This Document Contains Chapters 9 to 11 Chapter 9 Global Information Systems Reviews and Discussions 1. As of June 2016, how many people were using the Internet worldwide? Answer: As of June, 2016, there were approximately 3.67 billion worldwide Internet users. 2. What is the impact of mobile computing on globalization? Answer: Mobile computing and mobile apps play a major role in further globalization and in bringing more people online. Because many developing nations do not have an established communication network in place, mobile networks are an attractive alternative for many of these courtiers. 3. What are three suggestions for making a company's Web site more appealing to a global audience? Answer: • Language—Present your Web site in one of the seven most-used languages: English, French, Italian, German, Spanish, Japanese, or Chinese. • Font—Make sure the Web site’s main features are readable in different languages, depending on which font is selected. • Cultural differences—Keep cultural variation in mind. For example, although white is the color of purity in the United States, it is the color of mourning in Eastern cultures. Also, a woman smiling without covering her mouth would be considered sexually suggestive in Japan. 4. What are two advantages of high coordination in a GIS environment? Answer: • Flexibility in responding to competitors in different countries and markets • Ability to respond in one country to a change in another country 5. Define transborder data flow (TDF). Answer: Transborder data flow (TDF) restricts what type of data can be captured and transmitted in foreign countries. 6. What are two Web sites that support the Alibaba's global operations? Answer: • Taobao.com (China’s largest shopping Web site) • Alipay.com (electronic payment similar to PayPal) 7. What are three factors that could hinder the success of a GIS? Answer: • Lack of standardization (including differences in time zones, taxes, language, and work habits) • Cultural differences • Diverse regulatory practices 8. What are the two major issues related to the E.U. lawsuit against Facebook? Answer: The lawsuit against Facebook, which was originally filed in Vienna’s Commercial Court, raises a number of issues: 1) monitoring and analysis of Facebook users’ data through “big data” analytics, 2) passing the users’ data to external sources. Projects 1. Like FedEx, UPS is a major player in global logistics. After reading the information presented in this chapter and other sources, write a one-page paper that describes three IT tools that UPS uses in its global logistics. What are two differences between global logistics and domestic logistics? Answer: Answers will vary. IT Tools Used by UPS in Global Logistics: 1. UPS Quantum View – Provides real-time tracking for shipments, offering visibility and transparency to customers. 2. ORION – Optimizes delivery routes to save fuel, improve efficiency, and reduce costs. 3. UPS WorldShip – Manages shipping and tracking, integrates with inventory systems, and automates international shipping documentation. Differences Between Global and Domestic Logistics: 1. Regulatory Complexity – Global logistics must comply with international customs and regulations, whereas domestic logistics only follows national rules. 2. Logistical Challenges – Global logistics involves long distances and multiple transport modes, while domestic logistics is more predictable and typically involves fewer variables. 2. The availability and speed of Internet connections play a major role in the success of a GIS. After reading the information presented in this chapter and other sources, write a one-page paper that lists the 10 countries with the fastest Internet connections. Is the United States among the top 10? Answer: The 10 countries with the fastest Internet connections as of July 15, 2016 were: 1. South Korea, 2. Norway, 3. Sweden, 4. Hong Kong, 5. Switzerland, 6. Latvia, 7. Japan, 8. The Netherlands. 9. Czech Republic, and 10. Finland. United States was not among the top 10. 3. Offshore outsourcing increases with the use of GISs. After reading the information presented in this chapter and other sources, write a one-page paper that describes four factors a company should consider when looking for a country to provide it with IT services. What are two reasons that have made India the top IT outsourcing country in the world? Answer: Answers will vary. Factors to Consider When Choosing a Country for IT Services Outsourcing: 1. Cost Efficiency – Companies often look for countries where the cost of labor is significantly lower than in their home country, without compromising quality. 2. Skill Availability – The country should have a well-educated, skilled workforce, especially in IT-related fields like software development and systems management. 