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  • CLASSROOM OPENER GREAT BUSINESS DECISIONS – Apple’s Decision to Develop the First Saleable Personal Computer (PC) Like all great computer companies, Apple began its life in a garage. In 1977, Steve Jobs and Steve Wozniak built the Apple 1, regarded by many as the first real personal computer. This founded the Apple Company and the invention of the Apple 2 and the Apple Macintosh. Apple’s key goal was to make computers accessible to ordinary people. Jobs and Wozniak captured an opportunity and changed the world through a combination of good fortune and technical and marketing brilliance. Instead of writing commands in computer code, Apple owners invented a mouse to click on easily recognizable icons – for example, a trash can and file folders. Other companies were quick to copy Apple’s competitive advantage, including Microsoft. The two founders eventually parted, with Wozniak leaving the company to become a teacher and Jobs continuing with the launch of the Apple Macintosh. Unfortunately, Macintosh captured only 20 percent of the desktop market, while Microsoft captured 80 percent of the desktop market with its MS-DOS operating system. One newspaper described Jobs as a “corporate Huckleberry Finn” and said his early business exploits had already made him part of American folk history. John Sculley, former Pepsi chairman, removed Jobs from Apple in 1985. Sculley was removed from Apple in 1993. Eventually, after a 13-year exile, Jobs returned to Apple in 1998. The man who founded the company had come full circle and was now its only hope for survival. Jobs’ return brought the creation of the iMac and Apple rediscovered its inventive originality. The iMac sold 278,000 units in the first six weeks and was described by Fortune as “one of the hottest computer launches ever.” The iMac and Jobs’ return contributed to doubling Apple’s share prices in less than a year.
  • 1. What might have happened to Apple if its top executives had not supported investment in iPods? One of the main factors that brought Apple back from near oblivion was its ability to produce, market, and sell IT products such as the iPod. If Apple’s top executives did not have the foresight to view the MP3 players as a competitive advantage, then chances are the company would not have made a strong comeback in the highly competitive electronics market. 2. Formulate a strategy for how Apple can use efficiency IT metrics to improve its business. Apple can use efficiency IT metrics to focus on its current technology. Apple could benchmark its existing applications to create baselines. It could then continuously monitor and measure against these benchmarks to ensure its IT applications are functioning correctly. This would be particularly important in the area of its Web applications (such as iTunes) that customers and suppliers are using. 3. Formulate a strategy for how Apple can use effectiveness IT metrics to improve its business. Apple could use effectiveness IT metrics to determine if its customers, suppliers, and even employees are satisfied with the applications. It could determine if the application is easy to use and if first-time customers are converting due to a banner ad or a pop-up ad. These would be particularly useful for the iTunes Web site. 4. Why would it be unethical for Apple to sell its iTunes customer information to other businesses? Apple’s customers might not want Apple to share their information with other parties. How would you feel if Apple sold all of your history (every song you have downloaded, how you paid, the time and date, etc.) to another party? Apple could risk losing customers if it did not protect its customer’s privacy rights. 5. Evaluate the effects on Apple’s business if it failed to secure its customer’s information and it was accidentally posted to an anonymous Web site. Customers who purchase iTunes would not want other vendors to know all of their music choices and purchases. Most customers consider this type of information private. Apple would be violating its customers’ trust and therefore risk losing their business.
  • 6. Did Apple gain a competitive advantage from its decision to invest in an online music business? Yes, the Apple iPod had a first mover advantage and gave Apple a competitive advantage with its iTunes music store. There are a number of other MP3 players on the market, but none have the momentum and brand recognition of the Apple iPod. 7. How can Apple use environmental scanning to gain business intelligence? Environmental scanning is the acquisition and analysis of events and trends in the environment external to an organization. Apple can use environmental scanning to analyze everything from competitor strategies to understanding new and shifting market trends to determining the strategic placement of Apple stores. Without watching its environment and understanding what its competitors are doing and where the market is headed, Apple will have a difficult time setting its strategic direction, as Steve Jobs determined when he thought he had missed the MP3 bandwagon. 8. Using Porter’s Five Force Model, analyze Apple’s buyer power and supplier power. Apple’s buyer power was low when it first introduced the iPod since it was first to market with the product. Now, there are many competitors to Apple’s iPod and its buyer power is increasing since customers can choose from many different manufacturers of MP3 players. Apple’s supplier power was high and now it is decreasing since buyers have many choices of whom to buy from. 9. Which of the three generic strategies is Apple following? Apple follows a focused strategy. 10. Which of Porter’s Five Forces did Apple address through its introduction of the iPod? Apple decreased the power of its buyers and increased its own supplier power by introducing the iPod. Since the iPod was the first to market with a portable MP3 player, its buyers had no power and no choice but to purchase the product from Apple. Unfortunately, Apple could not create an entry barrier and soon many other companies began offering portable MP3 players, which increased buyer power and reduced supplier power.
  • 1. Do you view this technology as a potential threat to traditional telephone companies? If so, what counterstrategies could traditional telephone companies adopt to prepare for this technology? Traditional telephone companies have lost a large part of their market share, and the associated revenues, to cell phone companies. If this new technology attracts even more customers to the cell phone market, the traditional telephone companies stand to lose additional market share and revenues. For this reason, this type of technology is a definite threat to the traditional telephone companies. The traditional telephone companies will have to find new ways to entice customers. One possibility would be to implement the ability for the home phone owner, who is also an ISP customer, to purchase online retail goods and have the charge applied to their home telephone bills. Here is a link to a company that allows customers to charge fitness training to their cell phone or landline “traditional telephone company” bills. http://www.nestacertified.com/cellcharge.html 2. Using Porter’s Five Forces describe the barriers to entry for this new technology. The barriers to entry include the new technology (special chip for the phone) required to support associating a cell phone with a credit card, partnership between the credit card company and the cell phone company, minimizing security issues associated with the technology, and gaining consumer trust. One of the biggest barriers to entry will be convincing cell phone users that the technology is secure. How will lost and stolen cell phone and credit card bills be handled? A person with a stolen cell phone could now purchase all kinds of goods on the credit card. Will this be the consumer’s responsibility? Would you be willing to associate your credit card with your cell phone?
  • 3. Which of Porter’s three generic strategies is this new technology following? This technology is following a differentiation strategy for a broad market 4. Describe the value chain of the business of using cell phones as a payment method. The value chain approach views an organization as a series of processes, each of which adds value to the product or service for each customer. Using a cell phone as a payment method would add value to the primary value activities because it would become easier for customers to purchase products. When a customer simply has to swipe their phone to pay for a product they are receiving a value-added benefit from this technology. 5. What types of regulatory issues might occur due to this type of technology? Typical credit card regulatory issues would most likely be enforced to cell phone spending such as not being allowed to purchase illegal goods such as gambling (lottery tickets) on credit, cigarettes under the age of 18, or alcohol under the age of 21. Punishment for using a stolen cell phone to purchase goods would be enforced by law. There might even be spending limits on cell phone purchases similar to the limit on ATM cards to only $400 a day withdrawals.
  • 1. Choose one of the companies listed above and explain how it could use a CIO, CTO, and CPO to improve business. Chief Information Officer (CIO) oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives. Chief Technology Officer (CTO) is responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT. Chief Security Officer (CSO) is responsible for ensuring the security of IT system. Chief Privacy Officer (CPO) is responsible for ensuring the ethical and legal use of information. Chief Knowledge Office (CKO) is responsible for collecting, maintaining, and distributing the organization’s knowledge. Answers to this question will vary. The important part of the answer is the student’s justification as to why the company will achieve business success through the use of a CIO, CTO, or CPO. 2. Why is it important for all of DreamWorks’ functional business areas to work together? Provide an example of what might happen if the DreamWorks marketing department failed to work with its sales department. If the functional business areas of an organization do not work together the business will remain siloed and gaining an enterprisewide view of the organization would be impossible. Sales must work with marketing to determine which incentives and discounts should be offered. Accounting must work with finance to make solid strategic decisions. MIS must work to support all of the departments across the organization. Sales is the function of selling a good or service and focuses on increasing customer sales, which increases company revenues. A salesperson has the main activity of selling a product or service. Many industries require a license before a salesperson can sell the products, such as real estate, insurance, and securities. Marketing is the process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company’s products. Marketing communications seek to build product or service awareness and to educate potential consumers on the product or service. If sales and marketing failed to communicate and work together the marketing department might develop products and discounts that did not correlate to what was occurring in the field and what the salespersons were actually selling. Sales might sell products that are not developed or offer discounts that are too low causing the firm to lose money. At DreamWorks, the marketing department could market a film that the sales department had not heard about and was unprepared to sell. This could include marketing a kid’s movie without having negotiated the associated happy meal toys at McDonalds or local toy store. 3. Why is information technology important to an organization like the Boston Red Sox? Every organization needs information to remain successful. Without information the company would have a difficult time understanding its players, competitors, and business success and failures. The Boston Red Sox is a business and just like any other business it requires information to keep it running. As more and more sports offer customers a new experience, such as new indoor football teams, lacrosse teams, soccer teams, the MLB market share is maturing and possibly beginning to decline. It must find new ways of attracting and keeping customers. Updating fans through MP3 files on statistics and players is one way it could use a new type of technology to help grow its business.
  • 4. Which of Porter’s Five Forces is most important to Home Depot’s business? All of Porter’s Five Forces are important to Home Depot’s business so answers to this question will vary. The important part of the answer is the student’s justification as to why the force is important to Home Depot’s business. 5. Which of the three generic strategies is PepsiCo following? PepsiCo is following a broad differentiation strategy. 6. Explain the value chain and how a company like GE can use it to improve operations. A business process is a standardized set of activities that accomplish a specific task, such as processing a customer’s order. To evaluate the effectiveness of its business processes, an organization can use Michael Porter’s value chain approach. An organization creates value by performing a series of activities that Porter identified as the value chain. The value chain approach views an organization as a series of processes, each of which adds value to the product or service for each customer. To create a competitive advantage, the value chain must enable the organization to provide unique value to its customers. In addition to the firm’s own value-creating activities, the firm operates in a value system of vertical activities including those of upstream suppliers and downstream channel members. To achieve a competitive advantage, the firm must perform one or more value-creating activities in a way that creates more overall value than do competitors. Added value is created through lower costs or superior benefits to the consumer (differentiation). GE can use the value chain to create best-in-class processes giving it a competitive advantage over its competition.
  • 1. Do you agree or disagree with Friedman’s assessment that the world is flat? Be sure to justify your answer There is no correct answer to this question, the important point is that your students can justify their point of view. Some students will agree with Friedman that technology has made the world flat. Others, will disagree with Friedman stating that there are still many people that do not have access to technology and for them the world is still round. 2. What are the potential impacts of a flat world for a student performing a job search? Negative: In a flat world it is far more difficult to get a job because competition will be increasing at an incredible rate. There are currently 1 billion people online in 2006. It is anticipated that 4 billion people will be online by 2010. As the next 3 billion people come online in the next 4 years competition is going to dramatically increase. Positive: Students can now perform a global job search right from their apartment. A student in Chicago can accept a job in Tokyo and never leave the apartment, even when the job starts. 3. What can students do to prepare themselves for competing in a flat world? Learning about information technology and how they can use it to gain a competitive advantage in their industry or for their organization will be key. Businesses operate using technology and understanding how business and technology relate will help them achieve success. 4. Identify a current flattener not mentioned on Friedman’s list The answer to this question will vary. A few include: Cheaper technology, such as the $100 laptop from MIT, allowing more people access to the Internet Video phones and collaboration tools allowing people to meet face-to-face even when they are in different parts of the world Technologies such as Voice-over-IP that offer a cheap alternative to traditional long-distance carriers
  • CLASSROOM OPENER GREAT BUSINESS DECISIONS – Richard Sears Decides to Sell Products Through a Catalog Sears Roebuck changed the shape of an entire industry by being lucky enough to discover a huge untapped market that lay waiting to be discovered. In the 1880s about 65 percent of the population (58 million) lived in the rural areas. Richard Sears lived in North Redwood, Minnesota, where he was an agent at the Minneapolis and St. Louis railway station. Sears began trading products such as lumber, coal, and watches, when the trains would pass through. Sears moved to Chicago in 1893 and partnered with Alvah C. Roebuck, and the Sears & Roebuck company was born. The company first published a 32 page catalog selling watches and jewelry. By 1895 the catalog was 532 pages long and included everything from fishing tackle to glassware. In 1893 sales reached $400,000 and by 1895 sales topped $750,000. Sears invented many new marketing campaigns and concepts that are still in use today, including a series of rewards (or loyalty programs) for customers who passed copies of the catalog on to friends and relatives. Sears was one of the first companies to recognize the importance of building strong customer relationships. Sears’ loyalty program gave each customer 24 copies of the catalog to distribute, and the customer would generate points each time an order was placed from one of the catalogs by a new customer. The Sears catalog became a marketing classic. It brought the world to the isolated farms and was a feast for the new consumers. The entire world was available through the Sears catalog, and it could be delivered to the remotest of doorsteps.
  • 1. How does Talon help Harley-Davidson employees improve their decision-making capabilities? Talon is Harley-Davidson’s proprietary dealer management system. Talon handles inventory, vehicle registration, warranties, and point-of-sale transactions for all of Harley-Davidson’s dealerships. The system helps improve decision-making capabilities by offering an enterprisewide view of operations, sales, and expenses. The system automatically generates part orders, taking much of the guesswork out of replenishment. Most significantly, the system allows the company to review and analyze information across its global organization giving it a 360-degree view into enterprisewide information that supports strategic goal setting and decision making throughout all levels of the organization. 2. Identify a few key metrics a Harley-Davidson marketing executive might want to monitor on a digital dashboard. An executive information system (EIS) is a specialized DSS that supports senior level executives within the organization. A digital dashboard integrates information from multiple components and presents it in a unified display. A digital dashboard is a form of EIS. Harley-Davidson could help its executives gain access to greater amounts and details of enterprisewide information through a digital dashboard. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a companies’ return on investment (ROI), hence Harley-Davidson could increase its ROI through a digital dashboard running on an EIS. Key metrics could include: Best selling product Worst selling product Date of highest sales per month Date of worst sales per month Correlation between product sales Online orders verses in-store purchases Sales by region Sales by season 3. How can Harley-Davidson benefit from using decision support systems in its business. An executive information system (EIS) is a specialized DSS that supports senior level executives within the organization. A digital dashboard integrates information from multiple components and presents it in a unified display. A digital dashboard is a form of EIS. Harley-Davidson could help its executives gain access to greater amounts and details of enterprisewide information through a digital dashboard. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a companies’ return on investment (ROI), hence REI could increase its ROI through a digital dashboard running on an EIS.
  • 4. Evaluate the HOG CRM strategy and recommend an additional benefit Harley-Davidson could provide to its HOG members to increase customer satisfaction. The development of the Harley Owners Group (HOG) is viewed by some as one of the greatest business decisions of all time. Harley-Davidson operates as a customer-centric business and has customers involved in all business operations and decisions. There are numerous benefits HOG could offer its members including additional discounts, special accessories only available to HOG members, a HOG calendar featuring HOG members and only available for sale to HOG members, and even a HOG dating service. 5. Describe how Harley-Davidson’s SCM system, Manugistics, could improve its business operations. Harley-Davidson invests time, energy, and resources into continually improving its company-to-company strategic business initiatives such as supply chain management. The company deployed Manugistics, an SCM system, which allows it to do business with suppliers in a collaborative, Web-based environment. The SCM system will allow Harley-Davidson to build stronger relationships with the Web of participants in its supply chain, better manage its flow of materials, and improve collaboration activities with its key suppliers. 6. Provide an illustration of Harley-Davidson’s SCM system including all upstream and downstream participants. Answers to this question will vary. Potential SCM system diagram:
  • 1. How has implementing a CRM system enabled Saab to gain a competitive advantage? The CRM system allowed Saab to gain a consolidated view of its customers through its three primary channels (1) dealer networks, (2) customer assistance centers, (3) lead management centers. The “TouchPoint” system provides Saab dealers with a powerful Web-based solution for coordinating sales and marketing activities. Saab can now measure the sales results of specific leads, recommend more efficient selling techniques, and target its leads more precisely moving forward. Read the Additional Case Material below for a few insights into Saab’s CRM system. 2. Estimate the potential impact to Saab’s business if it had not implemented a CRM system The potential impact is devastating. Without the ability to create a consolidated customer view, Saab would be unable to coordinate sales and marketing efforts, improve selling techniques, or even understand basic questions such as who are its customers and what are their needs. 3. What additional benefits could Saab receive from implementing a supply chain management system? If Saab implemented a successful SCM system, it would drive down production costs and could increase revenues. Saab could use an SCM system to change to a just-in-time manufacturing strategy and only order parts when they are actually required and based on actual orders. This would cut down on Saab’s inventory expenses, and Saab could pass all of these savings onto the customer by lowering the prices of its cars, which would potentially attract even more customers.
  • 4. Model Saab’s supply chain. Student answers to this question will vary. The goal is to ensure that students have all participants in the supply chain represented and a few examples of processes. Supplier – raw materials such as steel, rubber, and plastic Manufacturer – Tires, Sony stereos and DVD players, GPS systems, XM radio Distributor – Saab’s transportation company Retailer – Saab dealerships around the country Customer – Joe Smith 5. How is Saab’s CRM implementation going to influence its SCM practices? If Saab has a better idea of who its customers are and their purchasing habits they can better understand demand, create products driven to their customer needs, and offer customer products that are currently in their supply chain. For example, if they know that Joe Smith typically leases a new Saab every 3 years they can ensure they have Joe’s type of car on the lot. The dealership can quickly send Joe a personalized e-mail letting him know that his lease is about to expire and they have the perfect car for him waiting on their lot and they can even send him a video of the new car.
  • 1. What role does supply chain management and customer relationship management play in a mass customization business strategy? SCM and CRM are the enablers of a mass customization strategy. To allow customers to define their own products the supply chain must support individual production and the CRM system must support customizable orders. Without these two critical components a mass customization strategy would be extremely difficult to implement. 2. How can Lands’ End use its CRM system to improve its business? Lands’ End can mine the information in its CRM system to find important information such as what are its best products, what are its worst products, where is it selling the most products, etc. With this information it can redefine its product offerings to ensure it is offering the right products, through the right channels, to the right customers, which will improve its overall business. 3. How can Nike use a CRM system to improve its customer relations? Nike can mine the information in its CRM system to find important information such as who are its best customers, what are its best products, what are its worst products, what is its best selling month, etc. With this information it could offer its customers personalized marketing plans and customized offers which will improve relationships with its customers. 4. Why is Nike’s supply chain management system critical to its Nike iD order fulfillment process? Without a top of the line SCM system Nike would not be able to fulfill customized orders. With a customized order Nike must keep its customers informed on how long the process will take and where the order is in the process. If a customized Nike order took 3 months to deliver people would not order products. The entire customization process needs to be as quick as possible for the effort to be successful.
  • 5. Choose one of the examples above and explain how an ERP system could help facilitate the mass customization effort. Student answers to this question will vary. The important part of their answer is the justification as to why the ERP system will help facilitate the mass customization effort. 6. Choose one of the examples above and explain how the company is attempting to gain a competitive advantage with mass customization. Student answers to this question will vary. The important part of their answer is the justification as to why the company is gaining a competitive advantage with its mass customization strategy. 7. Identify one other business that could benefit from the use of mass customization. Explain why this business would need customer relationship management and supply chain management systems to implement a mass customization business strategy. Student answers to this question will vary. The important part of their answer is the justification as to why the company will benefit from the use of a mass customization effort.
