AppleCase Study Assignment

8/12/2019 AppleCase Study Assignment

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Case Study

Apple Inc

PREPARED BY:

Md.shahidul Islam

ID#12102496

Nazmul Hasan Nahid

ID#1220202

!ai"z $asnim E%a

ID#12202069

&ha"min A'(a"ID#1220206

PREPARED )":

Mham*d An+a" Hssain

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EXECUTIVE SUMMARY

Apple designs, manufactures and markets personal computers,portable digital music players, and mobile communication devices and sells avariety of related software, services, peripherals and networking solutions.

Apple have clearly stamped there presence in the IT world for well over adecade. In order to remain competitive in the market, Apple utilises manydifferent information systems, involving several stakeholders in each. One oftheir main functions is the Apple online store. This feature alone requires theintegration of many different information systems. It is important that theApple website maintains the image they are trying to portray to theircustomers as well as maintaining customer security at all times.

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TABLE OF CONTENTS

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INTRODUCTION

Apple designs, manufactures and markets personal computers, portabledigital music players, and mobile communication devices and sells a variety ofrelated software, services, peripherals and networking solutions. This report

will look at the main activities of Apple and the information systems theyutilise. It will then explore, in detail the online purchasing function of the Applewebsite. The official Apple site is in the top !! most visited sites in theworld.

A b!e" #!st$y $" Apple

"#$ % &tephen 'o(niak and &teve )obs introduced Apple % it was a failure"## % Apple *omputer was incorporated

"+! % Apple II launched this was a success"+- % Apple introduced their first mouse driven computer, the acintosh""/ %""$% 0$+ million lost""$ % Acquired 1e2T""# % &teve )obs returned to Apple as *3O to reorganise and get rid of

some unsuccessful product lines

% Agreement with icrosoft% & Office used on ac 4*5s6!! % i4od first introduced

% Acquired 4ower&chool and &pruce Technologies which expandedtheir market

6!!6 % Apple *omputer, 3ricsson and &un icrosystems formed alliance todeliver

multimedia content to wireless devices% Acquired 4rismo 7raphics, &ilicon 7rail and 3magic

6!!8 % iTunes music store launched6!!- % &igned licensing agreements with 8 of the largest 3uropean

independent music labels, adding tens of thousand of new tracks to the iTunes

store% -th7eneration i4od introduced

6!!$ % i4od included in car stereos including Audi, 9onda and :olkswagen

% introduced mobile phones with iTunes in collaboration with otorolaand *ingular 'ireles% i4od integrated with in%flight entertainment systems; Air ook Air introduced

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MAIN ACTIVITIES OF A%%LE

Apple strives to provide innovative products and solutions to their customers.The markets Apple services include consumer, small and mediumenterprises, education, government and creative industries. They have ama?or focus on research and development, aiming to stay at the forefront ofthe ever changing industry. Apple5s motto is @Think =ifferently.

Apple %$ducts

Apple sells its products worldwide through its retail stores, direct sales force,online stores and third party wholesalers. They also sell products of thirdparties that are compatible with Apple products. Apple has five main productlines;

. =esktops- iac- eac- ac mini- 4ower ac- ac 4ro- 2serve

6. 4ortables- ac>ook- i>ook

- ac>ook 4ro- 4ower>ook

8. i4od products- i4od &huffle, 1ano, *lassic and Touch- i4hone- i4od accessories- iTunes &tore- i4od services- i4od accessories

-. Other music related products and services- hardware accessories of Apple- hardware accessories of third parties- wireless connectivity- networking solutions

/. &oftware- operating system and application software- Apple*are- Internet services


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Sta&e#$ldes


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INFORMATION SYSTEMS USED BY A%%LE

The information systems Apple uses include;

Cust$'e e(!stat!$n database'hen they make a purchase, customers create an account with Apple.*ustomers can opt in to receive marketing materials from Apple. Applekeeps the information of their customers on file for future reference.This also makes the purchasing process easier for return customers asthey do not need to re%enter their details.

