Business Driven Technology - Instructor’s Manual

UNIT THREE
STREAMLINING BUSINESS DECISIONS

Decision making and problem solving encompass large-scale, opportunity-oriented, strategically

focused solutions. Students today must posses decision-making and problem-solving abilities to
compete in the e-Business world. Organizations today can no longer use a “cook book” approach
to decision making. This unit focuses on technology to help make decisions, solve problems, and
find new innovative opportunities including:
 Decision support systems
 Executive information systems
 Artificial intelligence (AI)
 Data mining
 Customer relationship management
 Supply chain management
 Enterprise resource planning

The chapters in this unit include:

 Chapter Nine – Enabling the Organization – Decision Making
 Chapter Ten – Extending the Organization – Supply Chain Management
 Chapter Eleven – Building a Customer-centric Organization – Customer Relationship
Management
 Chapter Twelve – Integrating the Organization from End to End – Enterprise Resource
Planning

ADDITIONAL CASE INFORMATION

SecondLIfe
Second Life is a new venue for collaboration, training, distance learning, new media studies and
marketing. Hold a virtual meeting with your sales managers located in Europe and Asia. You can
present the new sales initiatives and discuss them with your team real-time.
http://www.secondlife.com/

Classroom Exercise
I show my students a quick demo of Second Life and then break them into groups and ask them to
create a strategy for a new virtual business for Second Life.  They have great ideas including:
- Private Detective
- Retailer
- Sales Force Team
- Music distributor
- Architect
- Tutor
- Coffee Shop
- Hair Dresser
- Avatar Repairman

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CHAPTER NINE
Enabling the Organization – Decision Making

What is the value of information? The answer to this important question varies depending on how
the information is used. Two people looking at the exact same pieces of information could extract
completely different value from the information depending on the tools they are using to look at the
information. This chapter discusses technologies that people can use to help make decisions and
solve problems.

LEARNING OUTCOMES
9.1 Define the systems organizations use to make decisions and gain competitive advantages.
1.Decision support system (DSS) – models information to support managers and business
professionals during the decision-making process
2.Executive information system (EIS) – a specialized DSS that supports senior level
executives within the organization
3.Artificial intelligence (AI) – simulates human intelligence such as the ability to reason and
learn
4.Data mining – typically includes many forms of AI such as neural networks and expert
systems. Data mining tools apply algorithms to information sets to uncover inherent
trends and patterns in the information.

9.2 Describe the three quantitative models typically used by decision support systems.
1.Sensitivity analysis – the study of the impact that changes in one (or more) parts of the
model have on other parts of the model
2.What-if analysis – checks the impact of a change in an assumption on the proposed
solution
3.Goal-seeking analysis – finds the inputs necessary to achieve a goal

9.3 Describe the relationship between digital dashboards and executive information systems.
An executive information system (EIS) is a specialized DSS that supports senior level
executives within the organization. A digital dashboard integrates information from multiple
components and present it in a unified display. A digital dashboard is a form of EIS.

9.4 List and describe four types of artificial intelligence systems.

The three most common categories of AI include:
1.Expert systems – computerized advisory programs that imitate the reasoning processes of
experts in solving difficult problems
2.Neural Networks – attempts to emulate the way the human brain works
3.Genetic algorithm - system that mimics the evolutionary, survival-of-the-fittest process to
generate increasingly better solutions to a problem

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4.Intelligent agents – special-purposed knowledge-based information system that

accomplishes specific tasks on behalf of its users

9.5 Describe three types of data-mining analysis capabilities.

 Cluster analysis – a technique used to divide an information set into mutually exclusive
groups such that the members of each group are as close together as possible to one
another and the different groups are as far apart as possible
 Association detection – reveals the degree to which variables are related and the nature
and frequency of these relationships in the information
 Statistical analysis – performs such functions as information correlations, distributions,
calculations, and variance analysis

CLASSROOM OPENER
GREAT BUSINESS DECISIONS – Walt Disney Decides to Call His Mouse Cartoon Character
Mickey, not Mortimer
Sunday, November 18, 1928, is a historic moment in time since it is the day that the premier of
Steamboat Willie debuted, a cinematic epic of seven minutes in length. This was the first cartoon
that synchronized sound and action.

Like all great inventions, Mickey Mouse began his life in a garage. After going bankrupt with the
failure of his Laugh O Gram Company, Walt Disney decided to rent a camera, assemble an
animation stand, and set up a studio in his uncle’s garage. At the age of 21, Walt and his older
brother Roy launched the Disney Company in 1923. The company had a rocky start. Its first film,
Alice, hardly made enough money to keep the company in business. His second film, Oswald the
Rabbit, was released in 1927 with small fanfare. Then Disney’s luck changed and in 1928 he
released his seven minute film about a small mouse named Mickey. Disney never looked back.

The truth is Mickey Mouse began life as Mortimer Mouse. Walt Disney’s wife, Lilly, did not like the
name and suggested Mickey instead. Walt Disney has often been heard to say, “I hope we never
lose sight of one fact – that this was all started by a mouse.”

Would Mortimer have been as successful as Mickey? Would Mortimer have been more successful
than Mickey? How could Walt Disney have used technology to help support his all-important
decision to name his primary character? There are many new technologies helping to drive
decision support systems, however it is important to note that some decisions, such as the name of
a mouse, are made by the most complex decision support system available - the human brain.

CLASSROOM EXERCISE
Building Artificial Intelligence
The idea of robots and artificial intelligence is something that has captured people’s attention for
years. From the robots in Star Wars to the surreal computer world in the Matrix, everyone seems to
be fascinated with the idea of robots.

Break your students into groups and challenge them to build a robot. The robot can perform any
function or activity they choose. The robot must contain a digital dashboard and enable decision

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support capabilities for its owner. Have the students draw a prototype of their robot and present
their robot to the class. Have your entire class vote on which robot they would invest in if they were
a venture capital firm.

CLASSROOM VIDEO
Hod Lipson Demonstrates Cool Little Robots
Hod Lipson demonstrates a few of his cool little robots, which have the ability to learn, understand
themselves and even self-replicate. At the root of this uncanny demo is a deep inquiry into the
nature of how humans and living beings learn and evolve, and how we might harness these
processes to make things that learn and evolve.

Hod Lipson works at the intersection of engineering and biology, studying robots and the way they
"behave" and evolve. His work has exciting implications for design and manufacturing -- and
serves as a window to understand our own behavior and evolution.
http://www.ted.com/index.php/talks/view/id/165

CLASSROOM EXERCISE
Take a Drive or a Walk
This is an interesting Web site where you can view yourself walking or driving down street in San
Francisco or Seattle.  I use this as a decision support tool to use to map a tour if I was planning a
trip to one of these cities.
http://preview.local.live.com/

CLASSROOM VIDEO
Something to Get Their Attention
Great clip to show student's the power of AI.
http://www.metacafe.com/watch/445498/robotic_beer_launching_refrigerator 

CORE MATERIAL
The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed
teaching notes including exercises, class activities, questions, and examples. Please review the
PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

OPENING UNIT CASE STUDY QUESTIONS

Second Life
1. How could companies use Second Life to enhance decision making for a new product or
service?
By gaining feedback on the product or service from Second Life. Many companies are using
Second Life to pilot virtual products. In the American Apparel store you can view clothes that
are at the real store. Auto manufacturers are using Second Life to allow customers to tour
virtual cars. Universities are even using Second Life to offer virtual campus tours and

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information. The possibilities are endless, and far less expensive then testing products in the
real world, with far more diverse customers available on Second Life.

2. How could financial companies use neural networks in Second Life to help their businesses?
A neural network, also called an artificial neural network, is a category of AI that attempts to
emulate the way the human brain works. The types of decisions for which neural networks are
most useful are those that involve pattern or image recognition because a neural network can
learn from the information it processes.
Neural networks analyze large quantities of information to establish patterns and
characteristics in situations where the logic or rules are unknown. The finance industry is a
veteran in neural network technology and has been relying on various forms of it for over two
decades. The industry uses neural networks to review loan applications and create patterns or
profiles of applications that fall into two categories: approved or denied. One neural network
has become the standard for detecting credit card fraud. Since 1992, this technology has
slashed fraud by 70 percent for U.S. Bancorp. Now, even small credit unions are required to
use the software in order to qualify for debit-card insurance from Credit Union
National Association.
Additional examples of neural networks include:
 Citibank uses neural networks to find opportunities in financial markets. By carefully
examining historical stock market data with neural network software, Citibank financial
managers learn of interesting coincidences or small anomalies (called market
inefficiencies). For example, it could be that whenever IBM stock goes up, so does Unisys
stock. Or it might be that a U.S. Treasury note is selling for 1 cent less in Japan than it is in
the United States. These snippets of information can make a big difference to Citibank’s
bottom line in a very competitive financial market.
 In Westminster, California, a community of 87,000 people, police use neural network
software to fight crime. With crime reports as input, the system detects and maps local
crime patterns. Police say that with this system they can better predict crime trends,
improve patrol assignments, and develop better crime prevention programs.
 Fingerhut, the mail-order company based in Minnesota, has 6 million people on its
customer list. To determine which customers were and were not likely to order from its
catalog, Fingerhut recently switched to neural network software. The company finds that
the new software is more effective and expects to generate millions of dollars by fine-
tuning its mailing lists.
 Fraud detection widely uses neural networks. Visa, MasterCard, and many other credit
card companies use a neural network to spot peculiarities in individual accounts.
MasterCard estimates neural networks save it $50 million annually.
 Many insurance companies (Cigna, AIG, Travelers, Liberty Mutual, Hartford) along with
state compensation funds and other carriers use neural network software to identify fraud.
The system searches for patterns in billing charges, laboratory tests, and frequency of
office visits. A claim for which the diagnosis was a sprained ankle but included an
electrocardiogram would be flagged for the account manager.
 FleetBoston Financial Corporation uses a neural network to watch transactions with
customers. The neural network can detect patterns that may indicate a customer’s growing
dissatisfaction with the company. The neural network looks for signs like decreases in the
number of transactions or in the account balance of one of FleetBoston’s high-value
customers.

