System Analysis & Design With UML Version 2.0 Minicase Question 2

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Read Dennis et al. Chapter 6: Minicase 2. Work through it and answer the questions. See the attached example. 

Based on the structural model you created in Chapter 5 and the problem description in Chapter 5, 

create a functional model (use case diagram, activity diagrams, and use case descriptions) for the business processes associated with the Holiday Travel Vehicles sales system. 

Create a sequence and a communication diagram for each scenario of each use case identified in the functional model. 

Create a behavioral state machine for each of the complex classes in the class diagram. 

Perform a CRUD analysis to show the interactivity of the objects in the system. 

Perform a verification and validation walkthrough of each model: functional, structural, and behavioral

Class Name: Salesperson ID: 1 Type: Concrete, Model
Description: Represent the sale person information Associated Use Case:
Responsibilities Collaborators
To store the sale person information None
   
Back
Attributes
Int: id String: name
String: address Long: phonenumber
   
Relationship
Generalisation (a-kind-of): NA
Aggregation (has-a):

1. Works On zero or Many Purchase
Other Associations: NA

 

 

Class Name: Purchase ID: 2 Type: Concrete, Domain
Description: Store the information about the purchase being made by the sales person for an Customer Associated Use Case:
Responsibilities Collaborators
Keeps the customer information Customer
Keeps the salesperson information salesperson
Keeps the vehicle information for purchase Vehicle
Keeps a reference to the sale invoice when purchase is finalised SalesInvoice
   
Back
Attributes
Customer: customer Salesperson: salesperson
Vehicle: vehicle SalesInvoice: invoice
   
Relationship
Generalisation (a-kind-of):
Aggregation (has-a):

1. Worked on by only one Salesperson

2. Negotiated by zero-or-many Customer

3. Agreed upon by only one SalesInvoice

4. For only one Vehicle
Other Associations: NA

 

 

 

Class Name: Customer ID: 3 Type: Concrete, Model
Description: Used to represent a customer Associated Use Case:
Responsibilities Collaborators
Holds the information about a new customer None
   
Back
Attributes
String: id String: name
String: address Long: phoneNumber
   
Relationship
Generalisation (a-kind-of): NA
Aggregation (has-a):

1. Negotiate zero-or-many Purchase
Other Associations: NA

 

 

 

Class Name: SalesInvoice ID: 4 Type: Concrete, Domain
Description: Represent a sale invoice for a agreed upon purchase Associated Use Case:
Responsibilities Collaborators
Holds the information for a trade in vehicle Vehicle
Holds the information for the trade in allowance against the trade-in-vehicle. DealerInstalledOptions
Holds the information about the dealer installed option if any  
Holds information about other taxes and fees  
When sales invoice is finalised, it will hold customer signature as well  
   
Back
Attributes
Vehicle: tradeInVehicle Double: tradeInAllowance
Int: id DealerInstalledOptions[]: installedOptions
Double: finalPrice Double: taxes
Double: licenseFee String: customerSignature
   
Relationship
Generalisation (a-kind-of): NA
Aggregation (has-a):

1. Agreed based on only one Purchase

2. Trade in zero-or-one Vehicle

3. Lists zero-or-many DealerInstalledOptions
Other Associations:

 

 

 

Class Name: Vehicle ID: 5 Type: Concrete, Model
Description: Represent a new vehicle as well as a trade-in vehicle. Associated Use Case:
Responsibilities Collaborators
Hold the information for a new vehicle being sold at the store None
Hold the information for a trade-in-vehicle if any while making a purchase  
   
Back
Attributes
Int: serialNo String: name
String: model Int: year
String: manufacture Double: baseCost
   
Relationship
Generalisation (a-kind-of): NA
Aggregation (has-a):

1. Traded in as a part of only on SalesInvoice

2. Sold as a part of zero-or-one Purchase
Other Associations: NA

 

 

 

Class Name: DealerInstalledOptions ID: 6 Type: Concrete, Model
Description: Represent the dealer installed option Associated Use Case:
Responsibilities Collaborators
Holds the information about the installed options provided by the dealer None
   
Back
Attributes
String: optionCode String: description
Double: price  
   
Relationship
Generalisation (a-kind-of): NA
Aggregation (has-a): Listed on zero-or-many SalesInvoice
Other Associations: NA

Business And Information Technology

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Do Not

Co py o

r Po st

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TTT TTT-TT-TTT TTTTTTTTTT faced by the average CIO are not usually the stuff of epic drama—except when they are.

