage.

Telephones

Starbucks supports the use of secure functionally equivalent technologies for partners with disabilities provided usage meets the requirements of this standard.

Starbucks Data Backup

The Starbucks Data Warehouse Capacity Upgrade project was started in late 2005 with the objective of creating a Business Intelligence Infrastructure that could support Starbucks rapid growth and demand for a richer reporting environment. The existing data warehousing environment utilized the hub and spoke model consisting of a central repository and several data marts. This data warehouse could only support limited end user access as most reporting was performed via data marts. The objectives of the new data warehousing environment were to build a system that could support thousands of users and allow scalability without major hardware upgrades. The system provides reporting on sales and other key performance indicators for store managers as well as provide access to a wide variety of other information for Starbucks’ internal business users. A proof of concept project was commissioned to validate whether a single or multi-instance architecture would be appropriate for Starbucks’s environment.

Data Layout

In addition to designing the physical layout of the database for performance, there was a fair amount of deliberation as how to backup, restore, and refresh test environments that support the production system. The use of partitioning, read-only tablespaces and an archiving strategy are all keys when building a system of this size. In the case of the Starbucks Enterprise Data Warehouse (EDW), the largest fact tables consist of billions of rows, are range partitioned, and hold 39 months of data for reporting purposes. The use of a sliding window partitioning scheme was employed as a means for managing this large volume of fact data. In this case, a sliding window scheme implies partitions and tablespaces are added and dropped as time passes.

Backup Criteria

• In addition to RTO and RPO we also considered other factors

• Minimize the load on the servers and array to perform thebackup tasks

• Minimize overall backup time

• Keep disk space consumed by backups to a minimum

• Minimize backup scripting & infrastructure setup time

• Reduce hardware and storage costs

• Ensure backup process can scale as the warehouse grow

• RMAN+Flash Recovery Area (FRA) or Split Mirror Backups could meet these requirements

• However, RMAN was chosen for it’s ease of implementation, greater flexibility, and lower cost.

Backup Performance to FRA

• Nightly Incremental Backups

• 45-60 minutes for recovery of image copy to ‘sysdate – 1’ and  new incremental backup + archive log backup. The uncompressed backup set is typically 200-250 GB on a nightly basis.

• 4 RMAN disk channels running on one cluster node

• Full Backups

• Approximately 45 minutes to delete existing Image Copy (5 TB)

• Approximately 5.5 hours to create a new level 0 backup

(1 TB every 70 minutes)

Backup Performance to Tape

• Nightly Backup of Backupsets

• Nightly Backup time to tape for 2 tape channels on one cluster node takes 50 minutes (roughly 200 GB at 240 GB/hr)

• Weekly Backup of Recovery Area

• Weekly Backup of Recovery area with 4 channels (2 channels on 2 nodes) takes 15-16 hours (currently ~5.5 TB)

• LTO2 tape drives => 4 * (30-35) MB/s

• Should see at least 500 GB/hr going to tape

• Observing 330-340 GB/hr

• Tuning exercise showed the bottleneck is on the Bus of V440

References/Appendix

http://www.starbucks.com

http://www.starbucks.com/coffeehouse/mobile-apps

http://www.mobilemarketingwatch.com/starbucks-goes-national-with-mobile-payment-system-12682/

http://www.shinyshiny.tv/2011/11/starbucks_mobile_payment_application_launching_in_the_uk.html

http://www.scribd.com/doc/27614539/Starbucks-a-Strategic-Report-by-James-Heavey

http://freecasestudy.wordpress.com/2011/02/22/example-case-study-starbucks/

http://smallbusiness.chron.com/starbucks-its-use-technology-28272.html

http://www.theverge.com/2011/12/6/2614978/starbucks-mobile-app-110-million-revenue

http://www.starbucks.com/career-center/professional-services-careers/information-technology-partners#/information-technology/652199015001

http://news.starbucks.com/article_display.cfm?article_id=388

http://www.wikinvest.com/stock/Starbucks_(SBUX)/Research_Development

http://news.starbucks.com/article_display.cfm?article_id=388

http://www.theofficialboard.com/org-chart/starbucks#532792

http://www.theofficialboard.com/org-chart/starbucks

http://www.voteforus.com/starbucksmarketingstrategy.html

http://news.starbucks.com/executive+biographies/?start_row=11

http://news.starbucks.com/about+starbucks/

http://www.freeonlineresearchpapers.com/starbucks-coffee-mis-review

http://www.americanbanker.com/issues/176_154/starbucks-card-sharing-security-1041029-1.html?zkPrintable=1&nopagination=1

http://www.appsbybirbeck.com/coffee-card/security.html

http://www.starbucks.com/about-us/company-information/online-policies/privacy-policy

http://www.oppapers.com/essays/Technology-Starbucks/130259