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Neural networks’ many features include:

 Learning and adjusting to new circumstances on their own.
 Lending themselves to massive parallel processing.
 Functioning without complete or well-structured information.

3. How could a company such as Nike use decision support systems on Second Life to help its
business?
A decision support system (DSS) models information to support managers and business
professionals during the decision-making process. Three quantitative models are typically
used by DSSs: (1) sensitivity analysis, (2) what-if analysis, and (3) goal-seeking analysis.
Nike could use any of these three types of models to help its business. By asking
questions to Second Life customers it could run these models to help it make business
decisions.
 Sensitivity analysis is the study of the impact that changes in one (or more) parts of the
model have on other parts of the model. Users change the value of one variable
repeatedly and observe the resulting changes in other variables.
 What-if analysis checks the impact of a change in an assumption on the proposed solution.
For example, “What will happen to the supply chain if a hurricane in South Carolina
reduces holding inventory from 30 percent to 10 percent?” Users repeat this analysis until
they understand all the effects of various situations.
 Goal-seeking analysis finds the inputs necessary to achieve a goal such as a desired level
of output. Instead of observing how changes in a variable affect other variables as in what-
if analysis, goal-seeking analysis sets a target value (a goal) for a variable and then
repeatedly changes other variables until the target value is achieved. For example, “How
many customers are required to purchase our new product line to increase gross profits to
$5 million?”

4. How could an apparel company use Second Life to build a digital dashboard to monitor virtual
operations?
A common feature of an executive information system is a digital dashboard. Digital
dashboards integrate information from multiple components and tailor the information to
individual preferences. Digital dashboards commonly use indicators to help executives quickly
identify the status of key information or critical success factors. A company could build a digital
dashboard on Second Life to monitor a virtual store. It could track and monitor everything that
it could track in a real store including:
 Number of customers
 Types of customers
 Time spent in store
 Number of items avatar looked at in the store
 Number of interactions with store avatars
 Number of items purchased
 Revenue per sale

CHAPTER NINE CASE

Defense Advanced Research Projects Agency (DARPA) Grand Challenge
1. Describe how the DoD is using AI to improve its operations and save lives.

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The DARPA Grand Challenge was designed to leverage American ingenuity to develop
autonomous vehicle technologies that can be used by the military. Using AI driven vehicles the
DOD will be able to send vehicles into dangerous situations without endangering any soldiers.

2. Explain why the DoD would use an event, such as the DARPA Grand Challenge, to further
technological innovation.
By offering a generous prize, along with notoriety the DOD is able to get many of the greatest
minds in the country working on creating autonomous vehicles. It is a win-win. The DOD
receives the technology and the winning team receives a prize and notoriety.

3. Describe how autonomous vehicles could be used by organizations around the world to
improve business efficiency and effectiveness.
There are numerous ways that autonomous vehicles could be used around by businesses from
making deliveries, transporting goods and services to taking employees to and from the airport.
The uses are limitless.

4. The Ansari X is another technological innovation competition focusing on spacecraft. To win

the $10 million Ansari X Prize, a private spacecraft had to be the first to carry the weight
equivalent of three people to an altitude of 62.14 miles twice within two weeks. SpaceShipOne,
a privately built spacecraft, won the $10 million Ansari X Prize on October 4, 2004. Describe
the potential business impacts of the Ansari X competition.
Space travel is the next exciting frontier. Business impacts could range from vacation trips to
the moon to picking up space materials for the production of goods and services. The
competition could also inspire other types of competition such as underwater houses and
personal flying machines.

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CHAPTER TEN
Extending the Organization – Supply Chain Management

Traditional SCM thinking involved “I buy from my suppliers, I sell to my customers.” Today,
organizations are quickly realizing the tremendous value they can gain from having visibility
throughout its supply chain. Knowing immediately what is transacting at the customer end of
the supply chain, instead of waiting days or weeks for this information to flow upstream, allows
the organization to react immediately. The role of SCM is evolving and it is not uncommon for
suppliers to be involved in product development and for distributors to act as consultants in
brand marketing. This chapter takes a look at extending an organization through SCM.

LEARNING OUTCOMES
10.1 List and describe the components of a typical supply chain.
The components of a typical supply chain include:
 Supplier’s supplier
 Supplier
 Manufacturer
 Distributor
 Retailer
 Customer
 Customer’s Customer
.
10.2 Define the relationship between decision making and supply chain management.
SCM enhances decision making. Collecting, analyzing, and distributing transactional
information to all relevant parties, SCM systems help all the different entities in the supply
chain work together more effectively. SCM systems provide dynamic holistic views of
organizations. Users can “drill down” into detailed analyses of supply chain activities in a
process analogous to DSS. Without SCM systems, organizations would be unable to make
accurate and timely decisions regarding its supply chain.

10.3 Describe the four changes resulting from advances in IT that are driving supply chains.
Although people have been talking about the integrated supply chain for a long time, it has
only been recently that advances in information technology have made it possible to bring the
idea to life and truly integrate the supply chain. Visibility, consumer behavior, competition, and
speed are a few of the changes resulting from advances in information technology that are
driving supply chains
 Visibility – More visible models of different ways to do things in the supply chain have
emerged. High visibility in the supply chain is changing industries, as Wal-Mart
demonstrated.
 Consumer behavior – Companies must respond to demanding customer through supply
chain enhancements.

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 Competition – Increased competition makes any organization that is ignoring its supply
chain at risk of being obsolete.
 Speed – As the pace of business increases through electronic media, an organization's
supply chain must respond efficiently, accurately, and quickly.

10.4 Summarize the best practices for implementing a successful supply chain management
system.
The following are the SCM industry best practices:
1. Make the sale to suppliers - A large part of any SCM system extends beyond the
organization to the suppliers. Since the organization has very little control over anything
external to itself, these pieces are typically the most complicated. Be sure suppliers are
on board with the benefits that the SCM system will provide to ease SCM implementation
difficulties.
2. Wean employees off traditional business practices - If the organization cannot convince
people that using the SCM software is worthwhile, the employees will probably find a way
around using the software.
3. Ensure the SCM system supports the organizational goals - Be sure to select SCM
software that supports organizational goals and strategies
4. Deploy in incremental phases and measure and communicate success - Designing the
deployment of the SCM system in incremental phases is the most successful deployment
method. The BIG BANG approach – implementing everything at once – fails 90 percent of
the time.
5. Be future oriented - An SCM system, like all systems, must scale to meet future
demands.

CLASSROOM OPENER
GREAT BUSINESS DECISIONS – Michael Dell Decides to Sell PCs Directly to Consumers and
Built-to-Order
Michael Dell decided that to be successful in the PC business and to gain a significant competitive
advantage he would bypass the dealer channel through which personal computers were being
sold. Dell developed and deployed their own channel for manufacturing and selling PCs. This
personal channel eliminated the reseller markups and large inventory expenses and allowed Dell to
operate with lower costs than anyone in the industry, which led to higher profit margins.

Michael Dell understood that consumers were getting smarter and that customer service abilities
were becoming more sophisticated. Beginning with telephone sales, and then moving to Internet
sales, Dell bypassed retailers and targeted corporate accounts. Dell understood that tailoring
products to meet specific requirements of large accounts could be accomplished not only more
cheaply, but also more effectively without an intermediary.

Dell boasts sales of $12.3 billion and is the world’s number one direct-sales computer vendor. The
company’s Web site currently generates over half of its orders. Everybody in the industry is trying
to imitate Dell’s strategy.

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CLASSROOM EXERCISE
Designing a Digital Dashboard for an SCM System
Digital dashboards offer an effective and efficient way to view enterprisewide information at near
real-time. According to Nucleus Research, there is a direct correlation between use of digital
dashboards and a company’s return on investment (ROI), hence all executives should be using or
pushing the development of digital dashboards to monitor and analyze organizational operations.

Break your students into groups and ask them to develop a digital dashboard for the CEO of a
transportation company. Be sure your students have addressed all of the following in their digital
dashboard:
• Inventory
• Materials
• Demand/Supply
• Sales
• Supplier’s supplier
• Supplier
• Manufacturer
• Distributor
• Retailer
• Customer
• Customer’s Customer

CORE MATERIAL
The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed
teaching notes including exercises, class activities, questions, and examples. Please review the
PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

OPENING UNIT CASE STUDY QUESTIONS

Second Life
1. Would you need supply chain management systems in a virtual world such as Second Life?
Why or why not?
Answers to this question will vary. Some companies will need the supply chain if they are
selling items produced by other companies. If the company is operating independently it might
not have a need for a supply chain. It will depend on the business if the company will need an
SCM system.