Enter our hero: Jim Barton, the new CIO of the fictional IVK Corporation. He is the creation of authors Robert Austin, Richard Nolan, and Shannon O’Donnell, and his story gives a practical yet entertaining look at the true adventures of an IT leader.

Based on the authors’ years of firsthand experience with diverse companies, the story begins as the IVK Corporation struggles to recover from a period of slowing growth and falling stock prices. An aggressive new CEO handpicks Barton to be CIO—even though Barton has no background in IT.

When Barton takes the reins, he must quickly learn to navigate the strange new world of information technology, while meeting the high expectations of the CEO, the board of directors, and his conflicted staff. What he learns in his first year on the job clearly illustrates why the role of CIO is the most volatile, high-turnover job in business. We follow Barton’s adventures as he discovers what effective IT management is all about, deals with the everyday challenges of the job, responds to major crises, and remakes the company’s technology capabilities into a vital strategic asset.

Read the book from beginning to end or treat it as a series of case studies; the “How to Use This Book” section suggests chapters that address specific topics, while the authors’ reflection questions help you puzzle through the problems in

each episode. With vivid characters and memorable scenarios, The Adventures of an IT Leader is an engrossing way to enhance your IT leadership skills.

TTTTTT TTTTTT is a professor at Copenhagen Business School and at Harvard Business School, where he chairs the executive education program for CIOs with cochair TTTTTTT TTTTT, professor emeritus at Harvard and the Philip M. Condit Endowed Chair in Business Administration at the University of Washington. TTTTTTT T’TTTTTTT is a consultant with Cutter Consortium’s Innovation Practice and a PhD fellow at Copenhagen Business School.

(Continued on back flap)

(Continued from front flap)

art direction: stephani finks

jacket and interior illustrations: asaf hanuka

Get inspired. Stay informed. Join the discussion. Visit www.harvardbusiness.org/press TTT.TTTTTTTTTTTTTTT.TTT/TTTTT

TTTTTTTTTT TT$29.95

I�BN������������������

� � � � � � � � � � � � �

� � � � �

“ Ever wonder what a CIO’s life is really like? Read this engaging ‘novel’ to understand the experience of an IT executive.”

TTTTT TTTTTTT, chairman of the board and ceo, google inc.

“A highly readable, comprehensive treatment of the practical issues facing a CIO leader and his team. Very hands-on, practical, and actionable.”

T T. TTTTTT TTTTTTTT, albert h. gordon professor of business administration, emeritus, harvard business school

“Essential reading for all managers—energizes your team for an effective IT strategy.”

TTTT TTTTTTTTT, president and ceo, novell, inc.

“ Jim Barton’s travails at the IVK Corporation expose today’s complex world of technology, employees, vendors, and management. A must-read for senior IT professionals and managers of any industry.”

TTTTT TTTT, president and ceo, ascent media group

“ One of the black-hole challenges facing a CEO these days is IT management. The work of Rob Austin, Dick Nolan, and Shannon O’Donnell to humanize IT management and to introduce metrics, clarity, logic, and—even more importantly— common sense has been invaluable to us.”

TTTTTTT TTTTTT, president and ceo, the first marblehead corporation

“ I was amazed at how well this book captures, in a very engaging way, a wide variety of issues faced in the complex world of IT management. Reading about the trials and experiences of CIO Jim Barton helped me gain insight and learning I could apply in my real world. This book is a must-read for both young and seasoned IT managers.”

T TTTTT TTTTT, associate director, information systems, the procter & gamble company

“Such an enjoyable read you’ll barely be aware of how much you’re learning.”

T TTT TTTTTTT, principal, atlantic systems guild; and coauthor, peopleware: productive projects and teams

“ This excellent book leverages the case study approach to create a very readable story—at times a page-turner—that captures the major challenges facing a CIO and presents each one in a broad, multiperspective context.”

