The article that I chose for this week is about a project that the US government new C.I.O. Vivek Kundra has proposed in order to keep track of federal technology projects. According to Mr. Kundra there is a lot of money wasted every year on federal government technology projects that get abandoned for one reason or another. In his opinion, the Federal Government has been wasting time and resources trying to come up with a custom designed system for every problem instead of using what's already available commercially.
Mr. Kundra is now in charge of managing $76 billion that is spent yearly to maintain 10,000 government systems as well as 800 active projects to build new systems. His answer to managing all these projects and systems and avoiding failures lies in the use of dashboards. He is planning to start another federal web-site that will allow officials as well as public accessing information about all of the government technology projects, their purpose, schedule and budget. It will also show the name of the official responsible for the project, and it will also keep track of any changes that are done which sometimes may be a sign that the project may fail if the number of changes is significant, more than 10, according to Mr. Kundra. The dashboards will also be able to show if "the start date of the project was retroactively moved forward to make it look less late." Based on a number of key indicators, every project will be rated from 0 to 10. The data from these dashboards will be available for people who want to build their own applications for analizing federal technology projects. Applications will also be available for posting on social networks.
Mr. Kundra believes that these dashboards will be particularly useful because people looking at them will be able to make suggestions about the technology. He thinks this might prevent government technology projects from failure.
I personally found this article very interesting. It seems that this guy has some great ideas that might save a lot of tax dollars from going nowhere.
References:
1. "The Nation’s C.I.O.: Government Needs a Dashboard." Saul Hansell. June 15, 2009.
http://bits.blogs.nytimes.com/2009/06/15/the-nations-co-government-needs-a-dashboard/
Monday, June 15, 2009
Sunday, June 14, 2009
Case Study: Nestle Tries for an All-for-One Global Strategy
Question 2.
Originally Nestle adopted the multinational business strategy. Ther headquarters were set up in Switzerland, but each local organization was given a lot of freedom to condct business as it saw fit and adjust products to local cultures. So the company was largely decentralized. The same can be said about their IT system. To support a lot of variation and diversity Nestle was using 80 different IT units. Over the years Nestle discovered that such strategy and corresponding IT was inefficient and was starting cost the company a lot of money affecting its bottom line.
Question 3.
There were several challenges that Nestle's management had to overcome to standardize its processes. First of all, the original deadline for converting most of the company's operations to GLOBE was underestimated, and it had to be postponed several times from December 2003 to 2006. Secondly, it was extremely difficult to convince managers of operations across the world to change to a unified system. The GLOBE project manager Chris JOhnson basically had to tell the managers that if they didn't back im up, he sould simply get fired, and the CEO would choose one of them to do the job. Another challenge was to identify and describe the main processes which had never been put on paper before and had been passed by word of mouth.
Question 4.
Nestle dealt with these challenges in several ways. The implementation deadline had to be postponed and instead of setting the goal of converting 70% of business to GLOBE by 2003, they decided to conver the majority of businesses to GLOBE by the end of 2005. To compile the Best Practices Library Chris Johnson made sure he chose the best of the best people he could find, people from different backgrounds with different experiences who knew exactly how the company was functioning. He used his leadership skills to convince the managers of different units to back him up. In my opinion, he was very successful with dealing with these complex issues.
Originally Nestle adopted the multinational business strategy. Ther headquarters were set up in Switzerland, but each local organization was given a lot of freedom to condct business as it saw fit and adjust products to local cultures. So the company was largely decentralized. The same can be said about their IT system. To support a lot of variation and diversity Nestle was using 80 different IT units. Over the years Nestle discovered that such strategy and corresponding IT was inefficient and was starting cost the company a lot of money affecting its bottom line.
Question 3.
There were several challenges that Nestle's management had to overcome to standardize its processes. First of all, the original deadline for converting most of the company's operations to GLOBE was underestimated, and it had to be postponed several times from December 2003 to 2006. Secondly, it was extremely difficult to convince managers of operations across the world to change to a unified system. The GLOBE project manager Chris JOhnson basically had to tell the managers that if they didn't back im up, he sould simply get fired, and the CEO would choose one of them to do the job. Another challenge was to identify and describe the main processes which had never been put on paper before and had been passed by word of mouth.
Question 4.
Nestle dealt with these challenges in several ways. The implementation deadline had to be postponed and instead of setting the goal of converting 70% of business to GLOBE by 2003, they decided to conver the majority of businesses to GLOBE by the end of 2005. To compile the Best Practices Library Chris Johnson made sure he chose the best of the best people he could find, people from different backgrounds with different experiences who knew exactly how the company was functioning. He used his leadership skills to convince the managers of different units to back him up. In my opinion, he was very successful with dealing with these complex issues.
Sunday, June 7, 2009
Article review: "The Bar Code Is Taking a Leap Forward"
This article is about a new bar coding technology that's finding its way into supermarkets across the country. It is called GS1 DataBars; they look slightly different than the traditional bar code and can be used for several applications. The new bar code can store a lot more data and can help supermarkets better monitor their inventory.
The GS1 DataBars is already helping a lot of supermarkets with their loose produce which always causes a bottleneck at the checkout. The DataBar is attached to the produce and instead of entering a 4 or 5 digit number a cashier scans a fruit or a vegetable just like a box of cereal. This technology also prevents cashiers from making mistakes when ringing up organic, more expensive produce at the prices for the conventional produce. The Data Bar also allows to scan variable weight products, like produce.
