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106 Cards in this Set

  • Front
  • Back
What is a general purpose technology? Characteristics?
A General Purpose Technology (GPT) is a technology that initially has much scope for improvement and eventually comes to be widely used, to have many uses, and to have many technological complements. They are innovations so important that they cause jumps in an economy’s normal march of progress. Electric power, the transistor, and the laser are examples of GPTs that came about in the nineteenth and twentieth centuries. Companies can incorporate some GPTs, like transistors, into products, and others, like electricity, into processes, but all of them share specific characteristics. The performance of such technologies improves dramatically over time.
What are complements?
In many different fields, the complement of X is something that together with X makes a complete whole, something that supplies what X lacks (wikipedia definition – I couldn’t find a definition in the notes/reading, and anyways, I think we all know what a complement is by now)
What specific complements typically apply to IT?
- Higher worker skills

- Greater interdependence

- New workflows

- Re-allocated decision rights
Define FIT, EIT, NIT. Give examples.
Function IT (FIT): IT that assists with the execution of discrete tasks.

FIT examples: Simulators, spreadsheets, computer-aided design, and statistical software

- Enterprise IT (EIT): IT that specifies business processes.

EIT examples: Software for enterprise resource planning, customer service management, and supply chain management

- Network IT (NIT): IT that facilitates interactions without specifying their parameters. NIT examples: Email, instant messaging, wikis, blogs, and mashups
How does the need for complements differ among the three types of IT?
Function IT

- Can be adopted without any complements

- But, impact increases when complements are in place

Enterprise IT

- Imposes complements throughout the firm

- Defines tasks, sequences, and data

- Use is mandatory

Network IT

- Doesn’t impose complements, let’s them emerge

- Doesn’t specify tasks, sequences, or data

- Use is optional
What general business capabilities are typically provided by each of the three types of IT?
Function IT (with examples from Ducati)

- Increased experimentation capacity: Ducati’s engineers built thousands of engines and motorcycles and compared their performance without touching a sheet of steel.

- Increasing precision: Ducati’s designers came to trust the software so much that if test results disagreed with a simulation, the first reaction was to mistrust the test results.

- Labor substitution

Enterprise IT (with examples from CVS – in coursepack)

- Redesigning business processes: Because CVS employees couldn’t fill the prescriptions until they had completed the two checks in the new sequence, the revamped fulfillment process wasn’t just a good idea in theory – CVS employees had to execute the process in that particular sequence. EIT gives managers confidence that employees will execute processes correctly.

- Standardizing work flows: Once companies identify a complementary business process, they can implement it widely and reliably along with the EIT. CVS rolled out its new process in 4,000 outlets across the US in less than a year.

- Monitoring activities and events efficiently: EITs can allow managers to get an accurate and up-to-date picture of what’s happening throughout the enterprise, often in something close to real time. CVS’s software lets executives know how many prescriptions are filled every day in each location, how long it takes to fill each prescription, and what kinds of fulfillment problems employees had to tackle.

Network IT (with examples from Dresdner Kleinwort Wasserstein (DKW) investment bank)

- Facilitating collaboration: Network technologies allow employees to work together but don’t define who should work with whom or what projects employees should work on. At DKW, ad hoc teams have formed because employees read one another’s blogs. These teams have used the wiki to accomplish tasks, and they have disbanded without orders from senior executives.

- Allowing expressions of judgment: NITs are egalitarian technologies that let people express opinions. DKW employees use blogs to voice their views about everything from open-source software to interest rate movements.

- Fostering emergence: “Emergence” is the appearance of high-level patterns or information because of low-level interactions. These patterns are useful because they allow managers to compare how work is done with how it’s supposed to be done. Emergence is also valuable for users. For instance, employees can easily search and navigate DKW’s blogs and wiki for trends and data even though nobody is in charge of making them easy to use.
Understand general business leader responsibilities with respect to IT.
- Selection: picking the right IT to provide needed business capabilities

- Adoption: putting IT into productive use

- Exploitation: getting the maximum benefit possible from the IT investment
How is IT used in product development?
How is IT used in product development?
How is IT used in product development?

2. Examples?
- Task Automation: Computer-Aided Design, Clay Milling and Scanning, Computer-Aided Styling

- Visualization: Engineering, Industrial Design, Architecture, Construction, Biology, Chemistry, Oceanography

- Simulation: Finite Element Analysis, Crash Testing, Digital Assembly, Assembly & Ergonomics

- Collaboration: Common Information Base, Team Communication Tools, Global Communication

- Standardization: Process Driven Product Design, Know-How Data Base

- Integration: The Holy Grail (??? This is what the notes said)
What types of IT?
Function IT: Task Automation, Simulation, Visualization