TTTT TTTT, senior vice president and chief information officer, exelon

 

 

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617.783.7860.

the

Adventures of anIT Leader

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617.783.7860.

Robert D. Austin Richard L. Nolan

Shannon O’Donnell

harvard business press

Boston, Massachusetts

the

Adventures of anIT Leader

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617.783.7860.

“A hero ventures forth from the world of common day into a region of supernatural wonder: fabulous forces are there encountered and a decisive

victory is won: the hero comes back from this mysterious adventure with the power to bestow boons on his fellow man.”

–Joseph Campbell, The Hero with a Thousand Faces

Copyright 2009 Harvard Business School Publishing Corporation

All rights reserved

No part of this publication may be reproduced, stored in or introduced into a retrieval

system, or transmitted, in any form, or by any means (electronic, mechanical, photo-

copying, recording, or otherwise), without the prior permission of the publisher.

Requests for permission should be directed to permissions@hbsp.harvard.edu, or

mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston,

Massachusetts 02163.

Library of Congress Cataloging-in-Publication Data

Austin, Robert D. (Robert Daniel), 1962-

The adventures of an IT leader / by Robert D. Austin, Richard L. Nolan, Shannon

O’Donnell.

p. cm.

ISBN 978-1-4221-4660-6 (hardcover : alk. paper) 1. Information technology—

Management. 2. Strategic planning—Data processing. 3. Management information

systems. 4. Information resources management. I. Nolan, Richard L. II. O’Donnell,

Shannon. III. Title.

HD30.2.A936 2009

004.068’4—dc22

2008041014

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Find more digital content or join the discussion on www.hbr.org.

The web addresses referenced and linked in this book were live and correct at the time of the book’s publication but may be subject to change.

 

www.hbr.org

 

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C O N T E N T S

Introduction 1

Part One: The Hero Called to Action

1. The New CIO 5

2. CIO Challenges 23

3. CIO Leadership 39

Part Two: The Road of Trials

4. The Cost of IT 55

5. The Value of IT 71

6. Project Management 89

7. The Runaway Project 107

8. IT Priorities 123

9. IT and the Board of Directors 141

Part Three: The Hero’s Ordeal

10. Crisis 157

11. Damage 173

12. Communication 189

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Part Four: The Hero Breaks Through

13. Emerging Technology 211

14. Vendor Partnering 221

15. Managing Talent 235

16. Standardization and Innovation 253

Part Five: Master of Two Worlds

17. Managing Risk 267

18. Looking Forward 277

Epilogue 287

Notes 297

Ways of Using This Book 301

Glossary of Acronyms and Terms 305

Acknowledgments

About the Authors 313

Contents

vi

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309

 

 

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1

Introduction

The Adventures of an IT Leader invites readers to “walk in the shoes” of

a new CIO, Jim Barton, as he spends a difficult year learning IT leader-

ship at the IVK Corporation, sidestepping the pitfalls that make the

CIO job the most volatile, high-turnover job in business.

Although this book is based on the authors’ years of firsthand experi-

ence with diverse companies and managers, the IVK Corporation and its

staff are fictional. As the story begins, the midsize growth company is at-

tempting a turnaround following a period of slowing business perform-

ance. The stock price has fallen substantially as investors have adjusted

their expectations of the firm’s growth. An aggressive new CEO, Carl Wil-

liams, takes over and assigns a new management team. In the process, CIO

Bill Davies is fired and Jim Barton, former head of Loan Operations and a

talented general manager, is appointed CIO. Barton has no background in

IT—none at all. The story follows Barton as he figures out what effective

IT management is all about and deals with issues and challenges of the

job. The financial and other information about IVK in chapter 1 provides

a cogent snapshot of the company’s situation as the story begins.

The Main Characters

In order of appearance . . .

Jim Barton: The new CIO of IVK. A talented and ambitious general manager, Barton knows little about IT. He sets out to learn quickly

and to lead the IT department toward renewed growth, stability,

and strategic partnership within the company—but not without

facing serious challenges.