3. Language Proficiency – English or other major business languages should be spoken proficiently to ensure effective communication between the company and the outsourcing partner. 4. Political and Economic Stability – Countries with stable governments, a strong economy, and well-established legal systems are less likely to experience disruptions, which helps ensure continuity of service. Reasons India is the Top IT Outsourcing Country: 1. Large Talent Pool – India has a vast pool of highly skilled IT professionals, particularly in software development and IT support, many of whom are proficient in English. 2. Cost-Effectiveness – Labor costs in India are much lower compared to Western countries, making it a popular destination for companies seeking affordable IT services. 4. Information-sharing technologies are among the major components of a successful GIS. After reading the information presented in this chapter and other sources, write a one-page paper that lists three such technologies; also mention the specific task and decision-making support that each technology provides. Answer: Answers will vary. Information-Sharing Technologies in Global Information Systems (GIS) 1. Enterprise Resource Planning (ERP) Systems • Task/Decision-Making Support: ERP systems integrate core business processes and data across departments such as finance, human resources, and supply chain management. They provide real-time access to critical data, allowing decision-makers to monitor performance and make informed decisions about inventory levels, financial forecasting, and resource allocation. 2. Customer Relationship Management (CRM) Systems • Task/Decision-Making Support: CRM systems help organizations manage customer interactions and sales data. They provide tools for tracking customer behavior, identifying trends, and improving customer service. This technology supports decisions related to marketing strategies, customer segmentation, and sales forecasting, improving customer retention and business growth. 3. Collaborative Platforms (e.g., Microsoft Teams, Slack) • Task/Decision-Making Support: These platforms enable real-time communication, file sharing, and collaboration across geographically dispersed teams. They support task management, project coordination, and decision-making by allowing employees to share updates, discuss issues, and provide feedback, thereby improving operational efficiency and decision quality. 5. Understanding cultural differences can play a major role in the success of a GIS. After reading the information presented in this chapter and other sources, write a two-page paper that identifies five such differences between the United States and Saudi Arabia. How would you resolve such differences? Answer: Answers will vary. Cultural Differences Between the United States and Saudi Arabia in GIS 1. Authority and Hierarchy: • U.S.: Decentralized decision-making with a focus on equality. • Saudi Arabia: Strong respect for hierarchy and centralized decision-making. • Resolution: American companies should respect hierarchy while fostering open communication. 2. Communication Style: • U.S.: Direct and task-focused communication. • Saudi Arabia: Indirect and relationship-oriented communication. • Resolution: Adjust communication to be more respectful and diplomatic. 3. Work-Life Balance: • U.S.: Focus on productivity and longer work hours. • Saudi Arabia: Emphasis on family time and breaks for prayers. • Resolution: Offer flexible scheduling and accommodate religious practices. 4. Religious Observance: • U.S.: Minimal integration of religious practices in the workplace. • Saudi Arabia: Regular prayers and religious holidays influence work schedules. • Resolution: Recognize religious practices and adjust schedules accordingly. 5. Approach to Time: • U.S.: Strict adherence to punctuality and deadlines. • Saudi Arabia: More flexible approach to time and deadlines. • Resolution: Allow flexibility in scheduling and set realistic expectations for deadlines. By understanding and addressing these cultural differences, businesses can improve collaboration and ensure successful GIS integration between the U.S. and Saudi Arabia. 6. There are major differences between U.S. privacy laws and those in the E.U. After reading the information presented in this chapter and other sources, write a two-page paper that identifies five such differences. List three U.S. companies that have been sued by the E.U. for not following their privacy laws. For each company, list one violation. Answer: Answers will vary. Differences Between U.S. and E.U. Privacy Laws 1. Data Protection: The U.S. has sectoral laws, while the E.U. enforces the GDPR for all industries. 2. Consent: The U.S. uses implied consent; the E.U. requires explicit consent for data collection. 