Wildstrom, Stephen H. From Apple: Organization Made Easy; Using the vocabulary of !Tunes, Bento makes the power of the database user-friendly. Business Week. New York: Feb. 18, 2008. , Iss. 4071; pg. 76
This article from Business Week discusses the importance of databases to the everyday consumer. Everyday we use databases to buy plane tickets, make online purchases, to pay our bills or get our paychecks and many other everyday essential tasks. The article mentions however useful these databases maybe in our daily lives there are very few individuals with the programming knowledge to create such databases on our own personal computers.
The article reports that FileMaker which is a part of Apple Inc. has come up with an application that will change all that. It created a $50 database called Bento for use on Mac computers. The firm took an existing data-base management program called FileMaker Pro which is used in small businesses and combined it with the Mac's new operating system. This new organization tool can be used at home to manage personal information like planning a birthday party or a simple project at work. Instead of using traditional database terminology, Bento mimics the database interface that most personal users are most familiar with, the ITunes library. It doesn't use the term database to describe a collection of data but rather calls such a collection a "library." The system maybe user friendly but it still has the advantages of a traditional database including data security, sophisticated searches, and filtering.
This type of database would be very useful for organizing personal data at home or small projects that are not complicated enough to need a regular database like FileMaker Pro. Unfortunately, right now it is only available for Mac computers. Hopefully the product will become popular just like !Tunes did and it will be offered in a version that is compatible with PCs. I think this article is very relevant to what was discussed in Chapter 6 of the textbook on the use of databases to improve business performance and decision making. I believe these same concepts hold true in our daily lives. We are constantly faced with decisions ranging from whether to buy a house to how to balance a family's busy school, work, and activity schedules. If there was a way to store all the important information we need to make decisions in our personal lives then we all might be able to use our limited time and resources more wisely.
Sunday, April 20, 2008
Chapter 5 Case- Merrill Lynch Connects Past and Future Technology
1.) Why did Merill Lynch need to update its IT infrastructure?
Merill Lynch needed to update its IT infrastructure in order to remain competitive. One of the most important ways to do so was to provide customers with Internet-based applications that provided them with up to date access to portfolios and the tools needed to work with those portfolios. There are many competitors in the financial management industry and if Merill Lynch cannot maintain its technological edge then those competitors will take advantage by offering a more user friendly web interface and variety of tools for customers to take advantage of. Merill Lynch also needed to consider its IBM mainframe and how to include it in the update of its IT infrastructure. The mainframe provided a strategic advantage in terms of processing power but did not have compatible software for implementing Internet-based applications that were needed to stay competitive.
4.) Do you think that Merill Lynch's decision to sell off its successful technology initiatives was a good idea? Why or why not?
I think that over the short term it was a good idea for Merill Lynch to sell of the technology. It gave the firm a large amount of money to re-invest in IT or other areas of the company and helped recoup some of the $1 billion in costs that the firm spent over a three year period to update the financial advisers' financial management applications. However, in the long-term it might leave Merill Lynch at a competitive disadvantage because now its competitors have access to this new IT infrastructure. The competition can now go to SOA Software and purchase the system for $125,000, which is a lot less then the $1 billion plus that Merill Lynch invested to develop and launch X4ML. If the competition is able to take advantage of the applications of this IT system in the same way that Merill Lynch did then Merill Lynch could loose its competitive advantage. Merill Lynch may have been better off licensing the technology to different companies, at lease then it would have had some control over whether competitors had access to the technology.
Merill Lynch needed to update its IT infrastructure in order to remain competitive. One of the most important ways to do so was to provide customers with Internet-based applications that provided them with up to date access to portfolios and the tools needed to work with those portfolios. There are many competitors in the financial management industry and if Merill Lynch cannot maintain its technological edge then those competitors will take advantage by offering a more user friendly web interface and variety of tools for customers to take advantage of. Merill Lynch also needed to consider its IBM mainframe and how to include it in the update of its IT infrastructure. The mainframe provided a strategic advantage in terms of processing power but did not have compatible software for implementing Internet-based applications that were needed to stay competitive.