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617.783.7860.

Carl Williams: This bold turnaround CEO is high on ambition and short on patience.

Maggie Landis: A savvy management consultant and Barton’s girl- friend, she often provides Barton with valuable insight, references,

and perspectives.

The kid: Wise beyond his years, this twenty-something tech nerd, whom Barton mysteriously meets only at Vinnie’s Bar, proves a use-

ful sounding board and source of surprisingly good advice.

Bill Davies: Former CIO at IVK, Davies was fired in part because he struggled with management-level communication. He tells Barton

that he “won’t last one year” in the job of CIO.

Bernie Ruben: As the director of the Technical Services Group and longtime IVK employee, nearing retirement and thus mostly im-

mune to concerns about risk to his career, Ruben frequently pro-

vides Barton with the candid advice, knowledge, and context he

needs to make key decisions.

Raj Juvvani: As director of Customer Support and Collection Sys- tems, Juvvani is part of Barton’s core IT team.

Tyra Gordon: As director of Loan Operations and New Application Development Systems, worked closely with Barton when he

was head of Loan Operations and takes the lead on several new IT

projects under his management.

Paul Fenton: As director of Infrastructure and Operations, Fenton manages a large and important domain, including IT security, and

is part of Barton’s core IT team.

Gary Geisler: As director of Planning and Control, Geisler works closely with Barton on IT financials.

John Cho: IVK’s outspoken resident security genius, Cho has a dis- tinct fashion sense and provocative musical talent.

Jenny: Barton’s ever-dependable executive assistant.

Several additional characters populate the story, but are described in

context.

Introduction

2

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part one

The Hero Called to

Action

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chapter one

The New CIO

Friday, March 23, 11:52 a.m. . . .

Jim Barton sat motionless in a blue leather chair, one of several posi-

tioned around an elegant glass table at one end of the CEO’s expansive

corner office. At the other end, Carl Williams stood looking out a win-

dow. The silence grew long. Finally, Williams turned to look at Barton.

“Speechless” was not a word most people could imagine applying to

Jim Barton. His energy and outspokenness as head of the Loan Opera-

tions department made him one of IVK’s most dynamic executives, a

key player and a likely CEO someday—of a different company, if not

this one.

But the news Williams had conveyed moments before had left Bar-

ton silent, dumbfounded.

A few minutes earlier Barton had rushed to William’s office, sum-

moned for his turn with the new chief. All morning, leadership team

members had marched down that hallway one at a time, each after re-

ceiving a phone call, each on a journey to discover his or her fate. As the

executive assistant greeted him courteously and waved him in, Barton

allowed himself some optimism.

Most likely, he thought, he was about to receive a promotion. He’d

done a good job, been a big contributor as the company had grown to

its present size. Something like “Chief Operating Officer” would fit him

quite nicely.

5

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On the other hand, to hear that he was being asked to leave would not

have enormously surprised him. He hadn’t done anything to warrant

such treatment. But unexpected things happen when companies are in

crisis. The logic behind executive appointments, retirements, resigna-

tions, and firings was rarely transparent. Sometimes, Barton thought

there was little logic to it at all.

The timing of his meeting gave Barton reason for hope. According to

word going around, firings, resignations, and forced retirements had

been handled in the first meetings of the day. Since midmorning, he’d

heard mostly about reassignments. Executives involved in early-morning

meetings had departed as soon as they’d finished, but for a while now

people emerging from meetings with the CEO had been staying. It was

late enough in the day that he might just be in line for that plum job.

But his mood darkened when Williams, standing by the window, not

looking at Barton, began to speak. The CEO’s words struck Barton with

near-physical force.

“Jim, I don’t think you’re going to like this very much.”

Barton’s mind raced. Why would he wait this late in the day to fire me?

What have I missed or misunderstood? He pulled himself together well

enough to answer: “Just tell me, Carl. We’re all grownups here.”

Williams chuckled. “It’s not what you think. We’re not asking you to

leave or anything like that. But when you hear what I have to offer, your

first inclination may be to think along those lines yourself. Though I

sincerely hope not.”