2. How could a real company augment its supply chain management system through Second
Life?
A company could create a virtual office where it could talk with its real customers. It could gain
feedback on performance, show customers virtual operations of real-world operations, build
customer relationships, and even manage its customer service through Second Life.

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3. If you were an apparel company, such as Nike or REI, what would your virtual SCM system
look like? Create a drawing of this system and be sure to include all upstream and downstream
participants?
Answers to this question will vary, sample real world SCM answer provided below.

Rubber Kayak
Manuf. Company
REI Store
Customers

Steel Rock Equipment

Manuf. Climbing Manufacturing
Parts Co. Plant
REI.com Customers

Plastic Rain Gear

Manuf. Co.

Second Life SCM (no real materials or manufacturing in a Virtual World)

Kayak
Company

Rock REI Store Virtual

Climbing Customers
Parts Co. Avatars

Rain Gear
Co.

CHAPTER TEN CASE

BudNet
1. Describe how an SCM system can help a distributor such as Anheuser-Busch make its supply
chain more effective and efficient.
An SCM system can help make a distributor more effective by tracking, monitoring, and
analyzing inventory throughout the entire supply chain. An SCM system can trigger the

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production of a product for a manufacturer, determine where to transport the finished product
through a specific distribution company to a particular supplier, and can even recommend the
optimal location for the product at the supplier’s store. A good SCM system will know exactly
when a customer purchases a product from a supplier, and will automatically request product
replacement from the manufacturer. This drives efficiency and effectiveness since inventory
levels throughout the entire supply chain can be operated by just-in-time.

2. SCM is experiencing explosive growth. Explain why this statement is true using BudNet as an
example.
An SCM can help an organization:
 Control costs and improve saving
 Improve productivity
 Reduce inventory
 Improve visibility
 Reduce process cycle times
 Improve quality
 Maintain and gain a competitive advantage

3. Evaluate BudNet’s effect on each of the five factors that are driving SCM success.
There are five factors that are contributing to the explosive growth of SCM. (1) IT, (2) Visibility,
(3) Consumer behavior, (4) Competition, (5) Speed. BudNet is using these factors to control
quality, improve productivity, and ultimately increase revenues. Anheuser-Busch uses BudNet
to constantly adjust production levels, fine-tune marketing campaigns, change marketing
strategies, design promotions to suit the ethnic makeup of its markets, detect rivals and
competition, and define product placement and pricing strategies.

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CHAPTER ELEVEN
Building a Customer Centric Organization –Customer Relationship Management

CRM is a business philosophy based on the premise that those organizations that understand the
needs of individual customers are best positioned to achieve sustainable competitive advantages
in the future. This chapter discusses:
 The reasons for CRM’s explosive growth
 Using CRM to enhance decision making
 CRM success factors

LEARNING OUTCOMES
11.1 Compare operational and analytical customer relationship management.
Operational CRM supports traditional transactional processing for day-to-day front-office
operations or systems that deal directly with the customers. Analytical CRM supports back-
office operations and strategic analysis and includes all systems that do not deal directly with
the customers. The primary difference between operational CRM and analytical CRM is the
direct interaction between the organization and its customers.

11.2 Identify the primary forces driving the explosive growth of customer relationship management.
The primary forces driving the explosive growth of CRM include:
 Automation/Productivity/Efficiency
 Competitive advantage
 Customer demands/requirements
 Increase revenues
 Decrease costs
 Customer support
 Inventory control
 Accessibility

11.3 Define the relationship between decision making and analytical customer relationship
management.
Analytical CRM solutions are designed to dig deep into a company’s historical customer
information and expose patterns of behavior on which a company can capitalize. Analytical
CRM is primarily used to enhance and support decision making and works by identifying
patterns in customer information collected from the various operational CRM systems.

11.4 Summarize the best practices for implementing a successful customer relationship
management system.
CRM success factors include:
1. Clearly communicate the CRM strategy
2. Define information needs and flows

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3. Build an integrated view of the customer

4. Implement in iterations
5. Scalability for organizational growth

CLASSROOM OPENER
GREAT BUSINESS DECISIONS – Harley-Davidson Begins the Harley Owners Group (H.O.G.) to
Encourage Customer Involvement
One of the biggest assets for Milwaukee-based Harley-Davidson Motorcycle Company is its
intensely loyal customers. After struggling against Japanese competition throughout the 1960s and
1970s, the company turned a corner in 1981 when a group of 13 senior Harley-Davidson
executives purchased the company. Vaughn Beals, the leader, celebrated with a victory ride from
the company’s factory in York, Pennsylvania, to its headquarters in Milwaukee. The new owners
decided to begin the Harley Owners Group (H.O.G) to get customers more involved with the
product. HOG worked. With HOG, the company was able to key into its greatest asset – the people
who care about the Harley-Davidson company. HOG opened a dialog outside the company with its
loyal customer base and inside the company with its workforce.

In 1993, a little over 10 years after the start of HOG, the company celebrated its 90 th anniversary
with more than 100,000 HOG members converging on Milwaukee for a drive-through parade
featuring 60,000 Harley-Davidson machines.

CLASSROOM EXERCISE
Designing a Digital Dashboard for a CRM System
Digital dashboards offer an effective and efficient way to view enterprisewide information at near
real-time. According to Nucleus Research, there is a direct correlation between use of digital
dashboards and a company’s return on investment (ROI), hence all executives should be using or
pushing the development of digital dashboards to monitor and analyze organizational operations.

Break your students into groups and ask them to develop a digital dashboard for a CRM system.
Be sure your students have addressed all of the following in their digital dashboard:
• Customers
• Sales
• Marketing
• Customer service
• Order entry
• Billing
• Collections
• Credit limits
• Shipping
• Transportation

CORE MATERIAL

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The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed
teaching notes including exercises, class activities, questions, and examples. Please review the
PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

OPENING UNIT CASE STUDY QUESTIONS

Second Life
1. Why is it important for any company to use CRM strategies to manage customer information?
CRM technologies can help organizations answer tough questions such as who are their best
customers and which of their products are the most profitable.
CRM solutions make organizational business processes more intelligent. This is achieved by
understanding customer behavior and preferences, then realigning product and service
offerings and related communications to make sure they are synchronized with customer
needs and preferences. If you do not know and understand your customers then they might not
be your customers for long!

2. How are CRM strategies in Second Life different from CRM strategies in the real world?
Operating in a virtual world has many similarities and differences from operating in the real
world. In a virtual world you will be operating with many different types of customers who look
different from real customers.

Here is an excellent article on How Second Life Changes Customer Service

http://www.businessweek.com/globalbiz/content/apr2007/gb20070410_481047.htm?
campaign_id=rss_tech

The virtual world could become the first point of contact between companies and
customers and could transform the whole experience
Web 2.0 is still the hottest buzzword in tech circles, with every big brand worth its salt rushing to
open a headquarters in Second Life or build its own MySpace page. But beyond showing off some
fancy programming, a handful of companies are already looking at the latest wave of technologies
to explore whether user-generated content could be the next frontier in customer service.

Since it began hosting the likes of Adidas, Dell, Reuters and Toyota, Second Life has become
technology's equivalent of India or China - everyone needs an office and a strategy involving it to
keep their shareholders happy. But beyond opening a shiny new building in the virtual world, what
can such companies do with their remote real estate?

Rather than a simple showcase, some believe Second Life could one day become a first point of
contact for customers.

Like many other big brands, PA Consulting has its own offices in Second Life and has learnt that
simply having an office to answer customer queries is not enough. Real people, albeit behind
avatars, must be staffing the offices - in the same way having a website is not enough if there isn't
a call centre to back it up when a would-be customer wants to speak to a human being. In future,
the consultants believe call centers could one day ask customers to follow up a phone call with
them by moving the query into a virtual world.

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And hanging around in Second Life is more fun than being stuck on hold. As Claus Nehmzow,
member of PA Consulting's management team points out: "The waiting period can be so much
more entertaining than with an IVR system".

Instead of being placed in a queue to enjoy hold 'muzak' when contacting a call centre, virtual
world visitors could make more profitable use of their time - talking to other inhabitants, viewing
videos, reading information in the environment for example.

As well as keeping visitors entertained, exploring virtual world customer service can have
advantages for the company themselves.

By using avatars, for example, a whole new customer services workforce can be opened up - those
who need to work from home or mothers with young children for example, can be brought back into
the virtual workforce. It can also remove some of the issues with customers being prejudiced
against call centre workers who have certain accents.

However, currently Second Life and its imitators remain relatively niche in usage terms and have
their own technology boundaries - not all consumers, particularly the older community, have the
tech savvy or indeed the hardware necessary to make use of virtual worlds.

It may yet be some time before these cyber worlds come into their own - yet other web 2.0
technologies may offer another route for companies to make conversations with their customers
easier.

Clive Longbottom, of analyst house Quocirca, believes the relatively low penetration rates and end
user technical constraints will keep virtual worlds as a relatively niche customer service tool: "It's a
new environment, there's a lot of interest... but it's not growing rapidly, it's not a major area."

He added that more established web 2.0 favorites such as YouTube might be able to play a better
part in resolving customer queries. Examples might be electronics vendors posting a software
demo or a video of how to set up a tricky audio system.

Some companies have already cottoned on to the potential of user-generated content and have
begun milking users for their expertise in problem solving - Sony is one, having recently got users
to help solve glitches after the recent launch of the PS3. Sony has built customer self-service
forums using Transversal software to allow the PS3-puzzled to query each other.