3. Access and Erasure: The U.S. lacks general access and deletion rights, while the E.U. provides the Right to Access and Right to be Forgotten under GDPR. 4. Breach Notification: In the U.S., breach notification laws vary by state; the E.U. requires breach notification within 72 hours. 5. International Transfers: The U.S. has fewer restrictions, while the E.U. enforces strict rules on cross-border data transfers. U.S. Companies Sued by the E.U. 1. Google: Fined €50 million for improper consent on personalized ads. 2. Facebook: Violated GDPR by collecting data without proper consent (e.g., "Like" button). 3. Amazon: Fined €746 million for processing data without consent for advertising. These differences emphasize the E.U.'s more stringent privacy protections. Are You Ready to Move On? 1. Airline reservation systems are considered the first large-scale interactive global system. True or False? Answer: True 2. A global database and information-sharing technologies are two major components of a GIS. True or False? Answer: True 3. In a multinational structure, production, sales, and marketing are decentralized and financial management remains the subsidiary company’s responsibility. True or False? Answer: True 4. All of the following organizations are among the types of GIS except: a. Hyper-national organizations b. Multinational organizations c. Transnational organizations d. International organizations Answer: A 5. All of the following are obstacles to globalization except: a. Lack of standardization b. Cultural differences c. Poor telecommunication infrastructures d. Over supply of qualified IT personnel Answer: D 6. In recent years offshore outsourcing is being used for all of the following jobs except: a. Help desk/user support b. Medical diagnosis c. Tax preparation d. They are all used Answer: D Case Study 9-1 1. What role do global networks play in the effective implementation of JIT? Answer: Global networks provide timely information which is essential for the effective implementation of JIT. 2. What role does the “Dealer Daily” system play in Toyota’s implementation of a GIS? Answer: A Dealer Daily system offers a centralized data center for the more than 1,100 Toyota and Lexus dealers in the United States. This system allows dealers to spend more time focusing on selling cars and less time on paperwork. For example the system is capable of providing a response to a financing application in 15 seconds. 3. What is the function of Vehicle Order Management (VOM)? Answer: This system, which encompasses 13 countries, enables TME to improve its European’s operations by reducing delivery time to customers and managing inventory more efficiently. As a result the system reduces operating costs. 4. How many counties will be impacted by VOM and in which part of the world? Answer: 13 countries in Europe. Case Study 9-2 1. What are some of the challenges that MNCs face as far as intellectual properties are concerned? Answer: Piracy and theft of intellectual properties are among the concerns. 2. What are some of the environmental challenges MNCs face? Answer: Environmental challenges, such as tsunamis in the Philippines, monsoons in Thailand, and volcanos in Indonesia. 3. How information technology can assist with counterfeit items? Answer: Using RFID is one example. 4. How information technology can assist with logistics? Answer: Major logistics companies such as UPS and FedEx are using state-of-the-art information technologies to efficiently deliver products and services around the globe. Chapter 10 Building Successful Information Systems Reviews and Discussions 1. What are three reasons that an information system may fail? Answer: System failure can happen for several reasons, including missed deadlines, users’ needs that are not met, dissatisfied customers, and lack of support from top management. 2. What is joint application design (JAD)? Answer: Joint application design (JAD) is a collective activity involving users, top management, and IT professionals. It centers on a structured workshop (called a JAD session) where users and system professionals come together to develop an application. 3. What are five dimensions of feasibility study? Answer: Economic, technical, operational, scheduling, and legal. 4. What is a data flow diagram (DFD) used for? Answer: Helps break down a complex process into simpler, more manageable, and more understandable subprocesses; shows how data needed by each process flows between processes and what data is stored in the system; also helps define the system’s scope. 5. What is the goal of a proof-of-concept prototype? Answer: A proof-of-concept prototype shows users how a particular task that was not technically feasible can be done. 6. What are four types of conversion methods? Answer: Parallel conversion, phased-in-phased-out conversion, plunge (direct cutover) conversion, and pilot conversion. 