  • 1. What business risks would Delta be taking if it decided not to catch up with industry leaders in using IT to gain a competitive advantage? Delta would fall behind the industry and its customer expectations. If Delta’s business processes were significantly inefficient and ineffective compared with its competitors, it would lose business. Airline customers are typically operating under time constraints and pressures to catch flights and connections, and they do not want to be inconvenienced by inefficient and ineffective business processes. 2. What competitive advantages can an airline gain by using DSS and EIS? An airline can use both DSSs and EISs to uncover areas where the company can create competitive advantages and perhaps first-mover advantages such as self-check in and printing boarding passes from home. First-mover advantages can be enormous and place an organization in the position to significantly impact its market share. A fast follower can also increase its market share by tagging onto the first-movers ideas. It also has the advantage of avoiding some of the mistakes or pitfalls that the first-mover might have made. Of course, a fast follower will only obtain a temporary advantage as many competitors will begin to implement the innovative IT system. 3. What other industries could potentially benefit from the use of yield management systems? Almost all industries could benefit from the use of a yield management system. Potential answers include other transportation industries such as trains, trucks, and buses, health care industry for doctor visits, and even the telecommunications industry for shared modem services.
  • 4. How can American and United use customer information to gain a competitive? Both airlines used their innovative IT systems to gain valuable business intelligence into their customer information. They conceived and rolled out hugely successful frequent flyer programs, which increased the likelihood that frequent business travelers, their most profitable customers, would fly with them instead of with a competitor. Frequent flyer programs require sophisticated computer system to properly account for and manage the flight activity of millions of customers. Ultimately, frequent flyer programs became an entry barrier for the industry because all airline companies felt they could not compete for the best customers without having their own frequent flyer systems. 5. What types of metrics would Delta executives want to see in a digital dashboard? Delta could use throughput and speed efficiency metrics to baseline and benchmark its gate and boarding applications. It could also use usability and customer satisfaction effectiveness metrics to determine the satisfaction in its gate and boarding applications. The dashboard could also contain information on market pulse, customer service, and cost drivers. It should also allow for sensitivity analysis, what-if analysis, and goal-seeking analysis. 6. How could Delta use supply chain management to improve its operations? Airline security is one of the hottest topics today. Delta could use supply chain management to monitor luggage, scan bags, and detect bombs and other hazardous material. It could also create a more efficient and effective supply chain allowing the company to pass these savings onto the customer, while making the company more profitable.
  • This is a good time to recall the opening case and discuss how Amazon’s e-business strategy disrupted the bookselling industry Amazon.com – Not Your Average Bookstore There was an interesting article in Business 2.0, July 2006 – The 50 Who Matter Now. Jeff Bezos ranked 42 out of 50. The article offers a different view of Amazon focusing on its needs to be more creative in its business structure. Read the below passage to your students when introducing the Amazon case. This will give your students a different perspective of Amazon and will allow you to initiate a classroom discussion or debate depending on your student’s view of Amazon. “Amazon, the "biggest store on earth," is indeed the biggest non-OEM retailer on the Net. So why does Bezos rank so much lower on the list than representatives from the rest of the Internet's so-called Big Five? As a brand, Amazon is up there with eBay, Google, Microsoft, and Yahoo. But as a business, it has yet to show an ability to keep pace with the rest. Amazon's A9 search engine has not made it a major player in search, and compared with all-virtual retail players like eBay or even Barry Diller's InterActiveCorp, Amazon's physical inventory and infrastructure look increasingly like a ball and chain. Still, Bezos is not to be underestimated. His mantra from day one: Ignore other people's expectations and create a successful business one step at a time. If Bezos has a plan to restore Amazon's reputation as an innovator, he needs to show it soon.”
  • OPENING CASE QUESTIONS Amazon.com – Not Your Average Bookstore 1. How has Amazon used technology to revamp the bookselling industry? Amazon is one of the largest book distributors in the world and one of the most innovative. Using personalization on its Web site, customers are offered suggestions for other titles. Jeff Bezos is using technology to predict what his customers want to buy next before they even know it. 2. Is Amazon using disruptive or sustaining technology to run its business? In the beginning Amazon was using disruptive technology to sell its books – the Internet. The Internet is no longer a disruptive technology, but Amazon is still finding ways to use it to disrupt the way it does business. 3. How is Amazon using intranets and extranets to run its business? Amazon uses intranets to help its employees perform their jobs, find corporate information, and communicate with each other more effectively. Amazon uses extranets to partner with third-party providers who are interested in selling products through Amazon’s Web site, such as zShops and the Amazon.com Marketplace. 4. How could Amazon use kiosks to improve its business? Amazon could place a kiosk outside physical bookstores allowing customers to check Amazon inventory to compare prices prior to making a purchase. Amazon could also place kiosks in airports allowing passengers to browse Amazon’s inventory while waiting for their flight.
  • 5. What is Amazon’s e-business model? This is somewhat of a trick question, because the answer is that Amazon.com is a B2B, C2C, and a B2C. Amazon.com does business with other businesses (B2B), such as Borders, Target, and Office Depot. Amazon.com also supports a huge business-to-consumer model with their main Web site interface. Amazon also supports customers doing business with other customers (C2C). 6. How can Amazon use m-commerce to influence its business? M-commerce enables consumers to buy on the fly, from handheld devices and mobile phones. Using Amazon.com’s one-click, customers could search for and buy any of Amazon's offerings, from DVDs and CDs to books and toys, and do it anywhere. Which means customers would have the use of shopping in a traditional brick-and-mortar store, use comparative shopping methods, search Amazon.com for its price, and make a purchasing decision accordingly. 7. Which metrics could Amazon use to assess the efficiency and effectiveness of Amazon’s Web site? Amazon could use the following metrics to asses its Web site. Click-through – to determine how many customers visit the site from another site, banner-ad – to determine how many customers visit the site from a banner ad on another site, the number of page views to determine the number of pages presented to a visitor, the pattern of Web sites visited, including most frequent exit page and most frequent prior Web site, length of stay on the Web site, dates and times of visits to determine customer spending habits, number of abandoned shopping carts to determine why customers are leaving the site, identified visitors who purchase recommended products to determine if personalization is working 8. What are some of the business challenges facing Amazon? There are several challenges facing Amazon including protecting its customers from unsolicited goods and illegal or harmful communication. Amazon offers a number of third-party services and it must ensure those parties are operating as expected. If a customer purchases a product from a third-party seller on Amazon and the goods are never shipped, Amazon is held responsible. It must also deal with security issues such as identity theft if there was a breach in its customer systems since it maintains customer credit card numbers. It must also ensure it is adhering to tax laws.
  • 1. eBay is one of the only major Internet “pure plays” to consistently make a profit from its inception. What is eBay’s e-business model and why has it been so successful? eBay began in the C2C space, using the brokerage value model and collecting transaction fees in consumer-to-consumer auctions. Rapid user growth created community, content, and search value streams, which in turn created the critical mass for substantial advertising revenue. B2B followed by offering the Small Business Exchange. In addition, there is nothing that would prevent eBay from licensing its technology in the B2B space, for industry-specific auctions. eBay could potentially expand into the B2C space, providing firms the option of auctioning merchandise directly to consumers using the eBay infrastructure. Finally, while this would be the greatest stretch for eBay, it could choose to move into the C2B space, allowing consumers to “name their own price” for merchandise and services. 2. Other major Web sites, like Amazon.com and Yahoo!, have entered the e-marketplace with far less success than eBay. How has eBay been able to maintain its dominant position. The obvious answer is that eBay's first-mover advantage allowed it to dominate the online auction space. eBay also has an excellent reputation for superior customer service. Two priorities dominate eBay's operational strategy: keeping its buyer/seller community happy, and keeping its massive Web site up and running. Consumers flock there because of the great product selection. The result is a juggernaut that has vanquished latecomers, such as Yahoo! Auctions and Amazon Auctions. Both of those operations are still in business, but they have reduced expectations and make relatively small contributions to their parent companies' balance sheets. 3. eBay has long been an e-marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set up shop on eBay? Student’s response should refer to critical mass. The so-called "network effect" has bred a critical mass of customers, a group divided into buyers and sellers. Large and small merchants gravitate to eBay because that is where buyers are clustered.
  • 4. What are the three different types of online auctions and which one is eBay using? Electronic auction - sellers and buyers solicit consecutive bids from each other and prices are determined dynamically. Forward auction - auction that sellers use as a selling channel to many buyers and the highest bid wins. Reverse auction - an auction that buyers use to purchase a product or service, selecting the seller with the lowest bid. eBay provides a forward auction where the highest bid wins. 5. What are the different forms of online payment methods for consumers and business? How might eBay’s customers benefit from the different payment methods? Consumer forms of online payments include: Credit card. A financial cybermediary is an Internet-based company that facilitates payments over the Internet. PayPal is the best-known example of a financial cybermediary. An electronic check is a mechanism for sending a payment from a checking or savings account. There are many implementations of electronic checks, with the most prominent being online banking. An electronic bill presentment and payment (EBPP) is a system that sends bills over the Internet and provides an easy-to-use mechanism (such as clicking on a button) to pay the bill. EBPP systems are available through local banks or online services such as Checkfree and Quicken. A digital wallet is both software and information—the software provides security for the transaction and the information includes payment and delivery information (for example, the credit card number and expiration date). Business forms of online payments include: Electronic data interchange (EDI) - a standard format for exchanging business data. One way an organization can use EDI is through a value-added network. A value-added network (VAN) is a private network, provided by a third party, for exchanging information through a high capacity connection. VANs support electronic catalogs (from which orders are placed), EDI-based transactions (the actual orders), security measures such as encryption, and EDI mailboxes. Financial EDI (financial electronic data interchange) - a standard electronic process for B2B market purchase payments. National Cash Management System is an automated clearinghouse that supports the reconciliation of the payments. 6. Which metrics would you use if you were hired to assess the efficiency and effectiveness of eBay’s Web site? eBay could use the following metrics to asses its Web site. Click-through – to determine how many customers visit the site from another site, banner-ad – to determine how many customers visit the site from a banner ad on another site The average spending per customer, the pattern of Web sites visited, including most frequent exit page and most frequent prior Web site, length of stay on the Web site, dates and times of visits to determine customer spending habits, average number of items posted for auction by a customer, average number of items purchased by a customer, number of inactive customer accounts
  • 1. What type of technology is FreshDirect using—disruptive or sustaining? FreshDirect is using the sustaining technology of the Internet to disrupt the way groceries are sold. Similar to Amazon, FreshDirect is a pure play grocer, only offering its products online. There are a few other online grocery stores currently operating in large cities around the country, however the online grocery business is slow to take off. 2. How could FreshDirect use a kiosk to improve its business? FreshDirect could use kiosks strategically placed around the city, such as on commuter trains and busses, that allow customers to place orders on the fly. If a customer was leaving work they could place their order on the train home and have the groceries waiting for them upon their arrival. 3. How could FreshDirect use m-commerce to improve its business? FreshDirect could allow their customers to place and pay for orders over their cell phones and PDAs. This would allow customers to order products from anywhere at anytime 24x7.
  • 4. What are the three different types of service providers and which one would FreshDirect use to run its business? There are three common forms of service providers including: Internet service provider (ISP) – a company that provides individuals and other companies access to the Internet along with additional related services, such as Web site building. Online service provider (OSP) – offers an extensive array of unique services such as its own version of a Web browser. Application service provider (ASP) – a company that offers an organization access over the Internet to systems and related services that would otherwise have to be located in personal or organizational computers. FreshDirect could use an ISP to host its Website and an ASP to host its payroll system. 5. What types of information would be contained in FreshDirect’s intranet? There could be several different types of information stored in FreshDirect’s intranet including employee information such as benefit, employee directory, and vacation tracking, company information such as policies and procedures, financial progress, and corporate vision and goals, and customer information such as number of customers, increased sales, and order information 6. What types of information would be contained in FreshDirect’s extranet? FreshDirect’s extranet could offer an extensive amount of information to its suppliers such as order information, inventory information, and payment and invoice information 7. Which metrics would you use if you were hired to assess the efficiency and effectiveness of FreshDirect’s Web site? FreshDirect could use the following metrics to asses its Web site. Click-through – to determine how many customers visit the site from another site, banner-ad – to determine how many customers visit the site from a banner ad on another site, the average spending per customer, the pattern of Web sites visited, including most frequent exit page and most frequent prior Web site, length of stay on the Web site, dates and times of visits to determine customer spending habits, correlation between items for recommendations and personalization, average number of items purchased by a customer, number of inactive customer accounts, number of abandoned shopping carts
  • 1. How could you use e-business metrics to place a value on Friendster? Metrics such as number of hits and number of visitors could help determine the size of Friendster’s market for advertising initiatives. Information on visitors such as age and gender could provide marketing target information. 2. Why would a venture capital company value Friendster at $53 million when the company has yet to generate any revenue? Since the company has yet to generate a dime in revenue, it is impossible to determine how the VC company estimated Friendster at $53 million. Be sure to ask your students if they would invest in a company that has yet to earn any revenues. 3. Why would Google be interested in buying Friendster for $30 million when the company has yet to generate any revenue. Again, since the company has yet to generate a dime in revenue, it is impossible to determine how Google has estimated the value of Friendster at $30 million. 4. Identify Friendster’s e-business model and explain how the company can generate revenue. Friendster’s e-business model is C2C and could generate revenue from advertising and marketing. Having an audience of 16 to 30 year olds is an attractive marketing for product manufacturers. Many businesses will pay top dollar to advertise on Friendster. Affiliate marketing programs might also be a viable option for Friendster. 5. Explain the e-business benefits and challenges facing Friendster. Friendster has several benefits and its primary is its large customer base. Access to its customer base is coveted by many businesses, hence its large venture capital offers. There are several challenges facing Friendster, the largest is protecting its customers from unsolicited goods and illegal or harmful communication. Such as the many occurrences of social issues on the popular MySpace Web site, Friendster must protect its young clientele from potentially harmful communications. It must also deal with security issues such as identity theft if there was a breach in its customer systems.
  • CHAPTER FOUR OPENING CASE – Additional Case Information Sarbanes-Oxley: Where Information Technology, Finance, and Ethics Meet According to critics, the Sarbanes-Oxley Act has caused a litany of ills: Executives are retiring early, public companies are going private, foreign firms are listing abroad and U.S. firms are losing their competitive edge. The sweeping law, written in the wake of the Enron scandal, has served as a scapegoat for all the evils facing corporate America since it was passed in 2002. Beginning July, 2006, the law's foes will have one less reason to complain. Foreign companies listed on U.S. exchanges must start complying with Sarbanes-Oxley beginning with fiscal years ending after July 15, if their market capitalization exceeds $75 million. Toyota Motor, Sony, HSBC Bank, British Petroleum, and hundreds of other companies that previously escaped the law will now be forced to comply. That is good news for U.S. companies, which can now compete on a more level playing field.
  • 1. Define the relationship between ethics and the Sarbanes-Oxley Act The Sarbanes-Oxley Act (SOX) of 2002 is legislation enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices by organizations. One of the primary components of the Sarbanes-Oxley Act is the definition of which records are to be stored and for how long. When an organization decides which records to store and for how long, without changing, deleting, or destroying the records is where an organization’s ethics will come into play. Simply deciding to comply with SOX will be an ethical issue for some organizations. 2. Why is records management an area of concern for the entire organization and not just the IT department Essentially, any public organization that uses IT as part of its financial business processes will find that it must put in place IT controls in order to be compliant with SOX. Since every department in an organization uses electronic records the entire organization will be required to comply with records management, not just the IT department or the accounting department. 3. Identify two policies an organization can implement to achieve Sarbanes-Oxley compliance? Ensure the current financial systems meet regulatory requirements for more accurate, detailed, and speedy filings. Segregate the duties within the systems development staff so the people that code are different from the people that test.
  • 4. What ethical dilemmas are being solved by implementing Sarbanes-Oxley? Organizations want to make decisions that are both legal and ethical. SOX helps define what is legal and ethical. Prior to SOX it was up to the organization to determine what electronic records it would store, how long to store the electronic records, and what was considered destruction of electronic records. Organizations were storing different amounts of records for different time periods. The penalties for destroying information varied from organization to organization. SOX clearly defines what is ethical and legal in terms of electronic records management giving organizations clear guidelines for ethical behavior. 5. What is the biggest roadblock for organizations that are attempting to achieve Sarbanes-Oxley compliance? The expense of updating the systems and storing all of the records is one of the biggest roadblocks, as well as getting all people involved in adhering to the SOX act.
  • 6. What information security dilemmas are being solved by implementing Sarbanes-Oxley? SOX defines rules regarding the destruction, alteration, or falsification of information. It states that persons who knowingly alter, destroy, mutilate, conceal, or falsify documents shall be fined or imprisoned for not more than 20 years, or both. Stating a clear punishment for tampering with information is an additional deterrent that will make hackers and insiders think twice before performing illegal actions. 7. How can Sarbanes-Oxley help protect a company’s information security? The first line of defense in information security is people. Ensuring all people using or having access to organizational information are aware of SOX compliance will help protect the company’s information. Just by implementing SOX an organization is protecting its information by storing the many different types of information for long periods of time. 8. What impact does implementing Sarbanes-Oxley have on information security in a small business? Sarbanes-Oxley will be a large expense to implement for a small business. Part of this expense will be offset by the benefits achieved from an information security point-of-view. By requiring the company to archive certain types of information, the company will find itself in a better position if it experiences some form of disaster or data loss. Many small businesses fail to save and archive information and putting the appropriate processes in place to achieve Sarbanes-Oxley compliance just might be a good thing for small business to implement. 9. What is the biggest information security roadblock for organizations attempting to achieve Sarbanes-Oxley compliance? The expense of updating the systems and storing all of the records is one of the biggest roadblocks, as well as getting all people involved in adhering to the SOX act.
  • 1. What reason would a bank have for not wanting to adopt an online-transfer delay policy? Operating in a 24x7 world means instant gratification for many people. Barclay’s online-transfer delay provides additional security, but losses real-time response, which many people expect when dealing with the Internet. A bank may choose not to implement an online-transfer delay if its customers view speed and efficiency a key factor. 2. What are the two primary lines of security defense and why are they important to financial institutions? The two primary lines of security defense are people and technology. Since banks deal with money they must offer the most advanced security features to keep their customers finances safe. According to Figure 4.17, the financial industry has the fifth highest expenditure/investment per employee for computer security. An unsafe bank will not operate long. 3. Explain the difference between the types of security offered by the banks in the case. Which bank would you open an account with and why? Bank of America is implementing authentication and authorization technologies such as online computer identification Wells Fargo & Company is implementing authentication and authorization technologies such as additional password criteria E-Trade Financial Corporation is implementing authentication and authorization technologies such as Digital Security IDs Barclay’s Bank is implementing prevention technologies such as online-transfer delays and account monitoring
  • 4. What additional types of security, not mentioned in the case above, would you recommend a bank implement? Banks need to implement security technologies for all three primary areas including: Authentication and authorization - something the user knows such as a user ID and password, something the user has such as a smart card or token, something that is part of the user such as fingerprint or voice signature Prevention and resistance - content filtering, encryption, firewalls Detection and response – antivirus software Providing a combination of all three types is optimal 5. Identify three policies a bank should implement to help it improve information security? Information security plans detail how the organization will implement the information security policies. Information security policies identify the rules required to maintain information security. Banks must implement information security plans that focus on the following: Identification and assessment of risks to customer information, ensure the security and confidentiality of protected information, protect against unauthorized access to or use of protected information that could result in substantial harm or inconvenience to any customer, interception of data during transmission, loss of data integrity, physical loss of data in a disaster, errors introduced into the system, corruption of data or systems, unauthorized access of data and information, unauthorized transfer of data to third parties 6. Describe monitoring policies along with the best way for a bank to implement monitoring technologies Information technology monitoring is tracking people’s activities by such measures as number of keystrokes, error rate, and number of transactions processed. An organization must formulate the right monitoring policies and put them into practice. The best path for an organization planning to engage in employee monitoring is open communication surrounding the issue. Employee monitoring policies explicitly state how, when, and where the company monitors its employees. CSOs that are explicit about what the company does in the way of monitoring and the reasons for it, along with actively educating their employees about what unacceptable behavior looks like, will find that employees not only acclimate quickly to a policy, but also reduce the CSO’s burden by policing themselves.
