ZARA CASE

Problem/Issue Statement

The problem that Zara faces is that they are using DOS operating system for their PDAs and POS terminals. DOS operating system does not require a lot of computing resources, which makes it easy and cost proficient to maintain. However the user interface is not friendly for people used to Smart Phone Touch Screens and it requires additional training for the new employees. Since 2003, DOS is not supported by any vendors and in the future it will be harder for Zara to keep up with any new market trends.

The symptoms are very clear in this case. DOS does not support Store Managers with inventory count for their own store, any new garments and trends need to be seen through the small screen of Zara’s PDAs, and returns had to be completed through the same screen, which customers and store managers complained to be a very time consuming process.

The scope of the problem is Zara’s retail stores that are not supported with enough data. It is harder for management to make decisions based only on physical observation and customer service is hurt by stores not being able to see what inventory neighbor stores have at the moment.

Situation Assessment

The context of the problem is that Zara does not have a written declaration in their contract that the hardware vendor will continue to provide them with machines that support DOS. Even if he continues to do so, DOS cannot accommodate networks within stores and across the company, which potentially hurts store management decisions.

The decision criteria are what program should the company use for the future? Or should they continue using DOS? To find out the best answer, Zara should make a outline and start comparing solutions for their options.

List of Plausible Alternative Courses of Action

  Continuing the use of DOS.

  Purchasing enough of the current POS terminals now.

  Integrating new operating system such as Windows or Linux.

       Upgrading Software procedures for improved functionality.

  Buying modern PCs that will amplify capabilities of store management. 

All the above mentioned alternatives will provide the necessary inter-terminal communication. So instead of directing the inventory requirement to the head office, the individual stores can exchange the inventory as per their requirement and also order the necessary inventory from the warehouse quickly. This will reduce the lead time and better fulfill the customer demand. The upgradation with multifunctional system will also resolve the problem of obsolete hard-ware requirement. The up-gradation will completely remove the existing lacuna and will also come in line with the latest technology used by majority of businesses. Hence, the problem of hard-ware parts will be out of question. Also the compliance of regulations for the IT governance will be met more stringently.

Evaluation of Alternatives

Zara should evaluate their alternatives by seeing which one would work the best for the company. The executives should make a template and weigh up each option.

By evaluating each option, Zara can chose the best alternative that will make them independent of their hardware vendor as well as help the company stay current with market trends.

Recommendation

My recommendation for the company would be to upgrade their operational system. Although DOS works well for them, the future is not in it. It makes them dependent of their hardware vendor and opening a new store may become risky if they cannot provide it with the same hardware tools. It will be impossible for the company to run on different operational systems and therefore Zara should update before it’s enforced to do so.  A newer system such as Windows will support store management with more information and it will increase efficiency of customers’ returns.

Reflection on the Junk Van Case

As a follow-up to consultants’ presentation on Tuesday night of the new proposed IT infrastructure, I have seen and analyzed all options for and against the adaption of PaaS. The advantage I see for adapting PaaS is that one can easily franchise the business as the PaaS can migrate data quickly. Cloud computing will bring Junk Van economies of costs and resources which ultimately can help guide company to have superior performance. In addition, PaaS can have multiple users concurrently using the same integrated application development environment, as well as giving the option to employees who are more ambitious can build their own unique applications.

As the company grows, I believe that possible drawback can be the transition from PaaS based system to an ERP. The issue is that PaaS is cloud-based computing platform while ERP is an infrastructure based and localized system. An ERP system is built around one central database and it requires dedicated database administrators. This increase comes from the fact than an ERP system is that the system is built around one central database maintenance and labor costs. Nonetheless, as the technology evolves this problem might be mitigated and not be as dire and problematic issue to overcome.

iPads for pharma representatives

To: Mr.Armstrong and Mr.Wolfson

From: Shivangi Gosai

Date: 6/25/1990

Based on the discussion in the last meeting regarding the idea of bringing in the iPads for Pharma Representatives, here I present you with my analysis. While working to implement a new commercial model for a contract sales organization (CSO), we are thinking to develop an end-to-end solution to allow the company to deploy an industry first “one-device” solution for its representatives. The challenge that we are facing is to take advantage of the unique strengths and limitations of the device, the needs of sales representatives had to be balanced with the needs of the home office.