4.) Do you think that Merill Lynch's decision to sell off its successful technology initiatives was a good idea? Why or why not?
I think that over the short term it was a good idea for Merill Lynch to sell of the technology. It gave the firm a large amount of money to re-invest in IT or other areas of the company and helped recoup some of the $1 billion in costs that the firm spent over a three year period to update the financial advisers' financial management applications. However, in the long-term it might leave Merill Lynch at a competitive disadvantage because now its competitors have access to this new IT infrastructure. The competition can now go to SOA Software and purchase the system for $125,000, which is a lot less then the $1 billion plus that Merill Lynch invested to develop and launch X4ML. If the competition is able to take advantage of the applications of this IT system in the same way that Merill Lynch did then Merill Lynch could loose its competitive advantage. Merill Lynch may have been better off licensing the technology to different companies, at lease then it would have had some control over whether competitors had access to the technology.
Sunday, April 13, 2008
Article Summary
Liang, H., et al. Assimilation of Enterprise Systems: The Effect of Institutional Pressures and the Mediating Role of Top Management. MIS Quarterly. Vol. 31 No. 1, pp. 59-87/ March 2007.
In the article from MIS Quarterly, the authors discussed how they developed a theoretical model that involved investigating how the top management of companies involved in implementation of enterprise resource planning (ERP) systems were able to interfere with external pressures which impact how much new ERP systems are actually used. These external pressures included pressure from suppliers, customers, competitors, professional networks and governmental agencies. The top management was said to be the "organization's primary human interface" when it comes to the external environment. The authors tested their hypothesis by obtaining survey data from different companies that had already implemented new ERP systems and then used a parital least squares analysis to determine how managers at those companies handled external pressures. The results of the study indicate that institutional forces strongly influenced the assimilation and use of ERP systems. The study concludes that it is important for top managers to facilitate ERP assimilation by giving into institutional pressures so that all features of ERP systems are integrated within the firms business processes.
The article relates back to what was discussed in chapter 3 regarding the interdependence of the business environment, the organization's culture, the business processes, business strategy and developing information systems like ERP systems. I think the opening case of that chapter on US Airways attempt to merge information systems and get rid of redundant systems ties back into the purpose of the article which is to illustrate that once the implementation phase is complete there is still much that needs to be done to ensure that a new information system improves the value of the firm. U.S. Airways was able to lower costs by consolidating information systems but will it be able to capitalize on those costs by winning the market share? It still faces external pressures from customers and competitors. If the new information system does not work for customers they will take their business elsewhere. Competitors with information systems already in place for some time have the advantage of experience while U.S. Airways is still adjusting to its new system.
My own experiences also relate back to what was discussed in the article. My company recently implemented a new ERP system and it took a very long time for everyone in the company to adjust and for productivity to get back to normal levels even after everyone was trained. Many people were hesitant to adapt to the new system, customers complained because orders were late or lost in the system, suppliers also had issues with getting raw materials into the new system and finally when the company was audited for ISO certification there was pressure from outside agencies to change the system to meet ISO standards. All of these pressures forced the workforce to use the ERP system and allowed it to be more fully integrated into everyday business. Management helped mediate this process by making changes in policy and procedures that allowed the external pressures to be alleviated.
In the article from MIS Quarterly, the authors discussed how they developed a theoretical model that involved investigating how the top management of companies involved in implementation of enterprise resource planning (ERP) systems were able to interfere with external pressures which impact how much new ERP systems are actually used. These external pressures included pressure from suppliers, customers, competitors, professional networks and governmental agencies. The top management was said to be the "organization's primary human interface" when it comes to the external environment. The authors tested their hypothesis by obtaining survey data from different companies that had already implemented new ERP systems and then used a parital least squares analysis to determine how managers at those companies handled external pressures. The results of the study indicate that institutional forces strongly influenced the assimilation and use of ERP systems. The study concludes that it is important for top managers to facilitate ERP assimilation by giving into institutional pressures so that all features of ERP systems are integrated within the firms business processes.