Andy Barker, director of customer services for Sony UK, told silicon.com the hardware maker will
be relying on PS3 fans to help each other out, although the forums will have some Sony brains on
hand too.

We can't know how every single device works with the PS3 but users could have some experience
of it. If someone suggested they put the PS3 in a slow cooker, we'd step in and moderate that.
There will also be classic moderating if someone posts an offensive comment or a dodgy link."

Sony recently opened its own virtual world, Sony@home, and is looking into the possibility of
exploiting it for customer service purposes, perhaps using it to one day give users graphical

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walkthroughs if they need customer support. Barker said: "It's a question of seeing if people like it
and if it's something they use but that's looking a bit further in the future."

Meanwhile, others are exploring how user-generated content from mobile phones can be used for
customer service purposes.

In Accenture's US labs, some researchers are already working on how customers and companies
can make each other's lives easier by means of the humble cameraphone. The consultants have
already explored how snap-happy citizens can use their phones to take photos of minor crimes
such as fly-tipping or graffiti and MMS them to the police.

Andy Fano, global director of research, Accenture Technology Labs, told silicon.com the system
has to-date just been piloted in the US. He added: "We came from the position that it would only be
a matter of time until people captured an event on their phones, and wanted to send it to the police,
who wouldn't be able to receive it."

Insurance companies could also make use of the feature-stuffed mobile - after a disaster,
homeowners could take pictures of their homes as primary assessment of damage and help
insurance agents and emergency services determine who needs help first.

With the addition of image recognition tech, the capacities of mobiles could be extended.
Consumers could take pictures of a broken car part, for instance, and text it to the manufacturer to
request a replacement.

However, with a brave new world of new media customer services, call centers will need an
overhaul. Fano said: "By necessity, it will take more people to interpret all of this but given the
potential mass of media coming in, we have to find a scaleable way to approach this."

3. If the virtual world is the first point of contact between a company and its customers, how might
that transform the entire shopping experience?
Read the above article on How Second Life Changes Customer Service
http://www.businessweek.com/globalbiz/content/apr2007/gb20070410_481047.htm?
campaign_id=rss_tech

4. How could companies use Second Life to connect with customers that would be difficult or too
expensive in the real world?
With a virtual world you will not experience any of the problems we have in the real world with
travel. A trip to Japan, China, or Australia can cost a company thousands and thousands of
dollars in airfare, hotels, taxis, food, etc. Not to mention employee time. By visiting customers
in Second Life you can have a one-on-one or group conversation with people from all over the
globe without leaving your office. Second Life will help flatten the world and make everyone
next door neighbors (just as Freidman discussed in The World is Flat).

CHAPTER ELEVEN CASE

The Ritz-Carlton-Specializing in Customers

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1. What are the two different types of CRM and how has the Ritz-Carlton used them to become a
world-class customer-service business?
Operational CRM supports traditional transactional processing for day-to-day front-office
operations or systems that deal directly with the customers. Analytical CRM supports back-
office operations and strategic analysis and includes all systems that do not deal directly with
the customers. The primary difference between operational CRM and analytical CRM is the
direct interaction between the organization and its customers. The Ritz-Carlton is a leader in
customer service. It uses CRM for everything from knowing a customer’s name to recognizing
a customer’s birthday.

2. Determine which of Ritz-Carlton’s six steps of customer service is the most important for its
business.
They are all important!

3. Rank Ritz-Carlton’s six steps of customer service in order of greatest to least importance in a
CRM strategy for an online book-selling business such as Amazon.com.
Student answers to this question will vary. The important part is that they justify why the order
in relation to Amazon’s business strategy. It is also important that the student understand that
these strategies can be applied to any business that wants to succeed in CRM.

4. Describe three ways Ritz-Carlton can extend its customer reach by performing CRM functions
over the Internet.
There are numerous ways that the Ritz-Carlton can extend its reach including personalization
through a Web site that offers activities in the area, information on conferences that customers
might want to attend, and menu plans that customers can place orders before they arrive or
during their stay.

5. The sixth step states to eschew technology— “We will not replace human service with
machines.” Do you agree that customer service and satisfaction would decrease at Ritz-
Carlton if it used technology such as automatic check-in kiosks? Why or why not? Do you think
that Ritz-Carlton might find itself at a competitive disadvantage to hotels that are embracing
technology to become more efficient and effective? Why or why not?
Student answers to this question will vary. This question makes for an interesting classroom
debate if you have the time.

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CHAPTER TWELVE
Integrating the Organization from End to End – Enterprise Resource Planning

Organizations are anticipating that e-business will increase profitability, create competitive
differentiation, and support innovative business practices. To achieve these goals, companies must
evolve through distinct stages, from integrated processes to truly synchronized inter-enterprise
communities. Getting e-business applications based on different technologies and with differing
business models and data models to work together are key issues for 21 st century organizations.

LEARNING OUTCOMES
12.1 Describe the role information plays in enterprise resource planning systems.
The primary purpose of an ERP is to collect, update, and maintain enterprisewide information.
All of the functional departments access the same information when making decisions and
solving problems.
.
12.2 Identify the primary forces driving the explosive growth of enterprise resource planning
systems.
 ERP is a logical solution to the mess of incompatible applications that had sprung up in
most businesses
 ERP addresses the need for global information sharing and reporting
 ERP is used to avoid the pain and expense of fixing legacy systems

12.3 Explain the business value of integrating supply chain management, customer relationship
management, and enterprise resource planning systems.
Most organizations piecemeal their applications together since no one vendor can respond to
every organization’s needs; hence, customers purchase multiple applications from multiple
vendors. For example, a single organization might choose its CRM components from Siebel,
SCM from i2, financial from Oracle, and human resources from PeopleSoft. These
applications must be integrated in order to gain an enterprisewide view of the information.

CLASSROOM OPENER
GREAT BUSINESS DECISIONS – Warren Buffet Decides to Invest in Berkshire Hathaway
In 1962, Warren Buffett decided to invest in an ailing textile company called Berkshire Hathaway.
Today, the company has a market capitalization of $60 billion, and Buffett is recognized as one of
the greatest investors of all time.

Buffett believes in focused investing and believes that all investors should look at five features:
1. The certainty with which the long-term economic characteristics of the business can be
evaluated

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2. The certainty with which management can be evaluated, both as to its ability to realize the full
potential of the business and to wisely employ its cash flows
3. The certainty with which management can be counted on to channel the reward from the
business to the shareholders rather than to itself
4. The purchase price of the business
5. The levels of taxation and inflation that will be experienced and that will determine the degree
by which an investor’s purchasing-power return is reduced from his gross return

Overall, Buffett uses information from every source to analyze and evaluate an investment. Without
looking at a business from every angle, internally and externally, including customers, partners,
and suppliers, it is impossible to gain an accurate assessment of the business. If a person could
capture Warren Buffett’s “know how” and put it in a data warehouse, they could make a small
fortune.

One of the greatest benefits of an ERP system is helping people understand how the organization
is performing from an enterprise perspective. ERP systems provide organizations with information
that was previously difficult if not impossible to obtain allowing the organization to perform more
efficiently and effectively. Better performance usually means higher profits, which pleases
stakeholders and investors.

CLASSROOM EXERCISE
Designing a Digital Dashboard for an ERP System
Digital dashboards offer an effective and efficient way to view enterprisewide information at near
real-time. According to Nucleus Research, there is a direct correlation between use of digital
dashboards and a company’s’ return on investment (ROI), hence all executives should be using or
pushing the development of digital dashboards to monitor and analyze organizational operations.

Break your students into groups and ask them to develop a digital dashboard for an ERP system.
Review the digital dashboards on page 98. Be sure your students have addressed all of the
following in their digital dashboard:
• Accounting
• Finance
• Logistics
• Production
• Distribution
• Manufacturing
• Human resources
• SCM
• CRM

CORE MATERIAL
The core chapter material is covered in detail in the PowerPoint slides. Each slide contains detailed
teaching notes including exercises, class activities, questions, and examples. Please review the
PowerPoint slides for detailed notes on how to teach and enhance the core chapter material.

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OPENING UNIT CASE STUDY QUESTIONS

Second Life
1. If you operated a business entirely on Second Life would you require an ERP system? Why or
why not?
Answers to this question will vary depending on the type of business you are operating in
Second Life. If you have a business that spans multiple industries in many different countries
you might require an ERP system in Second Life. If you are running a small business
independently you might not require an ERP system. This question would be the same if you
were in the real world or in a virtual world.

2. How would an ERP system be used in Second Life to support a global organization?
The exact same way it would support a company in the real world. It would help to gather and
aggregate diverse amounts of information to support a global virtual conglomerate.

CHAPTER TWELVE CASE

Gearing Up at REI
1. What business impact could REI gain by using a digital dashboard from its ERP system?
An executive information system (EIS) is a specialized DSS that supports senior level
executives within the organization. A digital dashboard integrates information from multiple
components and presents it in a unified display. A digital dashboard is a form of EIS. REI could
help its executives gain access to greater amounts and details of enterprisewide information
through a digital dashboard. According to Nucleus Research, there is a direct correlation
between use of digital dashboards and a companies’ return on investment (ROI), hence REI
could increase its ROI through a digital dashboard running on an EIS.