Here, we can set up a cross-functional team of consultants with sales and marketing experience, client area sales directors and home office staff, with the goal of deconstructing a sales rep’s day and identifying which key iPad-based tasks truly create unique business value. In order to meet this challenge, we should carry out analysis on the sales force activities. Business needs to automate, redesign or eliminate many activities that were typically performed manually, or on disparate systems. This will allow the representative to focus on tasks that truly add unique business value. By applying an iterative process of isolating key areas of value and then simplifying the way the user can capture that value, the team can create a focused user experience that goes beyond simply replicating the functionality of existing desktop applications.

The advantage of implementing the above idea will help sales representatives conduct all their promotional and administrative activities using their iPads and will not require a separate laptop either on the road or at home. The end result is a streamlined system that delivers a user experience focused on the needs of sales representatives and healthcare providers, while delivering lower total cost of ownership and enhanced value to the home office.

Sales reps enabled with iPads can perform call management activities as well as administrative tasks such as e-mail, expense reporting, event management setup, samples management and call activity reporting while on the move between physician visits. Representatives do not need to wait until day’s end for reporting and other administrative tasks. iPads also enable precall preparation and access to critical detailing material when on the move. The ease of operation of the iPad makes it more likely that sales reps capture data throughout the day, thus enabling more accurate call reporting and improving overall efficiency.

According to the Manhattan Research’s new ePharma Physician® 2012 study, the healthcare market research firm surveyed 1,819 practicing U.S. doctors to study how they use digital and Internet tools to research drug information. The firm discovered that in the span of just one year, the percentage of pharmaceutical company representatives using the iPad when meeting with physicians had more than doubled from 30% in 2011 to 65% in 2012.

Cost reduction:

Mobile devices like the iPad require an initial investment in hardware, technology and supporting infrastructure, but in the long term they can help lower overall operating costs. All content ranging from marketing material to training content can be pushed to the mobile device and made available almost immediately to pharma sales reps. The costs of physical distribution and implementation are significantly lower as most sales processes can be digitized and virtualized. In addition, the overall increase in productivity by 32% and efficiency by 39% has the potential to result in substantial cost savings. Pharmaceutical companies will save up to $500,000 by no longer printing sales materials.

In the end, the iPad is a popular and well-equipped tool with the potential to change how data is consumed by pharma and biotech professionals. I advise organizations to look at how they can exploit the iPad’s functionality to make faster and more accurate business decisions without losing the human element of the physician-sales rep relationship.

For any further questions, feel free to contact me

Regards,

Shivangi Gosai

Junk van case analysis

Problem/Issue Statement:

The problem in this case is that the company does not have an ample IT system that can support, sustain and help grow its operations. There are Several symptoms of this problem which includes: information errors and inefficiencies that were negatively impacting operations (extremely time consuming process of fixing the database, forgotten emails, low customer service quality and loss of customers) and increasing costs (driver’s data consolidation reduces their productivity, billing errors). The scope of the problem includes every aspect of the company’s operations from ownership, operation, data entry to drivers and helpers and inevitably, the customers. Due to the poor design of the system and its inadequacies, personnel cannot efficiently devote their time to their daily tasks.

Situation Assessment:

The context of Kingo’s problem lies in the fact that customers were becoming dissatisfied with the Company’s service. Kingo believed in his virtual model and not having a central office location, however having a database that needed to be e-mailed back and forth without the ability to be used by multiple employees at a time was causing issues. 

The decision criteria for Kingo in the new IT system were as follows:

• There needed to be a centralized database which could be accessed remotely since everybody would be working on it simultaneously from different locations.  Internal information should no longer be e-mailed back and forth between the call operators and the data clerk.
•   E-mails to customers should be automatically sent from the system in order to avoid mistakes and resulting delays.
• With no IT background and a business too small to justify hiring a dedicated IT worker, the solution needed to be easy to implement and operate.
• The system needed to be flexible and robust enough to handle evolutionary changes in the market or the business.
• Vendor support was essential; Kingo wanted to be able to rely on someone for support for as long as his Company was using the system.
• Time to implement was critical.  The new system needed to be up and running as soon as possible.
• Last, but certainly not least, Kingo was on a budget.  The system needed to be affordable.