  • 1. What types of technology could big retailers use to prevent identity thieves from purchasing merchandise? Authentication and authorization technologies such as biometrics could help big retailers prevent identify theft by ensuring the customer is the customer. Detection and response technologies could help big retailers identify fraudulent accounts such as multiple transactions from different locations around the country, or unusually large purchases in a short period of time. The retailer could then contact the customer directly if account information looked suspicious to verify the account was being used legally. 2. What can organizations do to protect themselves from hackers looking to steal account data? The first step in information security is people. Informing employees about social engineering, safeguarding against insiders, and implementing information security policies and procedures is a solid start for any organization looking to prevent information theft. The second step is technology including: Authentication and authorization - something the user knows such as a user ID and password, something the user has such as a smart card or token, something that is part of the user such as fingerprint or voice signature Prevention and resistance - content filtering, encryption, firewalls Detection and response – antivirus software 3. Authorities frequently tap online service providers to track down hackers. Do you think it is ethical for authorities to tap an online service provider and read people’s e-mail? Why or why not? Answers to this question will vary based on each student’s ethics. Privacy is the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent. E-mail monitoring without the person’s knowledge can be considered an invasion of that person’s privacy. An organization has the responsibility to act ethically and legally and must take measures to ensure it does so according to law, policies, and procedures. Authorities must be able to protect the community from potentially dangerous situations. Organizations and authorities must be able to use monitoring technologies to determine if there might be dangerous situation or a person acting unethically or illegally. There is a fine line between privacy and social responsibility.
  • 4. Do you think it was ethical for authorities to use one of the high-ranking officials to trap other gang members? Why or why not? Answers to this question will vary based on each student’s ethics. Using any means possible to catch criminals is typically a valid point of view. However, if those means become unethical then it is difficult to determine who is breaking the law. 5. In a team, research the Internet and find the best ways to protect yourself from identity theft http://www.consumer.gov/idtheft/ This is the Federal Trade Commission national resource about identity theft. The Web site offers a one-stop national resource to learn about the crime of identity theft. It provides detailed information to help you Deter, Detect, and Defend against identity theft. While there are no guarantees about avoiding identity theft, there are steps you can take to minimize your risk and minimize the damage if a problem occurs: Deter identity thieves by safeguarding your information Detect suspicious activity by routinely monitoring your financial accounts and billing statements Defend against ID theft as soon as you suspect a problem
  • 1. How could an organization benefit from attending one of the courses offered at the Intense School? Information technology departments must know how to protect organizational information. Therefore, organizations must teach their IT personnel how to protect their systems, especially in light of the many new government regulations that demand secure systems, such as HIPPA. By understanding how hackers work, how they break locks, and what types of information they steal, an organization can defend itself against such attacks by building more secure IT infrastructures. For example, by knowing that most break-ins occur through an unlocked basement window, a person can place locks on all basement windows, thereby decreasing the chance of having someone break-in to their home. Without this initial knowledge, it would be difficult for the person to know where to apply the locks. 2. What are the two primary lines of security defense and how organizational employees can use the information taught by the Intense School when drafting an information security plan? The two primary lines of security defense are through people first and technology second. Employees can use the information taught at the Intense School to draft an information security plan that details how an organization will implement the information security policies. The school will most likely teach many of the tricks to social engineering and hacking, which the employees can use to create the detailed information security policies. For example: Employees are not required to reveal authentication information to anyone that does not have a current corporate IT badge Employees are not to leave any computer stations unsecured over lunches or during meetings All employee computers should have screen saver locks set to automatically turn-off whenever the computer is idle for more than ten minutes All employees must have current antivirus software that runs daily at 12:00 noon 3. Determine the difference between the two primary courses offered at the Intense school, “Professional Hacking Boot Camp” and “Social Engineering in Two Days.” Which course is more important for organizational employees to attend? The professional hacking boot camp probably includes topics such as hackers, viruses, malicious code, hoaxes, spoofing, and sniffers. The Social Engineering in Two Days probably includes such topics as building trust, dressing appropriately, and using/building relationships. Determine which course to send employees to would depend on the type of business. Chances are an organization will benefit from sending its employees to both.
  • 4. If your employer sent you to take a course at the Intense School, which one would you choose and why? Student answers to this question will vary. The Professional Hacking Boot Camp would be of interest to students who want to learn how to technically safeguard an organization from hackers. The Social Engineering in Two Days course would be of interest to students who want to learn how to use people to safeguard an organization. Looking at majors might help students determine which course to attend. Human resources and management majors might want to attend Social Engineering, while finance, accounting, and marketing majors might want to attend Hacking Boot Camp. Of course, it is best for everyone to attend both to ensure they are protected using both people and technology. 5. What are the ethical dilemmas involved with having such a course offered by a private company? There is the opportunity that unethical students will take the course to learn more about hacking and use course information to perform illegal activities. The Intense school needs to ensure it screens all students to try to prevent a person attending the school who has the wrong intent.
  • Technical architecture refers to the structured process of designing and building software architecture, with focus on interaction with software and hardware developers. Technical architecture is a part of software architecture, which focuses on how to deal with certain aspects of the software engineering process. It allows us to design better systems by: Meeting system requirements and objectives: Both functional and non-functional requirements can be prioritized as "must have", "should have" or "want", where "must have" identifies properties that the system must have in order to be acceptable. An architecture allows us to evaluate and make tradeoffs among requirements of differing priority. Though system qualities (also known as non-functional requirements) can be compromised later in the development process, many will not be met if not explicitly taken into account at the architectural level. Enabling flexible partitioning of the system: A good architecture enables flexible distribution of the system by allowing the system and its constituent applications to be partitioned among processors in many different ways without having to redesign the distributable component parts. This requires careful attention to the distribution potential of components early in the architectural design process. Reducing cost of maintenance and evolution: Architecture can help minimize the costs of maintaining and evolving a given system over its entire lifetime by anticipating the main kinds of changes that will occur in the system, ensuring that the system's overall design will facilitate such changes, and localizing as far as possible the effects of such changes on design documents, code, and other system work products. This can be achieved by the minimization and control of subsystem interdependencies. Increasing reuse and integration with legacy and third party software: An architecture may be designed to enable and facilitate the (re)use of certain existing components, frameworks, class libraries, legacy or third-party applications, etc..
  • 1. Identify six hardware categories and place each product listed in the case in its appropriate category Central processing unit (CPU) The actual hardware that interprets and executes the program (software) instructions and coordinates how all the other hardware devices work together (e.g., Intel processor) (Laptop, Smart Phone, MP3 Player) Primary storage The computer’s main memory, which consists of the random access memory (RAM), cache memory, and the read-only memory (ROM) that is directly accessible to the central processing unit (CPU) (e.g., RAM) (Laptop, Smart Phone, MP3 Player) Secondary storage Equipment designed to store large volumes of data for long-term storage (e.g., diskette, hard drive, memory card, CD). (Laptop, Smart Phone, MP3 Player, Memory Stick, Memory Card) Input devices Equipment used to capture information and commands (e.g., keyboard, scanner). (Laptop, Smart Phone, MP3 Player) Output devices Equipment used to see, hear, or otherwise accept the results of information processing requests (e.g., monitor, printer). (Laptop, Smart Phone, MP3 Player) Communication devices Equipment used to send information and receive it from one location to another (e.g., modem). (Smart Phone) 2. Describe the CPU and identify which products would use a CPU. Central processing unit (CPU) - The actual hardware that interprets and executes the program (software) instructions and coordinates how all the other hardware devices work together. A laptop, smart p hone, and MP3 Player would use a CPU. 3. Describe the relationship between memory sticks and laptops. How can a user employ one to help protect information loss from the other? Memory sticks offer another form of memory for a laptop. A user can use a memory stick to store information from his/her laptop. 4. What different types of software might each of the products listed in the case use? Operating system software controls the application software and manages how the hardware devices work together, whereas utility software provides additional functionality to the operating system. (Laptop, Smart Phone, MP3 Player, Memory Stick, Memory Card) Utility software includes antivirus software, screen savers, disk optimization software, and anti-spam software. (Laptop, Smart Phone, MP3 Player) Application software is used for specific information processing needs, including payroll, customer relationship management, project management, training, and many others. (Laptop, Smart Phone, MP3 Player)
  • 5. How can an organization use an information architecture to protect its IT investment in electronic devices outlined in the case? An information architecture identifies where and how important information, like customer records, is maintained and secured. Three primary areas an enterprise information architecture should focus on are: Backup and recovery Disaster recovery Information security Information architecture identifies where and how important information, like customer records, is maintained and secured. A single backup or restore failure can cost an organization more than time and money; some data cannot be re-created, and the business intelligence lost from that data can be tremendous. A backup is an exact copy of a system’s information. Recovery is the ability to get a system up and running in the event of a system crash or failure and includes restoring the information backup. Using a proper backup and recovery and disaster recovery strategy will safe guard a company from losing any of the devices mentioned in the case – especially a laptop. 6. How can an organization use the devices mentioned in the case to protect information security? Memory sticks are great devices for storing (backing up) small amounts of information. If a employee is traveling or working remotely they can quickly backup their information to a memory stick for safe keeping. Backing up corporate data onto a laptop can be useful if the company is small and wants to keep information offsite. This is also dangerous, because of the security surrounding the information on the laptop. 7. Identify the five ilites and rank them in order of importance for a laptop (1 highest, 5 lowest). The following are the five primary characteristics of a solid infrastructure architecture: Flexibility Scalability Reliability Availability Performance Student rankings will vary. The important part of the answer is their justification for the ranking. Makes for an excellent classroom debate. 8. Describe how a “Customer Phone Number” Web service could be used by one of the products outlined in the case. A customer phone number Web service could track the phone number of any incoming call and place it in a CRM database. For example, if the customer calls my smart phone or my laptop over VoIP, the web service could automatically make an entry in a CRM system logging the incoming phone number, the time, and the duration of the call.
  • 1. Review the five characteristics of infrastructure architecture and rank them in order of their potential impact on the Tribune Co.’s business. The following are the five primary characteristics of a solid infrastructure architecture: Flexibility Scalability Reliability Availability Performance Student rankings will vary. The important part of the answer is their justification for the ranking. Makes for an excellent classroom debate. 2. What is the disaster recovery cost curve? Where should the Tribune Co. operate on the curve? A disaster recovery cost curve charts (1) the cost to the organization of the unavailability of information and technology and (2) the cost to the organization of recovering from a disaster over time. The disaster recovery cost curve shows where the two lines intersect is the best recovery plan in terms of cost and time. Creating an organization’s disaster recovery cost curve is no small task. It must consider the cost of losing information and technology within each department or functional area, and the cost of losing information and technology across the whole enterprise. During the first few hours of a disaster, those costs will be low but become increasingly higher over time. With those costs in hand, an organization must then determine the costs of recovery. Cost of recovery during the first few hours of a disaster is exceedingly high and diminishes over time. 3. Define backups and recovery. What are the risks to the Tribune’s business if it fails to implement an adequate backup plan? A backup is an exact copy of a system’s information. Recovery is the ability to get a system up and running in the event of a system crash or failure and includes restoring the information backup. If the Tribune failed to backup and it lost all of its servers it would be devastating for its business.
  • 4. Why is a scalable and highly available enterprise architecture critical to the Tribune Co.’s current operations and future growth? Scalability refers to how well a system can adapt to increased demands. Availability (an efficiency IT metric) addresses when systems can be accessed by employees, customers, and partners. High availability refers to a system or component that is continuously operational for a desirably long length of time. 5. Identify the need for information security at the Tribune Co. Information security is important for everyone and every organization. The Tribune needs to keep its sensitive information secure and ensure it is protected against hackers and viruses. 6. How could the Tribune Co. use a classified ad Web service across its different businesses? The Tribune could write a Web service ad that it could then use across all of its different businesses. That is the advantage of Web services, you write the code once and can reuse it as many times as you need.
  • 1. Do you think UPS’s entrance into the laptop repair business was a good business decision? Why or why not? Yes. UPS is now entering many businesses where it is taking over the logistics of the company including Papa John’s pizza and Nike. Outsourcing logistics to UPS is a highly successful business and has provided UPS with a new revenue stream. 2. Identify the different types of hardware UPS technicians might be working on when fixing laptops. Hardware consists of the physical devices associated with a computer system. The six major categories of hardware include: Central processing unit (CPU) The actual hardware that interprets and executes the program (software) instructions and coordinates how all the other hardware devices work together (e.g., Intel processor) Primary storage The computer’s main memory, which consists of the random access memory (RAM), cache memory, and the read-only memory (ROM) that is directly accessible to the central processing unit (CPU) (e.g., RAM) Secondary storage Equipment designed to store large volumes of data for long-term storage (e.g., diskette, hard drive, memory card, CD). Input devices Equipment used to capture information and commands (e.g., keyboard, scanner). Output devices Equipment used to see, hear, or otherwise accept the results of information processing requests (e.g., monitor, printer). Communication devices Equipment used to send information and receive it from one location to another (e.g., modem). 3. Assume you are a technician working at UPS. Explain to a customer the different types of memory and why only certain types of data are lost during a computer failure. Also identify a potential backup strategy you can suggest to the customer. Primary storage - The computer’s main memory, which consists of the random access memory (RAM), cache memory, and the read-only memory (ROM) that is directly accessible to the central processing unit (CPU). Secondary storage - Equipment designed to store large volumes of data for long-term storage (e.g., diskette, hard drive, memory card, CD). Many different things can occur during a computer crash. The first type of memory to be erased is the primary storage. If your computer shuts down or crashes without saving you will have lost all of your work that is stored in primary storage. The secondary storage can usually be saved if there is not any damage to the hard disk. Removing the hard disk and placing it in a working computer can allow you to access all of your hard disk information. If your entire laptop is stolen the you will have lost all primary and secondary storage. Backing up your hard disk to a CD, DVD, alternate hard drive, online storage, etc. is a good idea to prevent data loss. 4. Assume you are a technician working at UPS. Explain to a customer the different types of software found in a typical laptop. Laptops contain three types of software – operating system software, utility software, and application software. Operating system software controls the application software and manages how the hardware devices work together, whereas utility software provides additional functionality to the operating system. Utility software includes antivirus software, screen savers, disk optimization software, and anti-spam software Application software is used for specific information processing needs, including payroll, customer relationship management, project management, training, and many others. Application software is used to solve specific problems or perform specific tasks. From an organizational perspective, payroll software, collaborative software such as videoconferencing (within groupware), and inventory management software are all examples of application software.
  • 1. How does Linux differ from traditional software? Linux is developed using incremental phases or a type of agile methodology. Programmers from all over the world can write changes to Linux. Traditional software development, such as the waterfall approach, only allows changes during the development phase which is generally in the middle of the project. Allowing changes at anytime during the SDLC would not happen in a traditional software development project. 2. Should Microsoft consider Linux a threat? Why or why not? Answers to this question will also vary. Some students will agree with Microsoft stating that Linux is not a threat since the market that uses Linux typically would not use Microsoft, but would probably use UNIX. Linux offers very little support, and most organizations that use Microsoft require the security of knowing that their software is supported and that they can get help from professionals 24x7. Other students will argue that Linux is a threat since it is an operating system and Microsoft’s main business in operating systems. 3. How is open source software a potential trend shaping organizations? More and more customers are demanding that open-source software be available for all systems. Many customers find themselves in the position of having to pay enormous sums of money to customize software. If the software was open-source, they could customize it themselves. In the future, more and more software vendors will open up their proprietary systems and offer open-source systems.
  • 4. How can you use Linux as an emerging technology to gain a competitive advantage? Answers to this question will vary. One of the biggest advantages of Linux is cost. Any organization that deploys Linux will save money by not having to pay for operating systems and applications. Linux offers a competitor to Microsoft Office that is compatible with Microsoft Office and free. The biggest competitive advantage for Linux is currently cost. 5. Research the Internet and discover potential ways that Linux might revolutionize business in the future. Answers to this question will vary. The important part of your students’ answers will be their justification for how and why Linux might revolutionize business in the 21st century.
  • 1. How did the Web site RateMyProfessors.com solve its problem of low-quality information? The developers of the Web site turned to Google’s API to create an automatic verification tool. If Google finds enough mentions in conjunction with a new professor or university to be added to the database, then it considers the information valid and posts it to the Web site. 2. Review the five common characteristics of high-quality information and rank them in order of importance to Google’s business. Student answers to this question will vary depending on their personal views and experiences with technology. The important part of the question is understanding the students’ justifications for their order. Potential order of importance: Timeliness – Google’s information must be timely. If users are receiving old and outdated answers to their queries, they will not use Google for long. Accuracy – Google’s search results must be accurate Consistency – Google’s results must be consistent. Users will not trust the system if it provides different results for the same query Completeness – Google’s search results need to be complete; however, users understand that there could be thousands of answers to a search result and are not anticipating that Google find and provide thousands of answers for each query Uniqueness – Google’s users expect to receive unique answers to their queries, not the same search site listed over and over again 3. What would be the ramifications to Google’s business if the search information it presented to its customers was of low quality? Displaying links that do not work, links that have nothing to do with the query, or multiple duplication of links will cause customers to switch to a different search engine. If Google’s search results were of low-quality, they would quickly lose business. Since providing search results is Google’s primary line of business, it must display high-quality search results.
  • 4. Describe the different types of databases. Why should Google use a relational database? There are many different models for organizing information in a database, including the hierarchical database, network database, and the most prevalent—the relational database model. In a hierarchical database model, information is organized into a tree-like structure that allows repeating information using parent/child relationships, in such a way that it cannot have too many relationships. Hierarchical structures were widely used in the first mainframe database management systems. However, owing to their restrictions, hierarchical structures often cannot be used to relate to structures that exist in the real world. The network database model is a flexible way of representing objects and their relationships. Where the hierarchical model structures information as a tree of records, with each record having one parent record and many children, the network model allows each record to have multiple parent and child records, forming a lattice structure. The relational database model is a type of database that stores information in the form of logically related two-dimensional tables. The relational database model stores information in the form of logically related two-dimensional tables. Entities, entity classes, attributes, primary keys, and foreign keys are all fundamental concepts included in the relational database model. 5. Identify the different types of entity, entity classes, attributes, keys, and relationships that might be stored in Google’s Adwords relational database. Entity classes could include: DOCUMENT TITLE SEARCH TERM WORD LOCATION WEB PAGE Attributes could include: Author Title Key words Category Web site location Lowest bid Highest bid Total hits Each table would need to define a primary key and could include: Document ID Search item ID Location ID Company ID The tables in the database would have 1-to-1 relationships, 1-to-many relationships, and many-to-many relationships. If you are planning on having your students design and build an ERD please review the associated Access and Database Technology Plug-Ins.
  • 6. How could Google use a data warehouse to improve its business operations? Google could use a data warehouse to contain not only internal organization information, but also external information such as market trends, competitor information, and industry trends. Google could then analyze its business across markets, among its competitors, and throughout different industries. 7. Why would Google need to scrub and cleanse the information in its data warehouse? Google must maintain high-quality information in its data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high-quality information Google will be unable to make good business decisions. 8. Identify a data mart that Google’s marketing and sales department might use to track and analyze its AdWords revenue. One potential data mart might include information broken down by industry (products, telecommunications, health care, energy, travel, human services) and tracked against revenue by companies. This would tell Google which industries are using AdWords and which industries are untapped. It would also tell Google which customers in each industry are taking advantage of AdWords and perhaps would benefit from a specialized marketing plan, and which customers are not yet taking advantage of AdWords and might be interested in learning about the product.