Ta!n!n( and cet!"!cat!$nApple training and certification to their customers. They maintain adatabase of courses undertaken by Apple users and IT professionals.

Onl!ne s#$pp!n(*ustomers are able to browse and purchase products online. Thisfunction is explored more throughout this report.

D!scuss!$n "$u'sApple provides and monitors a discussion forum for customers. Thisallows people to discuss their experiences with each other and shareknowledge.

De*el$p'ent, $peat!$nal eseac#Apple constantly follows both information technology and businessdevelopments across the industry. This allows them to keep in touchwith their competition.

S$"t-ae d$-nl$ads. updates and supp$t

Apple uses their website as a platform to provides customers withaccess to downloads, product updates and technical support.O(an!sat!$n C#at $" Sen!$ E'pl$yees / c$ntact !n"$'at!$n0

Apple utilises an organisation chart and contact information foremployees. The senior employees organisation chart is available forthe public to view via the website.

1!st$!cal tansact!$ns / "!n!cal databaseApple keeps a record of all transactions. They can use this history tohelp them develop strategies for the future.

In*ent$y 'ana(e'ent databaseApple has an inventory management database. This allows them to

keep track of their stock and manage the flow of products toaccommodate demand.

Tec#n!cal supp$t ep$t!n( syste' 2Apple e3pet4 p$ss!bly !nclud!n(Apple maintains a frequently asked database of most askedtroubleshooting questions and a repository for technical issues to helptheir technical support staff answer enquiries.


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ONLINE %URC1ASIN+ )IT1 A%%LE

%$cesses

The main processes required for the Apple &tore are;

*reation and management of client accounts

&hopping basket

*redit card security system

&hipping and distribution

Inventory monitoring

The Alter5s work system framework on the next page explores the variousroles and processes involved in the online purchasing system.

Comprehensive PESTEL analysis:

Figure 1: PASTLE Framework for Apple Inc

1 Pli(ial:

A"din ( Da(amni(" 32012 ,.65 ) (h* ((al "**nu*s ) A%%l* In. +*"*)"m 7& du"in !Y 2011. $h*"*)"* 61.4 5 ) sal*s ) A%%l* In. +*"* )"m u(sid*Am*"ia. Bad l8al "*la(ins +a"s and (*"""ism an a))*( (h* 8usin*ss ) A%%l*In. A%%l* In als mana*s i(s 8usin*ss in (h* Middl* Eas( . Du"in I"a +a" (hism%an +as a))*(*d 8 un*"(ain( in (*"ms ) u""*n la(ili( shi%%in s(and insu"an* s(. In addi(in 7.&. has +i(hd"a+n i(s m8a( )"*s )"m I"a 8 (h*

*nd ) 2011. H+**" (h*"* a"* s(ill 2 ; P a *

n)li(s in n"(h*"n I"a and (h*s* n)li(s 8*(+**n A"a8 and hina. R**n(l>hina is %"*%a"in )" i(s l*ad*"shi% ("ansi(in la(*" (his *a" +hih ma in)lu*n* (h*

8usin*ss ) (h* A%%l* In 3>a"n*i* End+m*n( +*8si(* 2012. 2 Enmial:

$h* l8al "**ssin mih( ha* in)lu*n* n A%%l* In. $h* in)la(in "a(* is hih+hil* nsum*"=s *a"nin did n( ha* sini)ian( han*s? m"**" (h*

un*m%lm*n( "a(* has am%li)i*d a))*(in nsum*"s ( s%*nd l*ss *s%*iall n@uu" %"du(s=. H+**" A%%l*=s "**nu* is n( a))*(*d 8 (his *nmi"**ssin al(huh ms( ) (h* %"du(s ) (his m%an a"* luu". A%%l* mad* i(