GS1 DataBars can also be used in the deli and meat department. The bar code can contain not only the price but the sell by date, so if a buyer picked an outdated package, the label will be able to alert the cashier.
The bar code can also be used on coupons that will combine offers on several products. It is also possible that in the future the coupons will be scanned off of customers cell phones. Coupons will be sent directly to the cell phone via a text message. The bar code is small enough to fit onto the screen. After the coupon is scanned it will be automatically deleted from the cell phone to avoid coupon fraud. Customers can register for coupons from their computers or ask the supermarket to text them available coupons.
I thought this was a pretty cool new technology that I would like to share with the class.
References:
1. The Bar Code Is Taking a Leap Forward. By Anne Eisenberg. June 6, 2009.
http://www.nytimes.com/2009/06/07/business/07novel.html?th&emc=th
The GS1 DataBars is already helping a lot of supermarkets with their loose produce which always causes a bottleneck at the checkout. The DataBar is attached to the produce and instead of entering a 4 or 5 digit number a cashier scans a fruit or a vegetable just like a box of cereal. This technology also prevents cashiers from making mistakes when ringing up organic, more expensive produce at the prices for the conventional produce. The Data Bar also allows to scan variable weight products, like produce.
GS1 DataBars can also be used in the deli and meat department. The bar code can contain not only the price but the sell by date, so if a buyer picked an outdated package, the label will be able to alert the cashier.
The bar code can also be used on coupons that will combine offers on several products. It is also possible that in the future the coupons will be scanned off of customers cell phones. Coupons will be sent directly to the cell phone via a text message. The bar code is small enough to fit onto the screen. After the coupon is scanned it will be automatically deleted from the cell phone to avoid coupon fraud. Customers can register for coupons from their computers or ask the supermarket to text them available coupons.
I thought this was a pretty cool new technology that I would like to share with the class.
References:
1. The Bar Code Is Taking a Leap Forward. By Anne Eisenberg. June 6, 2009.
http://www.nytimes.com/2009/06/07/business/07novel.html?th&emc=th
Case Study: Can the U.S. Army Pay Soldiers Correctly?
Question 1.
Over the years the Army has been using several separate systems that did not work well with each other, required a lot of manual data entry which resulted in a high percentage of errors. Before 2004 the Army was using the Defense Joint Military Pay System for about 40 years. However, this system needed information from the personnel system, the Regional Level Application Software system, and the two were not well integrated. Manual data entry was required to make any changes in the system which increased the chance of mistakes. It was very difficult to make changes to the system due to its obsolescence. The Army needed a comprehensive, integrated human resources and payroll system. Such a system was under construction since 1998 and its roll out was being constantly delayed. It was noted that the delay was caused by leadership turnover, inconsistent support from senior management as well as by a number of agencies trying to influence the project. The impact of all of these problems was tremendous. Thousands of soldiers were either underpaid or overpaid. Soldiers couldn't easily track mistakes either because their pay often varied due to different entitlements. The Army was wasting a lot of resources trying to fix the mistakes and recover overpayments. The requirements for the new system include complete integration of the payroll and personnel modules, maximum automation, automatic data uploads and user-friendliness.
Question 2.
The Forward Compatible Payroll system was a temporary solution while the Defense Integrated Military Human REsources System was under construction. The FCP was more automated than the previous sytem. Here is how the system worked: a pay administrator uses a Web browser to access the personnel system and review mobilization orders. The mobilization application requests info, such as dates of deployment before setting the pay rate and adding entitlements. After the pay rate is set, the unit commander has to sign off a hard copy of the mobilization order after which the data are transmitted to a Microsoft SQL Server database at the Reserve headquarters. Then the data are uploaded to the local server at a pay processing center where pay records were manually reviewed by staff. Then the data are trasmitted to the payroll system. The process had to be improved to avoid mistakes with adding entitlements and to make the system even more automated to avoid human errors.
Question 3.
When developing and implementing a new information system it is very important that end users and technical specialists work together.TEchnical specialists need to be there to listen to the users concerns . A lot of times this is a big problem. There often are communication difficulties between the users and IT staff. End users find IT people speaking a different language and not understanding each other. So the two parties need to find a way to communicate effectively.
Over the years the Army has been using several separate systems that did not work well with each other, required a lot of manual data entry which resulted in a high percentage of errors. Before 2004 the Army was using the Defense Joint Military Pay System for about 40 years. However, this system needed information from the personnel system, the Regional Level Application Software system, and the two were not well integrated. Manual data entry was required to make any changes in the system which increased the chance of mistakes. It was very difficult to make changes to the system due to its obsolescence. The Army needed a comprehensive, integrated human resources and payroll system. Such a system was under construction since 1998 and its roll out was being constantly delayed. It was noted that the delay was caused by leadership turnover, inconsistent support from senior management as well as by a number of agencies trying to influence the project. The impact of all of these problems was tremendous. Thousands of soldiers were either underpaid or overpaid. Soldiers couldn't easily track mistakes either because their pay often varied due to different entitlements. The Army was wasting a lot of resources trying to fix the mistakes and recover overpayments. The requirements for the new system include complete integration of the payroll and personnel modules, maximum automation, automatic data uploads and user-friendliness.