The article relates back to what was discussed in chapter 3 regarding the interdependence of the business environment, the organization's culture, the business processes, business strategy and developing information systems like ERP systems. I think the opening case of that chapter on US Airways attempt to merge information systems and get rid of redundant systems ties back into the purpose of the article which is to illustrate that once the implementation phase is complete there is still much that needs to be done to ensure that a new information system improves the value of the firm. U.S. Airways was able to lower costs by consolidating information systems but will it be able to capitalize on those costs by winning the market share? It still faces external pressures from customers and competitors. If the new information system does not work for customers they will take their business elsewhere. Competitors with information systems already in place for some time have the advantage of experience while U.S. Airways is still adjusting to its new system.
My own experiences also relate back to what was discussed in the article. My company recently implemented a new ERP system and it took a very long time for everyone in the company to adjust and for productivity to get back to normal levels even after everyone was trained. Many people were hesitant to adapt to the new system, customers complained because orders were late or lost in the system, suppliers also had issues with getting raw materials into the new system and finally when the company was audited for ISO certification there was pressure from outside agencies to change the system to meet ISO standards. All of these pressures forced the workforce to use the ERP system and allowed it to be more fully integrated into everyday business. Management helped mediate this process by making changes in policy and procedures that allowed the external pressures to be alleviated.
Chapter 4 Case Study
1.) Do the increased surveillance power and capability of the U.S. government present an ethical dilemma? Explain you answer.
Yes I do think that the surveillance power and capability of the U.S. government presents some ethical dilemmas. The government has the power to create the laws that protect privacy, but it seems that it also has the ability to create laws or agreements that are able to go around the privacy laws and obtain the private information it needs. On the surface it appears that the government is simply doing what is necessary to fight terrorism but it is doing it in a way that does not get the consent of the people it is attempting to protect. The dilemma that presents itself is how much power does the government have and what right does it have to use that power and in what circumstances? Also, do agencies such as the telecommunications firms Verizon and AT&T have an obligation to release private information when it is demanded by the government or should this information be safeguarded unless the correct judicial procedures are followed? The laws are in place to protect privacy rights and it still remains unclear about when it is alright to step around the law to get that information under certain circumstances.
2.) Apply ethical analysis to the issue of the U.S. government's use of telecommunications data to fight terrorism.
Identify and describe clearly the facts: Three of the four major telecommunications companies cooperated with the NSA fight against terrorism by turning over billions of phone records on phone calls made by billions of Americans. The records contain only phone numbers, and calling information (date, time, length of call).
Define the conflict or dilemma and identify the higher-order values involved: Conflict is that privacy groups feel that the program was a "massive intrusion on personal privacy" and was not legal while the White House feels it has the executive powers to take such actions to counter terrorism. The participating phone companies also feel that they must cooperate with law enforcement and government on matters of national security.
Identify the stakeholders: The stakeholders are private citizens, the telecommunications companies involved, the government and the NSA.
Identify the options you can reasonably take: Options include stricter privacy laws that force governmental agencies to provide a warrant or other validation before requesting private information. Or clearly spelling out the situations when the government has the right to obtain private information and what type of information it can obtain.
Identify the potential consequences: Government agencies will not be able to get the information they need to battle terrorism. Citizens will have their privacy violated because governmental agencies have access to too much private information.
5.) My opinion on the agreement reached by the White House and Senate Judiciary Committee with regards to NSA wiretapping is that the agreement gave too much power to the White House. Even though it is important for the president to have executive powers to fight terrorism I do think that the constitutional right to privacy should be protected and should still come first unless there are valid reasons for violating the right of an individual. I do not think that it is right to open all of the private information of all U.S. citizens to government scrutiny. Also, I think that the proper judicial process (i.e. getting a warrant) needs to be followed to obtain private information. The agreement is not an effective solution because it gives to much power to the White House to make decisions regarding privacy when it concerns surveillance programs. There needs to be more checks and balances in the process to make sure the power is not abused or over-used.