  • 1. Explain the importance of high-quality information for the Alaska Department of Fish and Game. If the department receives low quality information from fish counts then either too many fish escape or too many are caught. Allowing too many salmon to swim upstream could deprive fishermen of their livelihoods. Allowing too many to be caught before they swim upstream to spawn could diminish fish populations- yielding devastating effects for years to come. 2. Review the five common characteristics of high quality information and rank them in order of importance for the Alaska Department of Fish and Game. Student answers to this question will vary depending on their personal views and experiences with technology. The important part of the question is understanding the student’s justifications for their order. Potential order of importance: Timeliness – Without timely information the department can not make fishing decisions Accuracy – inaccurate information will lead to the department making the wrong decisions Completeness – incomplete information will make it harder for the department to make decisions regarding the amount of fish. Incomplete information probably occurs frequently since part of the process, fish escapement, is performed manually Consistency – information inconsistency probably occurs since the fish escapement is performed manually Uniqueness – a fish ticket could be mistakenly entered twice 3. How could data warehouses and data marts be used to help the Alaska Department of Fish and Game improve the efficiency and effectiveness of its operations? A data warehouse is a logical collection of information - gathered from many different operational databases - that supports business analysis activities and decision-making tasks. The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository in such a way that employees can make decisions and undertake business analysis activities. Therefore, while databases store the details of all transactions (for instance, the sale of a product) and events (hiring a new employee), data warehouses store that same information but in an aggregated form more suited to supporting decision making tasks. Aggregation, in this instance, can include totals, counts, averages, and the like. The Alaska department of Fish and Game could use a data warehouse to track all of its information, including external information such as weather, environmental issues, and fish markets. This would allow the department to make informed decisions with all possible variables. The data warehouse sends subsets of the information to data marts. A data mart contains a subset of data warehouse information. To distinguish between data warehouses and data marts, think of data warehouses as having a more organizational focus and data marts having focused information subsets particular to the needs of a given business unit such as finance or production and operations. The department could use data marts to monitor small subsets of information.
  • 4. What two data marts might the Alaska Department of Fish and Game want to build to help it analyze its operational performance? The department might have a data mart for: Daily Catches Fishery Information Salmon Season Fish Species Catch Information Marketing Information Weather Environment Fishermen Market 5. Do the managers at the Alaska Department of Fish and Game actually have all of the information they require to make an accurate decision? Explain the statement “it is never possible to have all of the information required to make the best decision possible.” No, the managers at the Alaska Department of Fish and Game will never have every single piece of information. It would be almost impossible to count every single fish. However, they have enough to make an accurate estimate as to the number of fish. If you wait to have every single piece of information you would probably never make a decision. We typically receive enough information to make an accurate decision. Of course, the more information you have, the better the decision you can make, but if you wait to get every piece of information you will take too long to make the decision.
  • 1. Explain how Ben & Jerry’s is using business intelligence tools to remain successful and competitive in a saturated market. Ben & jerry’s tracks the ingredients and life of each pint in a data warehouse. If a consumer calls in with a complaint, the consumer affairs staff matches up the pint with which supplier’s mile, eggs, or cherries, etc. did not meet the organization’s near-obsession with quality. 2. Identify why information cleansing and scrubbing is critical to California Pizza Kitchen’s business intelligence tool’s success. Financial statements must be as accurate and complete as possible. There have been too many instances in the past where shoddy financial statements have lead to financial crisis such as Enron and WorldCom. It does not matter how good or how many BI tools California Pizza Kitchen uses; if the core data is dirty the results will be inaccurate.
  • 3. Illustrate why 100 percent accurate and complete information is impossible for Noodles & Company to obtain. Noodles & Company will never have 100 percent accurate and complete information. Perfect information is pricey. Achieving perfect information is almost impossible. The more complete and accurate an organization wants to get its information, the more it costs. The tradeoff between perfect information lies in accuracy verses completeness. Accurate information means it is correct, while complete information means there are no blanks. Most organizations determine a percentage high enough to make good decisions at a reasonable cost, such as 85% accurate and 65% complete. 4. Describe how each of the companies above is using BI from their data warehouse to gain a competitive advantage. Ben & Jerry’s is using BI to improve quality. Customers know that a pint of Ben & Jerry’s ice cream is of the highest quality. California Pizza Kitchen and Noodles & Company are using BI to improve financial analysis capabilities. Both companies can now receive more accurate and complete financial views of their businesses.
  • 4. Estimate the potential impact to Harrah’s business if there is a security breach in its customer information Some customers have concerns regarding Harrah’s information collection strategy since they want to keep their gambling information private. If there was a security violation and sensitive customer information was compromised Harrah’s would risk losing its customers’ trust and their business. 5. Identify three different types of data marts Harrah’s might want to build to help it analyze its operational performance Answers to this question will vary. Potential answers include (1) customers’ spending habits across properties, (2) repeat customer spending habits at a single location, (3) dealer sales at a location and across locations.
  • 6. What might occur if Harrah’s fails to clean or scrub its information before loading it into its data warehouse? Harrah’s must maintain high quality information in its data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high quality information Harrah’s will be unable to make good business decisions and operate its service-oriented strategy. Potential business effects resulting from low quality information include: Inability to accurately track customers Difficulty identifying valuable customers Inability to identify selling opportunities Marketing to nonexistent customers Difficulty tracking revenue due to inaccurate invoices Inability to build strong customer relationships – which increases buyer power 7. Describe cluster analysis, association detection, and statistical analysis and explain how Harrah’s could use each one to gain insights into its business. Cluster analysis is a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible. Cluster analysis is frequently used to segment customer information for customer relationship management systems to help organizations identify customers with similar behavioral traits, such as clusters of best customers or one-time customers. Cluster analysis also has the ability to uncover naturally occurring patterns in information. Association detection reveals the degree to which variables are related and the nature and frequency of these relationships in the information. Statistical analysis performs such functions as information correlations, distributions, calculations, and variance analysis, just to name a few. Harrah’s can use all of the above to uncover customer patterns to ensure it is taking advantage of customer relationship management strategies with its customers. It could also use the tools to uncover patterns in food, drink, and room availability to optimize its supply chain.
  • CLASSROOM OPENER GREAT BUSINESS DECISIONS – Akito Morita of Sony Decides to Develop the Walkman Akito Morita noticed that young people like listening to music wherever they went. He decided to find a way for people to listen to music while they walked, ran, danced, or jogged. From this Morita designed the Walkman. The first Sony Walkman was introduced in 1980 and was an instant success. Many of Sony’s successes are based on innovation. The company has an instinctive ability to find and pursue market opportunities. In 1949, the company developed the magnetic recording tape In 1950, the company sold the first tape recorder in Japan In 1957, the company produced a pocket-size radio In 1960, Sony produced the first transistor TV in the world
  • 1. Explain how hospitals are using telecommunication and network technologies to improve their operations. Hospitals are using everything from digital doctors to prescription fulfillment. There are so many new and exciting uses of technology to make hospitals more efficient and effective which saves lives. The most important piece of Hackensack’s digital initiatives is the networked software that acts as the hospital’s central nervous system. Using wireless laptops, nurses log in to the system to record patient information and progress. Doctors tap into the network via wireless devices to order prescriptions and lab tests. Everything is linked, from the automated pharmacy to the X-ray lab, eliminating the need for faxes, phone calls, and other administrative hassles. 2. Describe the two different types of network architectures and identify which one Hackensack University Medical Center is using. The two primary types of network architectures are: peer-to-peer networks and client/server networks. A peer-to-peer (P2P) network is any network without a central file server and all computers in the network have access to the public files located on all other workstations. A client is a computer that is designed to request information from a server. A server is a computer that is dedicated to providing information in response to external requests. A client/server network is a model for applications in which the bulk of the back-end processing, such as performing a physical search of a database, takes place on a server, while the front-end processing, which involves communicating with the users, is handled by the clients. Hackensack University Medical Center is using a client/server architecture. 3. Explain TCP/IP and the role it plays in Hackensack University Medical Center’s IT projects. The most common telecommunication protocol is Transmission Control Protocol/Internet Protocol (TCP/IP), which was originally developed by the Department of Defense to connect a system of computer networks that became known as the Internet. Transmission Control Protocol/Internet Protocol (TCP/IP) provides the technical foundation for the public Internet as well as for large numbers of private networks. The key achievement of TCP/IP is its flexibility with respect to lower-level protocols. TCP/IP uses a special transmission method that maximizes data transfer and automatically adjusts to slower devices and other delays encountered on a network. Although more than 100 protocols make up the entire TCP/IP protocol suite, the two most important of these are TCP and IP. TCP provides transport functions, ensuring, among other things, that the amount of data received is the same as the amount transmitted. IP provides the addressing and routing mechanism that acts as a postmaster. Any data that is transferred around the hospital is transferred with the TCP/IP protocol. 4. Identify a new telecommunication or network product that Hackensack University Medical Center could use to improve its operations. Student answers to this question will vary. This is a good opportunity for students to get creative and develop some interesting products such as PDA devices to send notes and prescriptions, robots to help with patient care, and AI tools to perform surgery and diagnose patients.
  • 5. Why is real-time information important to hospitals? Real-time information means immediate, up-to-date information. Real-time systems provide real-time information in response to query requests. Hospitals need to have the most up-to-date and accurate information possible to be able to help their patients. With outdated information doctors risk making inaccurate diagnosis. This could cause: Damage to the hospital’s reputation Incur liabilities Decrease productivity 6. How is Hackensack University Medical Center using wireless technology to improve its operations? The Hackensack University Medical Center is using wireless technology to: Pocket-sized PCs that hook wirelessly into the hospital’s network allow doctors the freedom to place pharmacy orders and pull up medical records from anywhere in the hospital. Nurses use wireless laptops to record patients’ vitals signs, symptoms and medications. Doctors can sign into the same central system from the laptops to order prescriptions and lab tests and read their patient’s progress. The hospital’s internal Web site stores all of its medical images. Doctors can view crystalclear digital versions of their patients’ X-rays, MRIs, and CT scans from any computer in or out of the hospital. 7. Identify three wireless technologies that are changing the way businesses operate and explain how hospitals can use these technologies to improve their operations. There are a number of different technologies changing the way businesses operate. Student answers to this question will vary depending on their three technology choices. Wireless local area network (wLAN): uses radio waves rather than wires to transmit information across a local area network. Cellular phones and pagers: provide connectivity for portable and mobile applications, both personal and business. Cordless computer peripherals: connect wirelessly to a computer, such as a cordless mouse, keyboard, and printer. Satellite television: allows viewers in almost any location to select from hundreds of channels. WiMax wireless broadband: enables wireless networks to extend as far as 30 miles and transfer information, voice, and video at faster speeds than cable. It is perfect for Internet service providers (ISPs) that want to expand into sparsely populated areas, where the cost of bringing in cable wiring or DSL is too high. Security sensor: alerts customers to break-ins and errant pop flies. Its dual sensors record vibration and acoustic disturbances—a shattered window—to help avoid false alarms.
  • 1. Explain the fundamentals of RFID and how it is being used to track students. Radio frequency identification (RFID) technologies use active or passive tags in the form of chips or smart labels that can store unique identifiers and relay this information to electronic readers. RFID tags were being placed on a card which students wore around their neck and allowed the school to track each student. 2. Describe the ethical dilemmas involved with tracking students with RFID. RFID is a tracking device. Privacy is the right to be left alone when you want to be, to have control over your own personal possessions, and to not be observed without your consent. Any tracking device is a direct infringement on a persons privacy rights, unless that person has given consent to the tracking device. 3. Identify two types of wireless business opportunities schools could take advantage of to help improve operations. There are a number of different technologies changing the way businesses operate. Students could use any of the following to develop a plan for improving school operations. Wireless local area network (wLAN): uses radio waves rather than wires to transmit information across a local area network. Cellular phones and pagers: provide connectivity for portable and mobile applications, both personal and business. Cordless computer peripherals: connect wirelessly to a computer, such as a cordless mouse, keyboard, and printer. Satellite television: allows viewers in almost any location to select from hundreds of channels. WiMax wireless broadband: enables wireless networks to extend as far as 30 miles and transfer information, voice, and video at faster speeds than cable. It is perfect for Internet service providers (ISPs) that want to expand into sparsely populated areas, where the cost of bringing in cable wiring or DSL is too high. Security sensor: alerts customers to break-ins and errant pop flies. Its dual sensors record vibration and acoustic disturbances—a shattered window—to help avoid false alarms. Student answers to this question will vary. The important point is that students justify their answer. Student answers to this question are usually very creative.
  • 4. How could RFID help schools deal with potential security issues? By being able to track each student the school would know automatically if any student was leaving school property without permission. If a student was being abducted or taken away against their will, the school would know and could help the student. RFID tracking advantages include being able to easily locate students incase of emergency and ensure students are where they are supposed to be when they are supposed to be. The primary disadvantage is that this type of tracking could be considered an invasion of privacy. 5. Develop a Bluetooth, GPS, or satellite product that schools could use to improve operations. There are a number of different technologies that could change the way that schools operate. Student answers to this question will vary. This is a good question for creativity. 6. Determine a way that schools could use RFID tags without violating privacy rights. If students and parents gave their consent to use RFID tags then they would not be violating privacy rights.
  • 1. Explain the fundamentals of wireless fidelity Wireless fidelity (wi-fi) is a means of linking computers using infrared or radio signals. Wi-fi is a type of Ethernet, which makes the wireless network a straightforward extension of the wired network. A wireless device provides users with a live (Internet) connection via satellite or radio transmitters. If an organization uses wireless technologies, its employees, customers, and suppliers will have a live connection to organizational information and applications anytime, anywhere, and anyplace. 2. Describe the differences between UPS and FedEx’s use of wi-fi FedEx deploys new technologies as soon as it can justify the cost and demonstrate improved efficiencies and customer benefit. UPS refreshes its technology base roughly every five to seven years, when it rolls out a unified system in stages that it synchronizes with the life span of the older system. The two companies are exploiting new wireless technologies in their differing attempts at aiding the two main components of their operations: pickup/deliver and packaging/sorting. 3. Identify two types of wireless business opportunities the companies could use to gain a competitive advantage The companies can use Bluetooth, RFID, satellite, and GPS to gain competitive advantages. GPS can help with ensuring drivers are using the most direct route, or avoiding traffic, to reach customers. Satellites could be used to gain access to company intranets from anywhere at anytime.
  • 4. How could RFID could help the companies deal with potential security issues? With an RFID tag attached to each package the company could monitor, in real time, every products exact location It could also monitor such things as humidity, temperature, shifts, and other factors that cause issues in its supply chain by damaging goods during shipping 5. Develop a Bluetooth, GPS, or satellite product that the parcel delivery business could use to improve efficiencies Student answers to this question will vary
  • 1. Would you consider Prada’s use of technology cutting-edge? Why or why not? Prada’s use of RFID is disruptive for the fashion industry. Using RFID to track inventory is not disruptive in the manufacturing industry or production industry, but it is a radical change from most specialty stores. For this reason its use of wireless technology and RFID is cutting-edge for the fashion industry. 2. Prada’s attempt to use RFID to check inventory in real time failed because of the staff’s refusal to use the system. What could Prada have done to make the implementation of RFID successful? Prada could have implemented in phases and tested to ensure that the system worked and that the employees knew how to use it. By only having one or two employees learn the new system for a few items, they could have ensured that it worked and not overwhelmed the employees with the new technology. Employees were frequently overwhelmed with the number of customers they had to serve and found it easier to manually check inventory. If they were properly trained on the new system, they would have found that it was easier to check a hand-held device than to walk back and manually check inventory. 3. Identify an additional strategic use of RFID for Prada’s high-tech store. If Prada wants to gain a competitive advantage, and remain competitive, it should continue to seek out new ways of using technology to disrupt its market. Prada was on the right path when building its high-tech stores, it just had some initial issues with how it implemented the technology. Prada could use RFID for: Ordering inventory Stocking shelves Market analysis for sales information Tracking items for security Ensure environment for keeping items in mint condition (such as the right temperature, no water or liquids spilling on items, etc.) Direct link to internet for real time information updates to reports
  • 4. What should Prada do differently when designing its next store to ensure its success? Use an agile methodology to implement the new technology in small manageable pieces, which will allow the employees and the customer’s time to get used to each piece before learning a new piece. 5. Identify a new use of wireless technology for Prada’s next store. There are a number of different wireless technologies that Prada could use to make its stores more efficient and effective. Student answers to this question will vary. This is a good question for creativity.
  • CLASSROOM OPENER GREAT BUSINESS DECISIONS – Michael Dell Decides to Sell PCs Directly to Consumers and Built-to-Order Michael Dell decided that to be successful in the PC business and to gain a significant competitive advantage he would bypass the dealer channel through which personal computers were being sold. Dell developed and deployed their own channel for manufacturing and selling PCs. This personal channel eliminated the reseller markups and large inventory expenses and allowed Dell to operate with lower costs than anyone in the industry, which led to higher profit margins. Michael Dell understood that consumers were getting smarter and that customer service abilities were becoming more sophisticated. Beginning with telephone sales, and then moving to Internet sales, Dell bypassed retailers and targeted corporate accounts. Dell understood that tailoring products to meet specific requirements of large accounts could be accomplished not only more cheaply, but also more effectively without an intermediary. Dell boasts sales of $12.3 billion and is the world’s number one direct-sales computer vendor. The company’s Web site currently generates over half of its orders. Everybody in the industry is trying to imitate Dell’s strategy.
  • 1. How might Dell use each of the five basic SCM components? Student answers to this question will vary. Potential answers include: Plan – This is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less, and delivers high quality and value to customers. Dell must plan how it wants to handle its supply chain – efficiently or effectively. Source – Companies must carefully choose reliable suppliers that will deliver goods and services required for making products. Companies must also develop a set of pricing, delivery, and payment processes with suppliers and create metrics for monitoring and improving the relationships. Dell will need to choose partners who have the same innovative mindset and are capable of keeping up with Dells fast pace. Make – This is the step where companies manufacture their products or services. This can include scheduling the activities necessary for production, testing, packaging, and preparing for delivery. This is by far the most metric-intensive portion of the supply chain, measuring quality levels, production output, and worker productivity. Dell needs to ensure all of its computers are of the highest quality – quality issues in the PC market will kill a PC manufacturer. Deliver – This step is commonly referred to as logistics. Logistics is the set processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers. During this step, companies must be able to receive orders from customers, fulfill the orders via a network of warehouses, pick transportation companies to deliver the products, and implement a billing and invoicing system to facilitate payments. This step is critical to Dell since it does not have a distributor to deliver its products. Return – This is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products. Since Dell does no have any distributors it must make the return process as easy as possible for customers. 2. How had Dell influenced visibility, consumer behavior, competition, and speed though the use of IT in its supply chain? Dell is one of the fasted companies on the planet due to information technology. Dell only holds 72 hours worth of inventory in its supply chain, hence it must have tremendous supply chain visibility. It must be able to anticipate consumer behavior to ensure its supply chain can meet forecasted demands. Dell’s competition is working hard to catch-up. 3. Explain the seven principles of SCM in reference to Dell’s business model. Students should take the principles of how to build a Dell-like supply chain and compare them to the following: Segment customers by service needs, regardless of industry, and then tailor services to those particular segments. Customize the logistics network and focus intensively on the service requirements and on the profitability of the preidentified customer segments Listen to signals of market demand and plan accordingly. Differentiate products closer to the customer, since companies can no longer afford to hold inventory to compensate for poor demand forecasting. Strategically manage courses of supply, by working with key suppliers to reduce overall costs of owning materials and services. Develop a supply chain information technology strategy that supports different levels of decision making. Adopt performance evaluation measures that apply to every link in the supply chain and measure true profitability at every stage.