Question 2.
The Forward Compatible Payroll system was a temporary solution while the Defense Integrated Military Human REsources System was under construction. The FCP was more automated than the previous sytem. Here is how the system worked: a pay administrator uses a Web browser to access the personnel system and review mobilization orders. The mobilization application requests info, such as dates of deployment before setting the pay rate and adding entitlements. After the pay rate is set, the unit commander has to sign off a hard copy of the mobilization order after which the data are transmitted to a Microsoft SQL Server database at the Reserve headquarters. Then the data are uploaded to the local server at a pay processing center where pay records were manually reviewed by staff. Then the data are trasmitted to the payroll system. The process had to be improved to avoid mistakes with adding entitlements and to make the system even more automated to avoid human errors.
Question 3.
When developing and implementing a new information system it is very important that end users and technical specialists work together.TEchnical specialists need to be there to listen to the users concerns . A lot of times this is a big problem. There often are communication difficulties between the users and IT staff. End users find IT people speaking a different language and not understanding each other. So the two parties need to find a way to communicate effectively.
Sunday, May 31, 2009
Article review: Put Ad on Web. Count Clicks. Revise.
The article that I chose is about online advertising and how advertisers can almost instantly change their ads based on the number of clicks that one ad received compared to another. According to Darren Herman, the president Varick Media Management, online advertising company, this can completely change the way advertising companies operate. Until the Internet advertising required heavy research and investment, and it was difficult to evaluate the effectiveness of those ads. Also, advertisers had to book TV spots months before the season began, and if the show wasn't successful, it was too late. So advertisers would spend months doing research, and then wait for months to find out whther the ad worked or not. With online advertising it is possible to get instant measurements of the ad's effectiveness and revise the ad quickly.
Thanks to various computer and Internet technologies it is possible to compare the number of clicks among different ads and figure out which one is more effective. Of course, a click doesn't necessarily result in a transaction, but it is obvious that the more clicks an ad generates, the more transactions will probably result. It is also possible for advertising companies, such as Varick, to look at the sites where the ads ran, when they ran and what kind of people responded to them. Varick can exploit massive amounts of data and adjust the ads almost instantly. Moreover, advertisers can try out their ideas online first before investing massive amounts of capital into traditional advertising campaigns on TV.
Varick's strategy is centered around systems called exchanges that help online publishers like Yahoo.com sell advertising space. And since ad agencies can now use different sources to gather specific demographic info on visitors, online publishers can sell random ad space that ad agencies weren't willing to buy before. Advertisers extensively use the cookie technology to gather information about vistors of different sites. These cookies are sold on the exchange, and companies like Varick, make bids on them. The combination of real-time data and ad exchanges has made previously throwaway online space profitable.
I think this article can be related to the topic of knowledge management discussed in chapter 11. This article shows how an advertising company use the data and knowledge it collects to customize their campaings almost instantly to the target audience.
References:
1. Put Ad on Web. Count Clicks. Revise. By Stephanie Clifford May 30, 2009.
http://www.nytimes.com/2009/05/31/business/media/31ad.html?
pagewanted=1&th&emc=th
Thanks to various computer and Internet technologies it is possible to compare the number of clicks among different ads and figure out which one is more effective. Of course, a click doesn't necessarily result in a transaction, but it is obvious that the more clicks an ad generates, the more transactions will probably result. It is also possible for advertising companies, such as Varick, to look at the sites where the ads ran, when they ran and what kind of people responded to them. Varick can exploit massive amounts of data and adjust the ads almost instantly. Moreover, advertisers can try out their ideas online first before investing massive amounts of capital into traditional advertising campaigns on TV.
Varick's strategy is centered around systems called exchanges that help online publishers like Yahoo.com sell advertising space. And since ad agencies can now use different sources to gather specific demographic info on visitors, online publishers can sell random ad space that ad agencies weren't willing to buy before. Advertisers extensively use the cookie technology to gather information about vistors of different sites. These cookies are sold on the exchange, and companies like Varick, make bids on them. The combination of real-time data and ad exchanges has made previously throwaway online space profitable.
I think this article can be related to the topic of knowledge management discussed in chapter 11. This article shows how an advertising company use the data and knowledge it collects to customize their campaings almost instantly to the target audience.
References:
1. Put Ad on Web. Count Clicks. Revise. By Stephanie Clifford May 30, 2009.
http://www.nytimes.com/2009/05/31/business/media/31ad.html?
pagewanted=1&th&emc=th
Case study: Can Knowledge Systems Help Boeing Trounce Airbus?
Question 2.
Up until 1990s Boeing didn't have much of a knowledge management system; everything was on paper which made designing and manufacturing processes very lengthy and inefficient. In the early 1990s, however, Boeing began switching to the "paperless design". This process computerized the design and manufacturing of airplanes. The paperless model matched Boeing's business strategy much better. Boeing's business strategy is to produce fuel efficient airplanes that would carry passengers non-stop between their destinations. For example, Boeing 777 uses lighter materials and can fly with 2 pilots and 2 engines cutting operating and fuel costs. Boeing used CATIA computer-aided design software to design and produce its 777 plane.
Question 3.