A digital dashboard would allow the company to keep a firm eye on operations and be
informed in real-time as soon as any issues occur. Keeping a digital dashboard that monitors
key metrics will ensure all upper management personnel have up-to-date information on all
areas of the business and can react to any potential problems before they become significant
business issues.

2. How can REI benefit from using artificial intelligence to support its business operations?
Intelligent systems are various commercial applications of artificial intelligence. Artificial
intelligence (AI) simulates human intelligence such as the ability to reason and learn and
typically can learn or understand from experience, make sense of ambiguous or contradictory
information, and use reasoning to solve problems and make decisions. REI could use AI to
perform competitive scanning such as RivalWatch, to mimic human expertise such as
diagnosing equipment malfunctions, and even to perform dangerous activities such as rock
climbing and kayaking to ensure equipment is safe and performs as expected.

3. How does REI’s ERP system help employees improve their decision making capabilities and
highlight potential business opportunities?
The primary purpose of an ERP is to collect, update, and maintain enterprisewide information.
All of the functional departments access the same information when making decisions and

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solving problems. An ERP system can help REI gain an enterprisewide view into all of its
operational information from sales and marketing to billing and finance. This will assist
employees in making decision with the most up-to-date and real time information available.

4. How could an SCM system improve REI’s business operations?

A supply chain management system can improve a business by giving them insight into their
supply chain from suppliers to the end customer. REI could gain a detailed understanding of
customer demand and pass this information along to its distributors, manufactures, and
suppliers. This would allow REI to use just-in-time ordering keeping inventory amounts low.

5. Provide an illustration of REI’s SCM system including all upstream and downstream
participants.
Answers to this question will vary. Potential SCM system diagram:

Rubber Kayak
Manuf. Company
REI Store
Customers

Steel Rock Equipment

Manuf. Climbing Manufacturing
Parts Co. Plant
REI.com Customers

Plastic Rain Gear

Manuf. Co.

6. Determine two pieces of customer information that REI could extrapolate from its CRM system
that would help it manage its business more effectively.
REI’s CRM system consolidates its four disparate database systems integrating multiple sales
channels to mange mail orders, in-store special orders, kiosk operations, and REI Adventures.
This gives the company a complete view of all customers regardless of their shopping
preference. REI’s employees can instantly view all items that a customer has purchased and
immediately identify additional sale opportunities. The system also gives the employees the
ability to help customers with their purchases regardless of where the purchase occurred.
There are numerous pieces of information that REI could gain from a CRM system including
 Best customer
 Worst customer
 Average purchase by each order method (in-store, online)
 Cross-marketing plans (order an item online and receive a 10% store discount)

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 Determine characteristics of customers who might purchase an adventure from the items
they purchase

If REI did not have a CRM system then the information from its four different business units
would be separate and cause its business to function by silos. For example, if a customer
placed an online order and came to an REI store to return the order, the store would be unable
to help the customer because it would not have any knowledge of the customer’s order. The
customer would have to return the item by mail to the online order center.

7. How can an ERP system help REI gain business intelligence in its operations?
The primary purpose of an ERP is to collect, update, and maintain enterprisewide information.
All of the functional departments access the same information when making decisions and
solving problems. An ERP system can help REI gain an enterprisewide view into all of its
operational information from sales and marketing to billing and finance.

8. What is the business benefit for REI in integrating its CRM, SCM, and ERP systems?
Most organizations piecemeal their applications together since no one vendor can respond to
every organization’s needs; hence, customers purchase multiple applications from multiple
vendors. For example, a single organization might choose its CRM components from Siebel,
SCM from i2, financial from Oracle, and human resources from PeopleSoft. These
applications must be integrated in order to gain an enterprisewide view of the information. By
integrating REI’s CRM, SCM, and ERP applications, the company could analyze all of its
enterprisewide information, which could yield exciting insights into its current and future
operations.

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UNIT THREE
CLOSING MATERIAL

CLOSING CASE ONE

Dell’s Famous Supply Chain
1. Identify a few key metrics a Dell marketing executive might want to monitor on a digital
dashboard.
An executive information system (EIS) is a specialized DSS that supports senior level
executives within the organization. A digital dashboard integrates information from multiple
components and presents it in a unified display. A digital dashboard is a form of EIS. Key
metrics for a marketing executive could include:
 Best selling product
 Worst selling product
 Date of highest sales per month
 Date of worst sales per month
 Correlation between product sales
 Sales by region
 Sales by season
 Overstocked products
 Promotion success

2. Determine how Dell can benefit from using decision support systems and executive information
systems in its business.
An executive information system (EIS) is a specialized DSS that supports senior level
executives within the organization. A digital dashboard integrates information from multiple
components and presents it in a unified display. A digital dashboard is a form of EIS. Dell could
help its executives gain access to greater amounts and details of enterprisewide information
through a digital dashboard. According to Nucleus Research, there is a direct correlation
between use of digital dashboards and a companies’ return on investment (ROI), hence REI
could increase its ROI through a digital dashboard running on an EIS.

3. Describe how Dell has influenced visibility, consumer behavior, competition, and speed though
the use of IT in its supply chain.
Dell is one of the fasted companies on the planet due to information technology. Dell only
holds 72 hours worth of inventory in its supply chain, hence it must have tremendous supply
chain visibility. It must be able to anticipate consumer behavior to ensure its supply chain can
meet forecasted demands. Dell’s competition is working hard to catch-up.

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4. Explain the seven principles of SCM in reference to Dell’s business model.

Students should take the principles of how to build a Dell-like supply chain and compare them
to the following:
 Segment customers by service needs, regardless of industry, and then tailor services to
those particular segments.
 Customize the logistics network and focus intensively on the service requirements and on
the profitability of the preidentified customer segments
 Listen to signals of market demand and plan accordingly.
 Differentiate products closer to the customer, since companies can no longer afford to hold
inventory to compensate for poor demand forecasting.
 Strategically manage courses of supply, by working with key suppliers to reduce overall
costs of owning materials and services.
 Develop a supply chain information technology strategy that supports different levels of
decision making.
 Adopt performance evaluation measures that apply to every link in the supply chain and
measure true profitability at every stage.

5. Identify how Dell can use CRM to improve its business operations.
Dell can use a CRM system to build better relationships with its customers. The PC business is
tough and Dell has a lot of competition. Building a reputation for outstanding customer
relationships is one way that Dell could create a competitive advantage over its customers.
Dell could also use CRM to build personalized Web sites for its customers.

6. Explain how an ERP system could help Dell gain business intelligence.
The primary purpose of an ERP is to collect, update, and maintain enterprisewide information.
All of the functional departments access the same information when making decisions and
solving problems. An ERP system can help Dell gain an enterprisewide view into all of its
operational information from sales and marketing to billing and finance.

CLOSING CASE TWO

Revving Up Sales at Harley Davidson
1. Explain how Talon helps Harley-Davidson employees improve their decision-making
capabilities.
Talon is Harley-Davidson’s proprietary dealer management system. Talon handles inventory,
vehicle registration, warranties, and point-of-sale transactions for all of Harley-Davidson’s
dealerships. The system helps improve decision-making capabilities by offering an
enterprisewide view of operations, sales, and expenses. The system automatically generates
part orders, taking much of the guesswork out of replenishment. Most significantly, the system
allows the company to review and analyze information across its global organization giving it a
360-degree view into enterprisewide information that supports strategic goal setting and
decision making throughout all levels of the organization.

2. Identify a few key metrics a Harley-Davidson marketing executive might want to monitor on a
digital dashboard.
An executive information system (EIS) is a specialized DSS that supports senior level
executives within the organization. A digital dashboard integrates information from multiple

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components and presents it in a unified display. A digital dashboard is a form of EIS. Harley-
Davidson could help its executives gain access to greater amounts and details of
enterprisewide information through a digital dashboard. According to Nucleus Research, there
is a direct correlation between use of digital dashboards and a companies’ return on
investment (ROI), hence Harley-Davidson could increase its ROI through a digital dashboard
running on an EIS. Key metrics could include:
 Best selling product
 Worst selling product
 Date of highest sales per month
 Date of worst sales per month
 Correlation between product sales
 Online orders verses in-store purchases
 Sales by region
 Sales by season

3. Determine how Harley-Davidson can benefit from using decision support systems and
executive information systems in its business.
An executive information system (EIS) is a specialized DSS that supports senior level
executives within the organization. A digital dashboard integrates information from multiple
components and presents it in a unified display. A digital dashboard is a form of EIS. Harley-
Davidson could help its executives gain access to greater amounts and details of
enterprisewide information through a digital dashboard. According to Nucleus Research, there
is a direct correlation between use of digital dashboards and a companies’ return on
investment (ROI), hence REI could increase its ROI through a digital dashboard running on an
EIS.

4. How would Harley-Davidson’s business be affected if it decided to sell accessories directly to

its online customers. Include a brief discussion of the ethics involved in this decision.
Harley-Davidson sells over $500 million worth of parts and accessories yearly. The company
was interested in offering these products online. The dilemma facing Harley-Davidson was that
selling online would bypass Harley-Davidson’s 650 dealers, who depend on the high-margin
accessories to fuel their businesses’ profits. If the company decided to sell directly to its
customers, it would risk alienating its dealers and hurting dealer relationships, which could
have devastating effects on its overall business. Selling to its dealers’ customer could be
considered unethical since it would be competing with its own business partners.