To Barton, William’s gestures, standing across the room, staring out

the window—the entire scene—appeared overly dramatic. Although

the view from the thirty-fourth floor was enticing, Williams wasn’t

simply lost in admiration, he was avoiding eye contact. Barton glanced

around the room, seeking additional clues to what might be going on.

The office, he noticed, had been completely transformed, all signs of

the previous occupant vanquished. That was too bad. Barton had got-

ten along well with Kyle Crawford, the former CEO. There had been

rocky moments, but suddenly, looking back, those didn’t seem too awful.

“As you know,” Williams continued, “the board is determined to get

things on track. They want us back on our earlier, steeper growth tra-

The Hero Called to Action

6

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617.783.7860.

jectory. They believe, and I agree, that the controversy that has dogged

us for the last eight months has been a damaging distraction. When

they brought me in from outside, they asked me to take a look at the

company and to formulate a recovery plan.

“As you probably suspected, the board asked me to reconstruct the

leadership team, to clear away the ‘rot’ that might remain from the way

some things were done in the past. To recommend the composition of a

team that could rise to the challenges we are facing in the coming

months. I’d like you to be on that team.”

Relief. It didn’t sound like a demotion. Williams continued.

“It has been a difficult process. I haven’t told anyone else this, but the

first time I went to the board with my proposed team, they balked. They

asked for additional changes. I had originally proposed a very different

role for you than the one you’ve ended up in.”

An unusual assignment. I can live with that. Spirits lifting, Barton

made a constructive noise: “I’m willing to do whatever will help,” he of-

fered. “You know me, Carl. I’m a team player.”

“I’m delighted that you are taking that attitude,” said Williams, who

smiled but maintained his place at the window.

“You see, after a considerable amount of shuffling and reshuffling,

and having discussed this with the board extensively, we’ve . . .” Here

Williams drew in a deep breath, “Well, we’ve decided that you should

be our new chief information officer.”

This was the news that had knocked the air out of Jim Barton, reduc-

ing him to his unfamiliar wordless state. After allowing Barton a mo-

ment for thought, Williams finally turned away from the window. Barton

felt the boss’s gaze burn into him. Finally, Barton managed to babble:

“CIO? You want me to be the CIO?”

“Davies has been overwhelmed in that role. You’ve been one of his

most outspoken critics.”

“I know, but . . . I’ve got no background in information technology.”

“By all accounts, you have a lot of thoughts on how IT should be

run. A lot of people think you have pretty good thoughts about this. I

think you’ve said a few things along those lines to me, even in my short

time here. Unlike Davies, you’ll report directly to me.”

The New CIO

7

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Not yet able to unpack a tangle of additional objections all crammed

together in a ball at the top of his mind, Barton simply repeated him-

self: “But I’ve got no background in IT.”

“And Davies has a lot. That clearly doesn’t work, so we’ve decided to

try something else.” Williams moved to the table and sat down. The

CEO learned forward, now locking eyes with his subordinate. “You’re a

good manager, one of our best. You may not know much about IT, but

we think you’ll figure it out.”

“I’ll figure it out?”

“Yes.” He nodded and leaned back in his chair. “It’s very important,

you know.”

ERP Diagram- Please Check Before Bidding

/in /by

Create and submit an ER Diagram with at least two tables and their attributes.  Your diagram should include:

  • Table Names (for each entity)
  • Attributes (first name, last name, city, etc.)
  • Primary Keys
  • Foreign keys
  • Relationships
  • Field types  (text, currency, numeric, date)

Your tables should be should be normalized (first, second and third normal forms)

You can use the attached form or upload your tables in Excel or create and link them in an Access database file.

