Management Information Systems essays

Abercrombie & Fitch Centralizes and Expands Abercrombie & Fitch is an international clothing retailer that learned the importance of efficient data management when expanding internationally. Because of the lower promotional costs and higher profits, international expansion was attractive to A&F. After launching their international strategy in Canada and the U.K. in 2006 and 2007, respectively, A&F could see further international growth on the horizon. However, it knew its data management was not capable of handling the level of growth that was expected. A&F’s financial visibility of merchandising was dismal. A&F managers were using spreadsheets of data to plan future merchandise levels, making any conclusions as to whether they were over- or underbuying merchandise virtually inconceivable. Floor space layouts were designed based on merchandise allocations assigned by merchandising managers. If the merchandise allocation was inaccurate or became delayed, the floor space had to be redesigned because the merchandise that was planned to go on display was not at the store in time. Store managers began to overstock merchandise to prevent these occurrences. All merchandise was shipped to the A&F distribution base in Columbus, Ohio and stayed there until it was called upon by an individual store. This made it difficult to efficiently restock inventory in overseas locations. The previously stated flaws in A&F’s erchandising system and adjoining distribution system were too great to sustain the international growth they wanted to pursue. To support the data influx that comes with international growth like A&F experienced, they needed an open operating platform and integrated point-of-sale (POS) infrastructure in order to keep the closest eye on transactional data. For an international retail company, the data accessible today is used to make decisions that have impacts far into the future. Without the appropriate data at the appropriate time, the wrong decisions can easily be made and the company can suffer severe consequences. A&F chose to install the Oracle Retail Merchandising system in its headquarters in Columbus, Ohio. Transactional data from all store locations, domestic and international, is centrally managed there. A&F also implemented changes to the front lines. They used Oracle’s Retail Point-of- Sale Software System (ORPOS) to collect real-time data from their 1,100 store locations across the globe. Each store was connected to a regional database that manages up to 30 stores. With all data visible to headquarters in Ohio, A&F’s merchandising managers had all the information they needed to make educated decisions, in one location. Transactional data from all departments including supply chain, inventory management, and POS processing are now all visible on an international scale. Since installing the platform, inventory order accuracy has increased from 94 percent to 100 percent. Additionally, A&F’s international stores have brought in close to $1 billion in sales. Air shipments have decreased from 25 percent of all shipments to only 8 percent, a huge expense savings. A&F’s software gives them a real-time view of transactions occurring in stores globally. The new POS software provides benefits for many different departments of the company including inventory management and logistics, and store managers who need access to this information can plan future merchandising levels. If store managers have accurate merchandise levels, they can design the most effective floor layouts without worrying about having to change the layout at the last minute. A&F saves money by not overstocking and does not lose sales due to under-stocking. The improved data management software adds predictive value to A&F and also allows it to use data to draw conclusions on purchasing patterns that determine future merchandise levels. Source: Amato-McCoy, D. (2012). Mobility 101. Chain Store Age, 88(3), 24.

Thinking About the Case 1. Why is it important for a company that operates internationally to have centrally located information visible to multiple departments? 2. What are the challenges a global clothing retailer faces in regards to maintaining proper inventory levels? 3. How did efficient transactional data management lead to a decrease in air shipment costs of A&F?

Decisions to Support Health Care and Patients Decision support systems can provide many benefits and efficiencies for operational and tactical decision making. From marketing to employees during open enrollment for health insurance to the delivery of quality patient care, decision support tools can add value to health care. The cost of delivering health care in the U.S. is a topic receiving a lot of attention and national dialogue. This issue is complex and widespread, both economically and personally. It affects every individual, family, and business in the U.S. and probably will require many solutions and approaches to address the problem. The effect of “consumerism” has influenced the debate associated with the costs and delivery of health care. In some industries such as education and health care, the word “sales” has never been a term used in operations and management, probably because the connotation would not be appropriate to identify with customers and their transfer of funds. However, revenue into a business organization still remains as a sale. In an increasingly competitive marketplace for many industries, it is important to attract and retain customers in a long-term, profitable relationship. The integration of business process management (BPM) methodologies and decision support systems can provide the methods for developing relationships with customers. When businesses offer their employees the selection of benefits alternatives during open enrollment, it is important that health insurers promote a personalized environment. Considering that the consumer has the power of the purchase, communicating effective choices to the prospective employee may heavily influence the enrollment (or the sale) in the health plan. BPM systems can collect crucial data on the consumer, such as demographics and past claims, to personalize the process. Using decision support systems and predictive analytics, “the best sales experience for the consumer, including portal designs, product offerings and transactional navigation tailored for the best fit.”(Hart, 2011) The system could compile a low-cost product offering and highlight gym memberships for a young adult employee. The demographics and lower claims potential would target their need for a reduced-benefit insurance plan. In a similar manner to Amazon’s recommendations, the personalization of product offerings based on data and a structured decision- making process can increase the leadto-close ratio and increase sales. After the marketing and enrollment is done, decision support systems can also gain positive benefits also for the actual delivery of health care while maintaining the quality of care and safety of patients. The“first step”of the process is to provide the appropriate and accurate data to the nurses and doctors treating the patient in a timely manner. Carle Foundation Hospital, in Urbana, IL, has implemented a system to“put tools into physicians’ and nurses’ hands to provide the right information at the right time.”(Page, 2011) Carle installed an inpatient, emergency department, and pharmacy electronic medical record system. A crucial component of the implementation related to how the project was managed and approached. Rather than branding the new initiative as an IT project, Carle managed the project as a“clinical transformation initiative.”Improving medical care was the objective, rather than improving efficiency. Tools were developed that focused on clinical decision support methodologies and best practices became the “core measures”of the new system. A series of data points are analyzed by the decision support tools to assess patients’ need for medical attention. Sources: Hart, E. (2011). A new era promises better outcomes. Health Management Technology, 32(11), 14–15; Page, D. (2011).‘Most Improved’Take Similar Steps to Reach New Heights. Hospitals & Health Networks, 85(1), 42–42, 44.