7. What is self-sourcing? What are three disadvantages of self-sourcing? Answer: Self-sourcing is when end users develop their own information systems, with little or no formal assistance from the information systems team. These users might not know how to write programming code, but they are typically skilled enough to use off-the-shelf software, such as spreadsheet and database packages, to produce custom-built applications. Three disadvantages of self-sourcing include: • Possible misuse of computing resources • Lack of access to crucial data • Lack of documentation for the applications and systems that end users develop 8. What are two advantages of crowdsourcing? Answer: • Access to diverse talents inside and outside the organization • Systems development cost reduction Projects 1. A startup Internet company has generated the following cash balance for the first six years of its IS projects: -$250,000, -$180,000, $225,000, $340,000, $410,000, and $425,000. Using the NPV function in Excel, calculate the net present value of this project at an 8.5 percent interest rate. What is the IRR of this project? If a bank is willing to give the company a loan at 15 percent to implement these projects, should the company accept the loan (assuming there are no other conditions)? Why or why not? Answer: NPV = $571,343.17 IRR = 45% Yes, because this project will be acceptable all the way until a 45% rate. At that point it will be at a break-even point. 2. The CTO of the company mentioned in Project 1 has decided to acquire a CASE tool to help expedite and better document the Web site that is being designed for his company’s e-commerce operations. The CTO has narrowed these choices to CA ERwin Process Modeler and Oracle Designer. Based on the information provided in this chapter and other sources, which tool would you recommend? What are the three major factors behind your recommendation? Answer: Answers will vary. I recommend CA ERwin Process Modeler for the company's e-commerce website design. The three major factors are: 1. User-Friendliness: It offers an intuitive interface, making it easier for the team to use. 2. Strong Documentation Features: It provides better tools for generating and maintaining documentation. 3. Integration: It integrates well with other business systems, streamlining project workflows. 3. The CTO of the company mentioned in Project 1 also wants to invest in project management software. The choices have been narrowed to Microsoft Project and Micro Planning International’s Micro Planner. Based on the information provided in this chapter and other sources, which software would you recommend? What are the three major factors behind your recommendation. What are three tasks performed by a typical project management software? Answer: Answers will vary. I recommend Microsoft Project for project management. The three major factors are: 1. Widely Used: It’s a standard tool with broad familiarity, ensuring easier adoption. 2. Comprehensive Features: It offers advanced scheduling and resource management tools. 3. Integration: It integrates seamlessly with other Microsoft Office products. Three tasks performed by project management software include: 1. Task Scheduling 2. Resource Allocation 3. Budget Tracking. 4. After reading the information presented in this chapter and other sources, write a one-page paper that identifies two companies (in addition to those mentioned in this book) that have been using SOA as a systems development methodology. What specific advantages has SOA offered these companies? Answer: Answers will vary. Service-Oriented Architecture (SOA) has become a popular systems development methodology for organizations looking to enhance flexibility, scalability, and integration across diverse systems. Two companies that have successfully implemented SOA include Amazon and Netflix. 1. Amazon: Amazon uses SOA to support its e-commerce platform, which requires highly flexible and scalable architecture. By breaking down its services into reusable components, Amazon can quickly adjust to changing customer needs, implement new features, and scale individual services without impacting the entire system. This enables Amazon to handle vast amounts of traffic during peak times, such as Black Friday, without system failures. 2. Netflix: Netflix has used SOA to facilitate the delivery of video streaming services to millions of users globally. By using microservices (a form of SOA), Netflix is able to independently scale parts of its system (such as user authentication, video recommendation, and streaming) to meet demand. This modular architecture also enables Netflix to roll out new features or update existing ones without affecting the entire service. Advantages of SOA: • Scalability: Both Amazon and Netflix benefit from SOA’s modular structure, which allows them to scale specific services independently as user demand fluctuates. • Flexibility and Agility: SOA enables these companies to quickly introduce new features and innovations without overhauling their entire system, giving them a competitive advantage in fast-moving industries. 