For information on how to use Word to create and ERD, go to: https://vimeo.com/18244802

Resources for Building ER Diagrams and Normalization:

What is an ER Diagram: http://databases.about.com/od/specificproducts/l/blentity-relationship-diagrams.htm

Video Tutorial Entity Relationship Diagram (ERD) Training Video:  https://www.youtube.com/watch?v=-fQ-bRllhXc

How do I normalize a database: https://support.microsoft.com/EN-US/help/283878

  • Running head: DATABASE PROJECT CHARTER/BUSINESS CASE 1

    DATABASE PROJECT CHARTER/BUSINESS CASE 2

    Database Project Charter/Business Case

    Fatoumata Bah Bello

    UMUC

    ISAS 600

    Database Project Charter/Business Case

    For this business case, the focus is on an electronic health record database for hospitals and doctor’s office businesses. The electronic health record database (ExBase) will be a system that collects health information about patients and compares it to other people in the population for data analyzing purposes assisting doctors and nurses in crucial data to treat their patients better. The database will store data electronically ranging from medical history, demographics, allergies, medication, patient immunization records, laboratory tests results, personal statistics like weight, age, race as well as billing information.

    Business Problem

    Currently, most hospitals and doctors offices are using an electronic medical record database that is very vulnerable to hacking and isn’t practical for data analytics. Unupdated technology places the practice a point where it may be financially vulnerable as well. For instance the current medical record system may not accurately capture some billing or may cause inaccuracies in the submission of claims to insurance companies, this will cause the practice to be leaving money on the table. When it comes to customer data protection, the current system may fail to meet the encryption standard of HIPAA 256 and may not able to interface with the old billing system. Therefore, there is need to either update the existing system or purchase a new electronic health recording system.

    Project Scope

    The scope of the project entails all the designs including development, licensing, coding and hosting the new system. All the training needed to implement the new system successfully will be completed by us the vendor. The new system will provide a user-friendly environment. The project also includes migration of data contained in the current system to our new system, licensing of all software, compatibility with the existing classifications, terminologies, and coding systems. ExBase will be a web database accessible remotely as well as in-house with as many as 500 user codes per server. Multiple practices can access real-time data by logging onto a secure online program; we will install servers in each Practice as well as backup servers for data storage in a secured facility.

    Project Business Objectives

    The primary objectives of the database to the business is driving the business’ revenue by improving its billing system thus increasing revenue; patients will receive an enhanced experience through data analytics and being able to be cured in the most efficient way using the best medicines. This project is also expected to improve provider or patient access to healthcare documents, generation of increased effectiveness in the provision of medical care and increasing the number of services offered. Also, it will also ensure storage of accurate and reliable medical data shared through a secured network.

    Constraints

    In the implementation of every project, there are constraints that have to be overcome. For the implementation of the electronic health record system, the constraints include time constraint, resource constraints and resistance to change. The time constraint comes as a result of the extended period that will be used in development and implementation of the new system. Another limitation that the company may face is that of funding resources; a budget is needed to create, implement and maintain the database. In addition to resource constraints, the business will have to employ more staff members with the right qualifications to operate and maintain the new system. Another constraint is the resistance effect where businesses and individuals who are currently using an existing system may resist the new system or find it a challenge to use because they used an old system that was still functional.

    Description of Solution

    The new electronic health record system (ExBase) will collect and electronically store patient information and data in a single database. ExBase will provide solutions to Practices by creating an up to date billing system, which captures billing and financial data as well as patient data delivering accurate information in real time. It will meet the current standard of the electronic health record technology and will be encrypted with HIPAA 256 bit.

    Project Description

    The entity seeks to do away with the current electronic medical record system and implement a new solution that is expected to maintain a diverse number of features. This project will come with some benefits that include enhanced access to patient records, an improved billing system as well as an ability to perform data analytics to improve the medical business. Once implemented ExBase will be a user-friendly interface that can be used by the current as well as new employees. The development and implementation of ExBase w run for six months with full funding from our company account customers will only be responsible for the primary cost of the database.

    Business Process Impact

    The new system will impact the business in some ways. First, the solution is expected to minimize clinical documentation errors, increase the effectiveness of the operations of the business, increase the business revenue capture as well as enhancing administration reporting throughout the practice (Menachemi & Collum 2017). The Proposed system will also cause an adverse effect on the routine duties of all the members of staff. The new system will also impact the business financially due to continuous maintenance and licensing costs of the solution. However, it will cause a negligible impact on the clinical workflow as the training and education for staff preparation will be minimal.

