Homework Assignment 1

IT and Business
Group members 1: 20223558 Nguyễn Hoàng Trâm Anh
Group members 2: 20223571 Nguyễn Hoàng Minh Châu
Group members 3: 20223541 Lê Phương Linh
Group members 4: 20223574 Nguyễn Mạnh Cường
Group members 5: 20223625 Nguyễn Bảo Minh
Group members 6: 20223623 Trần Ngô Đức Mạnh
………
1. Introduction
Uber Technologies, founded in 2009, stands out for its advanced use of information
technology, including GPS, AI, and big data, to optimize routes and enhance user experience.
This innovative approach, along with its disruptive business model, fueled its rapid global
growth. Despite facing a historic first-day loss after its 2019 IPO, Uber has focused on
profitability through acquisitions and continuous tech innovation to maintain its market
leadership.

2. How Uber’s Business Model differs from Traditional Taxi Services

Uber transformed the transportation industry by introducing an on-demand ride service
through a mobile app, connecting drivers and riders directly. This new model bypasses
traditional requirements like owning a fleet of cars or using central dispatch centers, focusing
instead on speed, flexibility, and availability. This approach has allowed Uber to provide a
unique alternative to traditional taxis.

One of the main differences is Uber’s direct connection between riders and drivers. With the
Uber app, riders can book a nearby car instantly, without the need for waiting at a taxi stand
or calling a dispatcher. By integrating GPS and real-time location tracking, the app accurately
matches riders with the closest available driver, minimizing waiting times and allowing riders
to track the driver’s arrival in real-time. Additionally, Uber leverages big data analytics to
predict demand and adjust driver availability accordingly. Through analyzing historical and
real-time data, Uber can proactively direct more drivers to high-demand areas, ensuring that
riders receive quicker service, even during peak times. As a result, Uber provides a faster,
more convenient experience, with riders getting a car within minutes and drivers having
immediate access to nearby customers.

Uber’s pricing algorithm, known as dynamic or surge pricing, adjusts fares based on real-
time demand and supply. When demand exceeds available drivers, the algorithm raises prices
with a surge multiplier to attract more drivers to the area. This dynamic approach ensures
riders can find a car even during peak times, while drivers earn more in high-demand periods.
In contrast, traditional taxis follow fixed rates and cannot easily adjust to spikes in demand,
often leading to a shortage of available cars during busy hours. For example, on New Year’s
Eve, when demand is high, traditional taxis may be hard to find, and wait times increase due
to limited supply. Uber, however, can increase fares temporarily, attracting more drivers to
work during peak hours, so riders have better chances of finding a car. The algorithm
considers factors like time, distance, traffic, and real-time rider-to-driver ratios, using
predictive analytics to anticipate demand spikes during events or rush hours. Although surge
pricing has faced criticism for high fares during emergencies, it ultimately enhances
availability and efficiency, providing a reliable experience for both riders and drivers
compared to the limitations of traditional taxi services.

A unique aspect of Uber’s model is its scalability and fleet flexibility. Unlike traditional taxi
companies, which must invest in, own, and maintain their vehicles, Uber operates with an
“asset-light” approach by relying on drivers who use their own cars. This means Uber can
expand quickly and enter new markets without the heavy costs associated with owning a
fleet. Taxi companies, by contrast, face limitations in growth due to the costs and logistics
involved in maintaining a fleet. Uber’s model allows it to meet demand in new regions
quickly and cost-effectively. For example, Uber entered markets across Europe and Asia
quickly because it didn’t need to buy a fleet, allowing the company to scale up without heavy
investments.

Uber also stands out due to its flexible work model for drivers. Uber drivers can choose their
working hours freely, turning the app on or off as they wish. This flexibility attracts a larger
number of drivers who work according to their own schedules, which in turn allows Uber to
respond to rider demand more dynamically throughout the day. Traditional taxi drivers, on
the other hand, often work fixed shifts, making it harder for taxi companies to adjust to
sudden changes in demand. With Uber’s model, more drivers are available when demand
rises, providing a smoother service for riders.

Lastly, Uber’s rating system helps maintain high service quality. Both riders and drivers rate
each other after each trip, giving Uber a consistent way to monitor and improve service.
Traditional taxis typically lack this kind of feedback loop, making it harder for companies to
address poor service or ensure consistent quality. With Uber, riders can expect a more
reliable experience, and issues with drivers or service are easier to identify and address.

3. How the company uses information technology to make the differences possible?

The first and most prominent use of information technology is Uber’s creation of a direct
connection between riders and drivers through its mobile app. This app serves as a platform
that removes traditional barriers in the taxi service industry, such as needing to call a
dispatcher or wait at a taxi stand. Instead, Uber uses GPS technology within its app to locate
both riders and drivers in real time. Once the rider requests a ride, Uber’s location-based
algorithms match them with the nearest available driver, ensuring that waiting times are
minimized.

