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CLOSING CASE STUDY TWO (p. 90)WHEN MAKING A DATABASE OF PRIVATE AND COMPANY-STRATEGIC INFORMATION AVAILABLE TO THE PUBLIC CAN BE GOODThe two closing case studies in this chapter set in diametric opposition to each other.This one covers when making publicly available information can be good.QUESTIONSWhat is your first reaction to Glaxo’s approach to finding a cure for malaria? Is it a legitimate initiative or simply a smoke-and-mirrors marketing ploy to get the public to believe that it cares about so-called neglected diseases in third-world countries?DISCUSSIONAnswers here will vary greatly.No right or wrong answers.What role could a social media tool like Facebook play in supporting this initiative? What information could Glaxo and the volunteer researchers share on Facebook to speed up the process of finding a cure for malaria?DISCUSSIONSocial media is an important tool in this initiative.Obviously, any results can be shared via social media.Search the Web and find at least two sites at which you can participate in “saving the world” through some sort of crowdsourcing initiative. What sites did you find? Who sponsors the site? What is the “save the world” focus?DISCUSSIONMany good sites here.Toyota’s Ideas for Good, Fun Theory, Pepsi Refresh Project, and so on.What role can analytics play in facilitating this type of research? What “intelligence” would be important to capture and share with everyone? What sort of information regarding the 13,500 available compounds could be displayed in a digital dashboard?DISCUSSIONAnalytics is essential for this effort, as it largely scientific and based on data.Therefore, analytics and the sharing of information are essential.Digital dashboard answers will vary greatly and are all correct.CLOSING CASE STUDY ONE (p. 59)COCA-COLA IS EVERYTHING: SCM, CRM, ERP, SOCIAL MEDIA, YOU NAME ITIn this case study, your students will explore how Coca-Cola uses technology to supports its business operations and initiatives. As with most large organizations, Coca-Cola uses all types of types, including all the ones presented in this chapter.QUESTIONSWhy is standardization so important in supply chain management? Coke is developing its own set of software services for bottlers to use. Do you think Coke charges the bottlers for these software services? Why or why not?DISCUSSIONSCM crosses many organizations in a typical supply chain.All organizations must “speak the same language” through standardization; otherwise their IT systems cannot be integrated.Coke probably does charge for the software services through its bottling/franchising contract.How is My Coke Rewards an example of a switching cost? How can a switching cost not have a monetary penalty associated with it?DISCUSSIONIt is a switching cost because it is something that endears customers to Coke, and thus makes it difficult for them (almost on an emotional level) to switch to another soft drink.Anything that makes people reluctant to switch can be a switching cost.What sort of business intelligence could Coke gather from its My Coke Rewards Web site. How could it use this information for customer relationship management activities?DISCUSSIONA lot of business intelligence, some of examples are:Things (race car driving, etc) liked by people according to drink category – diet, caffeine free, etc.Correlation between magazine preferences and music preferences.Your students can combine any two things mentioned in that part of the case study and come up with some reasonable form of business intelligence. Visit Coca-Cola’s Facebook page. Can you buy coke products there? What social media tools are present that allow you to communicate with Coca-Cola?DISCUSSIONThere are many including blogsYou’ll need to visit Coke’s Facebook page for the most up-to-date answer.Now, visit Pepsi’s Facebook page. Compare and contrast it to Coca-Cola’s Facebook page. Which have more eye appeal? Which seems to have more activity? Why do you think this is true?DISCUSSIONAnswers here will vary greatlyAll answers are correctCLOSING CASE STUDY TWODecision Support Is Good for Your Health (p. 121)In this second closing case study, your students will explore how the health care industry is using decision support to provide better and more affordable healthcareQUESTIONSThe system discussed in this case was a decision support system. However, other types of computer aided support are utilized in medicine. Can you think of ways that the medical profession could use AI systems? For example, how about pattern recognition? Could that help in diagnosing illness?DISCUSSIONNeural networks are already used in the detection of cancer cells in mammograms and other tests.Intelligent agents search for diagnoses and treatment options in huge databasesThe very first expert system in the 1980’s was called MYCIN and was built to detect blood disordersA big worry in the collating and aggregation of medical information across departments and even medical institutions is that the more access there is to a person’s medical information, the more exposed that personal information becomes. HIPAA (Health Insurance Portability and Accountability Act), signed into law in 1996, addresses the security and privacy of your health data. The law was enacted to try to ensure that medical records, electronically stored and transferred, would be protected. Do you think that making your medical records available to the various branches of the medical industry (doctors, therapists, insurance companies, hospital billing, etc.) is, on the whole, good or bad? Why? Can you think of any instances where disclosure of medical information could cause problems for a patient? DISCUSSIONAnswers here will vary according to each student’s stance on privacy.The advantages of one file per patient across all departments is that copies don’t have to be made continually; the