5. After reading the information presented in this chapter and other sources, write a one-page paper that identifies two companies (in addition to those mentioned in this book) that have been using crowdsourcing as an alternative to a traditional systems development approach. What are two advantages of using crowdsourcing for developing a system or application? What are two disadvantages? Answer: Answers will vary. Two companies that have used crowdsourcing for systems development are Wikipedia and Lego. 1. Wikipedia: Wikipedia relies on crowdsourcing to develop and maintain its content. Volunteers contribute by writing and editing articles, ensuring constant updates and growth. 2. Lego: Lego uses crowdsourcing through its Lego Ideas platform, where fans can submit and vote on new set designs. If a submission gets enough votes, Lego may produce it as an official product. Advantages of crowdsourcing: • Cost-effective: Crowdsourcing reduces the need for a large in-house development team. • Innovation: It taps into diverse ideas and expertise from a global community, leading to creative solutions. Disadvantages of crowdsourcing: • Quality control: Ensuring consistency and quality can be challenging with many contributors. • Intellectual property risks: Open submission platforms may expose ideas to theft or unauthorized use. 6. After reading the information presented in this chapter and other sources, write a one-page paper describing three countries that are prime candidates for offshore outsourcing for systems development projects. What are the three main criteria that should be considered in choosing a suitable candidate? Why has India become a top choice for IT outsourcing? Answer: Answers will vary. Three countries prime for offshore outsourcing: 1. India: Known for its large pool of skilled IT professionals, strong English proficiency, and cost-effective labor. 2. China: Offers a vast workforce and growing technology infrastructure, though language and cultural differences can be challenges. 3. Philippines: Competitive labor costs and a high level of English proficiency make it an attractive outsourcing destination. Three main criteria for choosing an outsourcing candidate: • Skilled labor availability: The country must have a large pool of skilled workers in the required technology. • Cost-effectiveness: The cost of labor and operations must be competitive. • Cultural compatibility: Cultural alignment, including language skills and working hours, is essential for seamless collaboration. Why India: India's combination of a highly educated workforce, cost-effective solutions, and English proficiency has made it the global leader in IT outsourcing. Are You Ready to Move On? 1. RAD is also known as low-code or no-code systems development approach. True or False? Answer: True 2. A request for proposal (RFP) is a written document with detailed specifications that is used to request bids for equipment, supplies, or services from vendors. True or False? Answer: True 3. The first phase of the SDLC approach is implementation. True or False? Answer: False 4. All of the following is a dimension of feasibility study except: a. Economic b. Social c. Schedule d. Technical Answer: B 5. CASE tools are usually use during: a. Planning phase b. Requirements gathering and analysis phase c. Design phase d. Implementation phase Answer: C 6. All of the following activities take place during the implementation phase except: a. Acquiring new equipment b. Training employees c. Coding d. Defining the systems requirements Answer: D Case Study 10-1 1. What processes did the Lotus platform automate and streamline? Answer: Most manual systems were automated. The Lotus system now provides centralized information access via a Web interface that all decision makers can use. 2. What are some benefits of the new Web interface? Answer: Some of the benefits include being platform independent. Any user with any device and any operating systems will be able to access the system. 3. Which of the development methods discussed in this chapter would be most suitable at SEB Latvia? Answer: Based on the information provided, the SDLC would be the most suitable approach for this organization. Case Study 10-2 1. What are some typical applications of crowdsourcing? Answer: Answers will vary. Designing a Web site or designing a case for a smartphone are a couple of examples. Typical applications of crowdsourcing include problem-solving (e.g., software development or innovation challenges) and data collection (e.g., survey participation, and citizen science projects). 