  • 4. Identify the four primary drivers of SCM and explain how Dell uses each one to gain efficiency or effectiveness in its supply chain. Facilities – processes or transforms inventory into another product, or it stores the inventory before shipping it to the next facility. Dell strategically places its facilities next to parcel delivery companies so it can ship items in and out more quickly. This allows the company to be extremely efficient in terms of facilities. Inventory – offsets discrepancies between supply and demand. Dell only carriers 24 hours worth of inventory in its entire supply chain. This allows the company to be extremely efficient, but could cause problems with effectiveness if natural disasters or human relation problems occur. Transportation – moves inventories between the different stages in the supply chain. Dell focuses on effectiveness by using the fastest methods of transportation available. Information – an organization must decide how and what information it wants to share with its supply chain partners. Dell openly shares information with all of its partners, it has to in order to maintain only 24 hours worth of inventory. This focuses on efficiency. 5. Choose one of the fast growth SCM components and explain how Dell can use it to increase business operations. Supply chain event management (SCEM) - Enables an organization to react more quickly to resolve supply chain issues. SCEM software increases real-time information sharing among supply chain partners and decreases their response time to unplanned events. Dell can use SCEM to discover the benefits of real-time supply chain monitoring. Selling chain management - Applies technology to the activities in the order life cycle from inquiry to sale. Dell can use selling chain management to provide additional CRM to its customers during the sales process. The PC business is tough and Dell has a lot of competition. Building a reputation for outstanding customer relationships is one way that Dell could create a competitive advantage over its customers. Collaborative engineering - Allows an organization to reduce the cost and time required during the design process of a product. Dell can collaborate with all of its supply chain partners to create more efficient and effective business processes throughout the supply chain. Collaborative demand planning - Helps organizations reduce their investment in inventory, while improving customer satisfaction through product availability. Dell can collaborate with all of its supply chain partners to create more efficient and effective business processes throughout the supply chain. 6. What is RFID and how could Dell use the technology to improve its supply chain? Radio frequency identification (RFID) technologies use active or passive tags in the form of chips or smart labels that can store unique identifiers and relay this information to electronic readers. RFID tags contain a microchip and an antenna, and typically work by transmitting a serial number via radio waves to an electronic reader, which confirms the identity of a person or object bearing the tag. Dell can add RFID tags to every product and shipping box. At every step of the item’s journey, a reader scans one of the tags and updates the information on the server. Dell can observe sales patterns in real time and make swift decisions about production, ordering, and pricing. Integrating RFID in the supply chain will help Dell achieve greater efficiency and effectiveness through the use of real-time information.
  • 1. How can an SCM system help a distributor such as Anheuser-Busch make its supply chain more effective and efficient? An SCM system can help make a distributor more effective by tracking, monitoring, and analyzing inventory throughout the entire supply chain. An SCM system can trigger the production of a product for a manufacturer, determine where to transport the finished product through a specific distribution company to a particular supplier, and can even recommend the optimal location for the product at the supplier’s store. A good SCM system will know exactly when a customer purchases a product from a supplier, and will automatically request product replacement from the manufacturer. This drives efficiency and effectiveness since inventory levels throughout the entire supply chain can be operated by just-in-time. 2. SCM is experiencing explosive growth. Explain why this statement is true using BudNet as an example. An SCM can help an organization: Control costs and improve saving Improve productivity Reduce inventory Improve visibility Reduce process cycle times Improve quality Maintain and gain a competitive advantage 3. Evaluate BudNet’s effect on each of the five factors that are driving SCM success. There are five factors that are contributing to the explosive growth of SCM. (1) IT, (2) Visibility, (3) Consumer behavior, (4) Competition, (5) Speed. BudNet is using these factors to control quality, improve productivity, and ultimately increase revenues. Anheuser-Busch uses BudNet to constantly adjust production levels, fine-tune marketing campaigns, change marketing strategies, design promotions to suit the ethnic makeup of its markets, detect rivals and competition, and define product placement and pricing strategies. 4. List and describe the components of a typical supply chain along with its ability to help Budweiser make effective decisions. Plan – This is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less, and delivers high quality and value to customers. Dell must plan how it wants to handle its supply chain – efficiently or effectively. Source – Companies must carefully choose reliable suppliers that will deliver goods and services required for making products. Companies must also develop a set of pricing, delivery, and payment processes with suppliers and create metrics for monitoring and improving the relationships. Dell will need to choose partners who have the same innovative mindset and are capable of keeping up with Dells fast pace. Make – This is the step where companies manufacture their products or services. This can include scheduling the activities necessary for production, testing, packaging, and preparing for delivery. This is by far the most metric-intensive portion of the supply chain, measuring quality levels, production output, and worker productivity. Dell needs to ensure all of its computers are of the highest quality – quality issues in the PC market will kill a PC manufacturer. Deliver – This step is commonly referred to as logistics. Logistics is the set processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers. During this step, companies must be able to receive orders from customers, fulfill the orders via a network of warehouses, pick transportation companies to deliver the products, and implement a billing and invoicing system to facilitate payments. This step is critical to Dell since it does not have a distributor to deliver its products. Return – This is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products. Since Dell does no have any distributors it must make the return process as easy as possible for customers. As Budweiser evolves into an extended organization, the roles of supply chain participants are changing. Budweiser’s suppliers might be involved in product development and its distributors might act as consultants in brand marketing. The notion of virtually seamless information links within and between organizations is an essential element of integrated supply chains.
  • 1. Summarize SCM and describe Warner-Lambert’s supply chain strategy. Diagram the SCM components. The supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material. Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. 2. Detail Warner-Lambert’s facilities strategy. Supply chain facility strategy processes or transforms inventory into another product, or it stores the inventory before shipping it to the next facility. The three primary facilities components include location, capacity, and operational design. Warner-Lambert’s facility strategy includes: Location efficiency – centralize the location to gain economies of scale, which increases efficiency Capacity effectiveness – large amounts of excess capacity which can handle wide swings in demand Operational design efficiency – product focus design allows the facility to become highly efficient at producing one single product, increasing efficiency 3. Detail Warner-Lambert’s inventory strategy. Inventory offsets discrepancies between supply and demand. The two primary inventory components include cycle inventory and safety inventory. Warner-Lambert’s inventory strategy includes: Cycle inventory effectiveness – holding large amounts of inventory and receiving inventory deliveries only once a month Safety inventory effectiveness – holding large amounts of safety inventory
  • 4. What would happen to Warner-Lambert’s business if a natural disaster in Saudi Arabia depletes its natural gas resources? A natural disaster in Saudi Arabia which depletes its natural gas would cause problems in Warner-Lambert’s supply chain. Without the natural gas that yields the synthetic alcohol, Listerine would be unable to deliver its 43-proof punch. Unless it could quickly find another vendor of the natural gas or if it had a large safety inventory, the production of Listerine would come to a complete stop. 5. Assess the impact to Warner-Lambert’s business if the majority of the eucalyptus crop was destroyed in a natural disaster. A natural disaster which destroyed all of the eucalyptus crop would be devastating to Warner-Lambert’s business and would cause many problems in its supply chain. The price of eucalyptus would skyrocket causing unforeseen increases in costs throughout the supply chain. Unless it could quickly find an alternative ingredient to eucalyptus, the production of Listerine would come to a complete stop. 6. Detail Warner-Lambert’s information strategy. An organization must decide how and what information it wants to share with its supply chain partners. The two primary information components include information sharing and push vs. pull strategy. The case did not discuss in detail Warner-Lambert’s information strategy, but if it focused on efficiency it would: Information sharing efficiency – freely share lots of information to increase the speed and decrease the costs of supply chain processing Pull information strategy (efficiency) – supply chain partners are responsible for pulling all relevant information
  • 1. How did Levi Strauss achieve business success through the use of supply chain management? Levi’s used its SCM system to decreased the power of its buyers, increased its own supplier power, increased switching costs to reduce the threat of substitute products or services, created entry barriers thereby reducing the threat of new entrants, and increased efficiencies while seeking a competitive advantage through cost leadership. 2. What might have happened to Levi’s if its top executives had not supported investments in SCM? One of the main factors that brought Levi’s back from the dead was its ability to sell jeans in Wal-Mart. Wal-Mart demands that all partners have up-to-date SCM systems that can easily integrate with Wal-Mart’s systems. If Levi’s top executives did not have the foresight to view selling jeans at Wal-Mart as a competitive advantage, then chances are the company would not have made a strong comeback in the highly competitive clothing market. Although Levi’s was in the process of upgrading its systems, it was going to take over five years to implement. This was simply too long. Levi’s had no choice but to spend the money to upgrade its SCM system if it wanted to do business with Wal-Mart. 3. David Bergen, Levi’s CIO, put together a cross-functional team of key managers from IT, finance, and sales to transform Levi’s systems to meet Wal-Mart’s requirements. Analyze the relationships between these three business areas and SCM systems. How can an SCM system help support these three critical business areas? Business personnel and IT personnel must work together for an organization to succeed. If Levi’s failed to include IT personnel, finance personnel, or sales personnel in the cross-functional team, it would have had a difficult time achieving a successful system transformation. All managers in all areas of the company will need to use the SCM system to make strategic decisions.
  • 4. Describe the five basic SCM components in reference to Wal-Mart’s business model. Plan – This is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less, and delivers high quality and value to customers. Dell must plan how it wants to handle its supply chain – efficiently or effectively. Source – Companies must carefully choose reliable suppliers that will deliver goods and services required for making products. Companies must also develop a set of pricing, delivery, and payment processes with suppliers and create metrics for monitoring and improving the relationships. Dell will need to choose partners who have the same innovative mindset and are capable of keeping up with Dells fast pace. Make – This is the step where companies manufacture their products or services. This can include scheduling the activities necessary for production, testing, packaging, and preparing for delivery. This is by far the most metric-intensive portion of the supply chain, measuring quality levels, production output, and worker productivity. Dell needs to ensure all of its computers are of the highest quality – quality issues in the PC market will kill a PC manufacturer. Deliver – This step is commonly referred to as logistics. Logistics is the set processes that plans for and controls the efficient and effective transportation and storage of supplies from suppliers to customers. During this step, companies must be able to receive orders from customers, fulfill the orders via a network of warehouses, pick transportation companies to deliver the products, and implement a billing and invoicing system to facilitate payments. This step is critical to Dell since it does not have a distributor to deliver its products. Return – This is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products. Since Dell does no have any distributors it must make the return process as easy as possible for customers. Wal-Mart plans each of the above components into and throughout its supply chain. Since Wal-Mart is essentially a distributor and does not manufacture anything itself, it must be able to plan, source, make, deliver, and return everything it distributes from its manufacturers. 5. Explain RFID and provide an example of how Levi’s could use the technology to increase its business operations. Radio frequency identification (RFID) technologies use active or passive tags in the form of chips or smart labels that can store unique identifiers and relay this information to electronic readers. RFID tags contain a microchip and an antenna, and typically work by transmitting a serial number via radio waves to an electronic reader, which confirms the identity of a person or object bearing the tag. Levi’s can add RFID tags to every product and shipping box. At every step of the item’s journey, a reader scans one of the tags and updates the information on the server. Levi’s can observe sales patterns in real time and make swift decisions about production, ordering, and pricing. Integrating RFID in the supply chain will help Levi’s achieve greater efficiency and effectiveness through the use of real-time information.
  • CLASSROOM OPENER GREAT BUSINESS DECISIONS – Harley-Davidson Begins the Harley Owners Group (H.O.G.) to Encourage Customer Involvement One of the biggest assets for Milwaukee-based Harley-Davidson Motorcycle Company is its intensely loyal customers. After struggling against Japanese competition throughout the 1960s and 1970s, the company turned a corner in 1981 when a group of 13 senior Harley-Davidson executives purchased the company. Vaughn Beals, the leader, celebrated with a victory ride from the company’s factory in York, Pennsylvania, to its headquarters in Milwaukee. The new owners decided to begin the Harley Owners Group (H.O.G) to get customers more involved with the product. HOG worked. With HOG, the company was able to key into its greatest asset – the people who care about the Harley-Davidson company. HOG opened a dialog outside the company with its loyal customer base and inside the company with its workforce. In 1993, a little over 10 years after the start of HOG, the company celebrated its 90th anniversary with more than 100,000 HOG members converging on Milwaukee for a drive-through parade featuring 60,000 Harley-Davidson machines.
  • 1. Summarize the evolution of CRM and provide an example of a reporting, analyzing, and predicting question Progressive might ask its customers. There are three phases in the evolution of CRM: (1) reporting, (2) analyzing, and (3) predicting. CRM reporting technologies help organizations identify their customers across other applications. CRM analysis technologies help organizations segment their customers into categories such as best and worst customers. CRM predicting technologies help organizations make predictions regarding customer behavior such as which customers are at risk of leaving. Reporting questions What was the major cause of your accident? How helpful was the progressive insurance representative during your claim? Where was your accident? What kind of car were you driving? Whose fault was the accident? What kind of car was the other vehicle? What time of day was the accident? What were the road conditions when the accident occurred? Analyzing questions Why are there so many customer accidents in one specific location? Why are there so many customers that drive a certain type of car getting into accidents? Why do certain types of weather conditions cause more accidents for our customers? Why are certain customers continually getting into accidents? Why are so many customer accidents during a certain time of the day? Predicting questions What customers are at risk of leaving? What additional insurance products will our customers buy? Which customers should we discontinue providing insurance for? Which customers should we try to sell additional insurance to? What can we do to reduce the number of accidents? Are there certain types of cars that we can reduce the insurance on? Are there certain types of cars that we should increase the insurance on? 2. How could Progressive’s marketing department use CRM technology to improve its operations? The three primary operational CRM technologies a marketing department can implement to increase customer satisfaction are: List generator. List Generator List generators compile customer information from a variety of sources and segment the information for different marketing campaigns. Information sources include Web site visits, Web site questionnaires, online and off-line surveys, flyers, toll-free numbers, current customer lists, and so on. After compiling the customer list, an organization can use criteria to filter and sort the list for potential customers. Filter and sort criteria can include such things as household income, education level, and age. List generators provide the marketing department with a solid understanding of the type of customer it needs to target for marketing campaigns. Campaign management. Campaign Management Campaign management systems guide users through marketing campaigns performing such tasks as campaign definition, planning, scheduling, segmentation, and success analysis. These advanced systems can even calculate quantifiable results for return on investment (ROI) for each campaign and track the results in order to analyze and understand how the company can fine tune future campaigns. Cross-selling and up-selling. Cross-Selling and Up-Selling Two key sales strategies a marketing campaign can deploy are cross-selling and up-selling. Cross-selling is selling additional products or services to a customer. Up-selling is increasing the value of the sale. Progressive can use any of the above to increase the efficiency and effectiveness of its marketing department. 3. How could Mini’s sales department use CRM technology to improve its operations? Mini can use any of the following CRM sales technologies to improve its operations: Sales management systems automate each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts. Contact management systems maintain customer contact information and identify prospective customers for future sales. Opportunity management systems target sales opportunities by finding new customers or companies for future sales.
  • 4. How could Progressive and Mini’s customer service departments use CRM technology to improve their operations? The three primary operational CRM technologies a sales department can implement to increase customer satisfaction are: Sales management CRM systems. Sales management CRM systems automate each phase of the sales process, helping individual sales representatives coordinate and organize all of their accounts. Features include calendars to help plan customer meetings, alarm reminders signaling important tasks, customizable multimedia presentations, and document generation. Contact management CRM systems. A contact management CRM system maintains customer contact information and identifies prospective customers for future sales. Contact management systems include such features as maintaining organizational charts, detailed customer notes, and supplemental sale information. Opportunity management CRM systems. Opportunity management CRM systems target sales opportunities by finding new customers or companies for future sales. Opportunity management systems determine potential customers and competitors and define selling efforts including budgets and schedules. Advanced opportunity management systems can even calculate the probability of a sale, which can save sales representatives significant time and money when attempting to find new customers. 5. Define analytical CRM and its importance to companies like Progressive and Mini. Analytical CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers. Progressive and Mini can use analytical CRM to perform analyzing and predicting CRM strategies. Maturing analytical CRM and behavioral modeling technologies are helping numerous organizations move beyond legacy benefits such as enhanced customer service and retention to systems that can truly improve business profitability. Unlike operational CRM that automates call centers and sales forces with the aim of enhancing customer transactions, analytical CRM solutions are designed to dig deep into a company’s historical customer information and expose patterns of behavior on which a company can capitalize. Analytical CRM is primarily used to enhance and support decision making and works by identifying patterns in customer information collected from the various operational CRM systems.
  • 6. How might Progressive’s business model change if it decreased its investments in CRM technologies? Marinating solid relationships with its customers and helping its customers through an efficient and effective business process is the core of Progressive’s business model. If Progressive decided to discontinue its investment in CRM it would risk losing its customers and moving in the opposite direction of its core values. 7. How might Mini’s business model change if it decreased its investments in CRM technologies? Personalization occurs when a Web site can know enough about a person’s likes and dislikes that it can fashion offers that are more likely to appeal to that person. Offering personalized and customized customer strategies is Mini’s strategic mission. CRM technologies enable personalization and mass customization. Without these technologies Mini could not continue to operate towards its strategic mission. 8. Describe the CRM industry best practices and explain how Progressive is using each. Clearly communicate the CRM strategy – ensuring that all departments and employees understand exactly what CRM means and how it will add value to the organization is critical to the success of the implementation. Progressive communicates with each of its customers via the Internet, marketing materials, and the insurance agent. Define information needs and flows – the organization must understand all of the different ways that information flows into and out of the organization to implement a successful CRM system. If the organization misses one of the information flows, such as a customer service Web site, then none of that information from that Web site will be integrated into the CRM system and the company will not have a complete view of its customers. Progressive not only defines where information flows throughout its organization, it used business process reengineering to focus on how the information can flow more efficiently and effectively throughout its organization. Build an integrated view of the customer – the CRM system must support the organization's strategies and goals. Progressive has only one agent who is responsible for all of the details of each customers claim. This give the agent a comprehensive view of each customer. Implement in iterations – avoid the big-bang approach and implement in small, manageable, pieces. Progressive’s systems all talk to each other and allow a claim to be automatically expedited to a payment. Scalability for organizational growth – ensure the system can support the organization's future growth. Progressive is on the cutting edge and using technology to gain a competitive advantage.
  • 9. Explain SRM and how Mini could use it to improve its business. Supplier relationship management (SRM) focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection. SRM applications help companies analyze vendors based on a number of key variables including strategy, business goals, prices, and markets. The company can then determine the best supplier to collaborate with and can work on developing strong relationships with that supplier. The partners can then work together to streamline processes, outsource services, and provide products that they could not provide individually. Mini works with many different suppliers from tire companies to part companies. Mini needs to focus on building strong relationships with its partners to keep its business on track. If a partner fails to deliver, Mini’s customer, and bottom-line revenue- is affected. 10. Explain ERM and how Progressive could use it to improve its business. Employee relationship management (ERM) provides employees with a subset of CRM applications available through a Web browser. Many of the ERM applications assist the employee in dealing with customers by providing detailed information on company products, services, and customer orders. Progressive’s employees directly interact with its customers. Providing ERM applications will enable Progressive’s employees to work more efficiently and effectively. Employees play a major role in Progressive’s business processes and strategic mission.
  • 1. How could the ACS’s marketing department use operational CRM to strengthen its relationships with its customers The ACS can use operational CRM to gain a single view of its constituents and all information required to serve them. Three marketing operational CRM technologies that the ACS could use include list generators, campaign management systems, and cross-selling and up-selling. List generators compile customer information from a variety of sources and segment the information for different marketing campaigns. Campaign management systems guide users through marketing campaigns. Cross-selling is selling additional products or services. Up-selling is increasing the value of the sale. 2. How could the ACS’s customer service department use operational CRM to strengthen its relationships with its customers? There are three primary customer service operational CRM technologies that the ACS could use to strengthen its relationships with its customers including contact centers, web-based self-service, and call scripting. Contact center (call center) is where CSRs answer customer inquiries and respond to problems through different touchpoints. Web-based self-service allows customers to use the Web to find answers to their questions or solutions to their problems. Call scripting accesses organizational databases that track similar issues or questions and automatically generates the details to the CSR, who can then relay them to the customer. 3. Review all of the operational CRM technologies and determine which one would add the greatest value to ACS’s business Student answers to this question will vary. The important factor in this decision will be the students’ justification for their answer.