file is not in use by someone else when medical staff need to consult it; and corrections made in one part of the file are then available to everyone instead of inconsistent information being storedThe bad aspect of this is, of course, that access to any particular part of the file is potentially available to all medical staff. This might not be desirable. You could ask your students in what cases this might be a problem.Could analytics be a part of the HHC decision support system? If so, what sort of data would it analyze? What might it tell medical staff? Would it be useful only to those who are already ill or could it help healthy people? How?DISCUSSIONPredictive analytics could be used in many medical situationsIt could be used, for example, to predict the likelihood of someone’s ability to stop smoking.Analytics could be used for both sick and well people A clinical study has shown that telemonitoring, discussed briefly in this case, helps in keeping down medical costs. In fact, monitored patients were hospitalized about half as often as those with the same illnesses who were not monitored. Emergency room visits were five times more likely among those who were unmonitored. What types of illnesses could be monitored this way (think chronic diseases like high blood pressure)? Would it make sense to use the system as follow-up care? How could this data be utilized to help those might become sick in the future? Into what part of Isabel would this data fit?DISCUSSIONDiabetes is one such illnessPost operative care is anotherThe system would most definitely be useful as follow up careTogether with predictive analytics, follow-up care with telemonitoring could avert many situations that could become emergency room visit.Could an automated medical diagnosis system ever replace live doctors? Why or why not? Would you trust an experienced doctor over a database that you could query yourself? Why or Why not?DISCUSSIONPeople don’t usually feel comfortable with machines totally in charge of medical diagnoses and treatment even though statistics indicate that they may be more accurateStudents may have different opinions on this pointCLOSING CASE STUDY ONE (p. 151)WHEN YOU’RE BIG, YOU CAN BE YOUR OWN B2B E-MARKETPLACEIn this first case study your students will explore the use of an e-marketplace in the B2B e-commerce business environment. But this isn’t an ordinary e-marketplace. It supports only one buyer, Volkswagen AG and it requires all its suppliers to use it.Volkswagen AG is so big that it can build its own private e-marketplace and require all suppliers to participate in it.QUESTIONSVolkswagen operates its own proprietary B2B e-marketplaces in which its suppliers participate. What are the disadvantages to Volkswagen of not using a generic B2B e-marketplace with even more suppliers? What are the advantages to Volkswagen of developing and using its own proprietary B2B e-marketplace?DISCUSSIONPotentially, Volkswagen could be missing out on using a new supplier entering into the market. The new supplier would go to a generic e-marketplace and start its advertising campaign. To attract the attention of Volkswagen, the new supplier would have to go directly to Volkswagen.As well, Volkswagen may be missing out on some demand aggregation because it does not let other buyers participate in its e-marketplace.From an advantage point of view, there are tremendous benefits. Volkswagen can determine how the e-marketplace will operate. It can gather vast amounts of competitive intelligence on it suppliers. And it has greatly reduced supplier power because it is the only buyer.When Volkswagen needs a new part design, it uses to get its suppliers involved in the design process early. This creates a tremendous amount of inter-organizational collaboration. What are the advantages to the suppliers and to Volkswagen in doing so?DISCUSSIONThe suppliers receive the advantages of working closely with one of their biggest buyers. That way, they can be sure to develop the part exactly as Volkswagen wants it. As well, the suppliers receive the benefit of completely understanding what Volkswagen wants and why it wants it.Volkswagen benefits in similar fashions. It can work closely with its most trusted suppliers. It can get the suppliers to design the exact product needed. And it can utilize the expertise of the supplier organizations in designing a new part.How is Volkswagen’s B2B e-marketplace an example of a vertical e-marketplace implementation? How is it an example of a horizontal e-marketplace implementation? Why is it necessary that Volkswagen combine both of these e-marketplaces into one e-marketplace? What would be the drawbacks to creating two different e-marketplaces – one for suppliers of direct materials and one for suppliers of MRO material?DISCUSSIONVolkswagen’s e-marketplace is a vertical e-marketplace because it is only for it and suppliers in the automotive industry.Volkswagen’s e-marketplace is a horizontal e-marketplace because it also include suppliers to MRO materials that Volkswagen needs.Both of these must be combined because Volkswagen only participates in this e-marketplace and needs both direct and MRO materials.By creating two different e-marketplaces, Volkswagen would be duplicating many processes and have redundant information. This would be necessary – but not beneficial – to run both e-marketplaces.To make effective purchasing decisions, Volkswagen’s purchasing agents need business intelligence. What kind of business intelligence does iPAD provide to purchasing agents for carrying out their tasks? What additional kinds of business intelligence not discussed in this case could Volkswagen’s purchasing agents take advantage of to make more effective decisions?DISCUSSIONIPAD provides a variety of business intelligence including the need for inventory parts, lists of potential suppliers, and the costs of the parts for