Minicase 1 - Weebly



Minicase 1. From Paper to E-Payments: The Story of Wells Fargo Home

Mortgage

1. Describe the options WFHM offered before ARC? Why weren’t these options sufficient to move WFHM’s customers from paper to e-payments?

Before ARC three e-payment options were available to customers: direct payment, equity payments and third-party processor. But this options sometimes were not suitable and enough for some clients. That’s why the need of new methods of payments appeared. It becomes a full suite of e-payments methods that are: automatic mortgage payments – ACH direct payments; online payments – Internet-initiated ACH debits; just in time – telephone-initiated ACH debits; EBPP; EEP. And the last era of e-payments includes ARC payments that enhance the amount of clients who use e-payments system.

2. Describe the basic riles underlying ARC. Why did this result in the shift from paper to e-payment for WFHM’s loan customers?

According to the NACHA site information ARC is a service that allows consumer checks sent to a lockbox or drop box location to be converted to an ACH electronic debit. Under these rules consumers authorize the conversion on the check payments to electronic payments when they mail the remittance and check to the biller. Before the conversion can take place the biller must communicate its conversion intentions to the customer in the billing documentation. In essence the conversion takes place unless the customer objects. The use of ARC leads to the transformation of payments culture from paper to the electronic ones. This results in two main benefits, that are the reduce of the cost of processing payments and the increase collections efficiency.

3. If company wants to adopt online payment, what advice would you offer?

The process of adoption is usually flowed in very tough manner because of lack of information and also because of distrust from customers to everything new. That’s why company should carefully think about any particular step because it could have hard influence on the end-results. To my mind if the company wants to adopt online payment instead of paper ones it is possible to suggest following:

- to give as much information as possible to involve customers from the most beginning of service implementation. Not just inform them about service appearance but to explain how it works and how they can benefit from it’s use.

- To implement new services one by one beginning from the most popular, that will make easier the adoption of other ones.

- May be it have sense to remain old payment system just in case to give option to the customers.

Minicase 2. E-Commerce improves inventory control at Hi-Life Corporation.

1. Explain why this is B2E?

Because in this case an organization uses EC internally to improve its operations. B2E is business to employees, in which an organization delivers products or services to its employees.

2. How is corporate decision making improved?

Management implement Pocket PC that enables employees to enter the inventory tallies directly in to electronic forms. So inventory information can be relayed instantly to Hi-Life’s headquarters. Then compact barcode scanner was added on in the Pocket PC’s expansion slot. This new feature expedites data entry and minimizes errors in product identification. The Up – to – the second information enables headquarters to compute appropriate inventory levels in minutes, to better schedule shipments, and to plan purchasing strategies using decision-support system formulas.

3. Summarize the benefits to customers, employees and the company.

To Organization

Inventory taking has been reduced from 21 to less than 4 hours per store, per count. Errors are down by more than 90 percent order placing is simple and quick, and administrative paper work has been eliminated. Furthermore quicker and more precise inventory counts have resulted in lower inventory levels and in quicker response times for changes in demand. The entire product-management process has become more efficient, including stocking, price checks, and reticketing.

Faster and better inventory and purchasing decisions are enabled at headquarters, contributing to greater competitiveness and profitability for Hi-Life.

To Employee

Hi-Life’s employees now have more time to plan, manage and chat with customers.

To Customers

- Retrieves relevant and detailed information.

- More qualitative service and customer satisfaction

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