Management Information System MIS 201

Management Information System MIS 201

Case Study 3: Driving Ari Fleet Management with Real-Time Analytics

• Why was data management so problematic at ARI?

The company managed data for over a million vehicles in the US, Canada, Mexico, Puerto Rico, and Europe, which was overwhelming. This included the management of an entire life cycle and the operations of a large number of vehicles for its clients and data collection on fuel management, repairs, maintenance, financing, and the management of risks for all the customers. ARI also maintained data for six of its call centers in North America, which operated throughout the year. It provided assistance regarding accident response, repairs, preventative measures, and other driver needs.

Additionally, to provide reports to internal users, it took ARI approximately 5days to compile the report, and if the report weren’t satisfactory, it would have to be recompiled. With the considerable amount of data that ARI was handling for customers and the company itself, it became almost impossible for the company to do business as usual in terms of data management.

• Describe ARI’s earlier capabilities for data analysis and reporting and their impact on the business.

Automotive Resources International alias ARI is the world’s largest privately-owned company for vehicle fleet management services, with its headquarters in Mt. Laurel, New Jersey. As a result of its sizeable operational capacity, the company was involved in the collection and analysis of over 14,000 pieces of data per vehicle and with some customer’s fleets having up to 10,000 vehicles (Laudon and Laudon pg. 233). It only meant that the company handles an enormous volume of data. ARI was capable of providing detailed information to customers in regards to fleet operations; however, the kind of information it delivered was limited. Similarly, ARI was able to analyze data customer by customer, but it wasn’t able to aggregate data across the entire customer base.

Additionally, when it came to the creation of reports, ARI had to reach out to operational fleet experts who were referred to as “reporting power users” and whom information requested by customers was forwarded to. A request for a report took 5days on average for it to be complete, and if the customers weren’t satisfied with the report, it would be sent back to the report writer for amendments. This culminated in ARI’s processes of data analysis being cumbersome and impacting negatively on the company’s business.

• Was SAP HANA a good solution for ARI? Why or why not?

Yes, it was the right solution. Because with SAP HANA, whenever the controller at ARI wanted to produce an analysis of ARI’s top 10 customers, the results would be out in about 3 to 3.5 seconds, which was extremely fast. Unlike before where such a task had to be attended to by a power user who was conversant with reporting tools, specifications formulated, and a program for that query designed, which would take roughly 36 hours.

• Describe the changes in the business as a result of adopting HANA.

HANA has benefited the company by reducing the amount of time spent on every transaction handled by ARI’s call centers, i.e., from when a call center staffer receives a call to the when he/she retrieves and delivers the requested information, by 5%. There has been a significant reduction in terms of cost because call center staff are estimated to be about 40% of ARI’s direct overhead, and this translates into substantial cost savings for the company.

Furthermore, with the introduction of HANA, ARI can now quickly retrieve its substantial data resources and formulate predictions based on results. The company is also capable of providing a simple history to each customer on their expenditures on fuel. Through the provision of such information to customers, ARI can provide more value to its customers, thus improving its business outlook.

Case Study 4: Zappos

1. Define SCM and how it can benefit Zappos

Supply Chain Management (SCM) refers to management regarding the flow of goods and services through supply chain activities. It includes processes that involve the transformation of raw materials into final products. “Supply Chain Management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption” (Oliver and Webber, p.65)

It would benefit Zappos in the sense that it would guarantee product and material flow in Zappos, provide efficient flow of finances, increased output, lower the cases of delay of products being delivered to customers, and reduce operational cost.

2. Explain CRM and why Zappos would benefit from the implementation of a CRM system.

Customer Relationship Management(CRM) refers to a set of guidelines and procedures that an organization embarks on when it is interacting with its customers and prospects as well, with the aim of improving the business relationship. It is simply a technological tool that manages the company’s interactions with customers.

The implementation of a CRM system at Zappos would be beneficial because the organization will be able to have improved customer retention, a better understanding of the customer needs, and anticipation, and easier access to customers, and it would also guarantee the privacy of customer data. In addition, the system would allow for the identification of sales opportunities, storage of customer contact information, and management of marketing campaigns.

3. Demonstrate why Zappos would need to implement SCM, CRM, and ERP for a connected corporation.

Implementation of SCM, CRM, and ERP systems would be necessary because, with the integration of the three systems at Zappos, it would provide for a wide range of services and consequently cause the much-needed success and profits aimed at Zappos. With the three systems installed, there would be guaranteed product flow to customers, thus ensuring that supply at Zappos meets the demand in the market. All customer needs and requirements would be catered for at all times, and there would also be a smoother flow of information between and amongst the various department at Zappos. In a nutshell, with the implementation of the three systems, Zappos would be an epitome of a successful company with all the possible aim/objectives being achieved.

4. Analyze the merger between Zappos and Amazon and assess potential issues for Zappos Customers.

The merger between the duo has significantly expanded the economies of both Amazon and Zappos, and as a result, the marketing capabilities, branding powers, and operations have increased. The scope of customers has also expanded, meaning that the duo can now access a much larger market.

The potential issues include the following;

1. Zappos culture- With the two companies being merged, questions arise on whether Zappos’ culture will still be maintained or it will get eroded over time.
2. Objectives- before the merger, the two companies had their own goals, which now appear to be conflicting in one way or another with the duo being merged.
3. Propose a plan for how Zappos can use Amazon’s supply chain to increase sales and customer satisfaction.

Zappos’ sales can be increased using Amazon’s supply chain by capitalizing on improved ‘on-time delivery’ which helps in building trust with clients and also through the use of the technology at hand to enhance visibility and track inventory, which culminates in increased sales. Customer satisfaction, on the other hand, can be improved by using Amazon’s supply chain and ensuring that Zappos doesn’t run out of stock.

Work Cited;

Kenneth C. Laudon and Jane P. Laudon. Management Information System; Managing the Digital Firm, Thirteenth Edition, 2005(232-235)

Oliver, R. K., and Webber, M. D., 1982. Supply-chain management: logistics catches up with strategy. In: M. Christopher, ed.1992. Logistics: The strategic issues. London: Chapman & Hall, pp. 63-75