Network IT: Collaboration

Enterprise IT: Standardization, Integration
Why do companies need special software for data analysis?
*a tsunami of data, organizing data for analysis, finding meaning, creating information
What is a data warehouse? used to organize data for anlysis.:
Data that is extracted from operational databases and prepared, stored, and managed specifically for data mining and other anlyses.
What must be done to prepare transactional data for the data warehouse?
Identify the purpose of the data, organize the data, perform mathematical or statistical anlyses, correct the data, summarize and present
What are the primary functions (or purposes) of BI software?
Presentation tools: Reporting systems, Digital dashboards; Analysis tools: online analytical processing (OLAP), data mining
What do reporting systems do?
organizes and analyzes data to form reports for further analyses.
What are digital dashboards?
insight into individual, departmental, and/or enterprise performance
What is OLAP and how is it used?
OLAP systems provide the ability to sum, count, average, and do other simple arithmetic operations on groups of data. Output can be modified interactively. Think of a PivotTable attached to a database. OLAP Terms: Measure, Dimension, OLAP cube, Drill down. Supports the basic analytical needs of selecting, sorting, summarizing.
What is data mining? How does it differ from statistical analysis?
Data mining is efficient discovery of valuale, non-obious info froma large collection of aata. uses of data mining: identifying promising prospects for a new product, locating possible reasons for product failures, understanding what characterizes a top performing employee, uncovering fradulent cliams, pinpointing potential terrorists. helps improve businesses processes and predict future results--statistcal anlaysis-just analysis.
What are the critical success factors for companies that wish to compete on analytics?
Right focus, Right people, Right culture, Right technology
How do these relate to the idea of complements?
need the success factors in order to be succesfful in complements (right focus affects supply chain, customers, employees, profitability, R&D, Quality, Pricing) (Right people: analytical skills, business acument, relationship skills, good communicator) (right technology: data strategy, computing hardware, BI software) (Right culture: fact-based decisions, measure, test, evaluate, performance metrics)
Name some companies that successfully compete on analytics.
Amazon.com, Capital One, Harraah's, progressive insurance, marriott, oakland athletics
Why do companies need appropriate privacy polices and practices?
"Relationships are built on trust. It is essential that customer or employees feel tha tinformation about them is being handled properly"
What are the generally accepted privacy principles relating to consumer rights?
Notce: explain what info is collected and how it will be used. Choice-opt-in/out. Access-allow consumers to se the info about them.
Relating to a companies business operations?
Ethical Behavior. Compliance-with all regulations and generally accepted industry stds, and with own policy. Awareness-educate employees, associates, and customers about policy. Accuracy-ensure information is correct and complete. Secuirty-safeguard info from unauthrozeid disclosure.
What is a business process? How is it different from a business function or department?
1. A business process is a structured, measured set of activities designed to produce a specified
output for a particular customer or market.
2. A process relies on no division between groups because all people work together for desired output. A process often contains many departments and functions working together to achieve its goal.
3.
Way is information an important consideration in business processes?
Every process has an information component – recording, reporting, directing, measuring, and controlling
the activities involved. This are vital in knowing key points of process.
What is an information system?
An information system is a computerbased system that automates parts of a business process and stores related data
How do information systems relate to business processes?
# • Are designed around a particular process concept
• Automate some, but usually not all, activities
• Facilitate other activities with information and tools
• May change organizational responsibilities or structure
What is the Systems Development Life Cycle (SDLC)?
This is the process by which a product is implimented and continually run in a company's system
What are the major steps n the SDLC for package software implementation?
Contains three steps:1. Selection, 2. Implentation, and 3.Initial use and Ongoing use
Selection:
1. • Business Capabilities
• Functional Requirements
• Package Evaluation
• Negotiation
Implementation
• Process Specification
• Software Configuration
• Testing
• Data Conversion
• Infrastructure Preparation
• Training
• Organizational Preparation
Initial Use (this and ongoign use are one box)
1. Launch
2. stabalization
Ongoing use
going use

1. Maintenance
2. Enhancement
3. Exploitation
What are the four primary launch options for new systems and how do they differ?
# Parrallel: Run old and new system at same time for a while and then cut off old
# Pilot: Run trial of new system while old system up. Then later switch to new
# Phased: Slowly phase in new system for old with multiple steps
# Plunge: Go straight from old to new
D. What are the primary risk areas for new system launches?
# Program management
# Organizational Readiness
Data Quality
Technical Infrastructure
ERP & Other Software
Business Fit
IT IS TYPICALLY NOT FOR TECHNICAL REASONS
What are business transactions? Examples?
Transactions execute the operational tasks of the business
~ Paying a bill
~ Ordering material
~ Shipping to a customer
What are transaction processing systems (TPS)?
Transaction processing systems automate these tasks and their associated processes
• They are examples of EIT
How have TPS evolved since the 1960’s?
# 1950's:

1. Type: Single Purpose
2. Scope: Calculation tasks
3. Capabilities: Labor substitutes

# 1960's

1. Type: Functional
2. Scope: Business function
3. Capabilities: Labor subsititues, management information/control

# 1970's

1. Type: Cross functional Process
2. Scope: MRP (Material requirements planning)
1. production planing and material management
3. Capabilities: Process design/ standarization, management control

# 1980's

1. Type: Cross functional Process
2. Scope: MRP II (manufacturing resource planning)
1. add cost management and capacity
3. Capabilities: Process intergration, operational efficiency

# 1990's

1. Type:Cross functional Process
2. Scope:ERP ( Enterprise Resource Planning)
1. All business operations
3. Capabilities: Enterprise process integration, shared information