%ssi8l* 8 d*sinin di))*"*n( uniu* %"du(s )"m i(s m%*(i("s +hih hasin"*as*d (h* d*mand ) A%%l*=s %"du(s 3A%%l* +*8si(* 2012. In addi(in A%%l*In has us*d )inanial ins("um*n( li'* )"*in u""*n )"+a"d and %(in n("a(s

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( h*d* *"(ain *%su"*s in )"*in u""*n *han* "a(*s 3A%%l* annual "*%"(2009. A%%l* s%"*ads )inanial ass*(s a"ss s**"al u""*ni*s. !" *am%l* A%%l*uld 8* %"(*(*d )"m dlla" d*alua(in i) i( a""i*d *nuh $ai+an dlla"s ( %a(h* m*(al m%n*n( su%%li*"s )" (h* IPd as*s. Addi(inall (h* 7.&. dlla"d*%"*ia(in has am%li)i*d A%%l*=s sal*s in (h* in(*"na(inal ma"'*( 3Yah 7' C

I"*land )inan* 2012. , &ial:

N+adas u" sial li)* is in)lu*n*d 8 (*hnl and A%%l* In is nsid*"*d as(h* 'in ) (*hnl 8*aus* ) i(s uali( and d*sin. An(h*" 8i sial im%a( is(h* musi indus(" +hih has 8*m* i"(ual and *s(a8lish*d i(s ma"'*( ( (h*8*"s%a*. A%%l* In. has "*a(*d (h* la"*s( i"(ual m*dia s("* ) dii(al musi+hih is 'n+n as i$un*s. In addi(in (h* a*"a* a* ) +"ld=s %%ula(in is"+in 8*aus* ) a d*lin* in )*"(ili( and a 20-*a" in"*as* in du"in (h* s*ndhal) ) (h* 20 (h*n(u". $h*s* )a("s +ill in"*as* (h* num8*" ) %*"sns a*d 6*a"s du"in 2010 ( 20,0 3>d +*8si(* 2012. H+**" A%%l* In. (a"*(*dmusi *n(husias(s and )ans ) a*s 8*(+**n 12 ( , *a"s ld. $h*"*)"* i( ma 8* a

hall*n* )" A%%l* In as 6 a*d %%ula(in is in"*asin in (h* "**n( *a"s.M"**" (h* "**n( ("*nd ) usin sial n*(+"' li'* !a* B' $+i((*" in'*d In*( has als in)lu*n*d (h* 8usin*ss ) A%%l*. $h* us* ) iPhn*

, ; P a *

a%% is in"*asin du* ( (h* in"*asin us* ) sial n*(+"' si(*. $hus md*"n sialli)* s(l* in)lu*n*s %si(i*l (h* 8usin*ss ) A%%l* In.

4 $*hnlial:

n* ) (h* 8i*s( m8il* +i"*l*ss d**l%m*n(s in 200 +as (h* in"*as*daaila8ili( ) ,F m8il* %hn*s suh as A%%l*=s iPhn* ,F. M"**" &%"in( is

%lannin ( ))*" a Gima 8as*d 4F s*"i*s 8 2009. (h*" m8il* %"id*"s3inludin A$ C$ *"izn +i"*l*ss and $-m8il* a"* u""*n(l su%%"(in n*+n $*"m Elu(in 3$E 4F (*hnl 8as*d n (h* 7M$& *llula" s(anda"d.>hi%s a"* al"*ad d**l%*d (ha( su%%"( 8(h (%*s ) 4F n*(+"'s and a"* *%*(*d( 8* inlud*d in N(*8' m%u(*"s m8il* %hn*s dii(al am*"as and (h*"nsum*" d*i*s 3M"l* 2009. M"**" (h* m8il* lud is (h* "**n( ("*nd+hih inlud*s n( nl ian( a""i*"s 3 *"izn A$C$ and M8il* d*i* ma'*"s3A%%l* &amsun 8u( als a )ull n*"*n( ) in(*"n*( 8as*d m%ani*s and

s)(+a"* ian(s 3Amazn Fl* !a* 8' Mi"s)( and m"* 34F$"*ndsG*8si(*2012. A%%l* launh*d i>lud in (8*" 2011 and (his n*+ s*"i*s("*s musi a%%lia(ins %h(s al*nda"s n(a(s and dum*n(s and +i"*l*ssl