Boeing is using its new strategy in the implementation of the 787 "Dreamliner". Boeing decided to use a new production process by basically outsourcing design and construction of 80% of the plane to several hundred other companies. Knowledge management and sharing are very important for the new strategy to succeed. To enhance communication among designers Boeing and its suppliers are using software that allows designers around the world exchange information and collaborate which minimizes mistakes and improves communication between different departments. Boeing also purchased 5,000 more licenses of the Product Life Cycle Management software which allows more people to have access to the software when they need it. Boeing key suppliers also had to integrate their systems to work with Boeing. However, it seems that as the deadline for the 787 delivery was approaching, Boeing was faced with some technical and production problems. I think as long as Boeing is capable of overcoming these issues and is able to start delivering the plans to the customers, its strategy will be successful.
Question 4.
From the facts described in the case study it seems to me that Airbus has a long way to go in terms of its knowledge management systems. Airbus needs to be able to involve its suppliers into the design and production processes. It seems that delays in 380 delivery were caused in part by communication problems between engineering and production.
Up until 1990s Boeing didn't have much of a knowledge management system; everything was on paper which made designing and manufacturing processes very lengthy and inefficient. In the early 1990s, however, Boeing began switching to the "paperless design". This process computerized the design and manufacturing of airplanes. The paperless model matched Boeing's business strategy much better. Boeing's business strategy is to produce fuel efficient airplanes that would carry passengers non-stop between their destinations. For example, Boeing 777 uses lighter materials and can fly with 2 pilots and 2 engines cutting operating and fuel costs. Boeing used CATIA computer-aided design software to design and produce its 777 plane.
Question 3.
Boeing is using its new strategy in the implementation of the 787 "Dreamliner". Boeing decided to use a new production process by basically outsourcing design and construction of 80% of the plane to several hundred other companies. Knowledge management and sharing are very important for the new strategy to succeed. To enhance communication among designers Boeing and its suppliers are using software that allows designers around the world exchange information and collaborate which minimizes mistakes and improves communication between different departments. Boeing also purchased 5,000 more licenses of the Product Life Cycle Management software which allows more people to have access to the software when they need it. Boeing key suppliers also had to integrate their systems to work with Boeing. However, it seems that as the deadline for the 787 delivery was approaching, Boeing was faced with some technical and production problems. I think as long as Boeing is capable of overcoming these issues and is able to start delivering the plans to the customers, its strategy will be successful.
Question 4.
From the facts described in the case study it seems to me that Airbus has a long way to go in terms of its knowledge management systems. Airbus needs to be able to involve its suppliers into the design and production processes. It seems that delays in 380 delivery were caused in part by communication problems between engineering and production.
Sunday, May 17, 2009
Case study: Can E-Bay Continue Growing?
Question 1.
eBay.com is an online auction service that does not sell anything of its own. It brings buyers and sellers together to the online marketplace where sellers list items they are willing to sell, and buyers bid for the items they are willing to buy. eBay currently has operations in 32 countries, and it continues expanding. The company's strategy has been very successful. The earnings come from several different sources: first, sellers have to pay a fee of $.25 to $4.80 for listing their items on eBay. Secondly, eBay charges a fee for a sold item that starts at 5.25% of the selling price. eBay also collects revenue from direct advertising as well as from various service providers, such as PayPal.
eBay's growth strategy is focused on geographical expansion as well as introduction of new products and services. For example, eBay has been very successful in some European countries, such as France, England and Germany. eBay has also been able to launch eBay Motors, "Buy It Now" application and eBay Stores, all of which have been very successful.
Question 2.
One of the problems that eBay has encountered is maintaining its growth. While the company's growth is still outstanding internationally, it has been slowing down domestically. eBay also has some problems on the Asian market where Yahoo is trying to set up competing auction sites. On the other hand, laws differ greatly in different countries, and it may be challenging for eBay to monitor its compliance in so many different countries where it does business. For example, it may be difficult for eBay to make sure that prohibited items are not sold on its web-site, and the company may be liable if it fails to prevent illegal transactions. Another problem that eBay has faced is an increasing number of buyers who have been defrauded by sellers. And finally, eBay is having some problems with customer service. eBay has two types of customers, buyers and sellers, and what works for buyers does not necessarily works for sellers.
Question 3.
To solve the problem of slowing growth, eBay acquired Shopping.com which is an online shopping comparison site, as well as Skype. By purchasing Skype eBay hopes to get into high end markets, such as real estate and travel where buyers are more likely to need more information from sellers. However, I'm not sure if this was a sound decision because some analysts claim that a lot of sellers are not willing to add Skype to their business models because they hardly keep up with e-mails on eBay.
To handle competition, eBay entered into agreements with other players, such as Yahoo and Google by giving them exclusive rights to provide advertisements for eBay's sites domestically and internationally. In my opinion, this is a good idea to collaborate with the competitors although these companies still remain rivals.
In regards to increasing fraud, some users claim that eBay has not adequately addressed the issue. The company needs to provide a safe trade environment. However, when eBay gets complains about fraud, buyers often get an automated e-mail that encourages buyers and sellers to resolve disputes on their own. I do not think it is a solution to the problem. eBay needs to be more hands-on when it comes to identity theft and fraud problems.
eBay.com is an online auction service that does not sell anything of its own. It brings buyers and sellers together to the online marketplace where sellers list items they are willing to sell, and buyers bid for the items they are willing to buy. eBay currently has operations in 32 countries, and it continues expanding. The company's strategy has been very successful. The earnings come from several different sources: first, sellers have to pay a fee of $.25 to $4.80 for listing their items on eBay. Secondly, eBay charges a fee for a sold item that starts at 5.25% of the selling price. eBay also collects revenue from direct advertising as well as from various service providers, such as PayPal.
eBay's growth strategy is focused on geographical expansion as well as introduction of new products and services. For example, eBay has been very successful in some European countries, such as France, England and Germany. eBay has also been able to launch eBay Motors, "Buy It Now" application and eBay Stores, all of which have been very successful.