# 2000's

1. Type: Interorganization
2. Scope: t
1. Supply chain management
2. Joint product development
3. Business process outsourcing
3. Capabilities: Business collaboration, strategic focus
What were some of the problems of functional systems?
But operate in isolation -- islands of automation
~ Data are duplicated -- each function has its
own database
~ Business processes are disjointed
~ Lack enterprise data for management
~ Inefficient
How do ERP systems resolve these?
# Enterprise resource planning (ERP) systems integrate all of an organization’s principal processes
~ Take a cross-functional, process view
~ Entire organization considered a collection of
interrelated activities
~ Based on formally defined, tested business
processes
~ Data stored in a centralized database
• 1990’s
~ adoption stimulated by Year 2000 concerns
# Benefits

1. Processes tried and proven
~ always effective
~ often very efficient
~ no need to reinvent business processes
• Data inconsistency problems eliminated
• Enterprise-wide view can help
~ reduce inventory dramatically
~ reduce lead times
~ Improve customer service

# ERP "Solves" Transaction Processing

1. Effectively handles transaction processing
• Allows firms to focus new IT efforts on areas of greater potential value
~ Business intelligence
~ Interorganizational systems
– Joint product development
– Supply chain management
– Business process outsourcing
~ e-Commerce
Broadly, what is the architecture of an ERP system?
· Everyone revolves around central data base

· Used by Customers, Managers, Suppliers, and Employees

1. Customers use it for Service, Sales, and Delivery Application

2. Managers use it for reporting applications

3. Suppliers within operation and administration use it specifically for financial, manufacturing, inventory and supply applications

4. Employees use it for HR management applications
What are the benefits of ERP systems?
· Processes tried and proven

1. Always effective

2. Often very efficient

3. No need to reinvent business processes

· Data inconsistency problems eliminated

· Enterprise-wide view can help

1. Reduce inventory dramatically

2. Reduce lead times

3. Improve customer service
What does it mean that “ERP ‘solves’ transaction processing”?
· Effectively handles transaction processing

· Allows firms to focus new IT efforts on areas of greater potential value

1. Business intelligence

2. Inter-organizational systems

· Join product development

· Supply chain management

· Business process outsourcing

3. E-commerce
Who are the major suppliers of ERP software?
· SAP

· Oracle

· Sage Group

· Microsoft

· SSA Global
What are some of the disadvantages of ERP systems?
· Very complex

· Very expensive and risky to implement

· Slow and hard to change

1. Not agile vs. dynamic business requirements

2. “Monothlic” ERP’s lock everything together

· Doesn’t use internet effectively

· Everybody using same business processes destroys competitive advantage opportunity
How have the methods of software delivery evolved since the 1950’s and 60’s?
· Began with Custom Development in 1950-1970s

1. Using companies write their own application software (or hire someone to have it done)

· Delivery method switched to packaged software; specifically proprietary (Monolithic), Open Source, and Open Architecture

1. Proprietary (Monolithic)

· Software companies write applications for particular business functions, vertical industry sectors, or companies in general

· Source code proprietary and protected

· Began in the 1980s and on

2. Open Source

· Software written by collaborative effort of individuals

· Source code freely available

· Began in the 1990s and on

3. Open architecture

· Individual software modules for particular tasks or processes written to set if interface standards

· May be proprietary or open source

· Individual modules selected and integrated by using company to form a complete system

· Began in the 2000s and on

· Delivery method also introduced Software as a Service (SaaS)

1. Began in 2000s and on

2. See next question
What is Software as a Service (SaaS)?
· Applications written for and hosted on the web

· Companies pay for usage rather than licensing package and hosting them on their own computers

· Implementation began in the 2000’s and continues to present day
What are the three tiers of information needs that are shared by all businesses?
· Operational

1. “How much of part 123 do we have on hand?”

2. “What did customer xyz order on 9/24/07?”

· Managerial

1. “Are inventory levels on target?”

2. “How do sales compare with last year?”

· Strategic

1. “Should we build a new warehouse?”

2. “Do we need to introduce a new product?”
What types of systems are used to meet these different needs?
· Operational = ERP Systems

· Managerial = BI Systems

· Strategic = External Information Systems
What are inter-organizational systems? Examples?
Interorganizational System (IOS) is one which allows the flow of information to be automated between organizations in order to reach a desired supply-chain management system, which enables the development of competitive organizations.
· Supply chain management

· Joint product development

· Business process outsourcing
What is a supply chain?
A group of business entities involved in the flow of products from raw material procurement through manufacturing and logistics to delivery of finished goods to customers
What is supply chain management?
The integration of key business processes which manage the flow of information, materials and services from raw- material suppliers through factories and warehouses to the end customers with the simultaneous, confliction objectives of achieving:

· Minimal lost profit due to stock out

· Efficient ordering and transportation expense

· Customer satisfaction with product availability

· Low inventory costs, capital efficiency and tax rates

· Faster response to demand than competitors

· Customized service by product, customer, and geography
4. How is information sharing important to supply chain performance?
· Three drivers of the supply chain that with information sharing, it efficiently improves:

1. Facilities: location, size, operations, methodology

2. Inventory: size, inventory management

3. Transportation: in-house/outsourced, mode, routing
Why is information sharing difficult in supply chains?
· Information isn’t well shared within chain

· Complexity of coordination

1. Man trading partners

2. Large volumes of information

3. Time-critical information

4. Uncertain, changing information

· Mistrust and misalignment of objectives among trading partners

· Inadequate IT infrastructure
How have the technical aspects of information sharing evolved?
· Person-to-person message exchange

1. Telegraph/telex

2. Telephone

3. Fax

4. E-mail

· Computer-to-computer message exchange

1. EDI (Electronic Data Interchange)

2. XML (extensible Markup Language)

· Application integration

1. Proprietary systems

2. Web services
What is EDI and how does it work? Why are EDI standards important?
· EDI process transfers information from the buyer’s computer application through a specific process and transmits it through a network that either is value added network (VAN) or private (direct) Network, or the internet, then the suppliers receive the information and process it in their computer application

· Standard format for exchanging business documents

1. Purchase orders, invoices, delivery notes, forecasts

2. ANSI X12 and EDIFACT are leading implementations

· EDI message

1. Same information as that appearing on typical business document

2. Data elements: price, model, etc.

· The EDI standards are important so that business can confidently share information

1. Cost saving in long run: paperless, automated

2. Speeds up the order cycle

3. Better information

4. Enables just-in-time manufacturing
What is XML? How does it differ from EDI? From HTML?
· HTML vs. XML

1. HTML

· Tells browser how to display information

· Browser doesn’t know what the data are

· Predefined tags

· Browser: “I know how it should be displayed”

2. XML

· Tells programs what data mean

· Programs understand how to use the data

· No predefined tags

· Browser: “I know what it means and how it should be displayed”

· Rapid adoption

3. EDI

· Look above at EDI section
What is meant by “application integration” in supply chains? How has this evolved over time?
· Remote computing, aka. distributed computing

1. The process of a program on one computer accessing programs on another computer

· Alternative techniques for distributed computing:

1. Application integration began with Proprietary designs: only approach until about 1990

· Usually developed by a single large buyer/seller

· Difficult to implement

· Initially limited to large firms

2. Web services: emerging standards- based approach

· Look at next question answers
What is “web services”?
· Standards for distributed computing over the internet

· Allows programs to access one another remotely

1. Obtain a service description of what another computer can do and

2. How to invoke the service

3. Data transmitted using SML

· Development tools for web services

1. Microsoft -- .Net

2. IBM, Sun, Others --. J2EE
What are the most important complements to IT in supply chain management?
· Higher worker skills, greater interdependence, new workflows/processes/data standards, and reallocated decision rights

· Trust and communication are key

1. Communication (data transfer)

· Requires minimal trust but needs shared network and data standards

2. Coordination (JIT delivery)

· Requires a trust level for reliability and openness

· Needs for communication are to share plans and discuss issues

3. Cooperation (join scheduling)

· Requires a trust level for confidentiality and competency

· Communication needs for share processes and shared goals and capacities

4. Collaboration (join production development)

· Requires a trust level of “absolute integrity”

· Communication needs for sharing know-how, cost/profits, and secrets
What are the major parts of an RFID tag?
The first part is the Chip - it holds the info about the object it is tagged to

The second part is the Antenna - it transmits info to the reader using radio waves. Depending on whether the RFID tag is active or passive, the antenna may have a battery which sends out a signal, as opposed to just reflecting the signal from another device

The third part is the packaging - it encases the chip and antenna so the tag can be attached to the physical object
---
-b. Passive tag -reflect energy from reading antenna

Read range of 3-4 meters

unlimited data capacity

Is writable

1/2 to 3/4 of an inch big

indefinite life

costs 10-15 CENTS
------
-Active tag - powered by internal battery

Read range of over 100 meters

unlimited data capacity

is writable

2-3 inches big

life span of 10 years

costs $4-20 Dollars
some typical uses of RFID technology are
Product tracking

Toll payments (highway)

Smart cards for payments

Car keys (anti-theft, keyless ignition)

Passports

Animal, patient identification

Library book control

Drug tracking

Sensors (tire pressure)
What are some advantages of RFID over bar codes?
RFID saves time for companies like Wal mart. They don't have to physically look for and scan every bar code since it is automatic. It helps automatically track inventory since they know the exact time an item is checked out or even picked up from the shelf if they wanted to. RFID also gives a store like walmart greater data capacity. They can have less shrinkage, lower inventories, lower labor costs, and higher service levels.


e. EPCGlobal is an industry group (collection of stores and suppliers) to lead development of RFID standards for supply chain use. it has issued standards on physical signaling and logical operation for RFID. it has also set the standard on how they will be read - what the 96-bit code looks like and what it specifically codifies.
A wiki technology is
a collaboration tool that is DRIVEN BY USER CONTRIBUTIONS. it requires no knowledge of HTML format, is edited simultaneously by anyone with access. it is open source technology, meaning anyone can edit.
A wiki is different from a blog
n that a blog can only be edited by the primary user and specific people that the user has identified. A wiki is edited by anyone. it is much more open.
Other important electronic collaboration technologies?
Any open source software. Office intranets, blogs, yahoo answers.....you get the picture.
Enterprise 2.0 technologies are
any technologies that are driven by user contributions. they mainly function as platforms - this means it is a technology that serves to support any and everything the users can and will put on it. they rely on networking effects to derive value, and without thousands of diverse users they are worth little. According to wikipedia, it is social and networked changes to enterprise (i like my description better).
What are the major points in Carr’s argument the IT doesn’t matter?
- The core functions of IT – data storage, data processing, and data transport – have become available and affordable to al. Their very power and presence have begun to transform them from potentially strategic resources into commodity factors of production.