%ush*s (h*m ( mul(i%l* i& d*i*s Mas and Gind+s-8as*d m%u(*"s 3A%%l*Annual R*%"( 2011.A%%l* In. is n (% ) (h* ma"'*( 8*aus* ) in*s(in hihlin "*s*a"h and %"du( d**l%m*n(. M"**" inna(in has sh+n 8i %"(in )(his 8"and and has sh+n ( %a u( 3A%%l* +*8si(* 2012.

*al:

A%%l* In is (h* %a"(ii%an( in a"ius l*al %"**dins and i(s m%*(i("s and %**"s

a"* als *na*d in li(ia(in in i(s n"mal u"s* ) 8usin*ss )" a"ius "*asns.M"**" A%%l* In=s su*ss d*%*nds n (h* in(*ll*(ual %"%*"( "ih(s. In(*ll*(ual

%"%*"( "ih( laims ma in"*as* aains( A%%l* In. as (h* m%an has "+n3A%%l* +*8si(* 2012.R**n(l. A%%l* has +n (h* la+sui( aains( &amsun. $h*

u" "d*"*d &amsun ( %a A%%l* In. J 1.0 8illin and A%%l* In )il*d i(s %a(*n(in)"in*m*n( la+sui( in A%"il 2011 3Yah !inan* 2012.

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In addi(in A%%l*=s 8usin*ss is su8*( ( a a"i*( ) 7.&. and in(*"na(inal "ul*sla+s %lii*s and (h*" 8lia(ins. $h*"*)"* an un)au"a8l* han*s in la+s )7.&. and (h*" in(*"na(inal un("i*s an ad*"s*l a))*( (his m%an 3A%%l*Annual R*%"( 2011.

6 Eni"nm*n(al:

N*+ 7.&. la+s and "*ula(ins a"* ma'in manu)a(u"*"s "*s%nsi8l* )" "*linand A%%l* In. in("du*s dm*s(i "*lin )aili(i*s ins(*ad ) shi%%in +as(**"s*as. M"**" A%%l* In. has *nhan*d (h*i" *%*(a(in a8u( "**n

%"du(in. !u"(h*"m"* A%%l* %*"a(*s in a +a (ha( ns*"*s (h* *ni"nm*n( and%"(*(s (h* h*al(h and sa)*( ) (h*i" *m%l**s 3A%%l* Annual R*%"( 2011.

A%%l* &G$analsis 201, 8 idius Ku"*iius a( &("a(*iMana*m*n( Insih(&am%l* &G$$his is nl a sam%l* &G$ analsis )" m"* in)"ma(in" (

d+nlad (his A%%l* &G$ %"*s*n(a(in %l*as* isi(u" +*8si(*LA%%l* &G$analsis 201, ; &("a(*i Mana*m*n( Insih( M"* in)"ma(in a(:>m%an Ba'"undNam* A%%l* In.>u""*n( >E $im >'R**nu* J 16.0

8illin 32012P")i( J 41./,, 8illin 32012Em%l**s /200 32012>m%*(i("sAmazn.m D*ll Fl* Mi"s)( &amsun El*("nis M"* in)"ma(in a(:&("*n(hs1. >us(m*" lal(2. &("n )inanial %*")"man* 3J10000000000 ash

"ss %")i( ma"in 4,.95 and n d*8(,. >ls*d %"du( *ss(*m4. B"anda+a"*n*ss and "*%u(a(in M"* in)"ma(in a(:&("*n(hs 3n(.. *adin inna(" in m8il* d*i* (*hnl6. R*(ail s("*s/.&u*ss)ul ma"'*(in and ad*"(isin am%ains M"* in)"ma(in a(:G*a'n*ss*s1. D*linin ma"'*( sha"*2. Pa(*n( in)"in*m*n(s,. A%%l* & and