2. What are some advantages of crowdsourcing? Answer: Answers will vary. Generally speaking crowdsourcing is cheaper than traditional methods and in most cases it is faster to complete a system project. Advantages of crowdsourcing include access to diverse expertise from a large pool of participants and cost efficiency by leveraging volunteers or lower-cost contributors. 3. How could crowdsourcing bring down the systems design cost? Answer: Answers will vary. This is possible because a large pool of experts from around the globe compete against one another. Crowdsourcing can reduce systems design costs by harnessing a large, diverse group of contributors who may work for lower pay or even for free, compared to hiring specialized professionals. It also speeds up development through parallel efforts, minimizing time and associated costs. Chapter 11 Enterprise Systems Reviews and Discussions 1. What is a green SCM ? Answer: A growing trend in SCM is green logistics and green SCM that includes all SCM activities including manufacturing, packaging, transportation, and warehousing. Green logistics advocates a type of SCM that minimizes the environmental impacts including climate change, air pollution, water pollution, soil degradation, solid waste, noise, vibration, and accidents. 2. What is an e-marketplace? Answer: An e-marketplace is a third-party exchange (B2B model) that provides a platform for buyers and sellers to interact with each other 3. Define collaborative planning, forecasting, and replenishment (CPFR). Answer: Collaborative planning, forecasting, and replenishment (CPFR) is used to coordinate supply chain members through point-of-sale (POS) data sharing and joint planning. 4. What are two applications of 3D printing in SCM? Answer: • Manufacturing lead times will be significantly reduced, from weeks to days, to hours, and minutes. • Customers demand will be met more quickly and more specifically. 5. What are two ways that drones might be used in SCM? Answer: For example, Walmart uses drones to count inventory in warehouses. Walmart is also testing drones for indoor operations to weave between aisles and make deliveries directly to loading stations. Drones can carry inventory and deliver it to specified locations. 6. What is collaborative filtering (CF)? Answer: Collaborative filtering (CF) is a search for specific information or patterns, using input from multiple business partners and data sources. It identifies groups of people based on common interests and recommends products or services based on what members of the group purchased or did not purchase. 7. What are four ways that a knowledge management system could help an organization? Answer: A knowledge management system should help an organization do one or more of the following: • Promote innovation by encouraging the free exchange of ideas. • Improve customer service by reducing response time. • Increase revenue by reducing the delivery time for products and services. • Improve employee retention rates by rewarding employees for their knowledge. 8. What is the role of a unified database in an ERP system? Answer: It collects and analyzes relevant internal and external data and information needed by other functions. Projects 1. SenseAware by FedEx provides key information for improving the logistics part of a supply chain network. After reading the information presented in this chapter and other sources, write a one-page paper that explains the key features of this system. Which technologies are being used? Answer: Answers will vary. SenseAware by FedEx is a logistics tool providing real-time monitoring of shipments. It uses IoT sensors, GPS, cellular networks, and cloud computing to track location, temperature, humidity, light exposure, and shock. The system sends alerts for any deviations, ensuring safe transport of sensitive goods like pharmaceuticals and electronics. Its key features include real-time tracking, environmental monitoring, and security with geofencing. This technology enhances supply chain visibility, reduces risks, and maintains product integrity. 2. After reading the information presented in this chapter and other sources, write a one-page paper that identifies two companies (in addition to those mentioned in this book) that have implemented a green supply chain network. What has been achieved by these systems? Why green SCM is gaining popularity? What are two obstacles for implementing these systems? Discuss. Answer: Answers will vary. Green Supply Chain Management (GSCM): Two Companies and Achievements 1. Unilever: Unilever has implemented a green supply chain network focusing on reducing carbon emissions, minimizing waste, and using sustainable raw materials. Through its "Sustainable Living Plan," the company has achieved a 64% reduction in CO2 emissions from energy in its factories and reduced waste by 96%. This approach has boosted brand reputation and improved cost savings through energy efficiency. 