Assignment # 5

Nestle Struggles with Enterprise Systems

1- Evaluate Nestle SA and Nestle USA by using the competitive forces and value chain models.

Nestle SA and Nestle USA competitive force model was out of control because the suppliers they had, they charged different prices even thought it was for the same company. These differences created inefficiencies and extra costs which held the company from competing efficiently.

2- What were the problems and issues that Nestle SA faced that caused the company to be so decentralized?

Nestle SA did not have a centralized infrastructure in running the business; they needed to standardize its information system and business processes, the company was divided into 80 different information technology units.

3- Do you think it was appropriate for Nestle to distribute the decision making so widely? Explain your Answer.

No, it was not appropriate because it got different prices for its raw materials on each local facilities instead of just being one unit doing the purchasing of raw material and that way use its worldwide buying power to get lower prices.

4- Why did Nestle’s initial enterprise project encounter so many problems? What management, organization, and technology factors contributed to those problems?

It encountered problems because the person in charge of the decision of the new stardad for the company did not have the authority to implement it for the whole business. Also, they use different software from different providers, they used SAP for their enterprise resource planning and they used Manugistics for its supply chain module, they used two different companies instead of using just one.

5- If you had been in charge of the Nestle’s enterprise system project, what could you have done to prevent these problems?

I think I would have just stick to one company to provide both resource planning and for the supply chain, I would have chosen SAP just like Nestle SA decided to do.

Assignment # 4

Schneider National Keeps on Trucking with Communications Technology.

1- Analyze Schneider using the value chain and competitive forces models.

Schneider use the value chain model by implementing a computer system called Electronic Data Interchange which the orders for its services arrive at Schneider headquarters electronically and automatically resulting in improved order accuracy and higher productivity, consequently lowering the cost of the ordering operation. The aim of the value chain framework is to maximize value creation while minimizing costs. Schneider uses the competitive forces model to stay ahead of competitors by investing and partnering with other companies to enhance its information system infrastructure. Schneider worked with QualComm to develop its OmniTrac system, the OmniTrac system keeps track of each tractor wirelessly using antennas and GPS on the tractors to know their current location and be able to send them to a new pickup location close to them instead of sending a tractor from their headquarters minimizing the cost of fuel and also with the information provided by the OmniTrac system, customers are able to tract where their shipment is currently at and the expected day of delivery.

2- What Business strategy did Schneider National adopt? What is the role of telecommunications and information system in that strategy? How do these systems provide value for Schneider?

Schneider chose the Value Chain Model Strategy and responded to its demand of services by using information technology. By using computers at its headquarters, customer service representatives can easily access a customer’s history and answer any questions the customer may have, resulting in a satisfied customer and easier job for the customer representative.

3- What organization, management, and technology issues did Schneider National have to address when information technology became so pervasive in its operations?

Schneider worked with Qualcomm to develop tracking system to keep track of its trucks, deliveries and pick-ups. Also, with Qualcomm it developed a sensortracking system for its trucks to help in the maintenance of its engines, help drivers drive more safely and to take care of the trucks

4- How did Schneider’s information systems change its business processes?

Schneider information systems change its business processes in a way made some of its competitors bankrupt. They started to implement a paperless order tracking, it enables customers to enter their orders electronically, check the status of their shipments, their current location and proof of delivery.

5- Has Schneider National’s reliance upon information systems been successful? Is the company transforming itself into a digital firm? Why or why not?

Schneider National reliance in information systems has been successful, it has made the job easier to do for employees and has saved money in the process, it seems that the company is transforming itself into a digital firm, I can compare it to Amazon.com or UPS delivery system.

Assignment # 3

Can Information Systems Save U.S. Steel?

1- Summarize U.S Steel’s current competitive situation.
In capacity, U.S. Steel is the largest producer in North America and the largest in the United States with a total revenue in fiscal year 2003 of $9.3 Billion. U.S. Steel one of the largest customer is Ford Motor Company.

2- How are information system related to the way U.S. Steel runs its business? What role is played by supply chain management systems?
U.S. Steel did not have a centralized information system infrastructure, every processor had its own way of handling orders and shipments and some of them were even manually, creating a chaos on tracking orders and requiring waste money on man hours to update orders on U.S. Steel main system. Supply chain management system makes all the ordering, tracking and shipping easier, faster and efficient.

3- What management, organization, and technology factors were responsible for USS’s inability to compete with other steel manufacturers?
U.S. Steel was not able to compete with other steel manufacturers because of its management team not being up to date with technology. U.S Steel did not have a centralized technology infrastructure. The investment in their information technology system has help the company by streamlining operations, consolidating purchasing and raw material outsourcing and support customers from its various facilities. Even though the company has become more efficient than its competitors, labor cost is what keeps the company from competing, especially its retiree health care cost. Also, the company is not close to a seaport, which cost money to ship steel overseas it has to first take it to a seaport close to the company consuming fuel in the process.