The use of GPS is a fundamental aspect of this innovation, as it not only provides location
data but also helps calculate the optimal route for the driver. Additionally, Uber uses
sophisticated matching algorithms that go beyond simple location proximity, taking into
account factors such as traffic conditions, estimated arrival times, and the driver’s previous
performance. These algorithms continuously refine themselves using machine learning,
allowing Uber to predict demand patterns and improve accuracy over time.
To support this seamless experience, Uber relies on cloud computing infrastructure to process
and manage massive volumes of real-time data. The company uses cloud platforms to store
and analyze vast amounts of ride requests, locations, and traffic data from global users. This
enables Uber to maintain a scalable system that can handle millions of requests per day,
ensuring efficient service even during periods of high demand. Cloud computing also allows
Uber to continuously update its platform, ensuring real-time availability of accurate data for
both riders and drivers.

The second major use of information technology in Uber's business model is dynamic
pricing, also known as surge pricing, which enables Uber to balance supply and demand in
real time. Uber uses advanced data analytics and predictive algorithms to track the demand
for rides and the number of available drivers at any given time. When demand exceeds
supply, Uber’s pricing model automatically adjusts the fare to incentivize more drivers to
become available, ensuring that riders can always find a ride, even during peak times such as
rush hours, large events, or bad weather.

These algorithms analyze large datasets to detect patterns in demand and forecast upcoming
surges based on factors such as historical data, weather conditions, and event schedules. By
using big data technologies and machine learning, Uber can predict and act on demand
fluctuations before they happen, making its pricing model dynamic and responsive. Cloud
computing plays an essential role here, as it allows Uber to process vast amounts of data in
real time, ensuring that fare adjustments are made instantly across all regions without service
interruptions.

The third way Uber leverages information technology is through its asset-light model. Unlike
traditional taxi companies, Uber does not own a fleet of vehicles. Instead, it utilizes a network
of individual drivers who use their own cars. This model is made possible through technology
platforms that facilitate communication, payments, and ride management between riders and
drivers. Uber uses mobile technology to allow drivers to access the app, accept ride requests,
and navigate to passengers using GPS in their smartphones.

Uber also utilizes supply chain management and predictive analytics tools to optimize the
allocation of drivers in different geographic locations. By analyzing real-time and historical
data, Uber can predict the number of drivers required in specific areas and adjust supply
accordingly. This use of predictive analytics helps Uber minimize inefficiencies, reduce wait
times for riders, and ensure that the right number of drivers is available at the right time, all
without the need for Uber to own any vehicles.

The fourth way Uber uses information technology is to support its flexible work model for
drivers. Unlike traditional taxi companies with fixed shifts, Uber allows drivers to set their
own working hours through its mobile app. This flexibility is possible thanks to Uber’s use of
real-time data analytics and geolocation services to monitor demand and communicate with
drivers. The system can detect areas with increased demand and send notifications to drivers,
encouraging them to log in and accept ride requests.

The real-time tracking capabilities of Uber's platform enable it to adapt quickly to changing
demand patterns. For instance, if demand increases in a particular area, the system can send
alerts to drivers in that region, prompting them to work during peak hours. This creates a
dynamic and flexible workforce, something that is impossible for traditional taxi companies
with fixed schedules. Additionally, Uber’s use of data analytics ensures that drivers can work
efficiently, only driving when there is sufficient demand for rides, which in turn improves
overall system efficiency.

The fifth and final aspect of Uber’s innovative use of information technology is its rating
system, which maintains the quality and reliability of both drivers and riders. After each trip,
both riders and drivers rate each other on a scale, providing valuable feedback about their
experience. Uber’s algorithmic systems aggregate these ratings and use them to evaluate the
performance of both parties. This data-driven approach helps Uber maintain service quality
and build trust within its community.

For drivers, those with low ratings are flagged by the system, and Uber may remove them
from the platform if their ratings remain consistently poor. Likewise, riders who receive poor
ratings from drivers can also face consequences, such as restrictions or removal from the
platform. Uber’s feedback loop ensures that both riders and drivers are held accountable,
promoting a higher standard of service across the platform.

Uber’s rating system also provides data insights that help improve the overall experience. By
analyzing trends and identifying common complaints, Uber can implement corrective
measures, refine its matching algorithms, and ensure a higher quality of service for both
riders and drivers. The data collected through ratings is fed into Uber’s larger machine
learning systems, which continuously refine the app’s algorithms to improve performance.