2. IKEA: IKEA has integrated green practices by optimizing its logistics network, using renewable energy in production, and sourcing sustainable materials like FSC-certified wood. The company has managed to cut its carbon footprint by 15% and plans to be climate-positive by 2030. These efforts have enhanced customer loyalty and reduced operational costs. Popularity of Green SCM: Green SCM is gaining traction due to increased environmental awareness, regulatory pressures, and consumer demand for sustainable products. It helps companies reduce waste, cut costs, and improve brand image, making it a strategic advantage. Obstacles: 1. High Initial Costs: Implementing green supply chain systems often requires significant investment in new technologies, sustainable materials, and infrastructure. 2. Supplier Compliance: Ensuring that all suppliers meet green standards can be challenging, especially in global supply chains where regulations and capabilities vary widely. Overall, green SCM helps companies align with sustainability goals, but it requires overcoming financial and logistical hurdles. 3. 3D printing plays a major role in improving the efficiency and effectiveness of a SCM. After reading the information presented in this chapter and other sources, write a two-page paper that identifies three ways that a SCM will benefit from this technology. Identify three companies that are using 3D printing in their SCM and list two advantages of using this technology in each company. Answer: Answers will vary. Benefits of 3D Printing in SCM: 1. On-Demand Manufacturing: Reduces inventory and storage costs. 2. Reduced Lead Times: Speeds up production by eliminating tooling delays. 3. Customization: Enables flexible, tailored product designs. Companies Using 3D Printing: 1. General Electric (GE): • Cuts production costs by reducing waste. • Accelerates prototyping, speeding up development. 2. Adidas: • Offers customized products (e.g., tailored shoe soles). • Shortens supply chain with local, on-demand production. 3. Siemens: • Produces spare parts on-demand, lowering inventory needs. • Promotes sustainability by minimizing waste and transportation. 3D printing streamlines SCM, reducing costs, increasing flexibility, and enhancing customer satisfaction. 4. After reading the information presented in this chapter and other sources, write a two-page paper that describes the differences between a domestic supply chain and an international supply chain. Why is the international supply chain more challenging to manage? Answer: Answers will vary. Domestic vs. International Supply Chain: 1. Scope: • Domestic: Operates within one country, involving local suppliers and shorter delivery times. • International: Spans multiple countries, dealing with global suppliers, longer lead times, and diverse markets. 2. Regulations: • Domestic: Follows a single set of national laws and standards. • International: Must comply with various international regulations, customs, and trade agreements. 3. Logistics: • Domestic: Simpler logistics, mainly road and rail transport with fewer delays. • International: Complex logistics involving air, sea, and land transport, with risks of delays at customs and geopolitical issues. Challenges of International Supply Chains: 1. Cultural and Language Barriers: Differences in language, business practices, and communication styles can lead to misunderstandings. 2. Increased Risk: Exposure to currency fluctuations, political instability, and varying quality standards makes managing international supply chains more complex. 5. In addition to Google, Netflix, and Amazon, identify two companies that use personalization technologies. How can personalization help the bottom line? What are some of the challenges for implementing these systems? Answer: Answers will vary. Domestic vs. International Supply Chain: Key Differences 1. Geographical Scope: • Domestic Supply Chain: Operates within a single country, involving local suppliers, manufacturers, and distributors. Transportation and logistics are simpler, with fewer regulations and shorter lead times. • International Supply Chain: Spans across multiple countries, requiring coordination between global suppliers, manufacturers, and markets. It involves complex logistics, longer lead times, and various regulations. 2. Regulatory Compliance: • Domestic: Follows a single set of national regulations related to trade, safety, and labor laws, making compliance more straightforward. • International: Requires adherence to different regulations, tariffs, customs procedures, and trade agreements in each country, increasing complexity. 