  • 4. Describe the benefits ACS could gain from using analytical CRM Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior. These systems quickly aggregate, analyze, and disseminate customer information throughout an organization. Analytical CRM has the ability to provide the ACS with information about their customers and constituents that was previously impossible to locate, and the resulting payback can be tremendous. The business intelligence provided by an analytical CRM system can provide the ACS with facts that can help lead to innovative cancer drugs and the possible elimination of the disease. 5. Summarize SRM and describe how ACS could use it to increase efficiency in its business Supplier relationship management (SRM) focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection. SRM applications help companies analyze vendors based on a number of key variables including strategy, business goals, prices, and markets. The company can then determine the best supplier to collaborate with and can work on developing strong supplier relationships with that supplier. The partners can then work together to streamline processes, outsource services, and provide products that they could not provide individually.
  • 1. What are the two different types of CRM and how can they be used to help an organization gain a competitive advantage? Customer relationship management involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. Operational CRM supports traditional transactional processing for day-to-day front-office operational or systems that deal directly with the customers. Analytical CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior. These systems quickly aggregate, analyze, and disseminate customer information throughout an organization. Analytical CRM has the ability to provide an organization with information about their customers and constituents that was previously impossible to locate, and the resulting payback can be tremendous. 2. Explain how a contact center (or call center) can help an organization achieve its CRM goals A contact center is part of the customer service department and falls into the category of operational CRM. A contact center (call center) is where CSRs answer customer inquiries and respond to problems through different touchpoints. A contact center is one of the best assets a customer-driven organization can have because maintaining a high level of customer support is critical to obtaining and retaining customers. There are numerous systems available to help an organization automate its contact centers including: Automatic call distribution – a phone switch routes inbound calls to available agents Interactive voice response (IVR) – directs customers to use touch-tone phones or keywords to navigate or provide information Predictive dialing – automatically dials outbound calls and when someone answers, the call is forwarded to an available agent 3. Describe three ways an organization can perform CRM functions over the Internet Intranets are a great way to provide information to important customers over the Internet. Organizations can push information to their customers with e-mails discussing new promotions and sales. Offering a Web site that is user friendly is one of the best ways to offer customer support and sales over the Internet.
  • 4. How will outsourcing contact centers (call centers) to Canada change as future CRM technologies replace current CRM technologies? CRM future trends include: CRM applications will change from employee-only tools to tools used by suppliers, partners, and even customers CRM will continue to be a major strategic focus for companies CRM applications will continue to adapt wireless capabilities supporting mobile sales and mobile customers CRM suites will incorporate PRM and SRM modules
  • 1. What are the two different types of CRM and how has the Ritz-Carlton used them to become a world-class customer-service business? Operational CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers. Analytical CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers. The Ritz-Carlton is a leader in customer service. It uses CRM for everything from knowing a customer’s name to recognizing a customer’s birthday. 2. Determine which of Ritz-Carlton’s six steps of customer service is the most important for its business. They are all important! 3. Rank Ritz-Carlton’s six steps of customer service in order of greatest to least importance in a CRM strategy for an online book-selling business such as Amazon.com. Student answers to this question will vary. The important part is that they justify why the order in relation to Amazon’s business strategy. It is also important that the student understand that these strategies can be applied to any business that wants to succeed in CRM.
  • 4. Describe three ways Ritz-Carlton can extend its customer reach by performing CRM functions over the Internet. There are numerous ways that the Ritz-Carlton can extend its reach including personalization through a Web site that offers activities in the area, information on conferences that customers might want to attend, and menu plans that customers can place orders before they arrive or during their stay. 5. What benefits could the Ritz-Carlton gain from using analytical CRM? Analytical CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. The primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers. Ritz-Carlton can use analytical CRM to answer analysis and predicting questions. 6. Explain ERM and describe how the Ritz-Carlton could use it to increase efficiency in its business. Employee relationship management (ERM) provides employees with a subset of CRM applications available through a Web browser. Many of the ERM applications assist the employee in dealing with customers by providing detailed information on company products, services, and customer orders. The Ritz-Carlton’s employees directly interact with its customers. Providing ERM applications will enable the employees to work more efficiently and effectively. Employees play a major role in Ritz-Carlton’s business processes and strategic mission.
  • CLASSROOM OPENER ERP Failures Blaming ERP for the "pickle" that many a company who has implemented ERP find themselves in is like blaming the CAD package for a poorly architected building. Like just about everything else, IT-enabling business processes is about using the right tools for the right reasons and executing.
  • 1. How could core ERP components help improve business operations at your college? Core ERP components include the traditional components included in most ERP systems and they primarily focus on internal operations. Student answers to this question will vary. The important part of their answer will be their justification for why the ERP components will help improve business operations at your college. 2. How could extended ERP components help improve business operations at your college? Extended ERP components include the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations. Business intelligence – describes information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability E-business – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners Student answers to this question will vary. The important part of their answer will be their justification for why the component will add value to your college. 3. How can integrating SCM, CRM, and ERP help improve business operations at your college? Most organizations piecemeal their applications together since no one vendor can respond to every organization’s needs; hence, customers purchase multiple applications from multiple vendors. For example, a single organization might choose its CRM components from Siebel, SCM from i2, financial from Oracle, and human resources from PeopleSoft. These applications must be integrated in order to gain an enterprisewide view of the information. Integrating SCM, CRM, and ERP will give a 360 degree view of information. Being able to see all student, supplier, partner, etc. information in a single place will help the university operate more efficiently and effectively. 4. Review the different components in Figure 10.14. Which component would you recommend your college implement if it decided to purchase an ERP component? Student answers to this question will vary. The important part of their answer will be their justification for why the component will add value to your college.
  • 1. How can a college campus achieve business success through the use of collaboration tools? Campuses must be able to collaborate. Without collaboration a campus would have a very difficult time operating. Campuses collaborate in a number of ways including document ex­change, shared whiteboards, discussion forums, and e-mail. 2. How can your college use knowledge management systems to improve operations? Knowledge management involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions. A KMS system could be used to capture the knowledge of retiring professors or research among staff. Student answers to this question will vary. The important part of their answer will be their justification for why a knowledge management system will improve college operations. 3. How can your college use content management systems to improve operations? A content management system (CMS) provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment. The CMS marketplace is complex, incorporating document management, collaboration and versioning tools, digital asset management, and Web content management. One common example of a content management systems used by colleges is Blackboard or WebCT. Another example is a Web page to post course content including the syllabus, assignments, and grades. Student answers to this question will vary. The important part of their answer will be their justification for why the content management system will improve college operations.
  • 4. How can a team of college students use a workflow management system to complete a group project? Many workflow management systems allow the opportunity to measure and analyze the execution of a process. Workflow systems integrate with other organizational systems, such as document management systems and database management systems. A team of students that is completing a group project could use a workflow system to complete the project. Student answers to this question will vary. The important part of their answer will be their justification for why a workflow management system will add value to the team. 5. If your college wanted to implement a groupware system, what would be its primary purpose? Groupware is software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing. Organizations can use this technology to communicate, cooperate, coordinate, solve problems, compete, or negotiate. Student answers to this question will vary. The important part of their answer will be their
  • 1. How can companies use Halo to increase their business efficiency? Being able to meet with co-workers virtually around the globe will help organizations become more efficient and effective. Traveling to another country takes time, costs money, and is hard on employees with families, pets, and plants. Being able to meet with face-to-face with global business partners, from a local meeting room, is a big advantage for corporate employees. 2. Explain how a company like PepsiCo can use Halo to gain a competitive advantage in its industry PepsiCo could use Halo to collaborate internally and externally. Internally, it could offer its worldwide an inexpensive way to communicate face-to-face. Externally, it could setup a Halo meeting room where partners and customers could talk with PepsiCo employees face-to-face. It could be a good marketing technique to gain access to its customers. 3. How can knowledge management be increased by using a product such as Halo? There are a few ways that a company can use knowledge management with a Halo product. First, it could record all of the meeting and store this information on a data device. It could then categorize all of the meetings, individuals in the meetings, etc. and slice-and-dice the meeting details for access by other individuals. Of course, there are privacy and ethical issues with recording all meetings. Second, it offers employees a way to meet face-to-face with other co-workers and share knowledge.
  • 4. Why would a company like DreamWorks, that is not IT focused, be interested in collaboration technology? All companies need to collaborate to work effectively and efficiently. Businesses cannot operate in a vacuum. The need to collaborate is felt in every industry from products to health care to entertainment. Collaboration is a business need, not just an IT need. 5. What are a few of the security issues surrounding this type of technology? Security is a concern for any technology. A collaboration system needs to operate without the threat of anyone being able to hack into the system and view confidential information discussed in corporate meetings. Imagine how many people would like to sit in on corporate executive meetings at Microsoft, Apple, the Government, etc. Keeping the meeting safe is key to the success of this technology.
  • 1. How are collaboration tools helping to save lives in Texas? Information on traffic-related deaths and accidents are two to three years out of date in some states, making it difficult to devise new safety regulations, rebuild unsafe roads, develop safer automobiles, and improve emergency services. Systems used by federal, state, and local agencies to collect and share information need to be overhauled to help determine unsafe roads, where new legislation could protect lives, and how to improve highway safety. 2. How could a police department use groupware to help with collaboration on accident reports? Groupware supports team interaction and dynamics including calendaring, scheduling, and videoconferencing. Police departments could use groupware to communicate, cooperate, coordinate, and solve problems. If different police departments in the same city could view accident reports by a specific road, vehicle, or individual it could take measure to prevent these accidents. 3. Describe how a police department could use workflow systems to help with accident reports and health-care-related issues. Workflow defines all of the steps or business rules, from beginning to end, required for a business process. The process for entering an accident report could become more efficient by using a workflow engine. The workflow engine would automatically pass the report to the correct individual, making the time to file the report quicker. The workflow engine could also automatically pass the report to the appropriate insurance company that is working with the individual whom was hurt in the accident, helping to facilitate the insurance claims process.
  • 4. What would be the impact on lives if a state fails to implement collaboration tools to help track and analyze highway accidents? More lives will be lost to accidents without collaboration. Working together to facilitate highway safety is a federal program and the individuals working on it are located throughout the United States. These people need to be able to communicate, quickly and effectively, to ensure highway safety standards are being met and new standards are being designed when required. 5. How could police departments use wireless technologies to operate more efficiently and effectively? Wireless technologies are critical for police departments. Working anytime, anywhere, anyplace is part of a police officers job. They must have the capability to be connected to their departments from any location in their jurisdiction. Using mobile devices to run license plate numbers, driver license numbers, etc. is a critical part of their job. Wireless technologies can help keep our police officers safe. 6. What ethical issues surrounding wireless technologies should police departments understand? Hacking into a wireless signal is easy, you can do it with a Pringles can. Police departments need to ensure that all of their information is secure and deploying security features that enable secure transmission of wireless content is critical.
  • 1. Identify content management and document management and explain how Costco is using them to improve business operations. A content management system provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment. As a Web site grows in size and complexity, the business must establish procedures to ensure that things run smoothly. At a certain point, it makes sense to automate this process and use a content management system to manage this effectively. The content management system marketplace is complex, incorporating document management, digital asset management, and Web content management. Document management systems support the electronic capturing, storage, distribution, archiving, and accessing of documents. A DMS optimizes the use of documents within an organization independent of any publishing medium (for example, the Web). A DMS provides a document repository with information about other information. The system tracks the editorial history of each document and its relationships with other documents. A variety of search and navigation methods are available to make document retrieval easy. A DMS manages highly structured and regulated content, such as pharmaceutical documentation. Costco processes about 6.7 million documents per year. Imaged documents can be accessed in seconds. Costco also gained easy storage and quick retrieval of information and integration of workflow processes with computer data. Faster payment processing and easier transaction storage and retrieval improved service to warehouse, depot, and vendor customers. Faster document retrieval times and quicker problem resolution led to increased vendor satisfaction. Costco recouped the cost of the Stellent solution in just 11 months of operation and saved $7 million in labor and payment term discounts. 2. Provide an example of a few of the documents that Costco must maintain electronically. A few examples of Costco’s documents include: The accounts payable group accesses invoices related to expense and merchandise functions. The accounting department scans and stores capital expenditure and fixed asset documents, which can be accessed by the facilities department. Costco’s legal department uses Stellent to process and store vendor maintenance and setup agreements and other documents. The tax department improved its audit process now that it can randomly review a sampling of historical transaction documents. Regional offices can also quickly access vendor invoices and rebate documents via a Web browser 3. How might other Costco departments benefit from a document management system? Every department at Costco can benefit from a document management system. Every department needs to track documents from invoices to orders to information. Having a central repository to store and manage documents helps every member of the department. 4. The Stellent Imaging and Business Process Management solution allowed Costco to grow as a company without increasing expenses. Identify another business that could benefit form the Stellent Imaging and Business Process Management Solution. Any business can benefit from a content and document management system. Student answers to this question will vary. The important part of there answer is the justification as to why the company will benefit from a content and document management system.
  • 1. Identify the business benefits associated with successful software development for HP. As organizations’ reliance on software grows, so do the business-related consequences of software success including: Increase revenue Repair brand reputation Prevent liabilities Increase productivity 2. Which of the seven phases of the systems development life cycle is most important to HP? All of the phases in the SDLC are important to HP. 3. Which of the seven phases of the systems development life cycle is least important to HP? None of the phases in the SDLC are less important than any other phase to HP. Skipping any phase in the SDLC, or giving it less importance, will cause software defects and failure. 4. Which of the different software development methodologies should HP use to implement successful systems? HP should avoid the waterfall methodology and use the agile, iterative, or extreme software development methodology to build successful software. 5. Explain what might happen if HP used the waterfall methodology to develop its ERP system. The waterfall methodology is one of the oldest software development methods and has been around for more than 30 years. The success rate for software development projects that follow this approach is only about 1 in 10. One primary reason for such a low success rate is that the waterfall methodology does not sufficiently consider the level of uncertainty in new projects and the creativity required to complete software development projects in several aspects. HP’s software development efforts will fail if it uses the waterfall methodology to build software.
  • 6. Describe the different types of feasibility studies and explain how HP could use a technical feasibility study to avoid software development failure. The different types of feasibility studies include: Economic feasibility study – (cost-benefit analysis) – identifies the financial benefits and costs associated with the systems development project Operational feasibility study – examines the likelihood that the project will attain its desired objectives Technical feasibility study – determines the organization’s ability to build and integrate the proposed system Schedule feasibility study – assesses the likelihood that all potential time frames and completion dates will be met Legal and contractual feasibility study – examines all potential legal and contractual ramifications of the proposed system HP could use a technical feasibility student to determine if it has the resources - including internal skills, hardware, software, money, etc - necessary to develop a system. It can also determine if the project is even feasible from a technical perspective. 7. Review the buy versus build decision and explain why HP chose to buy its ERP system. Organizations must consider the following when making a buy vs. build decision: Are there any currently available products that fit the needs? Are there features that are not available and important enough to warrant the expense of in-house development? Can the organization customize or modify an existing COTS to fit its needs? Is there a justification to purchase or develop based on the acquisition cost? HP choose to buy its ERP system because it found a COTS system that could meet the majority of its needs. Building an ERP system from scratch would be extremely expensive and time consuming. 8. Why is testing critical to HP’s software development process? Testing is critical, without testing the system probably will not work as expected and cause a ton of errors hurting HP’s ability to perform business. According to a report issued in June 2003 by the National Institute of Standards and Technology (NIST), defective software costs the U.S. economy an estimated $59.5 billion each year. Of that total, software users incurred 64 percent of the costs and software developers 36 percent. NIST suggests that improvements in testing could reduce this cost by about a third, or $22.5 billion, but that unfortunately testing improvements would not eliminate all software errors. The testing phase involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability, in order to verify that the system meets all the business requirements defined in the analysis phase. 9. Identify the primary reasons for software project failure and explain which ones HP experienced on its ERP build. Primary reasons for project failure include Unclear or missing business requirements Skipping SDLC phases Failure to manage project scope Scope creep – occurs when the scope increases Feature creep – occurs when extra features are added Failure to manage project plan Changing technology
  • 1. One of the problems with DIA’s baggage system was inadequate testing. Describe the different types of tests DIA could have used to help ensure its baggage system’s success Different types of testing include Unit testing – tests each unit of code upon completion, Application (or system) testing – verifies that all units of code work together, Integration testing – exposes faults in the integration of software components or units, Backup and recovery testing – tests the ability of an application to be restarted after failure, Documentation testing – verifies instruction guides are helpful and accurate, and User acceptance testing (UAT) – tests if a system satisfies its acceptance criteria 2. Evaluate the different implementation approaches. Which one would have most significantly increased the chances of the project’s success? The four different types of implementation methods include: Parallel implementation – using both the old and the new system until it is evident that the new system performs correctly Plunge implementation – discarding the old system completely and immediately starting to use the new system Pilot implementation – having only a small group of people use the new system until it is evident that the new system performs correctly and then adding the remaining people Phased implementation – implementing the new system in phases, and then implementing the remaining phases of the new system Student answers to the type of implementation method that would have improved the success of the system will vary 3. Explain the cost of finding errors. How could more time spent in the analysis and design phase have saved Colorado taxpayers hundreds of millions of dollars? An error found during the analysis and design phase is relatively inexpensive to fix. All that is typically required is a change to a Word document. However, exactly the same error found during the testing or implementation phase is going to cost the organization an enormous amount to fix because it has to change the actual system. Find errors early: the later in the SDLC an error is found - the more expensive it is to fix 4. Why could BAE not take an existing IT infrastructure and simply increase its scale and expect it to work? Increasing the scale increases everything. It increases the stress on the hardware, more users on the software, and greater information needs and flows throughout the system. Simply making a system bigger does not mean that the system will work. If you took Excel and increased its capacity to hold several million rows instead of only 57,000 chances are it would not function as expected since it is not built to this type of growth.
  • 1. Why are ambiguous business requirements the leading cause of system development failures? The most common reason systems fail is because the business requirements are either missing or incorrectly gathered during the analysis phase. The business requirements drive the entire system. If they are not accurate or complete, the system will not be successful. 2. Why do the words “and” and “or” tend to lead to ambiguous requirements? And and or have well defined meanings and ought to be completely unambiguous; yet they are often understood only informally and interpreted inconsistently. For example, consider the statement “The alarm must ring if button T is pressed and if button F is pressed.” This statement may be intended to mean that to ring the alarm, both buttons must be pressed or it may be intended to mean that either one can be pressed. 3. Research the Web and determine other reasons for “bad” business requirements Student answers to this question will vary 4. What is wrong with the following business requirement: “The system must support employee birthdays since every employee always has a birthday every year.” Every employee does not have a birthday every year. Some employees could be born on leap year and therefore would not have a birthday every year. If you build the system with this requirement, you would find yourself in the position of having to find a work around for those employees born on leap year.
  • 1. What business benefits did REI receive by developing its successful CRM system? REI received the following benefits associated with successful software development Increase in revenues Repair to brand reputation Prevent liabilities Increase in productivity 2. Identify the potential issues facing REI if it failed to implement a successful SCM system. A supply chain management system can improve a business by giving them insight into their supply chain from suppliers to the end customer. REI could gain a detailed understanding of customer demand and pass this information along to its distributors, manufactures, and suppliers. This would allow REI to use just-in-time ordering keeping inventory amounts low. REI would experience a number of issues with an unsuccessful SCM development including: Decrease in revenues Damage to brand reputation Incur liabilities Decrease in productivity 3. List and describe the seven phases of the SDLC and rank them in order of importance to REI’s system development efforts. The seven phases in the SDLC include: Planning phase – involves establishing a high-level plan of the intended project and determining project goals Analysis phase – involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system Design phase – involves describing the desired features and operations of the system including screen layouts, business rules, process diagrams, pseudo code, and other documentation Development phase – involves taking all of the detailed design documents from the design phase and transforming them into the actual system Testing phase – involves bringing all the project pieces together into a special testing environment to test for errors, bugs, and interoperability and verify that the system meets all of the business requirements defined in the analysis phase Implementation phase – involves placing the system into production so users can begin to perform actual business operations with the system Maintenance phase – involves performing changes, corrections, additions, and upgrades to ensure the system continues to meet the business goals All phases are critical to REI for successful software development.
