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.