5. Evaluate the HOG CRM strategy and recommend an additional benefit Harley-Davidson could
provide to its HOG members to increase customer satisfaction.
The development of the Harley Owners Group (HOG) is viewed by some as one of the
greatest business decisions of all time. Harley-Davidson operates as a customer-centric
business and has customers involved in all business operations and decisions. There are
numerous benefits HOG could offer its members including additional discounts, special
accessories only available to HOG members, a HOG calendar featuring HOG members and
only available for sale to HOG members, and even a HOG dating service.

6. How could Harley-Davidson’s SCM system, Manugistics, improve its business operations.

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Harley-Davidson invests time, energy, and resources into continually improving its company-
to-company strategic business initiatives such as supply chain management. The company
deployed Manugistics, an SCM system, which allows it to do business with suppliers in a
collaborative, Web-based environment. The SCM system will allow Harley-Davidson to build
stronger relationships with the Web of participants in its supply chain, better manage its flow of
materials, and improve collaboration activities with its key suppliers.

7. Provide an illustration of Harley-Davidson’s SCM system including all upstream and

downstream participants.
Answers to this question will vary. Potential SCM system diagram:

Rubber Tire
Manuf. Company
Harley-
Davidson Customers
Dealerships
Steel AAA Harley-
Manuf. Parts Co. Davidson
Manufacturing
Plant Other Customers
Dealerships
Plastic BBB Parts
Manuf. Co.

8. Explain how an ERP system can help Harley-Davidson gain business intelligence in its
operations.
The primary purpose of an ERP is to collect, update, and maintain enterprisewide information.
All of the functional departments access the same information when making decisions and
solving problems. An ERP system can help Harley-Davidson gain an enterprisewide view into
all of its operational information from sales and marketing to billing and finance.

MAKING BUSINESS DECISIONS

Instructor Note: There are few right or wrong answers in the business world. There are really only
efficient and inefficient, and effective and ineffective business decisions. If there were always right
answers businesses would never fail. These questions were created to challenge your students to
apply the materials they have learned to real business situations. For this reason, the authors
cannot provide you with one version of a correct answer. When grading your students’ answers, be

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sure to focus on their justification or support for their specific answers. A good way to grade these
questions is to compare your student’s answers against each other.

1. IMPLEMENTING AN ERP SYSTEM

Project Purpose: To understand ERP benefits and risks and apply industry success factors.
Potential Solution: The biggest benefit of an ERP system is its ability to provide an
enterprisewide view of organizational information. The biggest risk is cost and implementation
time. Students should use a combination of SCM and CRM industry success factors for ERP
industry success factors. These should include clearly communicate the strategy, define
information needs and flows, build an integrated view of the entire organization, implement in
iterations, and be future oriented, ensuring the ERP system is scalable for organizational
growth.

2. DSS AND EIS

Project Purpose: To understand the value gained by using decision-support tools.
Potential Solution: Dr. Rosen can use DSS systems to model all of the organizational
information to support or reject his purchase decision. Dr. Rosen can use sensitivity analysis to
study of the impact that changes in buying the new business will have on his current business.
He can use what-if analysis to understand how economic conditions, professional reputation,
and other competitors might affect his business in the future. He can use goal-seeking analysis
to determine how much revenues will have to increase to offset the cost of the purchase.

3. SCM, CRM, AND ERP

Project Purpose: To explain the differences and similarities between SCM, CRM, and ERP.
Potential Solution: SCM’s primary users are customers, resellers, partners, suppliers,
distributors, and manufactures. SCM helps make the process of gathering materials and
transforming them into finished-products more efficient and effective. CRM’s primary users are
sales, marketing, and customer service. CRM helps build strong relationships between an
organization and its customers. ERP’s users are primarily internal, including accounting,
finance, logistics, and production. ERPs usually focus on improving internal processes and
operations. An ERP can include SCM and CRM components; however, these components are
typically not as advanced and offer less functionality than vendors who specialize in SCM or
CRM.

4. CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES

Project Purpose: To analyze the value of a CRM strategy.
Potential Solution: CRM is a business philosophy based on the premise that those
organizations that understand the needs of individual customers are best positioned to achieve
sustainable competitive advantages in the future. Operational CRM supports traditional
transactional processing for day-to-day front-office operations or systems that deal directly with
the customers. Analytical CRM supports back-office operations and strategic analysis and
includes all systems that do not deal directly with the customers. Implementing a CRM system
can help the organization view detailed customer information providing insights into the decline
in sales. Analytical CRM solutions can dig deep into the company’s historical customer
information and expose patterns of behavior, which might help explain the declining sales. The
analytical CRM system can also analyze industry trends, market trends, and other external

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factors such as the terrorist attacks, to help understand if other businesses in the luggage
market have also lost sales.

5. FINDING INFORMATION ON DECISION SUPPORT SYSTEMS

Project Purpose: Finding additional information on DSSs.
Potential Solution: Student answers to this question will vary depending on which systems
they research on the Internet. In general, their presentation should focus on how a DSS can
help grow a small to medium sized business. Be sure your students answer what types of DSS
systems are available for a small business, how they can be used in a small business, and the
cost associated with the different DSS systems.

6. ANALYZING DELL’S SUPPLY CHAIN MANAGEMENT SYSTEM

Project Purpose: Analyzing one of business’s most successful SCM implementations.
Potential Solution: There are numerous Web sites and articles on the Internet discussing
Dell’s famous SCM system. The U.S. government even visited Dell to learn how to implement
a superior SCM system for moving army supplies. Student answers to this question will vary.
The most important part of this question is that your students gain a detailed understanding of
Dell’s supply chain and why it was so successful. Dell uses AI robots to build many of its
computers and cut out the intermediary sales person with its direct Internet orders. Students
should remember that competitive advantages are typically temporary, and if they find
themselves in the position of implementing an SCM system, their best bet is to study and learn
from Dell.

7. GAINING BUSINESS INTELLIGENCE FROM STRATEGIC INITIATIVES

Project Purpose: To explain SCM, CRM, and ERP.
Potential Solution: SCM enhances decision making. Collecting, analyzing, and distributing
transactional information to all relevant parties, SCM systems help all the different entities in
the supply chain work together more effectively. SCM systems provide dynamic holistic views
of organizations. Users can “drill down” into detailed analyses of supply chain activities in a
process analogous to DSS. Without SCM systems, organizations would be unable to make
accurate and timely decisions regarding their supply chain.

Operational CRM supports traditional transactional processing for day-to-day front-office

operations or systems that deal directly with the customers. Analytical CRM supports back-
office operations and strategic analysis and includes all systems that do not deal directly with
the customers. The primary difference between operational CRM and analytical CRM is the
direct interaction between the organization and its customers.

The primary purpose of an ERP is to collect, update, and maintain enterprisewide information.
All of the functional departments access the same information when making decisions and
solving problems. The primary benefits of an ERP system include:
 ERP is a logical solution to the mess of incompatible applications that had sprung up in
most businesses.
 ERP addresses the need for global information sharing and reporting
 ERP is used to avoid the pain and expense of fixing legacy systems

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APPLY YOUR KNOWLEDGE

Instructor Note: There are few right or wrong answers in the business world. There are really only
efficient and inefficient, and effective and ineffective business decisions. If there were always right
answers businesses would never fail. These questions were created to challenge your students to
apply the materials they have learned to real business situations. For this reason, the authors
cannot provide you with one version of a correct answer. When grading your students’ answers, be
sure to focus on their justification or support for their specific answers. A good way to grade these
questions is to compare your student’s answers against each other.

AYK 1: Great Stories

CRM is a business philosophy based on the premise that those organizations that understand the
needs of individual customers are best positioned to achieve sustainable competitive advantage in
the future. Many aspects of CRM are not new to organizations; CRM is simply performing current
business better. Placing customers at the forefront of all thinking and decision making requires
significant operational and technology changes, however.

PROJECT ANALYSIS AND SOLUTION

Business 2.0 ranked "You - the customer" as one of the 50 people who matter now for 2006. 
http://money.cnn.com/magazines/business2/peoplewhomatter/
• These Web sites show the power people have in the consumer market today
• http://www.ihatedell.net/

• http://www.donotbuydodge.ca/

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AYK 2: Classic Car Problems

Customer relationship management involves managing all aspects of a customer’s relationship
with an organization to increase customer loyalty and retention and an organization’s profitability.
Operational CRM supports traditional transactional processing for day-to-day front-office
operational or systems that deal directly with the customers. Analytical CRM supports back-office
operations and strategic analysis and includes all systems that do not deal directly with the
customers. Analytical CRM relies heavily on data warehousing technologies and business
intelligence to glean insights into customer behavior.

PROJECT ANALYSIS AND SOLUTION

Classic Cars Inc. can use CRM to alleviate many of the company’s issues by gaining a
comprehensive view of each customer.
 CRM can compile the information from the 4 different locations and the 40 different sales
representatives into one critical system. This will allow the company to understand its
entire business and which customers want which cars at which time.
 The company could standardize quoting with its CRM system. Sales representative would
only be allowed to quote the price offered in the CRM system.

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 The company could help the sales representatives track their customers and see if they
are dealing with more than one sales representative. This would alleviate the issue with
stolen customers and commissions.
 The sales representative could see which cars are located at each location and notify the
location that a customer is coming to view the car.
 The business intelligence that could be pulled from the CRM system will help the
dealerships make better decisions regarding marketing campaigns and sales strategies.
 There would no longer be an issue if a sales representative quit because the CRM system
would contain all of his or her customer information.

