This document discusses a problem at Dynamix, a diversified financial services company. Elaine Rodriguez proposed urgently purchasing a customer information management system to improve customer satisfaction, but the CIO rejected it in favor of a new user-friendly website still in development. As a new employee asked to help solve the problem, the assistant would advise waiting for the IT committee's long-term plan. The new website architecture will benefit all divisions, while the system Elaine requested only benefits one department. Entering competitors' space with the same system wouldn't be a good strategy. The proposed system's cost is outside the existing budget. Competitors may have other ways of engaging customers beyond just the vendor's product.

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
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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.
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3. Samson Semwenda - INFORMAN
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