4- Describe how USS has responded to its global and American competition.
The USS responded to its Global and American competition fast and strong by investing in its technology, upgrading every plant it owns and even creating subsidiary called UEC Technologies saving money from spending on third party vendors for its supply chain technology and focusing on creating their own system.

5- How helpful were information systems in addressing USS problems?
Information systems made the company more efficient, increased productivity and saving money by using computers instead on man hours on their plants that needed workers to tend the blast furnaces and presses. Information system made the company more organized and fast on order taking from customers, benefiting the customer by forecasting delivery time of the customer’s order.

Assignment # 2

United Parcel Service

1- How does this Web site enhance UPS’s competitive position? Change the way it conducts business?
UPS’ Website enhances it position against its competition by providing customers the opportunity and peace of mind of tracking their packages and find out where the package is at any given time during the trip to its destination. This also brings security for them and their customer’s items.

2- How does the site relate to UPS’s business strategy? How does it benefit UPS’s costumers? How is UPS becoming partners with its corporate customers?
The website relates to their business strategy by reducing cost and it benefits the customer by saving them time and increasing confidence in UPS because they will know where their package is at and when it will arrive. It will reduce cost because customers don’t have the need to call the customer service phone line to know where their package is at. UPS is becoming partners with its corporate customers by providing special tools them on its website, such tools are: Tracking packages and sending a link or email to their customers about their package, being able to print labels directly from their computers and having UPS trucks pick them up from their business saving them a trip to the UPS store and saving money on fuel cost.

3- What are the strengths and shortcomings of this Web site for use in the international market? After examining the site, suggest ways for the company to increase its functionality and to make it more useful for its customers.
The strengths of this Web site in the international market is that it is available in many countries, the shortcomings is that it is not in every language and in needs to be available in more countries. Another shortcoming is that in many countries, not many people have access to the Internet. In my opinion, to make it more functional, it needs to have more graphics instead of text, make it intuitive and for example add a chat button to contact a customer representative instead of calling a phone number to resolve a question or problem.

4- Select UPS Business Solutions and explore its array of services. How do each of these capabilities contribute to UPS’s bottom line? As the CEO of a Manufacturing Corporation, why might you want to turn to these services? How could they save you money, save you time, lower your costs, and increase your profits?
UPS bottom line is customer service and all of its services under the Business Solutions offer just that, from shipping packages to printing, laminating and biding documents. As a CEO of a Manufacturing Corporation I might turn to these services to save money on printing for example business cards, presentation packages, mail important documents knowing that they will get to their destination on time and shipping to most places in the world. And since they offer tracking of packages, I can use that to my benefit and send a link or email to my customers whenever I ship a package and they will be able to know where their item is at and when it will arrive. It will save me money in printing cost and shipping by using one company, it will also save me money on fuel.

Assignment #1

ShopKo and Pamida: System Triumph or Tragedy?

1. Evaluate the role of information systems in the way ShopKo and Pamida run their business. How important are they?

The role of information systems in ShopKo and Pamida run their business is really important. With the information system they have, they collect data from sales of every year and that’s how they decide how much to sell their merchandise, when its time to clear stock to make room for new line of clothing and plan which store will need more merchandise than others.

2. Evaluate the importance of Pamida's distribution center consolidation project on for both Pamida and ShopKo. What management, organization and technology factors prevented Pamida's new distribution center from working successfully?

The software prevented the new distribution center from working successfully, it was outdated and inadequate. The software was not capable of laying out and running a full service center in the most logical and efficient way.

3. Are ShopKo and Pamida using information systems effectively? Why or why not? How much value do their systems provide to the business?

ShopKo and Pamida were not using the information systems effectively, they had a loss of $6.7 million in the first nine months after the merge of both companies. Their system is very valuable as it is the tool that helps them stay in business and profitable.

4. If you were the CEO of ShopKo, how would you have addressed the problem? If you were the CEO of Pamida when it was purchased by ShopKo, would you have recognized the problem? Explain. How would you have solved the problem?

If I was CEO of ShoKo, I would have appointed somebody to check how their information system worked and see if it needed to be updated or integrated into ShopKo information system. If I was CEO of Pamida when it was purchased, I would have recognized the problem and let ShopKo Information System manager know about Pamida’s system being outdated and not ready for a full service distribution center.

5. What management challenges does this case study illustrate? Explain your answer.

Management was not paying attention to the details; they were more focused on how to make a profit but never checked if their system were ready to be compatible with each other’s technologies and infrastructures. They would have made a lot of money instead of losing money because of the outdated system Pamida had.