System Analysis and Design

Analysis Project

Ground Zero Video

Proposed Online Sales System

Presented by

Ashish Gurung
Wilson Kwan
Vivien Lo
Heman Wong

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 Table of Contents
Team Biography……………………………………………………………………..……...

Executive Summary……………………………………………………………….……..… 4

Current System…………...………………………………………………………………... 5

“As-is” DFD Context Diagram.………....………………………………………..... 6

“As-is” DFD Level 0 Diagram……..…….………....……………………………... 7

“As-is” ERD Diagram……………...…..…………………………………………...8

Use Case One: Selling Process….……...………………………………………….. 9

Use Case Two: Rental Process.……..……………………………………………... 10

Formal System Request……………………...…………………………………………….. 11

Feasibility Analysis..………………………………………………………………………..12

Proposed System…………………………………………………………………….……...13

“To-be” DFD Context Diagram.……………………………………………………14

“To-be” DFD Level 0 Diagram….………………………………………………… 15

“To-be” ERD Diagram…………………………………………………………….. 16

Conclusion…………………………………………………………………………………. 17

Appendix A: Economic Feasibility Worksheet……………………………………………. 18

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 Team Biography
Ashish Gurung, BBA

Ashish is a third year BBA student with a minor in Interactive Arts &
Technology. As a Management & Technology and Entrepreneurship student,
Ashish has developed skills in project management and consulting. For this
project, Ashish was responsible for system request, project proposal,
organizational feasibility and technical feasibility. Ashish started the initial
contact between the team and its client and has contributed many thoughts
and ideas in the development of the system.

Wilson Kwan, BBA

Wilson is a third year BBA student concentrating in Accounting and MIS.

Wilson is responsible for creating the Context and Level 0 “AS-IS” DFDs
and also the ERD diagrams for both the “AS-IS” and “TO-BE” System.
Furthermore, Wilson served as the main contact person between the team and
Client. He provided his communication skills and analytical skills so that he
could communicate with the client during face to face, email and phone
conversations to gather information and coordinate meetings.

Vivien Lo, BBA

Vivien is a third year BBA students, concentration in Management of

Technology, also minoring in Interactive Arts and Technology. Her
responsibilities for this systems analysis/design project were to write a
description of Ground Zero Video's current business system, working with
Wilson Kwan to produce the data flow diagrams for the current system,
production of the data flow diagrams for our proposed e-business system for
Ground Zero, and helping the team determine the technical and functional requirements of the
proposed system. The critical skills that Vivien provided were her analysis and design skills.

Heman Wong, BBA

Heman is in his fourth and final year in SFU concentrating in Accounting and
Finance. Based on his background, Heman provided his problem solving
skills during our analysis. Heman analyzed the as-is system and produced 2
“AS-IS” use case for the selling and rental transactions. Heman is also
responsible for looking at the financials and generating the economic
feasibility for 5 years. Heman was part of the initial meeting with our client
to establish a relationship. In addition, he also assisted his team members in editing the DFDs
and proof reading ERDs.

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 Executive Summary
Quad Consulting is working with Ground Zero Video for the period of January to April 2008.
The team is responsible for the delivery of a detailed analysis and a plan of implementation for
an online sales system.

Ground Zero Video is a family-owned company located in downtown Surrey, BC. The company
rents items such as DVDs, VHS and video games for multiple platforms. Ground Zero sells
items such as DVDs, VHS, Video Games, Accessories and consoles.

Over 70% of Ground Zero’s revenue is comprised of their sales. They currently use TVL Rapid
Rental as their point-of-sale system. They scan products through the counter to make a
transaction and record it in the inventory database. The company hosts their inventory database
on one of their three desktop computers. Consumers are allowed to rent items from the store only
if they have signed up for a membership, but any individual is allowed to buy an item. Currently,
consumers will have to call in the store obtain information such as product availability.

The company wants to start an online presence and begin selling their products online. Quad
Consulting has recommended the implementation of a website with online hosting of data such
as inventory database and member database. The online hosting will support the bandwidth of
their transactions. The primary functions of the online system would be its ability to sell products
and provide product information. Other features include an e-newsletter, item reviews and
company blog.

