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ISO Case Study Assignment
Apple Inc
By
Sonya
Jacinta Anderson
Grant
Manash
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EXECUTIVE SUMMARY
Apple designs, manufactures and markets personal computers, portable
digital music players, and mobile communication devices and sells a variety of
related software, services, peripherals and networking solutions. Apple have clearly
stamped there presence in the IT world for well over a decade. In order to remain
competitive in the market, Apple utilises many different information systems,
involving several stakeholders in each. One of their main functions is the Apple
online store. This feature alone requires the integration of many different
information systems. It is important that the Apple website maintains the image
they are trying to portray to their customers as well as maintaining customer
security at all times.
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TABLE OF CONTENTS
Executive Summary ....................................................................................................... 2
Introduction ................................................................................................................... 4
A Brief history of Apple
Main Activities of Apple ................................................................................................ 5
Apple Products
Stakeholders
Information Systems Used by Apple ............................................................................ 7
Online Purchasing with Apple ...................................................................................... 9
Processes
Website evaluation
Security and Integrity of Data
Conclusion ................................................................................................................... 12
Bibliography................................................................................................................. 18
Appendix- Reflection on Groupware Experience ....................................................... 19
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INTRODUCTION
Apple designs, manufactures and markets personal computers, portable digital
music players, and mobile communication devices and sells a variety of related
software, services, peripherals and networking solutions. This report will look at the
main activities of Apple and the information systems they utilise. It will then
explore, in detail the online purchasing function of the Apple website. The official
Apple site is in the top 100 most visited sites in the world.
A brief history of Apple
1976
1977
1980
1984
1995
1996
1997
2001
2002
2003
2004
2006
2007
2008
- Stephen Wozniak and Steve Jobs introduced Apple 1- it was a failure
- Apple Computer was incorporated
- Apple II launched –this was a success
- Apple introduced their first mouse driven computer, the Macintosh
-1996- $68 million lost
- Acquired NeXT
- Steve Jobs returned to Apple as CEO to reorganise and get rid of some
unsuccessful product lines
- Agreement with Microsoft- MS Office used on Mac PC’s
- iPod first introduced
- Acquired PowerSchool and Spruce Technologies which expanded their
market
- Apple Computer, Ericsson and Sun Microsystems formed alliance to deliver
multimedia content to wireless devices
- Acquired Prismo Graphics, Silicon Grail and Emagic
- iTunes music store launched
- Signed licensing agreements with 3 of the largest European independent
music labels, adding tens of thousand of new tracks to the iTunes store
- 4th Generation iPod introduced
- iPod included in car stereos including Audi, Honda and Volkswagen
- introduced mobile phones with iTunes in collaboration with Motorola and
Cingular Wireles
- iPod integrated with in-flight entertainment systems: Air France,
Continental, Delta and Emirates
- changed name to Apple Inc
- iPhone launched
- MacBook Air introduced
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MAIN ACTIVITIES OF APPLE
Apple strives to provide innovative products and solutions to their customers. The
markets Apple services include consumer, small and medium enterprises, education,
government and creative industries. They have a major focus on research and
development, aiming to stay at the forefront of the ever changing industry. Apple’s
motto is “Think Differently”.
Apple Products
Apple sells its products worldwide through its retail stores, direct sales force, online
stores and third party wholesalers. They also sell products of third parties that are
compatible with Apple products. Apple has five main product lines:
1. Desktops
- iMac
- eMac
- Mac mini
- Power Mac
- Mac Pro
- Xserve
2. Portables
- MacBook
- iBook
- MacBook Pro
- PowerBook
3. iPod products
- iPod Shuffle, Nano, Classic and Touch
- iPhone
- iPod accessories
- iTunes Store
- iPod services
- iPod accessories
4. Other music related products and services
- hardware accessories of Apple
- hardware accessories of third parties
- wireless connectivity
- networking solutions
5. Software
- operating system and application software
- AppleCare
- Internet services
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Stakeholders
For each activity undertaken by Apple, there are many stakeholders. The
stakeholders and their issues for Apple online are shown in the rich picture on the
following page.
Customers
Browse the Apple website to look for products they want to purchase. They
can use online help manuals or submit an enquiry if they have any problems
with the website or any products they purchase.
Accounts and Billing
Process the payments from the customers. It is important that they verify
the authenticity of all transactions.