Question 2.
One of the problems that eBay has encountered is maintaining its growth. While the company's growth is still outstanding internationally, it has been slowing down domestically. eBay also has some problems on the Asian market where Yahoo is trying to set up competing auction sites. On the other hand, laws differ greatly in different countries, and it may be challenging for eBay to monitor its compliance in so many different countries where it does business. For example, it may be difficult for eBay to make sure that prohibited items are not sold on its web-site, and the company may be liable if it fails to prevent illegal transactions. Another problem that eBay has faced is an increasing number of buyers who have been defrauded by sellers. And finally, eBay is having some problems with customer service. eBay has two types of customers, buyers and sellers, and what works for buyers does not necessarily works for sellers.
Question 3.
To solve the problem of slowing growth, eBay acquired Shopping.com which is an online shopping comparison site, as well as Skype. By purchasing Skype eBay hopes to get into high end markets, such as real estate and travel where buyers are more likely to need more information from sellers. However, I'm not sure if this was a sound decision because some analysts claim that a lot of sellers are not willing to add Skype to their business models because they hardly keep up with e-mails on eBay.
To handle competition, eBay entered into agreements with other players, such as Yahoo and Google by giving them exclusive rights to provide advertisements for eBay's sites domestically and internationally. In my opinion, this is a good idea to collaborate with the competitors although these companies still remain rivals.
In regards to increasing fraud, some users claim that eBay has not adequately addressed the issue. The company needs to provide a safe trade environment. However, when eBay gets complains about fraud, buyers often get an automated e-mail that encourages buyers and sellers to resolve disputes on their own. I do not think it is a solution to the problem. eBay needs to be more hands-on when it comes to identity theft and fraud problems.
Article: Just Browsing? A Web Store May Follow You Out the Door.
I read this article in New York Times online and thought that it related just great to our topic of E-Commerce.
This article is about a new web service, called Abandonment Tracker Pro, that will alert a subscribing web store that a customer put items in a shopping cart but did not complete the transaction. The difference between Abandonment Tracker and other similar services is that it is able to start "remarketing" immediately in real time. Mr. Nicholls, the founder of the company SeeWhy that came out with the new service, recommends online stores to ask shoppers to register and provide their e-mail address and telephone numbers on the first page. This way it will make it much easier for Abandonment Pro to capture the information about the shopper. The next step for the online store would be to follow up with the shopper either via e-mail or phone. When asked about possibly turning off potential customers by annoying e-mails or, even worse, phone calls, Mr. Nicholls replied that everything depends on the tone and manner. The message should sound more like,"Was there a problem? How can we help?" Mr Nicholls also believes that online stores will most likely lose sales if they wait for a couple of days before they follow up with the customer. According to Mr. Nichols, Abandonment Tracker may alleviate the problem of increasing shopping cart abandonment when shoppers place items in their shopping carts but do not make a purchase.
Personally, I would never come back to the web-site that would try to chase me after I decide not to make a purchase. I think it is annoying, and it is invasion in people's privacy. If I decided not to complete the transaction, then there was a reason for it. And imagine you visited five different web-sites looking for the same thing, you bought it from one site, and the other four had Abandonment Tracker, and all four of them would harass you 5 minutes later about why you did not buy from them. That would be insane, I would probably stop shopping online altogether.
References:
1. The New York Times. "Just Browsing? A Web Store May Follow You Out the Door." Stross, Randall. http://www.nytimes.com/2009/05/17/business/17digi.html?_r=1&ref=business May 16, 2009
This article is about a new web service, called Abandonment Tracker Pro, that will alert a subscribing web store that a customer put items in a shopping cart but did not complete the transaction. The difference between Abandonment Tracker and other similar services is that it is able to start "remarketing" immediately in real time. Mr. Nicholls, the founder of the company SeeWhy that came out with the new service, recommends online stores to ask shoppers to register and provide their e-mail address and telephone numbers on the first page. This way it will make it much easier for Abandonment Pro to capture the information about the shopper. The next step for the online store would be to follow up with the shopper either via e-mail or phone. When asked about possibly turning off potential customers by annoying e-mails or, even worse, phone calls, Mr. Nicholls replied that everything depends on the tone and manner. The message should sound more like,"Was there a problem? How can we help?" Mr Nicholls also believes that online stores will most likely lose sales if they wait for a couple of days before they follow up with the customer. According to Mr. Nichols, Abandonment Tracker may alleviate the problem of increasing shopping cart abandonment when shoppers place items in their shopping carts but do not make a purchase.
Personally, I would never come back to the web-site that would try to chase me after I decide not to make a purchase. I think it is annoying, and it is invasion in people's privacy. If I decided not to complete the transaction, then there was a reason for it. And imagine you visited five different web-sites looking for the same thing, you bought it from one site, and the other four had Abandonment Tracker, and all four of them would harass you 5 minutes later about why you did not buy from them. That would be insane, I would probably stop shopping online altogether.