The organization carries a low risk with the proposed project. The proposed system strongly
aligns with the organization’s goals. These goals include an increase in sales as well as strong
customer loyalty. Consumers of the retailer are anticipated to appreciate the choice of being able
to buy products online.

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 Current System
Ground Zero Video's as-is information system contains a network of 3 desktop computers that
handle the recording of transactions as well as inventory-related processes. Rentals and sales are
conducted via its point-of-sale software package (called TVL Rapid Rental), which allows the
staff to scan borrowers' membership cards to confirm membership status, and pull product
information from the inventory database by scanning barcodes on items. The three computers
are responsible for storing all the store information including its inventory and membership
databases. Payment for purchases and or rentals is collected in the form of cash/credit/debit. In
the case of credit/debit transactions, the system requests payment confirmation from external
credit bureaus or banks. Upon confirmation, the sale or rental invoice is recorded in a
transactions database, and a receipt is printed for the customer. In the case of a rental, the receipt
also serves as a reminder of the rental's due date.

In the as-is system, only renting customers are required to have memberships, as information
such as their names and contact details are necessary to enable store staff to contact borrowers if
there are any issues. A customer who wishes to rent but is not currently a registered member of
Ground Zero Video would be required to fill out a form with name and contact information such
as phone number and e-mail address before he/she is allowed to check-out any items. The store
is also in the business of selling new and used videogames, accessories and films in various
formats. It is currently not necessary to collect and maintain information from customers who
buy merchandise to own. People who would like to request inventory information for specific
items would either have to ask in-person at the store, or make a telephone call to the store. Sales
to non-local customers are currently done over the phone, and the orders are either picked up at
the store or shipped by mail to the customers.

The owners of Ground Zero started their business about 3 years ago, and as of now they are still
in the process of breaking even to their initial investment. Even though the store premises is
located in a central location in Surrey, its current customer base is still generally limited to
inhabitants of the local area and friends of the owners’ family. In the context of its current
business processes and the amount of customers Ground Zero serves, the existing point-of-sale
system and hardware is adequate, but does not offer much opportunity for improvement and
expansion. Also, the business does not currently have any processes devoted to promotional
advertising and establishing a rapport with its customers. The owners of the store professed that
it has been a goal of theirs to set up an e-mail list through which they can notify store members
of promotions and recommended products.

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“As-is” DFD Context Diagram

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As-is” DFD Level 0 Diagram

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“As-is” ERD Diagram

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 Use Case One: Selling Process
Use Case Name: Process of Selling Transaction ID Number: _1_

Short Description: This use case describes how a customer purchases an item from Ground Zero

Trigger: Customers approaches the counter and decides to purchase an item.

Type: External / Temporal
Major Inputs: Major Outputs:
Description Source Description Destination
Product Bar Code Customer Product Information Store Assistant
Payment Type Customer Sales Receipt Customer
Purchase Payment Customer Updated Inventory List Inventory Database

Major Steps Performed Information for Steps

1. Scan Product Bar Code  Product Bar Code

 Product Information (Price,
Name, Genre, System)

2. Payment for the Purchased Product  Payment Type

 Purchase Payment

3. Confirmation of Payment  Sales Receipt

 Updated Inventory List

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 Use Case Two: Rental Process
Use Case Name: Process of Rental Transaction ID Number: _2_

Short Description: This use case describes how a customer rents out an item from Ground Zero

Trigger: Customers approaches the counter and decides to rent an item

Type: External / Temporal
Major Inputs: Major Outputs:
Description Source Description Destination
Product Bar Code Customer Product Quantity Amount Store Assistant
Customer Phone Number Customer Product Information Store Assistant
Customer Name Customer Rental Due Date Customer
Customer Address Customer Rental Receipt Customer
Customer Email Customer Updated Inventory List Inventory Database
Payment Type Customer
Rental Payment Customer