Product Manufacturers
Produce the products as specified by Apple. Through communication with
the warehouse and monitoring of sales, they know how much of each
product to manufacture.
Warehouse
Fills orders made via the website and ships products to the customers. They
also monitor stock levels and keep the manufacturers up to date.
System Administration
Creates and maintains the website. They ensure the usability of the website
and are on standby to fix any problems that occur.
Technical and Product Support
Are available to help with any customer concerns or problems with products.
Competitors
Will be keeping a watch on the activities of Apple and looking for
opportunities to gain market share.
Internet Provider
Provides the internet on which the website is based. They need to ensure
the connection is reliable in order to keep Apple as a customer.
Apple and CIO Web Governance and Policy
There are policies in place regarding content on the web. People monitor the
site to ensure it complies with these regulations.
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INFORMATION SYSTEMS USED BY APPLE
The information systems Apple uses include:
Customer registration database
When they make a purchase, customers create an account with Apple.
Customers can opt in to receive marketing materials from Apple. Apple
keeps the information of their customers on file for future reference. This
also makes the purchasing process easier for return customers as they do not
need to re-enter their details.
Training and certification
Apple training and certification to their customers. They maintain a database
of courses undertaken by Apple users and IT professionals.
Online shopping
Customers are able to browse and purchase products online. This function is
explored more throughout this report.
Discussion forums
Apple provides and monitors a discussion forum for customers. This allows
people to discuss their experiences with each other and share knowledge.
Development/ operational research
Apple constantly follows both information technology and business
developments across the industry. This allows them to keep in touch with
their competition.
Software downloads, updates and support
Apple uses their website as a platform to provides customers with access to
downloads, product updates and technical support.
Organisation Chart of Senior Employees & contact information.
Apple utilises an organisation chart and contact information for employees.
The senior employees organisation chart is available for the public to view via
the website.
Historical transactions & finical database
Apple keeps a record of all transactions. They can use this history to help
them develop strategies for the future.
Inventory management database
Apple has an inventory management database. This allows them to keep
track of their stock and manage the flow of products to accommodate
demand.
Technical support reporting system ‘Apple expert’ possibly including
Apple maintains a frequently asked database of most asked troubleshooting
questions and a repository for technical issues to help their technical support
staff answer enquiries.
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ONLINE PURCHASING WITH APPLE
Processes
The main processes required for the Apple Store are:
 Creation and management of client accounts
 Shopping basket
 Credit card security system
 Shipping and distribution
 Inventory monitoring
The Alter’s work system framework on the next page explores the various roles
and processes involved in the online purchasing system.
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The following two pages show the processes involved with making an online
purchase with Apple.com. Scenarios where the customer has an account with
Apple and when they do not are provided.
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The diagram on the next page shows the process from the order being placed
through to delivery of the item.
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Website Evaluation – Apple.com
Apple have clearly stamped there presence in the IT world for well over a decade.
Known for there sheik cosmetic computer products filled with innovative technology,
there web presence shows nothing less. From the moment you enter the home page
you’re presented with simplicity and visual appeal. The main page provides a large,
clear and easy to distinguish menu, visibly representing what Apple offer (image
below).
Due to the size of the site, Apple has offered the “search” functionality within the
menu. This gives users the ability to navigate through technical support
documentation and the site with ease, saving time and a few extra clicks.
The Website Standards Association Inc. (WSA) is an organisation which has been
setup to identify the minimum website standards that websites should practice to
assist and educate internet users about how to get the most out of there website.
Criteria WSA match against are;
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


Business purpose
Marketing
Useability and;
Technology
If this is anything to go by, apple have gone above and beyond with there innovative
website design making the site prominent and purposeful with there web presence.
An example of this is the;
Product browsing menu (below): Browsing products has never been easier than
before, simply scrolling the vertical slide beneath product gives users quick access to
various product categories making the online shopping facility comprehensive and
easy to use.
WSA visual standards layout state a site must be the following;
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Decorative and functional
Sufficient text size
Easy layout and;
Image use
The image above taken from the MAC category of the Apple site clearly shows
decorative and functional, effective sizing of text, good layout and sufficient image
use by all means which satisfy the visual appeal and standards of the site.
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It is evident Apple have researched there market and have a good understanding of
what there prospective buyers require. There innovative ideas and current stand on
the IT market proves Apple are here to stay.