    Technical Feasibility

    After, looking at the problems with the existing system which include the issue of accuracy and compatibility, and the fact that the existing system has served the company for more than ten years, it is effective to purchase a new system rather than updating the current system. The new system aligns with the current goals and objectives of the practice. By developing and installing the new system, the company will have to purchase a new server and new equipment for handling and operating the new system.

    Resource Estimate

    The project is expected to run for six months involving the signing of the contract, employing temporary employees and implementing the software. The project will cost an estimate of $60,000 in all the stages of purchase, consulting and training. References

    Fleming, N.N., Culler, S.D., McCorckle, R., Becker, E.R. & Ballard, D.J. (2011). The

    financial and non-financial costs of implementing electronic health records in primary

    care practices. Health Affairs. 30(3): 481-489.

    Menachemi, N. & Collum (2017). Benefits and drawbacks of electronic health record

    systems. Risk Management and Healthcare Policy pp. 47.

    Mendelson, D. (2004). Health Connect and the duty of care: A dilemma for medical

    practitioners. Journal of Law and Medicine. 12(1): 69-79.

    Parish, C. (2006). Edging towards a brave new IT world. Nursing Standard. Royal College of

    Nursing. 20(27): 15-16.

How IT and IS may be used to help the company operate and achieve its objectives

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Management Information System MIS 201

Semester 1 (2018-2019)

CASE STUDY-3-Assignment

 

Course: MIS 201

 

 

 

 Student name:

 

 
Academic Year: 1439-1440 Students number:

 
Semester: 1st

 

 student grade: (out of 4)

 
Section:

 

 

InstructorName: Signature Dr.Gokulkumari Govindasamy

 

 Level of the Mark: Level

 

 

 

 

 

 

 

 

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Management Information System MIS 201

Semester 1 (2018-2019)

 

CASE-3-Assignment Details

Prepare an in-depth analysis of four case studies during the semester. Here are some guidelines:

· This is an individual assessment, which is a part from your course score. It requires effort and critical thinking

· Answer all the questions listed below for each case.

· The ‘answers’ to the questions are best formulated by reviewing the case and the reading materials up and including the current week in the course.

· The questions are worded to help you apply the readings to the case, so don’t limit yourself to the case’s terminology and perspective. The best analysis will abstract the case content by applying the reading materials to draw broader lessons about the material

 

Case Study 3 : Walmart

1. How IT and IS may be used to help the company operate and achieve its objectives. (1 Mark)

1. Discuss the challenges faced by the CIO – which are the most important and why? (1 Mark)

1. What role does information technology play in the business? How is it helping Walmart refine its business strategies? (1 Mark)

1. Summarize the main purposes of information systems in organizations (1 Mark)

Due Dates

Case Study Date of release Due date of submission from the students
3rd End of 9th Week End of 11th Week

 

Case Study 3 : Walmart

With the advent of science and technology, technological innovations have become a pre-requisite to achieve operational and strategic excellence. Organizations by using state-of-the-art systems, are striving for their best to achieve sustainable and long-term competitive advantage. It has become sine qua non to use modern tools for the effective achievement of goals and objectives. Its importance can also be observed from the increased spending on Research & Development in order to pace up with the todays dynamic business environment.

Wal-Mart, founded by Sam Walton in 1962, is the world’s largest retailer that employs about 2.1 million associates worldwide, in more than 8,400 stores, including 8, discount stores, 3,100 combination discount and grocery stores. Wal-Mart is serving its customers and members more than 200 million times per week at more than 8,613 retail units under 55 different banners in 15 countries. Wal-Mart has ranked first among retailers in Fortune Magazine’s 2010 Most Admired Companies survey with fiscal year 2010 sales of $405 billion. Sam Walton’s belief was to build an empire by providing value to its customers and empowering employees, also known as associates. The way the Wal-Mart operates is so fascinating and impressive that Jack Welch, CEO of General Electric once said: “Many of our management teams spent time there observing the speed, the bias for action, the utter customer fixation that drives Wal-Mart.”

The use of high-tech Information technology has always been an essential ingredient for Wal-Mart’s growth. Since its inception, it has used the IT systems well enough for the Inventory, administrative, customers and suppliers management.