  • 4. Summarize the different software development methodologies and recommend one for REI to follow. There are a number of different software development methodologies including: Waterfall methodology – a sequential, activity-based process in which each phase in the SDLC is performed sequentially from planning through implementation and maintenance Rapid application development methodology (RAD) – emphasizes extensive user involvement in the rapid and evolutionary construction of working prototypes of a system to accelerate the systems development process Extreme programming (XP) methodology – breaks a project into tiny phases, and developers cannot continue on to the next phase until the first phase is complete Agile methodology – a form of XP, aims for customer satisfaction through early and continuous delivery of useful software components REI should use a RAD, extreme, or agile methodology to develop software. REI should avoid the waterfall methodology as it results in software development failure. 5. Describe the analysis phase of systems development along with its importance for successful system development efforts for REI. The analysis phase involves analyzing end-user business requirements and refining project goals into defined functions and operations of the intended system. Primary analysis activities include: Gather business requirements Create process diagrams Perform a buy vs. build analysis The cost of finding errors tells us that the earlier we find errors in the SDLC the less expensive they are to fix. For this reason alone the analysis phase is critical to successful software development. 6. Explain the importance of the testing phase along with three different tests REI should perform on each new system Different types of testing include: Unit testing – tests each unit of code upon completion Application (or system) testing – verifies that all units of code work together Integration testing – exposes faults in the integration of software components or units Backup and recovery testing – tests the ability of an application to be restarted after failure Documentation testing – verifies instruction guides are helpful and accurate User acceptance testing (UAT) – tests if a system satisfies its acceptance criteria REI should use all of the above testing methods to ensure software success.
  • CLASSROOM OPENER Project Advice It is fine to celebrate success but it is more important to heed the lessons of failure. Good judgment is usually the result of experience. And experience is frequently the result of bad judgment. But to learn from the experience of others requires those who have the experience to share the knowledge with those who follow.
  • 1. What would be the impact on Toyota’s business if it failed to implement a project management solution and managed its projects using a myriad of spreadsheets and Word documents? Tracking a project with spreadsheets and Word documents is inefficient and ineffective. Spreadsheets and Word documents do not contain project management tools such as Gant charts, pert charts, task tracking, budget tracking, resource leveling, etc. Without these tools it is increasingly difficult to track a project, especially a project with hundreds of people. Project management software also allows a project to be tracked in a single place, regardless of its size. With multiple spreadsheets and Word documents simply correlating the information would be a difficult task. 2. Why would Opportunity, Resources, and Time & Expense Manager applications be of value to a company like Toyota? Opportunity, resources, and time & expense manager applications are of use to any business that wants to run its project both efficiently and effectively. Toyota could use this application to track all details of each of its projects ensuring that each project was on-time, under budget, and delivering quality products. 3. Why would Toyota find it important to focus on implementing good project management techniques? The company would have a significantly lower project success rate if it failed to implement a project management solution. Project management tools helps keep a business on track by tracking task progression, resources, and time frames. Without project management tools Toyota would not receive the following project management benefits: Improved planning and prioritizing of its mission-critical projects Created a flexible global workforce Improved its ability to track project costs against budget Streamlined its use of contractors Better strategic alignment of people and projects 4. Why are project management, change management, and risk management critical to a global company such as Toyota? Project management, change management, and risk management are critical to Toyota if it wants to operate efficiently and effectively. A company that ignores project management, change management, or risk management is ignoring critical information and process management.
  • 5. Why would Toyota find it important to focus on implementing solid risk management techniques? Risk management is the process of proactive and ongoing identification, analysis, and response to risk factors. Decreasing risk increases an organization’s chance of success. Toyota has global employees working on global projects. Without managing projects, change, and risk Toyota would have a difficult time building, developing, and deploying new projects. 6. Why would Toyota find it important to focus on implementing solid change management techniques? Change management is a set of techniques that aid in evolution, composition, and policy management of the design and implementation of a system. An organization can prepare for change by implementing change management systems and a change control board. Change management systems are a collection of procedures to document a change request and define the steps necessary to consider the change based on the expected impact of the change. A change control board (CCB) is responsible for approving or rejecting all change requests. 7. Describe the ramifications to Toyota’s business if it failed to anticipate change. Change management is a set of techniques that aid in evolution, composition, and policy management of the design and implementation of a system. An organization can prepare for change by implementing change management systems and a change control board. Change management systems are a collection of procedures to document a change request and define the steps necessary to consider the change based on the expected impact of the change. A change control board (CCB) is responsible for approving or rejecting all change requests. 8. Explain the potential issues facing Toyota if it failed to analyze risk. Without analyzing risk Toyota would not be able to anticipate the ramifications to its business if a major risk was uncovered. Analyzing risk helps a company make better decisions and prepare for unforeseen future events.
  • 9. How could Toyota benefit from outsourcing? Outsourcing is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house. The business benefit of outsourcing is that an organization can focus on its core competencies or core strengths, which allowing an outsourcing provider to take over all noncore competencies. The benefits of outsourcing include: Increased quality and efficiency Reduced operating expenses Outsourcing non-core processes allows businesses to focus on their core competencies Reduced exposure to risk Access to outsourcing service providers economies of scale and expertise and best-in-class practices 10. If you had to choose a country to recommend for outsourcing, which country would it be and why? Student answers to this question will vary. The important part of their answer is the justification for why Toyota should outsource to this country. 11. Explain the issues facing Toyota from its internal IT department if it decided to outsource the project management of the development of a new system . The internal IT department would most likely be unhappy with this decision since it would be threatened by another company performing the work it was supposed to be doing. It is also difficult to have another company project managing your internal work. Toyota should expect its IT employees to be very unhappy with this decision and might even rebel against the project and the company that is project managing the system.
  • 12. What types of ethical issues might Toyota encounter when considering outsourcing ? There are numerous ethical issues surrounding outsourcing including: Stealing of competitive information from the outsourcing company Who owns the system once it is built? Who owns the data contained in the system? What rights do the outsourcing companies have to view the data? Kick-backs, luxuries, or payments to an individual employee if the employee uses a certain outsourcing company Scope creep and feature creep if the outsourcing company did not bid on the job correctly Contract issues not withheld in another country that is impossible to find legal retribution Reselling the same system to other customers 13. What types of security issues might Toyota encounter when considering outsourcing ? There are numerous security issues surrounding outsourcing including: Stealing of competitive information from the outsourcing company Stealing identities of customers by the outsourcing companies Copyright violations in other countries Hacking into the system Viruses from other countries
  • 1. Describe Gantt charts and explain how TTC could use one to communicate project status A Gantt chart is a simple bar chart that depicts project tasks against a calendar. In a Gantt chart, tasks are listed vertically and the project’s timeframe is listed horizontally. A Gantt chart works well for representing the project schedule. It also shows actual progress of tasks against the planned duration. 2. Describe PERT charts and explain how TTC could use one to communicate project status A PERT (Program Evaluation and Review Technique) chart is a graphical network model that depicts a project’s tasks and the relationships between those tasks. A dependency is a logical relationship that exists between the project tasks, or between a project task and a milestone. Dependencies and Critical paths are found in PERT charts. 3. How could TTC use its Master Schedule to gain efficiencies in its supply chain? TTC could link its Master Schedule directly to its SCM system, enabling it to automatically order inventory required for projects. 4. How could TTC use its Master Schedule to identify change management and risk management issues? Change management is a set of techniques that aid in evolution, composition, and policy management of the design and implementation of a system. TTC can prepare for change by looking for scope creep, feature creep, new requirements, changing business environment, industry changes, technology changes, and management changes. Project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on a project objective. Risk management is the process of proactive and ongoing identification, analysis, and response to risk factors. TTC can prepare for risk by looking for changing business circumstances, reluctance to report negative information on a project, significant change management issues, and overengineering technology solutions.
  • 4. What are some of the potential risks facing Circuit City’s new business model? Risk factors for Circuit City include: By selling all of its non-core businesses it might offer too limited or narrow a scope of products and turn off customers since it only sells consumer electronics. Changing pay structures for employees is always risky and if its employees do not like or buy into the new structure they could cause significant issues for Circuit City. It is basing a number of its decisions on customer feedback so it must ensure that the feedback is accurate and correct, otherwise it will risk making a bad decision based on bad information. 5. Why would Opportunity, Resource, and Time & Expense applications be of value to a company like Circuit City? Opportunity, resources, and time & expense manager applications are of use to any business that wants to run its project both efficiently and effectively. Circuit City could use this application to track all details of each of its projects ensuring that each project was on-time, under budget, and delivering quality products. 6. Why would Circuit City benefit from implementing good risk management and change management techniques? Risk management is the process of proactive and ongoing identification, analysis, and response to risk factors. Decreasing risk increases an organization’s chance of success. Circuit City has global employees working on global projects. Without managing projects, change, and risk Circuit City would have a difficult time building, developing, and deploying new projects. Change management is a set of techniques that aid in evolution, composition, and policy management of the design and implementation of a system. An organization can prepare for change by implementing change management systems and a change control board. Change management systems are a collection of procedures to document a change request and define the steps necessary to consider the change based on the expected impact of the change. A change control board (CCB) is responsible for approving or rejecting all change requests.
  • 1. Describe an alternative approach that Coors could have used instead of outsourcing to EDS Coors could have insourced to its own people by providing them with additional training and new skill-sets Coors could have also collaborated with another vendor such as Accenture or IBM This would have allowed Coors to find the resources with the required skill-sets to manage its technical operations 2. What would be the advantages of offshore outsourcing Coors’ IT department? Advantages could include: Increased quality and efficiency of a process, service, or function Reduced operating expense Outsourcing non-core processes or non-revenue producing areas allows businesses to focus resources on their core profit-generating competencies Reduced exposure to risks involved with large capital investments 3. What are some other reasons Coors outsourced its information technology functions that were not mentioned in the case? Answers to this question will vary The important part of your students’ answers will be their justification for outsourcing the particular areas 4. Describe some of the factors causing Coors to be “forced” to outsource its information technology functions In less than a decade, Coors had more than doubled in size. Managing that growth became increasingly difficult for the company’s internal IT staff. The company wanted to maintain responsibility for the technologies directly related to making and selling beer. Therefore, Coors was looking for a partner with deep industry expertise, mature application experience, and global reach to help revitalize its technology to support its business goals – including brining new acquisitions online quickly.

Transcript

  • 1. BUS 188 Cases Fall 2007 Mike Splane
  • 2. SECTION 1.1 INFORMATION SYSTEMS IN BUSINESS
  • 3. OPENING CASE QUESTIONS Apple - Merging Technology, Business and Entertainment
    • What might have happened to Apple if its top executives had not supported investment in iPods?
    • Formulate a strategy for how Apple can use efficiency IT metrics to improve its business
    • Formulate a strategy for how Apple can use effectiveness IT metrics to improve its business
    • Why would it be unethical for Apple to sell its iTunes customer information to other businesses?
    • Evaluate the effects on Apple’s business if it failed to secure its customer’s information and it was accidentally posted to an anonymous Web site
  • 4. OPENING CASE QUESTIONS Apple - Merging Technology, Business and Entertainment
    • Did Apple gain a competitive advantage from its decision to invest in an online music business?
    • How can Apple use environmental scanning to gain business intelligence?
    • Using Porter’s Five Force Model, analyze Apple’s buyer power and supplier power
    • Which of the three generic strategies is Apple following?
    • Which of Porter’s Five Forces did Apple address through its introduction of the iPod?
  • 5. CLOSING CASE ONE Say “Charge It” with Your Cell Phone
    • Do you view this technology as a potential threat to traditional telephone companies? If so, what counterstrategies could traditional telephone companies adopt to prepare for this technology?
    • Using Porter’s Five Forces describe the barriers to entry for this new technology
  • 6. CLOSING CASE ONE Say “Charge It” with Your Cell Phone
    • Which of Porter’s three generic strategies is this new technology following?
    • Describe the value chain of using cell phones as a payment method
    • What types of regulatory issues might occur due to this type of technology?
  • 7. CLOSING CASE TWO Innovative Business Managers
    • Choose one of the companies listed above and explain how it could use a CIO, CTO, and CPO to improve business
    • Why is it important for all of DreamWorks’ functional business areas to work together? Provide an example of what might happen if the DreamWorks marketing department failed to work with its sales department
    • Why is information technology important to an organization like the Boston Red Sox? Every organization needs information to remain
  • 8. CLOSING CASE TWO Innovative Business Managers
    • Which of Porter’s Five Forces is most important to Home Depot’s business?
    • Which of the three generic strategies is PepsiCo following?
    • Explain the value chain and how a company like GE can use it to improve operations
  • 9. CLOSING CASE THREE The World is Flat – Thomas Friedman
    • Do you agree or disagree with Friedman’s assessment that the world is flat? Be sure to justify your answer
    • What are the potential impacts of a flat world for a student performing a job search?
    • What can students do to prepare themselves for competing in a flat world?
    • Identify a current flattener not mentioned on Friedman’s list
  • 10. CHAPTER 2 STRATEGIC DECISION MAKING Opening Case Revving Up Sales at Harley-Davidson
  • 11. OPENING CASE QUESTIONS Revving Up Sales at Harley-Davidson
    • How does Talon help Harley-Davidson employees improve their decision-making capabilities?
    • Identify a few key metrics a Harley-Davidson marketing executive might want to monitor on a digital dashboard
    • How can Harley-Davidson benefit from using decision support systems in its business
  • 12. OPENING CASE QUESTIONS Revving Up Sales at Harley-Davidson
    • Evaluate the HOG CRM strategy and recommend an additional benefit Harley-Davidson could provide to its HOG members to increase customer satisfaction
    • Describe how Harley-Davidson’s SCM system, Manugistics, could improve its business operations
    • Provide an illustration of Harley-Davidson’s SCM system including all upstream and downstream participants
  • 13. CLOSING CASE ONE Consolidating Touchpoints for Saab
    • How has implementing a CRM system enabled Saab to gain a competitive advantage?
    • Estimate the potential impact to Saab’s business if it had not implemented a CRM system
    • What additional benefits could Saab receive from implementing a supply chain management system?
  • 14. CLOSING CASE ONE Consolidating Touchpoints for Saab
    • Model Saab’s supply chain
    • How is Saab’s CRM implementation going to influence its SCM practices?
  • 15. CLOSING CASE TWO Made-to-Order Businesses
    • What role does supply chain management and customer relationship management play in a mass customization business strategy?
    • How can Lands’ End use its CRM system to improve its business?
    • How can Nike use a CRM system to improve its customer relations?
    • Why is Nike’s supply chain management system critical to its Nike iD order fulfillment process?
  • 16. CLOSING CASE TWO Made-to-Order Businesses
    • Choose one of the examples above and explain how an ERP system could help facilitate the mass customization effort
    • Choose one of the examples above and explain how the company is attempting to gain a competitive advantage with mass customization
    • Identify one other business that could benefit from the use of mass customization. Explain why this business would need customer relationship management and supply chain management systems to implement a mass customization business strategy
  • 17. CLOSING CASE THREE Delta Airlines Plays Catch-Up
    • What business risks would Delta be taking if it decided not to catch up with industry leaders in using IT to gain a competitive advantage?
    • What competitive advantages can an airline gain by using DSS and EIS?
    • What other industries could potentially benefit from the use of yield management systems?
  • 18. CLOSING CASE THREE Delta Airlines Plays Catch-Up
    • How can American and United use customer information to gain a competitive?
    • What types of metrics would Delta executives want to see in a digital dashboard?
    • How could Delta use supply chain management to improve its operations?
  • 19. Chapter 3 E-BUSINESS Opening Case Amazon.com – Not Your Average Bookstore CHAPTER 3
  • 20. OPENING CASE QUESTIONS Amazon
    • How has Amazon used technology to revamp the bookselling industry?
    • Is Amazon using disruptive or sustaining technology to run its business?
    • How is Amazon using intranets and extranets to run its business?
    • How could Amazon use kiosks to improve its business?
  • 21. OPENING CASE QUESTIONS Amazon
    • What is Amazon’s e-business model?
    • How can Amazon use m-commerce to influence its business?
    • Which metrics could Amazon use to assess the efficiency and effectiveness of Amazon’s Web site?
    • What are some of the business challenges facing Amazon?
  • 22. CLOSING CASE ONE eBay – The Ultimate E-Business
    • eBay is one of the only major Internet “pure plays” to consistently make a profit from its inception. What is eBay’s e-business model and why has it been so successful?
    • Other major Web sites, like Amazon.com and Yahoo!, have entered the e-marketplace with far less success than eBay. How has eBay been able to maintain its dominant position
    • eBay has long been an e-marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set up shop on eBay?
  • 23. CLOSING CASE ONE eBay – The Ultimate E-Business
    • What are the three different types of online auctions and which one is eBay using?
    • What are the different forms of online payment methods for consumers and business? How might eBay’s customers benefit from the different payment methods?
    • Which metrics would you use if you were hired to assess the efficiency and effectiveness of eBay’s Web site?
  • 24. CLOSING CASE TWO Direct Groceries
    • What type of technology is FreshDirect using—disruptive or sustaining?
    • How could FreshDirect use a kiosk to improve its business?
    • How could FreshDirect use m-commerce to improve its business?
  • 25. CLOSING CASE TWO Direct Groceries
    • What are the three different types of service providers and which one would FreshDirect use to run its business?
    • What types of information would be contained in FreshDirect’s intranet?
    • What types of information would be contained in FreshDirect’s extranet?
    • Which metrics would you use if you were hired to assess the efficiency and effectiveness of FreshDirect’s Web site?
  • 26. CLOSING CASE THREE How Do You Value Friendster?
    • How could you use e-business metrics to place a value on Friendster?
    • Why would a venture capital company value Friendster at $53 million when the company has yet to generate any revenue?
    • Why would Google be interested in buying Friendster for $30 million when the company has yet to generate any revenue
    • Identify Friendster’s e-business model and explain how the company can generate revenue
    • Explain the e-business benefits and challenges facing Friendster
  • 27. Chapter 4 ETHICS AND INFORMATION SECURITY Opening Case Sarbanes-Oxley: Where Information Technology, Finance, and Ethics Meet CHAPTER 4
  • 28. OPENING CASE QUESTIONS Sarbanes-Oxley
    • Define the relationship between ethics and the Sarbanes-Oxley Act
    • Why is records management an area of concern for the entire organization and not just the IT department?
    • Identify two policies an organization can implement to achieve Sarbanes-Oxley compliance?
  • 29. OPENING CASE QUESTIONS Sarbanes-Oxley
    • What ethical dilemmas are being solved by implementing Sarbanes-Oxley?
    • What is the biggest roadblock for organizations that are attempting to achieve Sarbanes-Oxley compliance?
  • 30. OPENING CASE QUESTIONS Sarbanes-Oxley
    • What information security dilemmas are being solved by implementing Sarbanes-Oxley?
    • How can Sarbanes-Oxley help protect a company’s information security?
    • What impact does implementing Sarbanes-Oxley have on information security in a small business?
    • What is the biggest information security roadblock for organizations attempting to achieve Sarbanes-Oxley compliance?
  • 31. CLOSING CASE ONE Banks Banking on Security
    • What reason would a bank have for not wanting to adopt an online-transfer delay policy?
    • What are the two primary lines of security defense and why are they important to financial institutions?
    • Explain the differences between the types of security offered by the banks in the case
  • 32. CLOSING CASE ONE Banks Banking on Security
    • What additional types of security, not mentioned in the case above, would you recommend a bank implement?
    • Identify three policies a bank should implement to help it improve information security
    • Describe monitoring policies along with the best way for a bank to implement monitoring technologies
  • 33. CLOSING CASE TWO Hacker Hunters
    • What types of technology could big retailers use to prevent identity thieves from purchasing merchandise?
    • What can organizations do to protect themselves from hackers looking to steal account data?
    • Authorities frequently tap online service providers to track down hackers. Do you think it is ethical for authorities to tap an online service provider and read people’s e-mail? Why or why not?