Systems innovation is sought to be a crucial aspect of an organisations direction and
goals. The definition of innovation states “a new way of doing something”, this can
be through gradual, radical or revolutionary changes by thinking, products and
processes with the organisation.
Online transaction processing systems are innovative systems which allow
organisations to conduct E-commerce. Without innovation and change the system
would fall behind and fail to meet demands of global changes. It’s important to
ensure organisations approach and direction should include the following when
developing information and technical strategies;
 Assist in supporting core technology of the business
 Innovations that support administration of the business and;
 Innovations which are imbedded within the core of technology they use
The online transaction system can provide statistics from products being purchased
in combination with decision support software to project and report market trends
to allow strategical product base giving the organisation market advantage.
Security and Integrity of Data
Apple store online offers customers the option of purchasing products online. As
with many other online stores they provide this service with the proviso that the
customer register with the site first. This serves two purposes, the first is that it
enables Apple to track its usage, what is being purchased and the number of
customer currently using the system. As well as this it enables the company to store
information about the customer that can be used for research and advertising in the
future. The second reason for having customers create accounts is that it enables the
customer to enter their information once then simply use their login details again for
future purchases. This saves the customer time and also provides a level of security
for the customer by requiring a password to be created on the account.
Security on systems such as this must be up to a standard that provides complete
security and piece of mind for the customer when giving out personal details. The
focus of many security applications is the security of the customers credit card
details. It wasn’t that long ago that it was simply not save to purchase over the
internet due to hackers being able to access and use credit card information sent
over the internet. The use of encryption and the introduction of security packages on
every home computer has lessoned this risk however online stores need to take this
to a higher level to protect their customers. As the Apple site stores the information
for later use by the customer they must ensure that no one will be able to access the
information at any point for the life of the company.
Apples privacy policy as outlined on the Apple website reads as follows.
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“Apple’s Customer Privacy Policy covers the collection, use, and disclosure of
personal information that may be collected by Apple anytime you interact with
Apple, such as when you visit our website, when you purchase Apple products and
services, or when you call our sales or support associates.”
This policy then goes on to outline why the information is collected and how it will
be used. A particular point in this policy is the use of security software for use with
credit cards and also how the user can help protect them selves.
“The Apple Online Store and iTunes Store use Secure Sockets Layer (SSL) encryption
on all web pages where personal information is required. To make purchases from
the Apple Online Store or iTunes Store, you must use an SSL-enabled browser such
as Safari, Netscape Navigator 3.0 or later, or Internet Explorer. Doing so protects the
confidentiality of your personal and credit card information while it’s transmitted
over the Internet.”
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Conclusion
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Bibliography
Alter. 2009, Modelling information systems, Lecture notes distributed in the topic
Information Systems in Organizations (6348) at The University of Canberra, Canberra
on 16 March.
Apple Computer, Inc. (n.d.). Datamonitor Company Profiles Authority. Retrieved May
2, 2009 from EBSCOhost database.
Apple Inc (2009). Apple store. First viewed May 5, 2009, web site:
http://www.apple.com/
Websites standards association. (2009). Viewed May 15, 2009 web site:
http://websitestandards.org/
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Appendix- Reflection on Groupware Experience
Groupware consists of WebPages that are set up to allow users to create their
own ‘page’ within the host website. The aim of these sites is to enable groups of
people with similar interests or goals to all work together on a single site and
communicate with each other. Unlike social networking sites such as Facebook and
MySpace, groupware is designed for simple tasks such as discussions and uploading
of files. Many groupware hosts are present today on the web. Google, Wiki and
Yahoo sites are the main sites that are popular today. For this case study we utilised
the Wiki spaces site as our communication method.
Our own wiki page can be named so that the user can have many pages open
for different purposes. Additional users must then be invited and approved to join.
This method insures all users have provided login details to the host and are approved
to view the content of the page by the pages original creator.
The Discussion room within this group page was the key feature as all of the
members of our group worked fulltime and were unable to meet on a regular bases.
Screen shot of Chat function in this groups wiki space.
The uploading feature was also heavily utilised, it allowed us to load various pieces of
information and work that we have found or created onto either the home page for
easy viewing or onto the upload area for general group viewing.
Particularly for our group, we tried to choose a groupware site that was easy to
operate, free and also one that only had the basic features that we actually needed.
Screen shot of uploaded files.