Yes I do think that the surveillance power and capability of the U.S. government presents some ethical dilemmas. The government has the power to create the laws that protect privacy, but it seems that it also has the ability to create laws or agreements that are able to go around the privacy laws and obtain the private information it needs. On the surface it appears that the government is simply doing what is necessary to fight terrorism but it is doing it in a way that does not get the consent of the people it is attempting to protect. The dilemma that presents itself is how much power does the government have and what right does it have to use that power and in what circumstances? Also, do agencies such as the telecommunications firms Verizon and AT&T have an obligation to release private information when it is demanded by the government or should this information be safeguarded unless the correct judicial procedures are followed? The laws are in place to protect privacy rights and it still remains unclear about when it is alright to step around the law to get that information under certain circumstances.
2.) Apply ethical analysis to the issue of the U.S. government's use of telecommunications data to fight terrorism.
Identify and describe clearly the facts: Three of the four major telecommunications companies cooperated with the NSA fight against terrorism by turning over billions of phone records on phone calls made by billions of Americans. The records contain only phone numbers, and calling information (date, time, length of call).
Define the conflict or dilemma and identify the higher-order values involved: Conflict is that privacy groups feel that the program was a "massive intrusion on personal privacy" and was not legal while the White House feels it has the executive powers to take such actions to counter terrorism. The participating phone companies also feel that they must cooperate with law enforcement and government on matters of national security.
Identify the stakeholders: The stakeholders are private citizens, the telecommunications companies involved, the government and the NSA.
Identify the options you can reasonably take: Options include stricter privacy laws that force governmental agencies to provide a warrant or other validation before requesting private information. Or clearly spelling out the situations when the government has the right to obtain private information and what type of information it can obtain.
Identify the potential consequences: Government agencies will not be able to get the information they need to battle terrorism. Citizens will have their privacy violated because governmental agencies have access to too much private information.
5.) My opinion on the agreement reached by the White House and Senate Judiciary Committee with regards to NSA wiretapping is that the agreement gave too much power to the White House. Even though it is important for the president to have executive powers to fight terrorism I do think that the constitutional right to privacy should be protected and should still come first unless there are valid reasons for violating the right of an individual. I do not think that it is right to open all of the private information of all U.S. citizens to government scrutiny. Also, I think that the proper judicial process (i.e. getting a warrant) needs to be followed to obtain private information. The agreement is not an effective solution because it gives to much power to the White House to make decisions regarding privacy when it concerns surveillance programs. There needs to be more checks and balances in the process to make sure the power is not abused or over-used.
Chapter 3
Chapter 3 Case Study: Blockbuster vs Netflix
1.) What is Blockbuster's business model? How successful has it been?
Blockbuster's business model began with establishing itself as the market leader in video and DVD rentals which it did by 2004 when it had 40% of the market share. Unfortunately, the threat of a new entrant, Netflix, forced Blockbuster to re-engineer its business model by adding a monthly subscription service similar to what Netflix was offering. Blockbuster created a separte business for its online services and attempted to re-capture the market lost to Netflix by using a cost leadership strategy. Blockbuster offered lower prices for its monthly subscription then Netflix. Blockbuster also tried to differentiate itself from Netflix by also trying to get customers to use its physical rental stores by offering coupons for free rentals and offering no more late fees giving customers both the option of instore and online rentals
Blockbuster's new business model to try to regain the market share lost to Netflix has not been very successful. Because Blockbuster entered the online movie rental market late, Netflix already had a large customer base and has built on it, Blockbuster has been unable to catch up. Also, it is suffering do to the costs of implementing its new business model. It lost the $250-300 million in revenue it used to receive for charging late fees.