%"du(s a"* inm%a(i8l* +i(h (h*" & and d*i*s4. Hih %"i* M"* in)"ma(ina(:G*a'n*ss*s 3n(.. D*)*(s in n*+ %"du(s6. F"ss ma"in +ill d*lin* in (h*

ln-(*"m/. >han*s in mana*m*n( M"* in)"ma(in a(:%%"(uni(i*s1. F"+(h ) (a8l*( and sma"(%hn* ma"'*(s2. 8(ainin %a(*n(s

(h"uh auisi(ins,. &("n m8il* ad*"(isin ma"'*( "+(h4. Hih d*mand )

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m%n*n(s,. $a in"*as*s in 201,4. F"+(h ) And"id & M"* in)"ma(in a(:$h"*a(s 3n(.. >m%*(i("s n*+ ini(ia(i*s in nlin* musi ma"'*(6. Risin %a

l**ls )" !nn +"'*"s/. A%%"*ia(in dlla". B"*ah*d IP "ih(s M"*in)"ma(in a(: M"*!" m"* in)"ma(in " ( d+nlad (his %"*s*n(a(in%l*as*isi( u" +*8si(*LA%%l* &G$ analsis 201, ; &("a(*i Mana*m*n( Insih($a'* al' a( u" (h*" %"*s*n(a(insL M"* in)"ma(in a(:

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The following two pages show the processes involved with making an onlinepurchase with Apple.com. &cenarios where the customer has an accountwith Apple and when they do not are provided.

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The diagram on the next pageshows the process from the order being placed

through to delivery of the item.

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)ebs!te E*aluat!$n 5 Apple0c$'

Apple have clearly stamped there presence in the IT world for well over adecade. Bnown for there sheik cosmetic computer products filled with

innovative technology, there web presence shows nothing less. rowsing products has never been easierthan before, simply scrolling the vertical slide beneath product gives usersquick access to various product categories making the online shopping facilitycomprehensive and easy to use.

'&A visual standards layout state a site must be the followingE

=ecorative and functional

&ufficient text si(e

3asy layout andE

Image use

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The image above taken from the A* category of the Apple site clearlyshows decorative and functional, effective si(ing of text, good layout andsufficient image use by all means which satisfy the visual appeal andstandards of the site.

It is evident Apple have researched there market and have a goodunderstanding of what there prospective buyers require. There innovativeideas and current stand on the IT market proves Apple are here to stay.

&ystems innovation is sought to be a crucial aspect of an organisationsdirection and goals. The definition of innovation states @a new way of doingsomething, this can be through gradual, radical or revolutionary changes bythinking, products and processes with the organisation.

Online transaction processing systems are innovative systems which alloworganisations to conduct 3%commerce. 'ithout innovation and change the

system would fall behind and fail to meet demands of global changes. It5simportant to ensure organisations approach and direction should include thefollowing when developing information and technical strategiesE

Assist in supporting core technology of the business

Innovations that support administration of the business andE

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 pro?ect and reportmarket trends to allow strategical product base giving the organisation marketadvantage.

Secu!ty and Inte(!ty $" Data

Apple store online offers customers the option of purchasing products online.As with many other online stores they provide this service with the provisothat 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 thenumber of customer currently using the system. As well as this it enables thecompany to store information about the customer that can be used forresearch and advertising in the future. The second reason for havingcustomers create accounts is that it enables the customer to enter theirinformation once then simply use their login details again for future purchases.This saves the customer time and also provides a level of security for thecustomer by requiring a password to be created on the account.