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Major Steps Performed Information for Steps

1. Confirms or Enters Customer Information for Membership  Customer Phone Number

 Customer Name
 Customer Address
 Customer Email

2. Scans the Bar Code of the rental Product  Product Bar Code
 Product Information (Price,
Name, Genre, System)
 Product Quantity Amount
3. Payment for the Rental Product
 Payment Type
 Rental Payment
4. Confirmation of Rental Transaction
 Rental Receipt
 Rental Due Date
 Updated Inventory List

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 Formal System Request
Ground Zero Video
Project Sponsor: Tanysha Robinson, Operations Manager
Dominic Robinson, Operations Manager

Business Need:
Ground Zero has no online presence at the moment. The company also offers unique products
that attract customers across British Columbia. The project will address the company’s lack of
online presence as well as its inability to sell products online. The system will coordinate
between the company’s inventory management system as well as its sales system.

Business Requirements:
Users of the system should be able to buy products through the internet, add themselves to a
mailing list, add product review, and learn about promotions and deals. The company will also
want to start an additional company blog feature.

The primary function of the system would be its ability to help customers purchase their products
online. The system would display information such as product information, product quantity and
prices. The transaction process would include an accurate pricing of the product (including
shipping).

The website will require a member login function. Members would have the ability to purchase
products, as well as review them. The system will also keep a record of the customers’ previous
purchases and personal information in order to promote related products.

The functionality of the system includes the following:

• Provide an interface where customers can buy products
• Store Customer Information for purchases and preferences
• Customer ability to write reviews
• Newsletter List
• Displaying product information and quantity for both sale and rental items
• Recommendation of products as members navigate
• Online hosting of data

Business Value:
We predict that Ground Zero will increase its revenues, expand their market share, decrease
shelving costs and have a more loyal customer base. The system will provide timely and real-
time information to the company. The company will be able to analyze its member base, and
online customer purchase information. The company will also be able to fulfill long distance
customer needs.

Special Issues or Constraints:

• System Training will be required

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 • Upgrade of current computer system
Feasibility Analysis
Organizational Feasibility

The proposed system will have a low risk with Ground Zero. The project perfectly aligns with
the organization’s focus on its product sales. The decision to have an online presence will not
only increase the visibility of the company, but will also add another distribution method. One of
the company’s goals is to have better relationships with their existing loyal customers and to
create new loyal customers. Through this website and newsletter, customers will always be able
to get up to date news and promotions. The project champion is Dominic, one of the managers of
Ground Zero. Dominic is a great champion of the project as he has strong influence on the
owners and managers of Ground Zero. The users of the system, including employees and
customers, will appreciate the online presence of Ground Zero. Management will definitely be
able to recognize the benefits of the system almost instantly.

Economic Feasibility

Cost-benefit is available on the worksheet found in Appendix A at the back of this analysis. Our
economic feasibility demonstrates that the online presence will have a positive net present value
on Ground Zero and will add to the bottom line of the company.

ROI over 5 years is: 66.77% -- Total Benefit after 5 years is: $16,487.38
Break-even occurs after 1.40 years

Intangible costs and benefits include improved customer satisfaction and loyalty and the ability
to compete with current online competitors.

Technical Feasibility

The technical feasibility of the system has medium risk. The company would need a proper
training program in order for its employees to use the system effectively.

Management at Ground Zero has some familiarity with the application. The company and
customers understand the goals and functionality of the proposed system. Ground Zero has never
had an online presence and will be new to e-commerce. Ground Zero does carry a medium risk.

The recommended system has never been used in the organization. The management lacks the
knowledge in order to operate and implement the system but able to learn new technical
applications. Ground Zero carries a low-medium risk with its familiarity of the technology.

The project size is considered a low risk. The number of people working on this project will be
less than five and it will take approximately three months to finish the system. Because this
business model has been established in the industry, it will be to implement and operate the
system. The compatibly risk of the system is very low. Their current system uses simple
technology that could be easily integrated with the proposed system.

