DYNAMIX - On the Spot at Dynamix Enterprises

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  • 1. Samson Semwenda - INFORMAN CASE # 9. DYNAMIX This one page article represent a situational discussion which needs problem solving in a profit making struggle within a company bosses. 1. Company’s Introduction Dynamix is a diversified financial services company which has grown by acquisition from its core business, an old New England bank. Of the eight operating divisions, six are virtually intact from when acquired, including Dyininvest, the second largest division and fourth most profitable. All division presidents report to your boss Dillon, the COO. Businesses include an investment bank, consumer financial investment and money management (Dyninvest), and several on-line information services to particular industries. Dynamix is publicly traded, had 2004 revenues of $2.5 billion, and has experienced an average of over 15% growth in recent years. Profitability has lagged, largely as a result of the unanticipated heavy costs of integrating information technology infrastructure to achieve expected efficiencies. The stock price has lagged the index of the financial industry. 2. The problem The problems started when Elaine Rodriguez’s proposal to urgently purchase the a Vendor Customer Information management System (CIM) rejected by the Geof Chang, the IT CIO. Elaine’s reason was to speed up customer satisfaction as faster than their competitors who are overtaking the business by using the same software from the same vendor. In the other side Chang’s idea for refusing is because 1
  • 2. Samson Semwenda - INFORMAN another program which is user friendly website is still in process as the long term problem solver. The new employee is asked his COO help in the problem solving. 3. Discussion and Problem Solving If that will be in my assignment, I will be insisting in sticking in the Chang’s suggestion to wait for the Corporate It committee suggestion plan which has the long term targets. Here are the reasons to consider his suggestions. i. The web- service architecture will benefit all six divisions compared to the system from the Vendor Seibel requested by Elaine which is good for a single department. ii. All other competitors are using the same system, so enter in competitors playground wouldn’t be good idea. The new different system will be more effective and appropriate. iii. The cost of purchasing the system will be out of the budget which is already on process. iv. Dynamics competitors might have their other ways of reaching and receiving their customers rather than only Seibel’s product. For these reasons, Leiner should be advised to be patient and wait for the new system. The committee should consider briefing her the advantages of the proposed system and the target as she might be not aware of what is going on. Other cheap temporary training should be given to the staff as a short term problem solving while waiting for the new approved system. 2
  • 3. Samson Semwenda - INFORMAN 3