  • 34. CLOSING CASE TWO Hacker Hunters
    • Do you think it was ethical for authorities to use one of the high-ranking officials to trap other gang members? Why or why not?
    • In a team, research the Internet and find the best ways to protect yourself from identity theft
  • 35. CLOSING CASE THREE Thinking Like the Enemy
    • How could an organization benefit from attending one of the courses offered at the Intense School?
    • What are the two primary lines of security defense and how can organizational employees use the information taught by the Intense School when drafting an information security plan?
    • Determine the difference between the two primary courses offered at the Intense school, “Professional Hacking Boot Camp” and “Social Engineering in Two Days.” Which course is more important for organizational employees to attend?
  • 36. CLOSING CASE THREE Thinking Like the Enemy
    • If your employer sent you to take a course at the Intense School, which one would you choose and why?
    • What are the ethical dilemmas involved with having such a course offered by a private company?
  • 37. CHAPTER 5 IT ARCHITECTURES
  • 38. OPENING CASE QUESTIONS Electronic Breaking Points
    • Identify six hardware categories and place each product listed in the case in its appropriate category
    • Describe the CPU and identify which products would use a CPU
    • Describe the relationship between memory sticks and laptops. How can a user employ one to help protect information loss from the other?
    • What different types of software might each of the products listed in the case use?
  • 39. OPENING CASE QUESTIONS Electronic Breaking Points
    • How can an organization use an information architecture to protect its IT investment in electronic devices outlined in the case?
    • How can an organization use the devices mentioned in the case to protect information security?
    • Identify the five ilites and rank them in order of importance for a laptop (1 highest, 5 lowest)
    • Describe how a “Customer Phone Number” Web service could be used by one of the products outlined in the case
  • 40. CLOSING CASE ONE Chicago Tribune
    • Review the five characteristics of infrastructure architecture and rank them in order of their potential impact on the Tribune Co.’s business
    • What is the disaster recovery cost curve? Where should the Tribune Co. operate on the curve?
    • Define backups and recovery. What are the risks to the Tribune’s business if it fails to implement an adequate backup plan?
  • 41. CLOSING CASE ONE Chicago Tribune
    • Why is a scalable and highly available enterprise architecture critical to the Tribune Co.’s current operations and future growth?
    • Identify the need for information security at the Tribune Co.
    • How could the Tribune Co. use a classified ad Web service across its different businesses?
  • 42. CLOSING CASE TWO UPS in the Computer Repair Business
    • Do you think UPS’s entrance into the laptop repair business was a good business decision? Why or why not?
    • Identify the different types of hardware UPS technicians might be working on when fixing laptops
    • Assume you are a technician working at UPS. Explain to a customer the different types of memory and why only certain types of data are lost during a computer failure. Also identify a potential backup strategy you can suggest to the customer
    • Assume you are a technician working at UPS. Explain to a customer the different types of software found in a typical laptop
  • 43. CLOSING CASE THREE Fear the Penguin
    • How does Linux differ from traditional software?
    • Should Microsoft consider Linux a threat? Why or why not?
    • How is open source software a potential trend shaping organizations?
  • 44. CLOSING CASE THREE Fear the Penguin
    • How can you use Linux as an emerging technology to gain a competitive advantage?
    • Research the Internet and discover potential ways that Linux might revolutionize business in the future
  • 45. Chapter 6
  • 46. OPENING CASE QUESTIONS Google
    • How did the Web site RateMyProfessors.com solve its problem of low-quality information?
    • Review the five common characteristics of high-quality information and rank them in order of importance to Google’s business
    • What would be the ramifications to Google’s business if the search information it presented to its customers was of low quality?
  • 47. OPENING CASE QUESTIONS Google
    • Describe the different types of databases. Why should Google use a relational database?
    • Identify the different types of entity, entity classes, attributes, keys, and relationships that might be stored in Google’s AdWords relational database
  • 48. OPENING CASE QUESTIONS Google
    • How could Google use a data warehouse to improve its business operations?
    • Why would Google need to scrub and cleanse the information in its data warehouse?
    • Identify a data mart that Google’s marketing and sales department might use to track and analyze its AdWords revenue
  • 49. CLOSING CASE ONE Fishing for Quality
    • Explain the importance of high-quality information for the Alaska Department of Fish and Game
    • Review the five common characteristics of high quality information and rank them in order of importance for the Alaska Department of Fish and Game
    • How could data warehouses and data marts be used to help the Alaska Department of Fish and Game improve the efficiency and effectiveness of its operations?
  • 50. CLOSING CASE ONE Fishing for Quality
    • What two data marts might the Alaska Department of Fish and Game want to build to help it analyze its operational performance?
    • Do the managers at the Alaska Department of Fish and Game actually have all of the information they require to make an accurate decision? Explain the statement “it is never possible to have all of the information required to make the best decision possible”
  • 51. CLOSING CASE TWO Mining the Data Warehouse
    • Explain how Ben & Jerry’s is using business intelligence tools to remain successful and competitive in a saturated market
    • Identify why information cleansing and scrubbing is critical to California Pizza Kitchen’s business intelligence tool’s success
  • 52. CLOSING CASE TWO Mining the Data Warehouse
    • Illustrate why 100 percent accurate and complete information is impossible for Noodles & Company to obtain
    • Describe how each of the companies above is using BI from their data warehouse to gain a competitive advantage
  • 53.
    • Estimate the potential impact to Harrah’s business if there is a security breach in its customer information
    • Identify three different types of data marts Harrah’s might want to build to help it analyze its operational performance
    CLOSING CASE THREE Harrah’s
  • 54.
    • What might occur if Harrah’s fails to clean or scrub its information before loading it into its data warehouse?
    • Describe cluster analysis, association detection, and statistical analysis and explain how Harrah’s could use each one to gain insights into its business
    CLOSING CASE THREE Harrah’s
  • 55. CHAPTER 7 NETWORKS, TELECOMMUNICATIONS, AND WIRELESS COMPUTING Opening Case The Digital Hospital
  • 56. OPENING CASE QUESTIONS The Digital Hospital
    • Explain how hospitals are using telecommunication and network technologies to improve their operations
    • Describe the two different types of network architectures and identify which one Hackensack University Medical Center is using
    • Explain TCP/IP and the role it plays in Hackensack University Medical Center’s IT projects
    • Identify a new telecommunication or network product that Hackensack University Medical Center could use to improve its operations
  • 57. OPENING CASE QUESTIONS The Digital Hospital
    • Why is real-time information important to hospitals?
    • How is Hackensack University Medical Center using wireless technology to improve its operations?
    • Identify three wireless technologies that are changing the way businesses operate and explain how hospitals can use these technologies to improve their operations
  • 58. CLOSING CASE ONE Tracking Students
    • Explain the fundamentals of RFID and how it is being used to track students
    • Describe the ethical dilemmas involved with tracking students with RFID
    • Identify two types of wireless business opportunities schools could take advantage of to help improve operations
  • 59. CLOSING CASE ONE Tracking Students
    • How could RFID help schools deal with potential security issues?
    • Develop a Bluetooth, GPS, or satellite product that schools could use to improve operations
    • Determine a way that schools could use RFID tags without violating privacy rights
  • 60. CLOSING CASE TWO UPS versus FedEx
    • Explain the fundamentals of wireless fidelity
    • Describe the differences between UPS and FedEx’s use of wi-fi
    • Identify two types of wireless business opportunities the companies could use to gain a competitive advantage
  • 61. CLOSING CASE TWO UPS versus FedEx
    • How could RFID could help the companies deal with potential security issues?
    • Develop a Bluetooth, GPS, or satellite product that the parcel delivery business could use to improve efficiencies
  • 62. CLOSING CASE THREE Prada
    • Would you consider Prada’s use of technology cutting-edge? Why or why not?
    • Prada’s attempt to use RFID to check inventory in real time failed because of the staff’s refusal to use the system. What could Prada have done to make the implementation of RFID successful?
    • Identify an additional strategic use of RFID for Prada’s high-tech store
  • 63. CLOSING CASE THREE Prada
    • What should Prada do differently when designing its next store to ensure its success?
    • Identify a new use of wireless technology for Prada’s next store
  • 64. CHAPTER 8 SUPPLY CHAIN MANAGEMENT
  • 65. OPENING CASE QUESTIONS Dell’s Famous Supply Chain
    • How might Dell use each of the five basic SCM components?
    • How had Dell influenced visibility, consumer behavior, competition, and speed though the use of IT in its supply chain?
    • Explain the seven principles of SCM in reference to Dell’s business model
  • 66. OPENING CASE QUESTIONS Dell’s Famous Supply Chain
    • Identify the four primary drivers of SCM and explain how Dell uses each one to gain efficiency or effectiveness in its supply chain
    • Choose one of the fast growth SCM components and explain how Dell can use it to increase business operations
    • What is RFID and how could Dell use the technology to improve its supply chain?
  • 67. CLOSING CASE ONE BudNet
    • How can an SCM system help a distributor such as Anheuser-Busch make its supply chain more effective and efficient?
    • SCM is experiencing explosive growth. Explain why this statement is true using BudNet as an example
    • Evaluate BudNet’s effect on each of the five factors that are driving SCM success
    • List and describe the components of a typical supply chain along with its ability to help Budweiser make effective decisions
  • 68. CLOSING CASE TWO Listerine’s Journey
    • Summarize SCM and describe Warner-Lambert’s supply chain strategy. Diagram the SCM components
    • Detail Warner-Lambert’s facilities strategy
    • Detail Warner-Lambert’s inventory strategy
  • 69. CLOSING CASE TWO Listerine’s Journey
    • What would happen to Warner-Lambert’s business if a natural disaster in Saudi Arabia depletes its natural gas resources?
    • Assess the impact to Warner-Lambert’s business if the majority of the eucalyptus crop was destroyed in a natural disaster
    • Detail Warner-Lambert’s information strategy
  • 70. CLOSING CASE THREE Levi’s
    • How did Levi Strauss achieve business success through the use of supply chain management?
    • What might have happened to Levi’s if its top executives had not supported investments in SCM?
    • David Bergen, Levi’s CIO, put together a cross-functional team of key managers from IT, finance, and sales to transform Levi’s systems to meet Wal-Mart’s requirements. Analyze the relationships between these three business areas and SCM systems. How can an SCM system help support these three critical business areas?
  • 71. CLOSING CASE THREE Levi’s
    • Describe the five basic SCM components in reference to Wal-Mart’s business model
    • Explain RFID and provide an example of how Levi’s could use the technology to increase its business operations
  • 72. CHAPTER 9 CUSTOMER RELATIONSHIP MANAGEMENT
  • 73. OPENING CASE QUESTIONS Customer First Awards
    • Summarize the evolution of CRM and provide an example of a reporting, analyzing, and predicting question Progressive might ask its customers
    • How could Progressive’s marketing department use CRM technology to improve its operations?
    • How could Mini’s sales department use CRM technology to improve its operations?
  • 74. OPENING CASE QUESTIONS Customer First Awards
    • How could Progressive and Mini’s customer service departments use CRM technology to improve their operations?
    • Define analytical CRM and its importance to companies like Progressive and Mini
  • 75. OPENING CASE QUESTIONS Customer First Awards
    • How might Progressive’s business model change if it decreased its investments in CRM technologies?
    • How might Mini’s business model change if it decreased its investments in CRM technologies?
    • Describe the CRM industry best practices and explain how Progressive is using each
  • 76. OPENING CASE QUESTIONS Customer First Awards
    • Explain SRM and how Mini could use it to improve its business
    • Explain ERM and how Progressive could use it to improve its business
  • 77. CLOSING CASE ONE Fighting Cancer with Information
    • How could the ACS’s marketing department use operational CRM to strengthen its relationships with its customers?
    • How could the ACS’s customer service department use operational CRM to strengthen its relationships with its customers?
    • Review all of the operational CRM technologies and determine which one would add the greatest value to ACS’s business
  • 78. CLOSING CASE ONE Fighting Cancer with Information
    • Describe the benefits ACS could gain from using analytical CRM
    • Summarize SRM and describe how ACS could use it to increase efficiency in its business
  • 79. CLOSING CASE TWO Calling All Canadians
    • What are the two different types of CRM and how can they be used to help an organization gain a competitive advantage?
    • Explain how a contact center (or call center) can help an organization achieve its CRM goals
    • Describe three ways an organization can perform CRM functions over the Internet
  • 80. CLOSING CASE TWO Calling All Canadians
    • How will outsourcing contact centers (call centers) to Canada change as future CRM technologies replace current CRM technologies?
  • 81. CLOSING CASE THREE The Ritz-Carlton
    • What are the two different types of CRM and how has the Ritz-Carlton used them to become a world-class customer-service business?
    • Determine which of Ritz-Carlton’s six steps of customer service is the most important for its business
    • Rank Ritz-Carlton’s six steps of customer service in order of greatest to least importance in a CRM strategy for an online book-selling business such as Amazon.com
  • 82. CLOSING CASE THREE The Ritz-Carlton
    • Describe three ways Ritz-Carlton can extend its customer reach by performing CRM functions over the Internet
    • What benefits could the Ritz-Carlton gain from using analytical CRM?
    • Explain ERM and describe how the Ritz-Carlton could use it to increase efficiency in its business
  • 83. CHAPTER 10 ENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMS
  • 84. OPENING CASE QUESTIONS Campus ERP
    • How could core ERP components help improve business operations at your college?
    • How could extended ERP components help improve business operations at your college?
    • How can integrating SCM, CRM, and ERP help improve business operations at your college?
    • Review the different components in Figure 10.14. Which component would you recommend your college implement if it decided to purchase an ERP component?
  • 85. OPENING CASE QUESTIONS Campus ERP
    • How can a college campus achieve business success through the use of collaboration tools?
    • How can your college use knowledge management systems to improve operations?
    • How can your college use content management systems to improve operations?
  • 86. OPENING CASE QUESTIONS Campus ERP
    • How can a team of college students use a workflow management system to complete a group project?
    • If your college wanted to implement a groupware system, what would be its primary purpose?
  • 87. CLOSING CASE ONE DreamWorks
    • How can companies use Halo to increase their business efficiency?
    • Explain how a company like PepsiCo can use Halo to gain a competitive advantage in its industry
    • How can knowledge management be increased by using a product such as Halo?
  • 88. CLOSING CASE ONE DreamWorks
    • Why would a company like DreamWorks, that is not IT focused, be interested in collaboration technology?
    • What are a few of the security issues surrounding this type of technology?
  • 89. CLOSING CASE TWO Highway Safety
    • How are collaboration tools helping to save lives in Texas?
    • How could a police department use groupware to help with collaboration on accident reports?
    • Describe how a police department could use workflow systems to help with accident reports and health-care-related issues
  • 90. CLOSING CASE TWO Highway Safety
    • What would be the impact on lives if a state fails to implement collaboration tools to help track and analyze highway accidents?
    • How could police departments use wireless technologies to operate more efficiently and effectively?
    • What ethical issues surrounding wireless technologies should police departments understand?
  • 91. CLOSING CASE THREE Saving Costs at Costco
    • Identify content management and document management and explain how Costco is using them to improve business operations
    • Provide an example of a few of the documents that Costco must maintain electronically
    • How might other Costco departments benefit from a document management system?
    • The Stellent Imaging and Business Process Management solution allowed Costco to grow as a company without increasing expenses. Identify another business that could benefit form the Stellent Imaging and Business Process Management Solution
  • 92. CHAPTER 11 SYSTEMS DEVELOPMENT
  • 93. OPENING CASE QUESTIONS HP’s Software Problems
    • Identify the business benefits associated with successful software development for HP
    • Which of the seven phases of the systems development life cycle is most important to HP?
    • Which of the seven phases of the systems development life cycle is least important to HP?
    • Which of the different software development methodologies should HP use to implement successful systems?
    • Explain what might happen if HP used the waterfall methodology to develop its ERP system
  • 94. OPENING CASE QUESTIONS HP’s Software Problems
    • Describe the different types of feasibility studies and explain how HP could use a technical feasibility study to avoid software development failure
    • Review the buy versus build decision and explain why HP chose to buy its ERP system
    • Why is testing critical to HP’s software development process?
    • Identify the primary reasons for software project failure and explain which ones HP experienced on its ERP build
  • 95. CLOSING CASE ONE Denver International Airport
    • One of the problems with DIA’s baggage system was inadequate testing. Describe the different types of tests DIA could have used to help ensure its baggage system’s success
    • Evaluate the different implementation approaches. Which one would have most significantly increased the chances of the project’s success?
    • Explain the cost of finding errors. How could more time spent in the analysis and design phase have saved Colorado taxpayers hundreds of millions of dollars?
    • Why could BAE not take an existing IT infrastructure and simply increase its scale and expect it to work?
  • 96. CLOSING CASE TWO Reducing Ambiguity
    • Why are ambiguous business requirements the leading cause of system development failures?
    • Why do the words “and” and “or” tend to lead to ambiguous requirements?
    • Research the Web and determine other reasons for “bad” business requirements
    • What is wrong with the following business requirement: “The system must support employee birthdays since every employee always has a birthday every year”
  • 97. CLOSING CASE THREE Gearing Up at REI
    • What business benefits did REI receive by developing its successful CRM system?
    • Identify the potential issues facing REI if it failed to implement a successful SCM system
    • List and describe the seven phases of the SDLC and rank them in order of importance to REI’s system development efforts
  • 98. CLOSING CASE THREE Gearing Up at REI
    • Summarize the different software development methodologies and recommend one for REI to follow
    • Describe the analysis phase of systems development along with its importance for successful system development efforts for REI
    • Explain the importance of the testing phase along with three different tests REI should perform on each new system
  • 99. CHAPTER 12 PROJECT MANAGEMENT AND OUTSOURCING
  • 100. OPENING CASE QUESTIONS Change at Toyota
    • What would be the impact on Toyota’s business if it failed to implement a project management solution and managed its projects using a myriad of spreadsheets and Word documents?
    • Why would Opportunity, Resources, and Time & Expense Manager applications be of value to a company like Toyota?
    • Why would Toyota find it important to focus on implementing good project management techniques?
    • Why are project management, change management, and risk management critical to a global company such as Toyota?
  • 101. OPENING CASE QUESTIONS Change at Toyota
    • Why would Toyota find it important to focus on implementing solid risk management techniques?
    • Why would Toyota find it important to focus on implementing solid change management techniques?
    • Describe the ramifications to Toyota’s business if it failed to anticipate change
    • Explain the potential issues facing Toyota if it failed to analyze risk
  • 102. OPENING CASE QUESTIONS Change at Toyota
    • How could Toyota benefit from outsourcing?
    • If you had to choose a country to recommend for outsourcing, which country would it be and why?
    • Explain the issues facing Toyota from its internal IT department if it decided to outsource the project management of the development of a new system
  • 103. OPENING CASE QUESTIONS Change at Toyota
    • What types of ethical issues might Toyota encounter when considering outsourcing?
    • What types of security issues might Toyota encounter when considering outsourcing?
  • 104. CLOSING CASE ONE Toronto Transit
    • Describe Gantt charts and explain how TTC could use one to communicate project status
    • Describe PERT charts and explain how TTC could use one to communicate project status
    • How could TTC use its Master Schedule to gain efficiencies in its supply chain?
    • How could TTC use its Master Schedule to identify change management and risk management issues?
  • 105. CLOSING CASE TWO Circuit City
    • What are some of the potential risks facing Circuit City’s new business model?
    • Why would Opportunity, Resource, and Time & Expense applications be of value to a company like Circuit City?
    • Why would Circuit City benefit from implementing good risk management and change management techniques?
  • 106. CLOSING CASE THREE Outsourcing Brew
    • Describe an alternative approach that Coors could have used instead of outsourcing to EDS
    • What would be the advantages of offshore outsourcing Coors’ IT department?
    • What are some other reasons Coors outsourced its information technology functions that were not mentioned in the case?
    • Describe some of the factors causing Coors to be “forced” to outsource its information technology functions