each supplier.The iPAD system could include other forms of business intelligence (and it may very well) including suppliers according to their number of defective parts per million and suppliers according to how long they take to deliver their parts.IPAD manages the workflow for purchasing agents. Describe how iPAD manages this process including information provided, steps to be executed, and the presentation of information.DISCUSSIONIPAD manages the workflow process in many ways.It provides the necessary information – in the native language of the purchasing agent (which is the presentation of information through a Web browser) – including the needed inventory, the list of potential suppliers, and the costs associated with each supplier.The steps in the workflow process include (1) presenting the business event, (2) providing the supporting information, and (3) sending the work flows electronically once they are completed.CLOSING CASE STUDY TWO (p. 153)THE MOBILE COMMERCE EXPLOSIONThis second closing case study builds on the emerging e-business trend of mobile commerce.QUESTIONSTake a survey in one of your classes. What percentage of students own smartphones? Gather some data regarding how they use their smartphones for shopping. Do they use a smartphone to compare prices? Do they use a smartphone to read product reviews? For what other shopping-related activities do they use their smartphones?DISCUSSIONAnswers here will vary according to the group surveyed.To be sure, young people shop and review products with their smartphones.How do you think large brick-and-mortar retailers like Best Buy and Walmart can compete in a world quickly moving to smartphone-enhanced shopping? Do you think smartphone-enhanced shopping will outrageously transform brick-and-mortar retail, perhaps putting many retail chains out of business? Why or why not?DISCUSSIONSmart businesses are embracing mobile commerce and developing strategies to make it an integral part of their store experience.Some businesses, however, will go out of business because of mobile commerce. See if your students can identify any such businesses that have gone under in recent years because of technology.Many retailers are creating proprietary in-store apps for shoppers. Some of these apps help shoppers find the location of products in the store, while others recommend complementary products based on product searches. For an in-store app, say for a Best Buy store, identify and describe three additional features that you believe shoppers would benefit from and encourage them to make purchases in the store.DISCUSSIONIdeas would include: bundling products and offering a discount, complimentary recommendations, and in-store fast deals Esurance () has a slogan that states, “People when you want them, technology when you don’t.” This speaks very much to the increasing role of technology in customer service. What do you think about this? Can (and should) technology take over the primary customer-facing role for an organization, especially a retail store? Will stores like Nordstrom lose their competitive advantage based on superior customer service?DISCUSSIONTechnology is becoming very much a part of customer service.Technology can be very effective in this role.However, good old fashioned face-to-face quality customer service will always be best.What about people who can’t afford a smartphone? Will they disadvantage while shopping? When do you think smartphones will become affordable to all, say in the price range of $40 to $50?DISCUSSIONGood discussion questions.Inexpensive smartphones should be available.CLOSING CASE STUDY ONE (p. 218)PUBLIC PERSONAL CLOUDSIn this first case study, your students will explore several of the more popular public clouds designed for use by individuals.QUESTIONSDo some research on Amazon’s Cloud Drive. What is the amount of free storage space? What is the annual cost for additional storage? What about Apple’s iCLoud? Is it still free? Does Microsoft charge anything for use of its SkyDrive cloud service?DISCUSSIONWe can’t provide answers here as we cannot predict the future.Putting all your personal information in the cloud means letting go of some control over information like your tax files, personal photos that might not want anyone else to see, term papers you’re currently writing, and so on. What is your level of concern for the security of these personal digital assets in the cloud? Explain why your level of concern is high or low.DISCUSSIONAnswers will vary greatly according to your students.All answers are correct.As we move more of our personal storage needs to the cloud, will computers really need disk storage space? Is it possible that we’re in the early stages of an outrageous industry transformation? Who are the major manufacturers of disk storage for personal computers and laptops?DISCUSSIONLaptops and tablets are certainly becoming more thin.Often, with less storage.We may be in the middle of an outrageous industry transformation.If you choose to store all your personal information in the cloud, you’ll need a personal continuity plan, much like organizations have business continuity plans in case of some sort of disaster. Suppose that right now you begin storing all your personal information only in the cloud. Of that information, what will you also backup onto a flash drive? How often would you perform the backup process? How often do you currently backup information on your computer’s hard drive?DISCUSSIONGreat questions for class discussion.No right or wrong answers.Do some research on personal cloud providers. What sort of service level agreement (SLA) do they offer? Are you willing to store your information with a personal cloud provider that offers no SLA? Why or why not?DISCUSSIONAgain, great questions for class discussion.All cloud providers offer SLAs. ................
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