AYK 3: Building Visibility

The four drivers of supply chain management include:
 Facilities – processes or transforms inventory into another product, or it stores the
inventory before shipping it to the next facility.
 Inventory – offsets discrepancies between supply and demand.
 Transportation – moves inventories between the different stages in the supply chain.
 Information – an organization must decide how and what information it wants to share with
its supply chain partners.

Supply chain management strategies focusing on efficiency are most concerned with using the
supply chain to drive down costs. For example, an efficient SCM will use a centralized warehouse,
inexpensive transportation methods, and freely share lots of information in a push strategy with its
supply chain partners.

Supply chain management strategies focusing on effectiveness are most concerned with using the
supply chain to increase customer satisfaction. For example, an effective SCM will have many
decentralized warehouses close to its customers, excess capacity at its facilities to meet wide
swings in demand, use fast and expensive shipping methods, and selectively share information
using a pull strategy with its supply chain partners.

PROJECT ANALYSIS AND SOLUTION

Netflix is a perfect example of a company that changed its core business (renting movies) by
reinventing its supply chain.

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1: Customer returns movie in preaddressed mailer

to local distribution center.

Step 3: System retrieves next customer

and mails the disk.

Step 2: Netflix employee scans the Step 3: If no customer is waiting for the
disc’s bar code. disk it is sent to San Jose.

Students should think of each of the following when determining how to revamp an existing or new
supply chain.
THE FACILITIES DRIVER
Supply chain facility strategies processes or transforms inventory into another product, or it stores
the inventory before shipping it to the next facility. The three primary facilities components include
location, capacity, and operational design.
 Location efficiency – centralize the location to gain economies of scale, which increases
efficiency
 Location effectiveness – decentralize the locations to be closer to the customers, which
increases effectiveness
 Capacity efficiency – minimal excess capacity with the ability to produce only what is
required
 Capacity effectiveness – large amounts of excess capacity which can handle wide swings
in demand
 Operational design efficiency – product focus design allows the facility to become highly
efficient at producing one single product, increasing efficiency
 Operational design effectiveness – functional focus design allows the facility to perform a
specific function on many different types of products, increasing effectiveness

THE INVENTORY DRIVER

Inventory offsets discrepancies between supply and demand. The two primary inventory
components include cycle inventory and safety inventory.
 Cycle inventory efficiency – holding small amounts of inventory and receiving orders
weekly or even daily
 Cycle inventory effectiveness – holding large amounts of inventory and receiving inventory
delivers only once a month

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 Safety inventory efficiency – holding small amounts of safety inventory

 Safety inventory effectiveness – holding large amounts of safety inventory

THE TRANSPORTATION DRIVER

Transportation moves inventories between the different stages in the supply chain. The two
primary inventory components include method of transportation and transportation route.
 Method of transportation efficiency– choosing an inexpensive method of transportation
increases efficiency, but also typically increases delivery time
 Method of transportation effectiveness – choosing an expensive method of transportation
to ensure speedy delivery increases effectiveness
 Transportation route effectiveness – a company can ship its products directly to its
customers
 Transportation route efficiency– a company can save money by shipping its products to a
distributor that ships the products to its customers

THE INFORMATION DRIVER

An organization must decide how and what information it wants to share with its supply chain
partners. The two primary information components include information sharing and push vs. pull
strategy. The case did not discuss in detail Warner-Lambert’s information strategy, but if it focused
on efficiency it would:
 Information sharing efficiency – freely share lots of information to increase the speed and
decrease the costs of supply chain processing
 Pull information strategy (efficiency) – supply chain partners are responsible for pulling all
relevant information

AYK 4: Netflix Your Business

Supply chain management strategies focusing on efficiency are most concerned with using the
supply chain to drive down costs. For example, an efficient SCM will use a centralized warehouse,
inexpensive transportation methods, and freely share lots of information in a push strategy with its
supply chain partners.

Supply chain management strategies focusing on effectiveness are most concerned with using the
supply chain to increase customer satisfaction. For example, an effective SCM will have many
decentralized warehouses close to its customers, excess capacity at its facilities to meet wide
swings in demand, use fast and expensive shipping methods, and selectively share information
using a pull strategy with its supply chain partners.

PROJECT ANALYSIS AND SOLUTION

Netflix is a perfect example of a company that changed its core business (renting movies) by
reinventing its supply chain.

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1: Customer returns movie in preaddressed mailer

to local distribution center.

Step 3: System retrieves next customer

and mails the disk.

Step 2: Netflix employee scans the Step 3: If no customer is waiting for the
disc’s bar code. disk it is sent to San Jose.

supply chain.
THE FACILITIES DRIVER
Supply chain facility strategies processes or transforms inventory into another product, or it stores
the inventory before shipping it to the next facility. The three primary facilities components include
location, capacity, and operational design.
 Location efficiency – centralize the location to gain economies of scale, which increases
efficiency
 Location effectiveness – decentralize the locations to be closer to the customers, which
increases effectiveness
 Capacity efficiency – minimal excess capacity with the ability to produce only what is
required
 Capacity effectiveness – large amounts of excess capacity which can handle wide swings
in demand
 Operational design efficiency – product focus design allows the facility to become highly
efficient at producing one single product, increasing efficiency
 Operational design effectiveness – functional focus design allows the facility to perform a
specific function on many different types of products, increasing effectiveness

THE INVENTORY DRIVER

Inventory offsets discrepancies between supply and demand. The two primary inventory
components include cycle inventory and safety inventory.
 Cycle inventory efficiency – holding small amounts of inventory and receiving orders
weekly or even daily
 Cycle inventory effectiveness – holding large amounts of inventory and receiving inventory
delivers only once a month
 Safety inventory efficiency – holding small amounts of safety inventory

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 Safety inventory effectiveness – holding large amounts of safety inventory

THE TRANSPORTATION DRIVER

Transportation moves inventories between the different stages in the supply chain. The two
primary inventory components include method of transportation and transportation route.
 Method of transportation efficiency– choosing an inexpensive method of transportation
increases efficiency, but also typically increases delivery time
 Method of transportation effectiveness – choosing an expensive method of transportation
to ensure speedy delivery increases effectiveness
 Transportation route effectiveness – a company can ship its products directly to its
customers
 Transportation route efficiency– a company can save money by shipping its products to a
distributor that ships the products to its customers

THE INFORMATION DRIVER

An organization must decide how and what information it wants to share with its supply chain
partners. The two primary information components include information sharing and push vs. pull
strategy. The case did not discuss in detail Warner-Lambert’s information strategy, but if it focused
on efficiency it would:
 Information sharing efficiency – freely share lots of information to increase the speed and
decrease the costs of supply chain processing
 Pull information strategy (efficiency) – supply chain partners are responsible for pulling all
relevant information

AYK 5: Finding Shelf Space at Wal-Mart

Companies that excel in supply chain operations perform better in almost every financial measure
of success, according to a report from Boston-based AMR Research Inc. When supply chain
excellence improves operations, companies experience a 5 percent higher profit margin, 15
percent less inventory, 17 percent stronger “perfect order” ratings, and 35 percent shorter cycle
times than their competitors. “The basis of competition for winning companies in today’s economy
is supply chain superiority,” says Kevin O’Marah, vice president of research at AMR Research.
“These companies understand that value chain performance translates to productivity and market-
share leadership. They also understand that supply chain leadership means more than just low
costs and efficiency; it requires a superior ability to shape and respond to shifts in demand with
innovative products and services.”

PROJECT ANALYSIS AND SOLUTION

There is an excellent article on the Wal-Mart site that steps potential partners through how to
become a Wal-Mart or Sam’s Club partner.

Interested in doing business with Wal-Mart or Sam’s Club?

http://www.walmartstores.com/Files/Supplier_GettingStarted.pdf

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Then this guide is the right place to start. Here you’ll find essential information on preparing
yourself for the Wal-Mart and Sam’s Club marketplace, as well as useful resources to help guide
you through the process. You’ll also learn about our Supplier Diversity program for minority- and
women-owned businesses and our Local Purchases program for smaller suppliers.

AYK 6: Shipping Problems

Companies that excel in supply chain operations perform better in almost every financial measure
of success, according to a report from Boston-based AMR Research Inc. When supply chain
excellence improves operations, companies experience a 5 percent higher profit margin, 15
percent less inventory, 17 percent stronger “perfect order” ratings, and 35 percent shorter cycle
times than their competitors. “The basis of competition for winning companies in today’s economy
is supply chain superiority,” says Kevin O’Marah, vice president of research at AMR Research.
“These companies understand that value chain performance translates to productivity and market-
share leadership. They also understand that supply chain leadership means more than just low
costs and efficiency; it requires a superior ability to shape and respond to shifts in demand with
innovative products and services.”

PROJECT ANALYSIS AND SOLUTION

This is an excellent project to get your students thinking about the supply chain and the drastic
impact disasters or other uncontrollable factors, such as a strike, can have on a business. This
exact problem happened to Dell and here is how Dell combated the issue.

The Los Angeles dock workers' strike in 2002 provides a lesson in the importance of agility and
"nonroutine activities." The story, the subject of numerous business case studies, has taken on an
air of urban myth, except that it happens to be true.