3. Logistics and Transportation: • Domestic: Involves simpler, more predictable logistics, often using road and rail transport with shorter delivery times. • International: Involves multi-modal transport (air, sea, land), longer transit times, and challenges like currency exchange, geopolitical issues, and potential delays at borders. Challenges in Managing International Supply Chains: 1. Cultural Differences: Diverse business practices, languages, and cultural norms can lead to misunderstandings and communication issues. 2. Supply Chain Risks: Exposure to risks like political instability, currency fluctuations, and varying quality standards makes international supply chains harder to manage. Overall, international supply chains are more complex and risk-prone due to geographical spread, regulatory differences, and logistics challenges. 6. Most experts believe that an ERP system, with all the advantages it offers, also has drawbacks, such as high cost, difficulties in installation, a need for extensive training, and compatibility problems with legacy systems. After reading the information presented in this chapter and other sources, write a two-page paper that recommends some ways to minimize these drawbacks. Answer: Answers will vary. Minimizing ERP System Drawbacks: 1. High Cost: • Use a phased implementation to spread costs. • Opt for cloud-based ERP for lower upfront expenses. 2. Installation Challenges: • Conduct a needs assessment and plan with stakeholders. • Use experienced consultants for smoother installation. 3. Extensive Training Needs: • Offer hands-on training and online resources. • Implement "train-the-trainer" programs for better user adoption. 4. Compatibility Issues: • Assess legacy systems for compatibility. • Use middleware for integration or phase out outdated systems. These strategies help reduce ERP costs, ease installation, enhance training, and solve compatibility problems. Are You Are You Ready to Move On? 1. Green logistics advocates a type of SCM that minimizes the environmental impacts including climate change, air pollution, water pollution, soil degradation, solid waste, noise, vibration, and accidents. True or False? Answer: True 2. 3D printing will significantly increase lead times in manufacturing. True or False? Answer: False 3. Marketing strategies in a CRM system focus on long-term relationships with customers instead of transactions. True or False? Answer: True 4. 3D printing plays all of the following roles in a SCM environment except: a. Customers demand will be met more quickly and more specifically b. Manufacturers will print-on-demand, eliminating the need to carry inventory c. Traditional printers will become cheaper d. New designs will come to market much quicker Answer: C 5. A CRM system includes all of the following activities except: a. Manufacturing automation b. Customer support c. Order processing d. Sales automation Answer: A 6. All of the following are among SCM technologies except: a. Internet of Things (IoTs) b. Drones c. 3D printing d. Unified databases Answer: D Case Study 11-1 1. What was the main reason for using an ERP system at JHI? Answer: Johns Hopkins Institutions (JHI) decided to use a centralized ERP system instead of several different business applications that weren’t fully integrated. An ERP system enabled them to get an overall view of JHI’s operations and performance. 2. How did the ERP system that JHI adopted help address technical challenges? Answer: JHI faced technical challenges in adopting an ERP system. To overcome these challenges, it chose BearingPoint’s SAP applications with IBM Power 570 servers as the hardware platform. JHI also decided to use server clusters to make the system more fault-tolerant and installed a SAN for high performance. 3. What did the ERP system achieve at JHI? Answer: The ERP system now provides a centralized method of gathering information for the entire organization. Case Study 11-2 1. What is My Starbucks Idea? Answer: My Starbucks Idea, is a CRM that includes an interactive forum, gives the Starbucks community an online presence, allowing the company to collect feedback from its customers. 2. What has the Starbucks CRM achieved? How does it help the bottom line? Answer: Customers offer ideas, make comments, and cast votes on issues arranged into 13 categories, from the actual drinks that are served to what the store’s atmosphere feels like. So far, the system has collected over 92,000 ideas, nearly 100 of which Starbucks has implemented 3. Which software platform is behind the Starbucks CRM system? Answer: Salesforce. 4. Is My Starbucks Idea a typical crowdsourcing project? Discuss. Answer: Yes. It is. Solution Manual for MIS-2 Hossein Bidgoli 9781337406925
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