References:
1. The New York Times. "Just Browsing? A Web Store May Follow You Out the Door." Stross, Randall. http://www.nytimes.com/2009/05/17/business/17digi.html?_r=1&ref=business May 16, 2009
Sunday, April 26, 2009
Case Study Chapter 8: A Stolen Laptop at the Department of Veterans Affairs: The Worst Data Theft Ever?
Question 1.
There were several security weaknesses at the VA. First of all, employees could take laptops with sensitive information home and have access to the data outside of the premises. Secondly, the data were not encrypted. At the start of the investigation it was also concluded that the operation system, the password system and detection alerts were not properly secured either. The reporting procedures were not clearly outlined which resulted in the delay of the theft being reported to the law enforcement.
Question 2.
There were a lot of factors that contributed to the weaknesses listed above. First, in 2004 recommendations were made as a result of an audit to centralize IT security systems, to make sure that employees were aware of and followed rules pertaining to data access and complete the implementation of processes related to intrusion detection systems. It was noted that these suggestions were not fully implemented by the management due to strong resistance to change throughout the organization.
Question 3.
To effectively deal with the problems, a lot of changes had to be implemented at the VA. The reorganization plan for the IT operations was approved. The department needed to merge the 2 IT domains in order to fully centralize all the activities. The chief information security officer needed to have greater authority in order to enforce security policies. So, it was decided to raise in rank the chief information officer and the chief information security officer. However, it is not clear from the case study whether the VA was able to fully implement all of these measures in order to solve these issues.
There were several security weaknesses at the VA. First of all, employees could take laptops with sensitive information home and have access to the data outside of the premises. Secondly, the data were not encrypted. At the start of the investigation it was also concluded that the operation system, the password system and detection alerts were not properly secured either. The reporting procedures were not clearly outlined which resulted in the delay of the theft being reported to the law enforcement.
Question 2.
There were a lot of factors that contributed to the weaknesses listed above. First, in 2004 recommendations were made as a result of an audit to centralize IT security systems, to make sure that employees were aware of and followed rules pertaining to data access and complete the implementation of processes related to intrusion detection systems. It was noted that these suggestions were not fully implemented by the management due to strong resistance to change throughout the organization.
Question 3.
To effectively deal with the problems, a lot of changes had to be implemented at the VA. The reorganization plan for the IT operations was approved. The department needed to merge the 2 IT domains in order to fully centralize all the activities. The chief information security officer needed to have greater authority in order to enforce security policies. So, it was decided to raise in rank the chief information officer and the chief information security officer. However, it is not clear from the case study whether the VA was able to fully implement all of these measures in order to solve these issues.
Article - Nokia to Sell Phones With Skype Software
The Internet calling company Skype has made a deal with the biggest cell phone maker Nokia to install Skype software on its newest high-end phones. It is estimated that new phones will enter the market some time in the third quarter of this year. Skype has been entering into partnerships with several cell phone service providers but partnering up with a manufacturer is a great milestone for Skype, according to its CEO Josh Silverman.
A lot of cell phone service providers are afraid that installing Skype on cell phones will decrease their revenues due to the fact that people will not pay practically anything for calls. However, according to Silverman, one of the cell phone service providers that installs Skype on their phones, actually saw an increase in revenues. He explains that consumers started choosing plans with flat rate and were more likely to stay with the same provider.
This article relates to the topics of chapter 7 of the textbook. This is just another service that has become available to consumers due to the technological advances in Internet, telecommunications and networking. I like the idea of having Skype on my cell phone a lot. I won't be limited to having to sit at my computer to make a call via Skype, I'll be able to do it any time I have a cell phone on me.
References:
1. Nokia to Sell Phones with Skype Software 02/17/2009
http://www.wired.com/techbiz/media/news/2009/02/reuters_us_mobile_fair_skype_interview
A lot of cell phone service providers are afraid that installing Skype on cell phones will decrease their revenues due to the fact that people will not pay practically anything for calls. However, according to Silverman, one of the cell phone service providers that installs Skype on their phones, actually saw an increase in revenues. He explains that consumers started choosing plans with flat rate and were more likely to stay with the same provider.
This article relates to the topics of chapter 7 of the textbook. This is just another service that has become available to consumers due to the technological advances in Internet, telecommunications and networking. I like the idea of having Skype on my cell phone a lot. I won't be limited to having to sit at my computer to make a call via Skype, I'll be able to do it any time I have a cell phone on me.
References:
1. Nokia to Sell Phones with Skype Software 02/17/2009
http://www.wired.com/techbiz/media/news/2009/02/reuters_us_mobile_fair_skype_interview
Saturday, April 18, 2009
Scientists Map the Brain, Gene by Gene
Scientists at the Allen Institute for Brain Science in Seattle are working on a huge project to make a detailed map of the human brain, gene by gene. The Allen Brain Atlas would describe the cortex of the brain at the level of specific genes and neurons. If the project is successful, scientists will be able to use the maps to decipher thousands of genes that make the human brain. The scientists at the institute believe that mapping the brain may eventually lead to new techniques in diagnosing and treating of various mental conditions.
Since scientists were talking about possibly analazying 20,000 genes, it became clear that it couldn't be done by hand, and the brain map needed to be in the form of a database. If such a database of human brain existed, it would dramatically increase the speed of research.