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 Proposed System
The proposed project for Ground Zero changes the dynamics and interactions of the current
system. The project will offer many new additions to the current system such as online hosting.
Our analysis and recommendations are focused on the online sales system.

The core problem that Ground Zero wants to address is their inability to have an online presence.
The lack of online presence inhibits their customers from buying products off their website as
well as finding more information about the store.

Our recommended system will allow Ground Zero to not only sell its products online, but also to
provide online information such as stock quantity, product availability and special deals and
news. The system will also allow internal users (company management) to access its inventory
and stock information through an online system.

In order to build the system, we recommend that Ground Zero have a server that is hosted off-
site. This online service could be provided through companies such as Peer1 hosting. This online
server would function to provide information to the employees in-store, as well as consumers
online. The current system at Ground Zero indicates which products are for sale or for rent. This
separation is crucial because the online platform will only have transactions for items that are on
sale. The website will be an important component as an additional method of distribution.

Because most of the inventory and member data will be stored online, we have recommended
that Ground Zero have in-store data storage as well. This could be achieved with their existing
storage capabilities.

In addition, the website will display information regarding the store, and especially the
availability of its rental and sale items. This is completely different from its current system; the
current system would require its customers to call in the store to check the available of both its
rental and sale items.

Additional features of the website include a newsletter list, a company blog as well as customer
reviews for items. Products will be reviewed by the consumers of the store as a write-up or a
rating. Members will be able to sign up on the website to receive updates, as well as post reviews
on products. They are able to comment on the blogs created by the company. These members
will also be able to receive promotional sales. Online members as well as individuals who sign
up in store will be placed in the same database. There are no features in the current system that
allows members to officially post review on movies as well as receive news and updates about
the organization.

Our recommendations will expand the current system to accommodate an online presence as
well as segregation of databases. The computers will not require an upgrade as they are fairly
new computers. Ground Zero may continue their use with TVL Rapid Rental as it provides key
features and services and is easily integrated with the recommended system.

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“To-be” DFD Context Diagram

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“To-be” DFD Level 0 Diagram

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“To-be” ERD Diagram

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 Conclusion
As a family-operated business, Ground Zero has strong motivation to grow and operate
efficiently. In today’s competitive world, having an online presence is crucial to a company’s
growth and survival. Part of their growth includes having an online presence that allows
customers to buy products through their website and improve customer relations.

The current issues and needs of Ground Zero is that they are facing a lack of communication
between their customers. Moreover, they wish to broaden their current market share to improve
their competitive edge against larger competition. Also, they want to increase the convenience
for their current and future customers who may be out of the proximity of their store. Lastly, as a
small business, retaining current customer base is an important factor to the success of their
business; therefore, they would like to establish stronger relationships with their customers.

To tackle these current issues and needs of Ground Zero our proposed system will first involve
the use of a website that can be linked back to Ground Zero’s current POS Software, TVL Rapid
Rental. In this system, a blog feature will be used by management to establish an interactive
online community with their members. Furthermore, based on individual customer preferences,
Ground Zero will email out weekly newsletters to inform their members of new releases and
current promotions. To increase customer satisfaction, the web server will have the ability to
provide live updates on the current inventory on hand as well as recommending selective items
that meet each individual customer’s preferences. By doing so, this will help make it easier for
customers to shop online and find the product that suits their needs. Finally, Ground Zero will
provide customers with the ability to provide feedback with reviews and ratings on certain
products. This feature will make the customers realize that their opinions are important to
Ground Zero and also increase the confidence of other customers who are looking to buy the
same product.

The proposed system will prove to significantly contribute to the future success of Ground Zero.
As a low risk project, the system will enable the company to expand to new markets and create a
new distribution channel. It will help Ground Zero better understand its customers and adapt to
their customers’ needs. This system will have the potential to play a strong role in the growth of
Ground Zero.

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APPENDIX A: ECONOMIC FEASIBILITY WORKSHEET

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Assumptions an
*All in Annual Am

REVENUE
Revenue :from Sa
Revenue: from R
Last Year Revenu
Sales growth yea
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