- In its early stages IT was a proprietary technology – provided many opportunities for competitive advantage early in its buildout. Now IT is an infrastructural technology – as time goes on the rush to invest leads to more competition, greater capacity, and falling prices, making the technology broadly accessible and affordable, with little competitive advantage. (Ex: railroads in 1800s had same path)

- As IT has evolved, it has become standardized, and recently has had greater homogenization of its functionality

- IT is highly replicable: the cost savings and the interoperability of generic applications make the sacrifice of distinctiveness unavoidable

- The opportunities for gaining IT-based advantages are already dwindling – there are many signs that IT buildout is much closer to its end than its beginning.

1. IT’s power is outstripping most of the business needs it fulfills

2. The price of essential IT functionality has dropped to the point where it is more or less affordable to all.

3. The capacity of the universal distribution network (the internet) has caught up with demand – we already have more fiber-optic capacity than we need.

4. IT vendors are rushing to position themselves as commodity suppliers or even as utilities.

5. The investment bubble has burst, which historically has been a clear indication that an infrastructural technology is reaching the end of its buildout.

- When a resource becomes essential to competition but inconsequential to strategy, the risks it creates become more important than the advantages it provides (i.e. electricity)

- The greatest IT risk facing most companies is overspending. Companies should try to cut/save on IT costs. Studies show that greater expenditures rarely translate into superior financial results.
What are the major points in rebuttal?
John Seely Brown and John Hagel III -- Argument: IT + Complements Create Advantage

- IT by itself rarely, if ever, confers strategic differentiation. Yet, IT is inherently strategic because of its indirect effects – it creates possibilities and options that did not exist before.

- IT may become ubiquitous, but the insight required to harness its potential will not be so evenly distributed.

- Extracting value from IT requires innovations in business practices

- IT's economic impact comes from incremental innovations rather than "big bang" initiatives

- The strategic impact of IT investments comes from the cumulative effect of sustained initiatives to innovate business practices in the near term

F. Warren McFarlan and Richard L. Nolan -- Argument: IT is a rapidly developing class of uniquely valuable technologies

- Driven by Moore's Law, (the economics of IT) have enabled every industry's transaction costs to decrease continually

- Historical constraints of every kind continue to be knocked off by IT because it is a universal information processing machine

Paul A. Strassman -- Argument: IT isn't over, it's just getting interesting

- After 50 years of cyclical growth, there is not a shred of evidence that IT developments have reached a plateau, as did innovations in industrial-age machinery.

- It is hubris to assert that we have already attained the pinnacle of what is ultimately achievable
In what ways does It matter for businesses today?
- True, some applicatons of IT no longer offer competitive differentiation, and

- True, IT alone offers no value, but

- Information matters, and IT helps companies acquire and use it effectively

- Innovation matters, and IT is one of its primary enablers

- Business process matter, and IT facilitates ongoing improvement

- IT continues to evolve, creating new opportunities

- Mastery of IT differentiates many top companies
DUCATI What IT-based tools was Ducati Corse using in developing and testing its motorcycles?
What capabilities did theses tools provide that were important in the quest for racing
success?
Ducati used computers for everything. Computers helped generate and evaluate possibilities to later create blueprints and manufacture instructions for final designs. In order to design the bike’s engine the company uses the same software as the auto industry. The software’s capabilities aided Ducati take into account the different constraints in building a bike including, bike weight, maximum fuel capacity and engine size. The software is so accurate that testing is almost 100% accurate. Translating digital part designs into manufacturing instructions allowed production of the bike to be faster and more accurate. Ducati had to write their own programs to simulate the whole bike’s performance, due to the complexity of operating bikes in contrast to automobiles. After the construction of a single bike there were over 1,000 hours of testing using a sensors that recorded important information such as engine RPMs, tire pressure, and braking force. Later, the information was downloaded into computers for further analysis. The capabilities of these programs allowed Ducati to have superior design that later was easy to implement in manufacturing. Furthermore, the testing IT software granted Ducati the consideration of multiple constraints to optimize performance.
Ducati-In order to use the IT-based tools and realize these capabilities, what changes did Ducati
Corse have to make in the way it operated, the “Ducati method?” What changes did
individual engineers and mechanics have to make in the way they worked?
The Ducati Method takes into account 3 critical approaches, a data driven approach to problem solving, establishment of clear prioriies and ownership for improvement activities, and frequent face-to-face conversations. Ducati had to rely less on hard data and listen to the face-to-face interactions with the actual riders. They found themselves with too much data with an inability to process the information. The case stated, “ At Ducati Corse, we do a great job at finding designs that work. But, I’m not yet satisfied with the science.” Ducati’s engineers and mechanics had to adapt to the lack of specific relevant information from scientific tools and relied more on the opinions of the riders. Ducati should collect more relevant data with a better analysis process to avoid the abundance of unprocessed information. Ducati should use the face-to-face conversations as a vehicle to collect data. For example, if there is a certain problem regarding weight distribution Ducati can find the relevant data that have to do with handling and stability.
ducati-Thinking about McAfee’s “Three Worlds of Information Technology,” do the IT-based tools
used by Ducati Corse fit the definition of “Function IT?” Explain. Are there any examples of
“Enterprise IT” or “Network IT” in the case?
Yes, this is an example of "Function IT". Ducati primarily used these types of data for improvement upon their racing bikes. The technology gave the designers critical data that was used influential in designing the bike. They are functional examples because they increased precision in the designign process. This saved the designers lots of time. They also provided data for how to make the bike better.