2.) What industry and technology forces have challenged that business model? What problems have they created?
Blockbuster's old business model of being an established leader in video store rentals was challenged by a new entrant into the market, Netflix which had a completely new business strategy of online movie rentals. Blockbuster had to deal with the cost of implementing new technology so that it could also enter the online rental market. It lacked the experience with the technology that Netflix had so it did not offer as good a user interface which resulted in less cusotmers. Also, it had to deal with customers that were loyal to Netflix because of its good customer service and low prices.
Blockbuster faces lower revenues in its traditional brick and morter video stores as customer turn to the convenience of online rentals. It faces stiff competition from Netflix which was a pioneer of this new business model and still holds the marketshare. Blockbuster most still deal with the increase in costs of implementing a completely new technology and the challenges off using the technology in the most productive way to win customers back. It has to deal with its lack of experience in the industry which makes Netflix more desirable to customers seeking both low prices and good customer service.
How successful is Netflix and its business model?
Netflix was very successful because it was able to enter the market early and become the leader in this new emerging industry. Even though competitors like Blockbuster tried to copy its strategy it was still able to grow its customer base to over 3 million by leveraging its experience in the industry. Even though Blockbuster may have offered lower prices, Netflix offered better selection and a better customer interface which allowed it to maintain the market share. It now must deal with new entrants with video on demand which is a new emerging technology that makes it even more convenient for customers to rent movies.
1.) What is Blockbuster's business model? How successful has it been?
Blockbuster's business model began with establishing itself as the market leader in video and DVD rentals which it did by 2004 when it had 40% of the market share. Unfortunately, the threat of a new entrant, Netflix, forced Blockbuster to re-engineer its business model by adding a monthly subscription service similar to what Netflix was offering. Blockbuster created a separte business for its online services and attempted to re-capture the market lost to Netflix by using a cost leadership strategy. Blockbuster offered lower prices for its monthly subscription then Netflix. Blockbuster also tried to differentiate itself from Netflix by also trying to get customers to use its physical rental stores by offering coupons for free rentals and offering no more late fees giving customers both the option of instore and online rentals
Blockbuster's new business model to try to regain the market share lost to Netflix has not been very successful. Because Blockbuster entered the online movie rental market late, Netflix already had a large customer base and has built on it, Blockbuster has been unable to catch up. Also, it is suffering do to the costs of implementing its new business model. It lost the $250-300 million in revenue it used to receive for charging late fees.
2.) What industry and technology forces have challenged that business model? What problems have they created?
Blockbuster's old business model of being an established leader in video store rentals was challenged by a new entrant into the market, Netflix which had a completely new business strategy of online movie rentals. Blockbuster had to deal with the cost of implementing new technology so that it could also enter the online rental market. It lacked the experience with the technology that Netflix had so it did not offer as good a user interface which resulted in less cusotmers. Also, it had to deal with customers that were loyal to Netflix because of its good customer service and low prices.
Blockbuster faces lower revenues in its traditional brick and morter video stores as customer turn to the convenience of online rentals. It faces stiff competition from Netflix which was a pioneer of this new business model and still holds the marketshare. Blockbuster most still deal with the increase in costs of implementing a completely new technology and the challenges off using the technology in the most productive way to win customers back. It has to deal with its lack of experience in the industry which makes Netflix more desirable to customers seeking both low prices and good customer service.
How successful is Netflix and its business model?
Netflix was very successful because it was able to enter the market early and become the leader in this new emerging industry. Even though competitors like Blockbuster tried to copy its strategy it was still able to grow its customer base to over 3 million by leveraging its experience in the industry. Even though Blockbuster may have offered lower prices, Netflix offered better selection and a better customer interface which allowed it to maintain the market share. It now must deal with new entrants with video on demand which is a new emerging technology that makes it even more convenient for customers to rent movies.
Tuesday, April 8, 2008
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