The strike threatened many U.S. businesses by choking off an important supply chain to Asia.
Computer giant Dell was no different, and for a time, its business and famous execution of the just-
in-time manufacturing model were in peril. Fortunately, the company had a sophisticated IT
infrastructure that broke down silos of information and let Dell make decisions as an integrated
enterprise.

After using forecasting tools to analyze the potential damage of a protracted strike, the company
quickly began contracting for rental air freight carriers to fly in computer components. By acting
ahead of the herd, Dell was able to lock down rental rates that were half of what some slower
competitors were eventually charged.

Now that it had the planes, what would it pack them with? In 2002, flat screen PC displays hadn't
yet saturated the market, and traditional "tube" monitors still outsold their thin cousins. However,
since Asian suppliers could pack more flat screens into tight cargo holds than bulky tubes, Dell
pushed the newer displays on its Web sites and in its promotions. And with more flat-screen
displays on hand, Dell put itself in a better position to fill orders without amassing a mountain of
back orders before the strike ended. All of this happened during the crucial Christmas buying
season, and despite the strike, Dell succeeded in boosting its market share throughout the period.

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The lesson is that business agility isn't just a buzzword. It can have a profound effect on the bottom
line, not only in a temporary crisis, but also as markets evolve, demand patterns shift and new,
unforeseen opportunities arise for companies that are able to act quickly.

There's no such thing as "out-of-the-box agility." But thanks to its ability to dynamically reallocate
resources and break down stovepipes of processing power, data and applications, grid computing
fits easily into a world of nonroutine activities. If change is one of the only constants enterprises
can count on today, grid provides a way to transform change into a competitive strength.

AYK 7: Political Supply Chain

The average company spends nearly half of every dollar that it earns on production needs—goods
and services it needs from external suppliers to keep producing. A supply chain consists of all
parties involved, directly or indirectly, in the procurement of a product or raw material. Supply chain
management (SCM) involves the management of information flows between and among stages in
a supply chain to maximize total supply chain effectiveness and profitability.
In the past, companies focused primarily on manufacturing and quality improvements within their
four walls; now their efforts extend beyond those walls to influence the entire supply chain including
customers, customers’ customers, suppliers, and suppliers’ suppliers. Today’s supply chain is a
complex web of suppliers, assemblers, logistic firms, sales/marketing channels, and other business
partners linked primarily through information networks and contractual relationships. SCM systems
enhance and manage the relationships..

PROJECT ANALYSIS AND SOLUTION

There are numerous Web resources discussing the potential threats to US businesses including:
Bush, Congress clash over ports sale
Lawmakers want to halt UAE takeover; Bush threatens veto
http://www.cnn.com/2006/POLITICS/02/21/port.security/

WASHINGTON — Homeland Security Secretary Michael Chertoff is defending the Bush

administration's review of an international shipping deal two days after one company in the Port of
Miami sued to prevent an Arab-owned firm from taking over port operations.
http://www.foxnews.com/story/0,2933,185347,00.html

Dubai Ports World controversy

From Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Dubai_Ports_World_controversy

AYK 8: JetBlue on YouTube

CRM solutions make organizational business processes more intelligent. This is achieved by
understanding customer behavior and preferences, then realigning product and service offerings
and related communications to make sure they are synchronized with customer needs and
preferences.

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PROJECT ANALYSIS AND SOLUTION

There are many pros and cons to using YouTube as a communication vehicle for an organization.
Show your students the JetBlue apology prior to discussing this problem.
An interesting CRM approach - using YouTube to apologize. Take a look. That’s JetBlue founder
and CEO David Neeleman apologizing to customers via YouTube after a very, very bad week for
the airline: 1,100 flights canceled due to snow storms and thousands more irate passengers.
Neeleman’s unpolished, earnest delivery makes this apology worth accepting. But then again, we
were not stuck on a tarmac for eight hours.

http://www.youtube.com/watch?v=-r_PIg7EAUw
Do you think this is a good way to reach customers? What else could JetBlue do to help gain back
the trust of its customers?

The pros of using YouTube as a communication vehicle is that it is new, inventive, and can give the
customers a wealth of information in a short video. The cons of using YouTube as a
communications vehicle is that customers who are not Internet savvy will not see the video and
customers who are need to be informed that the video exists. YouTube has market reach issues in
a small community with older customers.

Students can use numerous tools to communicate including:

• Blogs
• Wikis
• Podcasts
• Videos
• E‐Mail
• Newsletters

Companies are now starting to use Second Life as a vehicle for communication with customers.

AYK 9: Second Life CRM

Operating in a virtual world has many similarities and differences from operating in the real world.
In a virtual world you will be operating with many different types of customers who look different
from real customers.

PROJECT ANALYSIS AND SOLUTION

Here is an excellent article on How Second Life Changes Customer Service
http://www.businessweek.com/globalbiz/content/apr2007/gb20070410_481047.htm?
campaign_id=rss_tech

The virtual world could become the first point of contact between companies and
customers and could transform the whole experience
Web 2.0 is still the hottest buzzword in tech circles, with every big brand worth its salt rushing to
open a headquarters in Second Life or build its own MySpace page. But beyond showing off some

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fancy programming, a handful of companies are already looking at the latest wave of technologies
to explore whether user-generated content could be the next frontier in customer service.

Since it began hosting the likes of Adidas, Dell, Reuters and Toyota, Second Life has become
technology's equivalent of India or China - everyone needs an office and a strategy involving it to
keep their shareholders happy. But beyond opening a shiny new building in the virtual world, what
can such companies do with their remote real estate?

Rather than a simple showcase, some believe Second Life could one day become a first point of
contact for customers.

Like many other big brands, PA Consulting has its own offices in Second Life and has learnt that
simply having an office to answer customer queries is not enough. Real people, albeit behind
avatars, must be staffing the offices - in the same way having a website is not enough if there isn't
a call centre to back it up when a would-be customer wants to speak to a human being. In future,
the consultants believe call centers could one day ask customers to follow up a phone call with
them by moving the query into a virtual world.

And hanging around in Second Life is more fun than being stuck on hold. As Claus Nehmzow,
member of PA Consulting's management team points out: "The waiting period can be so much
more entertaining than with an IVR system".

Instead of being placed in a queue to enjoy hold 'muzak' when contacting a call centre, virtual
world visitors could make more profitable use of their time - talking to other inhabitants, viewing
videos, reading information in the environment for example.

As well as keeping visitors entertained, exploring virtual world customer service can have
advantages for the company themselves.

By using avatars, for example, a whole new customer services workforce can be opened up - those
who need to work from home or mothers with young children for example, can be brought back into
the virtual workforce. It can also remove some of the issues with customers being prejudiced
against call centre workers who have certain accents.

However, currently Second Life and its imitators remain relatively niche in usage terms and have
their own technology boundaries - not all consumers, particularly the older community, have the
tech savvy or indeed the hardware necessary to make use of virtual worlds.

It may yet be some time before these cyber worlds come into their own - yet other web 2.0
technologies may offer another route for companies to make conversations with their customers
easier.

Clive Longbottom, of analyst house Quocirca, believes the relatively low penetration rates and end
user technical constraints will keep virtual worlds as a relatively niche customer service tool: "It's a
new environment, there's a lot of interest... but it's not growing rapidly, it's not a major area."

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He added that more established web 2.0 favorites such as YouTube might be able to play a better
part in resolving customer queries. Examples might be electronics vendors posting a software
demo or a video of how to set up a tricky audio system.

Some companies have already cottoned on to the potential of user-generated content and have
begun milking users for their expertise in problem solving - Sony is one, having recently got users
to help solve glitches after the recent launch of the PS3. Sony has built customer self-service
forums using Transversal software to allow the PS3-puzzled to query each other.

Andy Barker, director of customer services for Sony UK, told silicon.com the hardware maker will
be relying on PS3 fans to help each other out, although the forums will have some Sony brains on
hand too.

We can't know how every single device works with the PS3 but users could have some experience
of it. If someone suggested they put the PS3 in a slow cooker, we'd step in and moderate that.
There will also be classic moderating if someone posts an offensive comment or a dodgy link."

Sony recently opened its own virtual world, Sony@home, and is looking into the possibility of
exploiting it for customer service purposes, perhaps using it to one day give users graphical
walkthroughs if they need customer support. Barker said: "It's a question of seeing if people like it
and if it's something they use but that's looking a bit further in the future."

Meanwhile, others are exploring how user-generated content from mobile phones can be used for
customer service purposes.

In Accenture's US labs, some researchers are already working on how customers and companies
can make each other's lives easier by means of the humble cameraphone. The consultants have
already explored how snap-happy citizens can use their phones to take photos of minor crimes
such as fly-tipping or graffiti and MMS them to the police.

Andy Fano, global director of research, Accenture Technology Labs, told silicon.com the system
has to-date just been piloted in the US. He added: "We came from the position that it would only be
a matter of time until people captured an event on their phones, and wanted to send it to the police,
who wouldn't be able to receive it."

Insurance companies could also make use of the feature-stuffed mobile - after a disaster,
homeowners could take pictures of their homes as primary assessment of damage and help
insurance agents and emergency services determine who needs help first.

With the addition of image recognition tech, the capacities of mobiles could be extended.
Consumers could take pictures of a broken car part, for instance, and text it to the manufacturer to
request a replacement.

However, with a brave new world of new media customer services, call centers will need an
overhaul. Fano said: "By necessity, it will take more people to interpret all of this but given the
potential mass of media coming in, we have to find a saleable way to approach this."

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