There are no examples of Enterprise or Network in this case because they are all primarily function
ducati-What things do computers do better than humans in this case? What things do humans do
better than computers? What are the essential characteristics of the things that computers
do better? Of the things that humans do better?
THe computers are better at analyzing the data and increasing the car's performance by little margins that no human would notice. They are also very precise in measurements and good at data collecting.

Humans are needed to make sure the "feel" of the car is right. Riders must have confidence in their ride.

Computers are better at anything that involves data and numbers.

Humans are better at things that can not be number related and involve trust. Primarily how the bike feels when they are riding it
ducati-What things do computers do better than humans in this case? What things do humans do
better than computers? What are the essential characteristics of the things that computers
do better? Of the things that humans do better?
THe computers are better at analyzing the data and increasing the car's performance by little margins that no human would notice. They are also very precise in measurements and good at data collecting.

Humans are needed to make sure the "feel" of the car is right. Riders must have confidence in their ride.

Computers are better at anything that involves data and numbers.

Humans are better at things that can not be number related and involve trust. Primarily how the bike feels when they are riding it
ducati- As technology progresses over the next 30-40 years (perhaps the length of your working
career), do you think that computers will be able to take over more of the things that
humans now do at Ducati Corse? All of the things? Why or why not?
Yes, computers and technology will continue to improve in their operations and will take over more of the things that were traditionally human elements. They will never be able to take over everything however. Things like a riders personal preference in a bike and the way that a rider feels on the bike are very important. That is why in this case it is important for the designers to get the riders opinions on the way the bike performs.
What business is SYSCO in?
distributing food and food-related procuts and services to restaurants, health-care and educational faciltiies, lodging, etc
What will be the biggest obstacles faced in the BI implementation as it expands throughout
SYSCO?
getting used to the BI software and using it to its full capabilities; how much to buy; the different operating units already had some form of BI software in place.
Why did SYSCO decide to initially address only two questions with its new BI software,
rather than using it as a more general analysis tool in the operating companies? Why did
Business Objects recommend this approach? What are its strengths and weaknesses?
getting used to the BI software and using it to its full capabilities; how much to buy; the different operating units already had some form of BI software in place.
-what additional products to seel/ what customers most likely to lose