&ecurity on systems such as this must be up to a standard that providescomplete security and piece of mind for the customer when giving out

personal details. The focus of many security applications is the security of thecustomers credit card details. It wasn5t that long ago that it was simply notsave to purchase over the internet due to hackers being able to access anduse credit card information sent over the internet. The use of encryption andthe introduction of security packages on every home computer has lessonedthis risk however online stores need to take this to a higher level to protect

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their customers. As the Apple site stores the information for later use by thecustomer they must ensure that no one will be able to access the informationat any point for the life of the company.

Apples privacy policy as outlined on the Apple website reads as follows.

@Apple5s *ustomer 4rivacy 4olicy covers the collection, use, and disclosure ofpersonal information that may be collected by Apple anytime you interact withApple, such as when you visit our website, when you purchase Appleproducts 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 itwill be used. A particular point in this policy is the use of security software foruse with credit cards and also how the user can help protect them selves.

@The Apple Online &tore and iTunes &tore use &ecure &ockets Gayer C&&GD

encryption on all web pages where personal information is required. To makepurchases from the Apple Online &tore or iTunes &tore, you must use an&&G%enabled browser such as &afari, 1etscape 1avigator 8.! or later, orInternet 3xplorer. =oing so protects the confidentiality of your personal andcredit card information while it5s transmitted over the Internet.

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B!bl!$(ap#y

Alter. 6!!", odelling information systems, Gecture notes distributed in thetopic Information &ystems in Organi(ations C$8-+D at The Fniversity of*anberra, *anberra on $ arch.

Apple *omputer, Inc. Cn.d.D. =atamonitor *ompany 4rofiles Authority.Hetrieved ay 6, 6!!" from 3>&*Ohost database.

Apple Inc C6!!"D. Apple store.


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Append!36 Re"lect!$n $n +$up-ae E3pe!ence

F"u%+a"* nsis(s ) G*8Pa*s (ha( a"* s*( u% ( all+ us*"s ( "*a(* (h*i"+n @%a*= +i(hin (h* hs( +*8si(*. $h* aim ) (h*s* si(*s is ( *na8l* "u%s )

%*%l* +i(h simila" in(*"*s(s " als ( all +"' (*(h*" n a sinl* si(* and

mmunia(* +i(h *ah (h*". 7nli'* sial n*(+"'in si(*s suh as !a*8' andM&%a* "u%+a"* is d*sin*d )" sim%l* (as's suh as disussins and u%ladin) )il*s. Man "u%+a"* hs(s a"* %"*s*n( (da n (h* +*8. Fl* Gi'i andYah si(*s a"* (h* main si(*s (ha( a"* %%ula" (da. !" (his as* s(ud +* u(ilis*d(h* Gi'i s%a*s si(* as u" mmunia(in m*(hd.

u" +n +i'i %a* an 8* nam*d s (ha( (h* us*" an ha* man %a*s %*n)" di))*"*n( %u"%s*s. Addi(inal us*"s mus( (h*n 8* ini(*d and a%%"*d ( in.$his m*(hd insu"*s all us*"s ha* %"id*d lin d*(ails ( (h* hs( and a"* a%%"*d( i*+ (h* n(*n( ) (h* %a* 8 (h* %a*s "iinal "*a(".

$h* Disussin "m +i(hin (his "u% %a* +as (h* '* )*a(u"* as all ) (h*

m*m8*"s ) u" "u% +"'*d )ull(im* and +*"* una8l* ( m**( n a "*ula" 8as*s.

&"**n sh( ) >ha( )un(in in (his "u%s +i'i s%a*.

$h* u%ladin )*a(u"* +as als h*ail u(ilis*d i( all+*d us ( lad a"ius %i**s )in)"ma(in and +"' (ha( +* ha* )und " "*a(*d n( *i(h*" (h* hm* %a* )"*as i*+in " n( (h* u%lad a"*a )" *n*"al "u% i*+in.

Pa"(iula"l )" u" "u% +* ("i*d ( hs* a "u%+a"* si(* (ha( +as *as (%*"a(* )"** and als n* (ha( nl had (h* 8asi )*a(u"*s (ha( +* a(uall n**d*d.

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AppleCase Study Assignment

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