Wal-Mart’s investment in technology started with the computerized accounting systems and since then the continuous adoption of latest technologies has made Wal-Mart a market leader in the whole retail industry.

Wal-Mart developed a well-equipped computerized Point of Sale (POS) system capable of identifying each unit sold, creation of accurate sales receipt and storing all the information item-by-item for sales analysis and inventory reordering purposes. It helped company to avoid overstocking of merchandize through effective information usage and also assisted them in investing in only those merchandize that were profitable. It has also helped them figure out best selling products and prospective products that customers want. Analysts say that it is Wal-Mart’s Point of Sale system that has helped them achieve the world’s largest market share and revenues in retail industry.

Wal-Mart, in 2004, was the first in retail industry to adopt electronic radio frequency identification (RFID) tags for inventory distribution management. RFID technology, which is still being used, helps them keep track of inventory movement across its supply chain. Wal-Mart was trailing K-Mart in 1980’s but with the adoption of latest technologies, it has now become the trend setter in retail industry all over the world.

Wal-Mart is currently working on a project to make best out of wireless technology. In near future, they have plans to develop a remote system that would allow customers to just walk into their store and use their own devices (Phones or PDA’s) to get whatever they want. i.e. they might go online to their website, while at the store, and find things for themselves or just compare the products’ prices etc.

Customer service, best shopping environment and experience, one-stop shopping, best value products, customer convenience of online shopping, good customer relations are the blessings that Wal-Mart provides using cutting-edge technology. Latest wireless system at their stores, online web-retailing, vast width and hierarchy of product items, and stores at multiple remote sites are the benefits customers of Wal-Mart cherish.

Wal-Mart is considered to be a trend setter in retail industry and it’s all due to its inclination towards achieving impossible through modern technology. For example, Wal-Mart once tried to develop three experimental stores in McKinney, Aurora and Las Vegas that were equipped with latest technologies or concepts like wind turbines, photovoltaic solar panels, bio-fuel-capable boilers and water-cooled refrigerators. Irrespective of the criticism it had on environmental issues, Wal-Mart’s initiative was considered to be a positive step towards change and innovation and it provided them with an opportunity to become the biggest seller of organic milk and the biggest buyer of organic cotton in the world, as well as reducing packaging and energy costs. It has been quoted in 2006’s annual report of Wal-Mart that in order to compete against upscale and appealing store, such as ‘Target’, they have launched a new Supercenter concept in Plano, Texas. The new store had wood floors, wider aisles, a sushi bar, a coffee shop with free Wi-Fi Internet access, and more expensive beers, wines and other electronics goods.

By using advance forecasting techniques and integrating different technologies, Wal-Mart is planning to deploy simulation software that would help them simulate business events that are yet to happen.

Wal-Mart has got a strategic plan of introducing a concept of self-service. Self-service technology, aimed at eliminating paper and paper forms, will be provided to their associates, prospective associates, customers and members. It was said by Kevin Turner, CEO of Wal-Mart’s subsidiary corporation, in his interview with ‘CIO’ personnel that “having an associate portal and devices on our sales floors will let customers and members get product information, and let us do computer-assisted selling“.

For evaluating new technologies, they are always plugged into research and development labs of their key suppliers like Cisco, IBM, NCR, AT&T or HP in order to get current with latest technologies and drive the future for themselves.

Wal-Mart has been outstanding in its investments in Information technology from all prospects. IT systems at Wal-Mart allow them to reduce transactional as well as operational costs at their distribution centers and it has also helped them to support Wal-Mart’s long-term strategy of owning the distribution centers and maintaining long-term relationships with their suppliers. Also, improvement in productivity due to IT systems is dramatic at Wal-Mart. It has helped them offer products at such a nominal cost that a small town merchant is unable to provide and this is remarkable achievement of Wal-Mart. It has become a sustainable competitive advantage for them over their competitors and a reason of their growth and profitability. We are aware of a fact that every benefit is accompanied with some problem but Wal-Mart has successfully defied its weaknesses and have used its strength well to take advantage from the prospective opportunities and avoiding possible threats.

 

 

 

 

 

Answer –Case Study 3 :