3. only addressed the two questions b/c didnt want to take on too much at once. felt that if focus on these two main things, can familiraize and than explore more later. BI recommended answering these two questions b/c these were the main problem areas that SYSCO should focus on. Strengths: get to answer these two main problems; however, doesn’t use BI to its full exent
Will effective use of BI software ever be a competitive differentiator for SYSCO? Wouldn’t it
be straightforward for another food service company to also purchase and implement
similar software?
It can be a competitive differentiator… look at Wal-mart and how the organized everything using BI software. It would be straighgtforward for another company to do the same thing; however must remember that every company has different analytical competitive advantages (Right people, right focus, etc) which will determine how and where they need software-so that is not so straightforward.
How much software should SYSCO purchase at this time?
They should choose OPtion 2: the middle ground option b/c it best fits their need to answer the two questions and adjusting to the software and getting a better feel of how much is needed.
What business is ZARA in?
Fashion.
How would you advise Salgado to proceed on the issue of upgrading the POS terminals? Should he upgrade to a modern operating system? Should the POS applications be re-written to include any additional functionality? If so, what functionality?
Everythign about POS works. sales get recorded. stores dont need alot of IT invovlement. could add stuff like networking capability. or wilresless network. --could know theoretical invotentory of all SKUS and theoretical inventory in all other stores.
In your opinion, what are the most important aspects of Zara’s approach to information technology? Are these approaches applicable and appropriate anywhere? If not, where would they NOT work well?
trust judgement of eomployees throughout company instead of relying on a small set of decision makers.-->placed orders for the items they thought would see, rather than simply accepting and displaying what headquarters decided to send them. gets big margins on items b/c shoppers know that the same clothes might not be there the next time they visit.
zara-What benefits does Inditex/Zara get from its IT infrastructure? How difficult would it be for a competitor to acquire these same benefits?
speed and decision making: responds very quickly to deamnds of target customers; store mgrs. had a great deal of freedom in deciding what clothes to stock, they had no discretion about the look and feel of their stores. very fast in moving from design to conception. very difficult for a competitior to acquire the same benefits. no IT support needed to open new stores.
What current or potential weaknesses (if any) do you see in Zara’s IT infrastructure and IT strategy?
not upgrading along with everybody else. can't look up invenotry blanaces. no real track of total invenotry for all stores. time consuming to use
What do you think the most elements sof wiki technology are? Why?
Wikis are easy to use and allow users the ability to edit and add topics they think are important.It is not necessary to have knowledge of HTML or other programming languages and therefore can be used by people who aren’t very technology savvy. Wikis allow natural communication because there is no structure or format. Every entry is archived in order to easily track changes and help correct mistakes. Wikis are also easily linkable to other WebPages and sections of the wiki and they are a great option for collecting feedback since users are allowed to reply. Overall, wikis are versatile, powerful, and popular.
What's the "philosophy" of wikis? What, if anything, do you like about it? What, if anything, do you dislike about it?
Wikis provide the philosophy that collaborative efforts are more useful than solo efforts. Jimmy Wales, the founder of Wikipedia, asserts that his site “practiced the philosophy of making it easy to correct mistakes, rather than making it difficult to make them.” Its ease of use and collaboration make it attractive and it provides incentive to contribute your best work since entries can be deleted by other users. Lastly, Wikis eliminate redundancy between functions and communications. On the other hand, anyone can go in and change sites not relevant to them and people with different perspectives may find conflict and continue to delete each other’s opinions. In these instances it requires someone to monitor its use and it is difficult to make sure this person acts impartially. There is also the potential for misuse in company communities lacking employee trust.
Do you think wikis will catch on at DrKW? Why or why not? If a business leader wants to encourage wiki use, what should she do? Or should she do nothing?
Yes. They don't know if they are ready for the technology, or if it is user-friendly enough, but the wiki taps into a need that bankers have to share and collaborate. Once a few people start using it, it should catch on to the masses of DrKW. If a business leader wants to encourage wiki use, they should hold a tutorial for the employees on how to use it, and allow them to choose if they think it will help there business. I believe that once they realize that it is a very helpful technology, then pushing it onto the employees won't be necessary.
What are the best uses for a corporate wiki, in your opinion? In companies you're familiar with, would they have been useful? If so, where? If not, why not?
A good use would be to share tips for employees doing the same job. Almost like a tutorial/direction guide for certain tasks. This would be very helpful to new employees, and would've been helpful in my job.
Search the internet and/or news sources sto find examples of other companies that are using wikis. How prevalent do they seem to be inside businesses?
Many companies (many top fortune 500 companies) seem to use wikis/blogs -- Dell, Google, Amazon, GM, Ford, HP, Walmart, etc.
What do you think accounted for Rich-Con’s difficulties in implementing its new information systems? What were the principal causes of the problems that Sawyer encountered?
· Not fully prepared at the launch date

· Employees were not physically, mentally, or emotionally prepared for the total system change; created company wide shock

· Poor training

o Company/Vendor training program and resources weren’t helpful

o Current employees had little knowledge in any sort of information system or basic PC

· Purchased software without a maintenance contract

· Vendor also had a poor methodology for implementing system

o Was not standardized

o Did not model to customers specific company’s needs

· Method of implementation: instead of plunge, use a phrased implementation

· Employees avoided the system making it more difficult to identify problems

o Going around the system created more difficulties with double shipping, double invoicing, not invoicing, not shipping, customer invoiced could be matched with the initial paperwork orders

o Paperwork/information was not being sent to the adequate departments (ex. Shop floor didn’t get order forms, billing records were being lost/ couldn’t reconcile the records)

· Unsure of whether faults were due to software, configuration mistakes made during implementation, misuse or non-use of the system, or the combination of these
If Rich-Con’s computer hardware had not become obsolete, would they have had to implement a new information system?
Absolutely. Unlike most of Rich-Con’s competitors, Rich-Con was still writing orders by hand in 1994. These processes were extremely inefficient and unreliable while also being very time consuming and labor intensive. The previous hardware was completely out of date and did not have the ability to track orders or store any sort of information in databases. The company also did not have useful historical information about company activities. In order to remain competitive, Rich-Con need to upgrade with the industry information trend.
Why was it difficult for Sawyer to find software that would meet Rich-Con’s needs?
Rich-Con is in a unique industry. The metal industry has more complicated processes other than the typical software for general logistics and distribution systems. Other systems could not handle the unique requirements of a steel service center. Some of these requirements include:

· Multiple units of measure

o product stock could be referred to and priced in several different ways (length, weight, or quantity)

· Remnants

o Tracking inventory sold by piece-by-piece method cutting specific sections of steel to satisfy customer needs

· Certifications

o Certificates of mechanical and chemical properties provided by the manufacture to customers that need to be printed and delivered with products as requested
What are the characteristics of an IT project failure? How do you recognize a failure?
· Characteristics: not adopted, clashes with other business processes, too difficult to implement, system failures, lost information, unable to solidly identify problem areas