So, Uber’s strategic use of information technology has been pivotal in creating a business
model that disrupts traditional transportation services. By utilizing GPS-based matching,
dynamic pricing algorithms, cloud computing, big data analytics, predictive models, and its
rating system, Uber has created a highly efficient, scalable, and flexible platform. These
technologies allow Uber to connect riders and drivers, balance supply and demand in real
time, optimize its operations, and offer a superior service that is unmatched by traditional taxi
companies. Through these innovative uses of information technology, Uber has transformed
the transportation industry and continues to lead as a market innovator.
 Homework Assignment 2
IT and Customer Intimacy
Group members 1: 20223558 Nguyễn Hoàng Trâm Anh
Group members 2: 20223571 Nguyễn Hoàng Minh Châu
Group members 3: 20223541 Lê Phương Linh
Group members 4: 20223574 Nguyễn Mạnh Cường
Group members 5: 20223625 Nguyễn Bảo Minh
Group members 6: 20223623 Trần Ngô Đức Mạnh
………

1. Introduction to Sephora
Sephora is a global cosmetics retailer, company founded in 1970 in Paris, France. Nowadays,
is owned by LVMH (Moët Hennessy Louis Vuitton). Sephora provides a wide range of
products from makeup, skincare, and perfume to beauty accessories from many famous
brands worldwide, including Sephora's brand. Sephora has attracted consumers by providing
a modern store space, excellent customer service, and direct experiences such as product
trials and beauty advice. Sephora is now available in many countries and thrives on the
internet platform (https://www.sephora.com/) to make it simple for everyone to obtain their
products and services.
2. Why Sephora fulfills clients’ needs
Sephora’s website is highly effective at fulfilling clients’
needs, largely due to its well-integrated features and
customer-centric design.
2.1. Personalized Product Recommendations:
The website uses data from users’ previous browsing,
purchases, surveys, and quizzes to provide personalized
recommendations. This feature helps users find relevant
products quickly, enhancing their shopping experience. Picture 1: Personalized product
(Picture 1) recommendation

2.2. Comprehensive Reviews and Ratings:

Sephora provides a detailed review section where customers can see feedback, ratings,
and photos from other users. By doing this, customers will approach reality product reviews
instead of only reading the product’s advertising. Moreover, this transparency and the ability
to filter reviews by skin type, age, and skin concerns help clients make informed decisions.
2.3. Virtual Try-On Tools:
Sephora provides a virtual try-on feature on its website
through the phone’s filter, available for various products
like lipstick and foundation, which are hard to select online,
and lets users see how shades look on their skin tone using
augmented reality. This decreases uncertainty when buying
products and makes online shopping easier. (Picture 2)
2.4. Sephora Rewards Program: Picture 2: Virtual try-on tools
Sephora’s website prominently features its loyalty program, offering clients benefits like
exclusive discounts, free samples (Picture 3), and early access to sales. This helps build
customer loyalty and encourages repeat purchases.

Picture 3 Free samples campaign

2.5. User-Friendly Mobile Experience:

Sephora’s site is optimized for mobile, making it easy to navigate on smaller screens, which
is essential for busy customers shopping on the go.
Sticky search bar: When you type your search query, the drop-down has separate sections for
- ‘Previous Searches’ excellent for returning customers to pick off from where they
dropped off,
- ‘Suggestions’ for phrases or names it assumes match your query, making it quicker
and easier for the user to choose an option without having to type it all.
- Product listing section - that refreshes with each letter typed into the search box.
Immediate feedback is always more reassuring to a browsing customer.
Voice search & barcode scanner: With the rise of voice search, like Alexa, it is important that
shoppers can search by audio. Additionally, the barcode scanner feature is great for when a
customer is at a Sephora store, but a product is unavailable. By scanning its barcode, one
could simply place an order through the app.

3. Feature Analysis of Sephora's Website for Enhanced Customer Intimacy

Sephora’s website was built with many advanced features to increase intimacy, benefit, and
provide a more customized experience for users. Here are some of the key features that help
Sephora build strong relationships with customers:
Building Customer Profiles: Sephora integrates data from multiple sources to create a
comprehensive picture of each customer, including online and in-store purchase history,
social media interactions, feedback from beauty consultations, and data from the Sephora
mobile app.
Beauty Insider Loyalty Program: Sephora integrates a loyalty program into its website,
allowing users to track their points, earn rewards, and enjoy exclusive perks. This program
not only encourages repeat purchases but also makes customers feel appreciated and cared
for.
Online Product Consultation Service: Sephora offers online beauty consultations with
experts, helping customers receive personalized advice. This feature enhances intimacy,
helping customers feel personally supported.
Sephora’s community: Sephora’s creation of an online community on its website is a way to
increase customer intimacy by creating a space for interaction and connection. When
customers join this community, they not only find information about products, but also feel
supported, advised, and connected with others who share similar interests. This makes
customers feel like they are part of the “Sephora family,” not just regular shoppers.