List of Plausible Alternative Courses of Action:

Possible information technology solutions referenced in the case would meet some, if not all, of the requirements specified by the owner. They include the following:

• Microsoft Access Database –Access can be installed on multiple computers locally as well as on a centralized server to be accessed remotely through the Internet and a VPN.
• Custom Application – this web-based system is built as a completely customized application for the business. It would meet requirements of a central database and provide remote access as well as provide some basic functionality. It could be built within 4 weeks at an upfront cost of $2,000 and maintenance cost of $60 per hour.
• Google Docs – this online application allows quick creation and sharing of documents. It allows many individuals to simultaneously work in one file and in collaborative system environment. Option supports different user profiles, email distribution, is low in cost, easy to use, and could be implemented quickly. 
• Platform as a Service (PaaS) – This option is delivered on a cloud-computing infrastructure and would provide network capacity as well as some basic functionality on demand and through the Internet. Users could utilize common applications, build their own unique applications using a shared computing platform that is provided and hosted by a third party. The application is relatively easy to use and quick to implement. Service package ranges from $300 to $600 per month depending on how much storage space and how many user licenses and applications are needed. Long term contracts are not required and service can be canceled or expanded at any time with a one month’s notice. 
• Enterprise Resource Planning (ERP) – built around a central database, this type of system is designed to be accessible remotely and cover business processes that reflect every aspect of the business. The implementation is very costly and expects a larger number of users at a cost of $2,500 per user.

Evaluation of Alternatives:

Each one of the solution types referenced above has advantages as well as disadvantages. One of the main factors that should be considered in this case is the value, functionality and possibility to accommodate the growing business in the future. When implementing any of the solutions, Mr. Kingo should deliberate on the following with regards to each option:

•  Microsoft Office Database – while the implementation of this option would be timely and inexpensive ($179 per computer) Kingo is planning to invest his own time in developing the database and therefore forgoes potential opportunity cost associated with sacrificing his own time to develop the tool, as opposed to using his entrepreneurial skills and growing the business (this aspect should be evaluated with each option). We do not know how many licenses would be needed. We need to consider cost of hosting the shared server and possible professional developer assistance. This selection would not meet the expectation of allowing for remote access and thereby would not eliminate the errors associated with manual updates.
• Custom Application – implementation of this option would be timely but the total cost is difficult to estimate due to inability to predict how much maintenance would be required. Quotes provided to Kingo also do not include data migration. Although a completely customized application would be web-based, allow for remote access and meet functionality requirements, Kingo would not be able to assess whether the developer understood the business needs and whether the application is user friendly beforehand. Since there is a high potential for misalignment of requirements, future rework and support can become costly.
• Google Docs – while the implementation of this option is inexpensive and timely, and the collaboration and functionality would accommodate most of business requirements, it would not eliminate the problems accompanying management of a large database in a single excel spreadsheet. Furthermore, lack of formal customer support, potential security and sustainability concerns need to be carefully considered.
• Platform as a Service – although Kingo was not sure if he possessed the necessary IT skills to take advantage of the independence of PaaS offering, he could use external IT services to overcome this obstacle. Before making a decision, Kingo would need to understand how much of a platform he would want and how much he is willing to pay. Customization of the platform is available at $180 per hour therefore it is in his best interest to have a very good plan and layout of requirements based on the familiarity with the trial he observed with the sales representative.
• ERP System –Kingo finds it difficult to extrapolate the cost estimates to his business and is unsure of the particular applicability of the package to suit his business needs. Furthermore, the application offers modules that appear static, focus mainly on production and finance, which are not a top priority for his company.

Recommendation:

Based on the understanding of business requirements, evaluation of the alternatives, characteristics and commercial terms of each option, I believe that the logical and quality recommendation that will best suit the business needs would be to select the Platform as a Service Option. This option will provide the business with better operational system, central database, remote accessibility, flexibility and robustness capable of accommodating future grown and evolutionary changes in the market of the business. There is also ability to customize the application that will allow for automatic email notification system. The system is easy and quick to implement, and offers vendor support should any problems occur.