· Recognize: people tell you (its bad/not working), people done use the new system (try to work around it), new system causes problems with other system processes, business suffers a performance drop
Do you think the Rich-Con case is typical of troubled IT projects? What would you conclude are the main reasons that IT implementations fail?
Yes we think the Rich-Con case is typical of troubled IT projects because there are a lot of things to overlook when planning IT changes such as compatibility, training, and procedures which could cause large negative effects. The main reasons that we concluded for the IT failure were poor training and preparation for employees, rushed implementation, and poor budgeting and forecasting for problems that may have occurred during these new implementations. We also feel that these causes may have been helped if the project wasn’t under managed; it was a large and important project to construct and Marty Sawyer was basically taking it on herself, if she would have had more help some of these areas wouldn’t have been overlooked.
What type of IT is being implemented at Rich-Con - FIT, EIT, or NIT? What business capabilities are expected from it? What complements will probably be required?
In the Rich-Con Steel case they were implementing Enterprise IT because it specified business processes and changed the way most of the employees did their jobs. The business capabilities that Rich-Con expected from this technology were 1) Multiple Units of Measure because the same piece of steel stock could be referred to and priced several different ways (length, weight, quantity). 2) Remnants because the entire sheet of steel is not always used and needs to go back in inventory and be accounted for. And 3) Certifications of their product’s mechanical and chemical properties easily available to customers who expect such information. As for the compliments that are required for an Enterprise IT implementation we suggest complimentary training and preparation for all employees in order for them to understand the importance of the project and that the use is mandatory, understand how it will help them in their work, and understand how to use such equipment and software effectively. Another compliment could either be a plan B in case of huge failure, or implementation in a step-by-step process so that employees could ease into the transition and so that problems could be easily routed to their causes and fixed.
What should Sawyer do about the poorly functioning new system? Should she “pull the plug” on it or continue to use it?
Pull the pug. The system clearly has major flaws and until those problems can all be recognized and fixed, the system will just create more difficulties causing a negative ‘domino’ effect
What business is cisco in?
Cisco's core business is in making internet routers. They evolved into a business/internet networking company.
What motivated Cisco to implement an ERP system?
Cisco's size and needs were outgrowing its software capabilities. each department had its own systems in place, and they were constantly 'band-aiding' them. "The application didn't provide the dergee of redundancy, reliability, and maintainability we needed." At first, they wanted to leave everything alone, but in 1994, they had a very critical system malfunction, and the company was shut down for 2 days.
Describe the steps in the ERP system implementation.
First, they had to select an ERP product

They pulled people out from all over the business, not just the IT dept, they took the very best employees because this was a priority.

Hired consultant - KPMG

They spent 75 days narrowing down the field of possible ERP products, and finally chose Oracle.


Second they went to the board for approval

How much will it cost? How long will it take? - these were the key questions.

they set the date before they estimated costs.


Third they built the implementation team

extended contract with KPMG

expended team from 20 to 100 members

teams members placed into 1 of 5 'tracks'


Implementing Oracle

used new development technique called 'rapid iterative prototyping'

this means they broke implementation into a series of phases to build on previous work and develop better understanding

phase 1 was brainstorming basically

Phase 2 and 3 were modifying and testing

lastly they 'went live' for a trial period and each dept. reported on whether or not they were really ready for full implementation.
What were the factors that made a difference between success and failure during the project?
Cisco put its best people on the project, taking a wide range of skills from all over the company. They also hired KPMG. They had an unusual contract with Oracle that basically said Cisco paid for capabilities, not products, so if something didnt work, the burden was on oracle to make it work for no additional charge. the company was totally committed and it was a top priority.
What is Wal Mart’s primary business strategy?
Buy it low, stack it high, sell it cheap.
Among Walton’s 4 rules of business, one was, “Communicate everything you possibly can to business partners. The more they know, the more they’ll understand, the more they understand, the more they will care.” How does Wal Mart use IT to implement this strategy?
Since the 1980s, Wal Mart has used EDI –electronic data interchange to communicate with suppliers. This forecasts, and gives suppliers a good picture of what wal marts needs will be in the near future. The also have something called Retail Link. It provides suppliers with point of sale information up to two years in the past.
How does Wal mart use IT in the following business processes, and what value does it provide to them?
A- Procurement

B- Distribution

C- Marketing and merchandising
A- EDI and Retail Link. These build better partnerships with suppliers and ensure that they will have enough product available to them when the time comes. It saves on stock-outs, allows suppliers to better tailor their products to wal marts needs (because they have info on past sales).

B- Automated shipping and docking process. products roll right through the distribution center, not handles by people, saves time, lets all trucks depart with a full load. Also RFID tags reduce shrinkage and save time and labor because everything is automated.

C- Managed their product assortment by looking at detailed sales data – a very information intensive approach. They tailor their individual store product assortment to the local demographics with their Modular Category Assortment Planning System (MCAPS) to better plan layouts. This lets walmart offer a better variety and reduced stockouts