To draw a genetic map of the brain scientists at the Allen Institute created an advanced system that could process brain tissue and data very quickly, at levels previously unheard of. During the first step the brain is hand-sliced in 5mm pieces and frozen. Next, a special machine further shaves each piece into thousands of slices that are only several microns thick. These slices are then put on bar-coded glass slides. Next, robots sample each slice for a particular gene and then stain it with dye. During the next step robotic microscopes take pictures of each sample. The color and intensity of dye is used to calculate the amount of gene in the sample. The brain map is correlated by gene and location and stored in the database on the institute's servers. When the project is completed, the brain atlas along with advanced tools to analyze the data will be available to all scientists for free. The project is expected to be completed in 2012.
I was really impressed by this article. It shows how advanced contemporary database systems are and how they can be used in different fields, such as medical research, and how database systems can lead to further technological advances in different fields.
References:
1. Scientists Map the Brain, Gene by Gene. By Jonah Lehrer March 28, 2009
http://www.wired.com/medtech/health/magazine/17-04/ff_brainatlas?currentPage=1
April 17, 2009
Since scientists were talking about possibly analazying 20,000 genes, it became clear that it couldn't be done by hand, and the brain map needed to be in the form of a database. If such a database of human brain existed, it would dramatically increase the speed of research.
To draw a genetic map of the brain scientists at the Allen Institute created an advanced system that could process brain tissue and data very quickly, at levels previously unheard of. During the first step the brain is hand-sliced in 5mm pieces and frozen. Next, a special machine further shaves each piece into thousands of slices that are only several microns thick. These slices are then put on bar-coded glass slides. Next, robots sample each slice for a particular gene and then stain it with dye. During the next step robotic microscopes take pictures of each sample. The color and intensity of dye is used to calculate the amount of gene in the sample. The brain map is correlated by gene and location and stored in the database on the institute's servers. When the project is completed, the brain atlas along with advanced tools to analyze the data will be available to all scientists for free. The project is expected to be completed in 2012.
I was really impressed by this article. It shows how advanced contemporary database systems are and how they can be used in different fields, such as medical research, and how database systems can lead to further technological advances in different fields.
References:
1. Scientists Map the Brain, Gene by Gene. By Jonah Lehrer March 28, 2009
http://www.wired.com/medtech/health/magazine/17-04/ff_brainatlas?currentPage=1
April 17, 2009
Merryll Lynch Connects Past and Future Technology
Question 1.
One of the main reasons Merryll Lynch needed to update its IT infrastructure was to remain competitive. The company wanted their clients to be able to have access to their accounts and portfolios on the Internet. To provide this service was key to staying competitive.
Question 2.
Information technology is one of the most important components of Merryl Lynch's operations and strategy. The company's extraordinary growth was largely due to its information technology advances. Again, Merryl Lynch considered IT upgrade as a way to be competitive and stay ahead of the game.
Question 4.
On the one hand, I don't think selling off their IT initiatives was a good idea because it could give the company's competitors a choice to copy and duplicate it. In my opinion, the company's IT may be considered one of its core competencies, and you never want to share your core competencies with your competitors. However, apparently, it turned out to be a pretty good deal for Merryl Lynch because it tremendously increased IT budget that can be used for further IT developments and enhancements.
One of the main reasons Merryll Lynch needed to update its IT infrastructure was to remain competitive. The company wanted their clients to be able to have access to their accounts and portfolios on the Internet. To provide this service was key to staying competitive.
Question 2.
Information technology is one of the most important components of Merryl Lynch's operations and strategy. The company's extraordinary growth was largely due to its information technology advances. Again, Merryl Lynch considered IT upgrade as a way to be competitive and stay ahead of the game.
Question 4.
On the one hand, I don't think selling off their IT initiatives was a good idea because it could give the company's competitors a choice to copy and duplicate it. In my opinion, the company's IT may be considered one of its core competencies, and you never want to share your core competencies with your competitors. However, apparently, it turned out to be a pretty good deal for Merryl Lynch because it tremendously increased IT budget that can be used for further IT developments and enhancements.
Sunday, April 12, 2009
Blockbuster vs. Netflix: Which Will Win Out?
Question 1.
Blockbuster has emerged as a video rental business in 1985, and until 2004 its business model has been to open up as many "brick-and-mortar" stores across the country as possible.Until online movie rental companies started coming into play in the late 1990s, Blockbuster's business model proved to be very successful: according to the case study, Blockbuster possessed a 40% market share of the video rental industry in 2004.
Question 2.
Several industry and technology forces have challenged Blockbuster's business model. First, the appearance of other players with a different business model has created competition in the industry. Netflix came out with a dramatically different concept in 1998 by offering an online subsciption service for a low monthly fee, with no late penalties and by delivering movies directly to the customers via mail. The expansion of Internet and related technologies has also caused other companies, such as Movielink, to get into the downloading business and take away even more customers from Blockbuster. Users can download a movie onto their computers and watch it on the computer or re-route it to the TV screen with the use of special cables. With the development of these technologies Blockbuster is now facing several problems. It has to find a way to retain existing customers as well as keep attracting new ones. Blockbuster decided to eliminate all late fees and also created its own online rental service that is integrated with its stores. A Blockbuster customer can order a movie through the online service, receive it in the mail and then return it either in the mail or to any Blockbuster store. If the customer chooses the latter option, he can also rent a movie from a store free of charge.
