Which of the five components of an IS was the reason for the failure of Cartao 21 of the opening day?
- the Cartao 21 case is a typical example of the saying “you can buy IT, but you can’t buy an IS”.
- in practice, all 5 components failed at the inauguration, the reason for this was mainly due to people and procedures, because:
- no successful final test had been run, due to the inexperience in project management of both parties as well as other factors surrounding the construction of the stadium
- the activation of the cards had not been done, and also they had arrived late at the designated kiosks
- the bar staff had not been trained to accept cash, nor had there been a plan B to switch back to
Which supplier should Casa XXI choose now? What risks are related to each of the five components?
- with the original supplier Maeg, there had been organisational and technical problems affecting all 5 components of the IS.
- in light of the search for a solution, various risks remained:
- hardware: risk of getting installed hardware to work (Processos Creativos) vs cost and time for new hardware (SVDI: real-time reservation systems; Restinfor: Aquapads)
- software: risk of getting existing software adapted to work (PC) vs. cost and time for new software (SVDI: development based on experience w/ similar projects; Restinfor: Oracle high speed DB license costs)
- data: large restaurant menu decreased bar speed, …
- procedures: getting the time it takes to fulfil an order down significantly and guaranteeing smooth operations
- people: having experience project management and training staff to handle all possible scenarios
Do IT project failures happen frequently & for which reasons mostly (with regard to 5 component framework)?
Yes, they do, mostly because of short-comings in the are of people and procedures: “you can buy IT but you can’t buy an IS!”
What are the components of UPS’ Package Flow System and how does it work?
PFS: Using information to determine the most efficient route for packages (1) Optimal routes (2) Online correction
Components of PFS:
- Hardware = 94,500 vehicles e.g. planes and vans
- Software = Detailed software e.g. PAL system for JIS
- Data = sent and stored in Mahway, NJ data centre.
- Procedures = extensive driver training, outsource to SAP etc.
- People = delivery drivers, senior officials, Davidson and Olsen.
Results in 2008:
- 30 million miles (48 million kms) less
- 11.4 million litres of fuel saved
- 30,000 less metric tonnes of CO2
Benefits:
- Social, Environmental, Financial Benefits
What are the different kinds of data that UPS captures through its systems? And how does that provide them with better insights?
- Better Package Reception
Labeling cargo with PLD (Package level detail)
Transfer to DC - More Efficient Distribution Centres (DC)
Sorting facility
Routing trucks – DPS (Dispatching Planning System)
Loading truck guide – PAL - Improved Delivery & Distribution
Online tracking and guide to driver with DIAD (Delivery Information Acquisition Device)
Who are the different stakeholders involved with the implementation and use of UPS’ telematics-based project? How did UPS ensure stakeholder buy-in?
Stakeholders: -Senior Management -Front line workers e.g. mechanics -Delivery Drivers -Customers Stakeholder Buy-In: -Mass training, education and how it is beneficial for all parties -Most difficult was for drivers as they didn't like the idea of being constantly monitored
Is Tesco’s traditional business suitable for e-commerce? why or why not?
No, because:
- shopping for groceries is an emotional activity: customers want to touch and evaluate products in person, esp. perishable goods
- high distribution costs for bulky & perishable goods: tesco can’t rely on existing shipping companies, but had to build its own fleet/service
- groceries is a low-margin business with intense cost pressure: no time for costly experiments!
also:
- they could not profit from traditional e-retailing benefits like the long-tail phenomenon, because of the perishable nature of most goods
case in point:
- many pure players had failed, as they could not get demand to scale up, e.g. Webvan.com
How did Tesco address each of the five components to implement its e-retailing plan? Which component was the greatest challenge?
hardware: webservers, picking trolleys w/ wireless computers that navigate pickers through the store efficiently and allow for easy order processing, loyalty cards that integrate online and offline shopping experience, delivery fleet
software: easy-to-use website with lots of connection possibilities and personalised shopping experience, efficient user interface of picking trolleys, algorithms for picking sequence
data: client information, club card info, inventory availability, prices synchronised on- and offline -> ultimate online/offline integration in one central database
procedures:
1. ordering by the client: channel/ products/ notes/ payment)
2. fulfilment by Tesco: picking, avoiding congestion and having inventory for offline shoppers/ backroom stacking with little space/ delivery on time
- -> this was the greatest challenge!
people: shoppers (reluctant to change), store owners (align interests with Tesco.com), Tesco.com CEO (very involved sponsor), pickers and deliverers (efficient and polite, client relationships!)
What channel conflicts were present in Tesco’s case? How did the smoothen & manage these conflicts?
- Store owners’ interests had to be aligned with Tesco.com business, since their shops were used to fulfil online orders.
- this was achieved by attributing online sales to their shop’s square meters, increasing their performance on the KPI $/sqm! (and also accurately dividing costs between online & offline business)
How did Tesco manage to evolve its e-retailing business alongside its traditional business? Is Tesco prepared for the future with its e-business strategy?
- they started with a model based on their existing infrastructure, which was key: they evolved their business over time (low risk)
- they proactively addressed possible channel conflicts and allocated revenues and costs accurately
- they designed a customised and simple experience for online shoppers
- they leveraged data from both channels to better their business
Does industry make a difference in terms of e-business strategy?
Yes, for several reasons:
- industry specificity with regard to which e-retailing benefits can be exploited (minimal menu, shelf cost, long-tail etc.)
- consumer preferences for how to experience specific goods
- goods characteristics (high / low involvement, perishable, high service, complex / intuitive goods, new vs. known goods…)
- capital intensity
etc. (make something up)