Question 4.
I think Netflix has been very successful at its strategy and business model. It has been in business since 1998 and had more than 3 million subscribers by 2005. It offers a simple, convenient and fast way to rent movies and return them at any time. When a movie is received at the distribution center, a new movie from the customer's "wish list" is sent out. In my opinion, however, Netflix will have to get into the movie downloading segment to remain competitive in the future.
Blockbuster has emerged as a video rental business in 1985, and until 2004 its business model has been to open up as many "brick-and-mortar" stores across the country as possible.Until online movie rental companies started coming into play in the late 1990s, Blockbuster's business model proved to be very successful: according to the case study, Blockbuster possessed a 40% market share of the video rental industry in 2004.
Question 2.
Several industry and technology forces have challenged Blockbuster's business model. First, the appearance of other players with a different business model has created competition in the industry. Netflix came out with a dramatically different concept in 1998 by offering an online subsciption service for a low monthly fee, with no late penalties and by delivering movies directly to the customers via mail. The expansion of Internet and related technologies has also caused other companies, such as Movielink, to get into the downloading business and take away even more customers from Blockbuster. Users can download a movie onto their computers and watch it on the computer or re-route it to the TV screen with the use of special cables. With the development of these technologies Blockbuster is now facing several problems. It has to find a way to retain existing customers as well as keep attracting new ones. Blockbuster decided to eliminate all late fees and also created its own online rental service that is integrated with its stores. A Blockbuster customer can order a movie through the online service, receive it in the mail and then return it either in the mail or to any Blockbuster store. If the customer chooses the latter option, he can also rent a movie from a store free of charge.
Question 4.
I think Netflix has been very successful at its strategy and business model. It has been in business since 1998 and had more than 3 million subscribers by 2005. It offers a simple, convenient and fast way to rent movies and return them at any time. When a movie is received at the distribution center, a new movie from the customer's "wish list" is sent out. In my opinion, however, Netflix will have to get into the movie downloading segment to remain competitive in the future.
About Me
I work at Santa Barbara Surgery Center in the position of the Materials Manager. I take care of purchasing surgical supplies and managing inventory. We use a patient management system called AdvantX, and the Materials Department has its own software, OptOR, for managing inventory and purchasing. I was born and raised in Russia, and I graduated with a BA/MA degree in English and Translating from Nizhniy Novgorod State Linguistic University in Russia.
I was doing rhythmic gymnastics for 6 years, and this is still my favorite sport along with figure skating. I also enjoy group classes at the gym (body works, step and cycling), I love reading, cooking Russian food and travelling.
I was doing rhythmic gymnastics for 6 years, and this is still my favorite sport along with figure skating. I also enjoy group classes at the gym (body works, step and cycling), I love reading, cooking Russian food and travelling.
Consumer Group Asks Congress to Investigate Bandwidth Caps
Time Warner Cable is planning to start charging its Internet customers by the volume of their downloads and introduce overage fees if one goes over the cap. By doing this TWC hopes to protect its TV cable business from the threat of movie downloading. FreePress, the consumer group, is encouraging its members to sign an anti-cap petition and submit it to Congress. According to FreePress, TWC's behavior is anticompetitive and should be investigated.
TWC proposes a tiered system that starts with $15 a month for 1GB of downloads with a $2 penalty for every GB above the cap. The highest tier costs $150 a month with no cap. TWC is testing its new program in Texas and is planning to expand its trial to some of New York and North Carolina markets.
I think this article relates to the topis of ethical and social issues in information systems. Movie downloading has become largely available due to advances in IS. High Internet connection speed allows to download movies in minutes for free without having to pay extra for movie channels. This is hurting cable companies that have historically thrived on charging customers extra if they want to have movie channels, and they have to find a way to make a profit. Is it justifiable for TWC to introduce caps on downloads? Will customers stay with TWC or will they find a different provider? I think most customers would go somewhere else if they had a choice, but they don't always do since cable providers often enjoy a monopoly in the area where their services are provided. So, TWC would take advantage of its customers which I believe is unfair.
References:
1. Consumer Group Asks Congress to Investigate Bandwidth Caps.
http://blog.wired.com/business/2009/04/consumer-group.html April 10, 2009
TWC proposes a tiered system that starts with $15 a month for 1GB of downloads with a $2 penalty for every GB above the cap. The highest tier costs $150 a month with no cap. TWC is testing its new program in Texas and is planning to expand its trial to some of New York and North Carolina markets.
I think this article relates to the topis of ethical and social issues in information systems. Movie downloading has become largely available due to advances in IS. High Internet connection speed allows to download movies in minutes for free without having to pay extra for movie channels. This is hurting cable companies that have historically thrived on charging customers extra if they want to have movie channels, and they have to find a way to make a profit. Is it justifiable for TWC to introduce caps on downloads? Will customers stay with TWC or will they find a different provider? I think most customers would go somewhere else if they had a choice, but they don't always do since cable providers often enjoy a monopoly in the area where their services are provided. So, TWC would take advantage of its customers which I believe is unfair.
References:
1. Consumer Group Asks Congress to Investigate Bandwidth Caps.
http://blog.wired.com/business/2009/04/consumer-group.html April 10, 2009
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