Thinking About the Case 1. Consider the various data elements that would be gathered for prospective health insurance customers. Think about other approaches that could be developed to target customers and the associated structured decisions. 2. Why did Carle Foundation Hospital’s approach of implementing the new system create a successful project? Why would the approach of “improving efficiency” have altered the implementation of this project? 3. Are there any risks of integrating DSS tools to help diagnose patient health care? If so, how could these risks be minimized? 4. Can DSS tools have a positive effect on the delivery of health care? How?

Software Application Although Yen initially thought the app would be used by buyers at Guess retail locations, it was discovered that some store locations did not have wireless connectivity. While traveling, buyers were using the iPad app more frequently before they arrived at the store, at hotspots in hotels and restaurants where they would brief themselves for their upcoming meetings. They would surf the app prior to arriving at store locations to get up-to-date information on sales patterns and store management history. The app was also widely used in the office, as it was much easier to snag specific snippets of information via the app than from a full-blown report. They did run into many issues throughout the designing and launching process. Once, they submitted over 50 enhancements and issues to MicroStrategy to refine the software! The popularity and increasing use of the app spurred an inquiry of how Yen and management could access and use the BI app on personal iPads. This raised security risks for Yen and his team. To solve the issue, Yen turned to third-party mobile device management that can close off access to the app if the iPad is reported stolen or lost, in addition to using traditional security passcodes. The security system encourages app use on personal iPads without jeopardizing corporate assets. It was no surprise that this fashion leader placed heavy focus on the design of the app. Every pixel on every slide of every page was scrutinized. The app provides users with so much different information from so many different angles that it can be used by a wide range of users, from top-level executives to buyers in the field. Besides the fact that the app runs on an already intuitive device, the final result is an app that can be picked up and used by almost anyone in the company. Bruce Yen conducted informal test-runs with the software simply by asking some of his design-savvy colleagues to play with it for ten minutes. Yen even followed buyers around as they visited Guess retail locations to see if they had any visible performance or connectivity problems. Most likely due to his arduous research and first-hand testing, he has not received any requests for formal training on how to use the app. While content was a key focus throughout the app’s development, aesthetics and visual layout were a close second. Yen constructed a BI mobile app that is intuitive, visually appealing, and content efficient. Through collaboration, communication, and extreme finepoint critiquing, the app surpassed expectations and has successfully aided Guess in maintaining its leadership in the fashion industry, even in hard economic times. What started out as a solution to existing problems turned into a staple of Guess’s technological assets. Source: Briggs, L. L. (2011, Fourth Quarter). BI Case Study: Apparel Company App Melds Fashion, Mobile BI. Business Intelligence Journal, 16, 39-41.

Thinking About the Case 1. Some app planners may use second-hand research to fuel their system planning. List at least three instances in which Yen used hands-on experience to gain insight on how to alter the product. Why is that first-hand experience so valuable? Explain how a buyer’s access to real-time sales patterns of a specific retail location can influence their purchasing decisions. 2. To what other branches of Guess?, Inc. could the app be useful besides top-level executives and buyers?

Change for the Sake of Change? The word change does not usually evoke comfortable feelings or create a warm impression. When change is mentioned in business organizations, it often creates anxiety or, in its worst case, resentment or opposition. Change can be implemented in many ways: through imposition or edict; consensually or democratically; gradually or precipitously. The approach or tone of the execution of change is as important as the basis for change itself. Consider the example of Chesterfield County, Virginia and employee timecard entry. The County, consisting of 3,000 employees and 600 supervisors, embarked on the implementation of a new online system for employees to enter their timecard data. The timecard entry process involved approximately 60 timekeepers. The County replaced several legacy systems with the new online system. The new system combined two systems: an internally developed time and attendance system and an“ off the shelf ”payroll and human resources system. The challenges of the new information technology system extended beyond its technology components: Employees would have to learn a new process of entering their hours into the system and being paid. System developers often forget to assess how familiar the system’s stakeholders are with the computer and other skills they would need to use the new system, but County administrators knew they needed a sensible and reasonable approach to manage the change. A well developed information system without an appropriately planned implementation with its stakeholders can often fail. The County created a team to manage the change to the new system and develop a change management strategy. The team used several methodologies to ensure that stakeholders were involved throughout the implementation, communicating with key department personnel to “build on existing processes, drawing up communication plans and creating a well thought-out training plan. ”The team was comprised of several managers from the various financial, operational, and payroll functional departments as well as their local educational institution, Chesterfield University. From this team, they established a communication process to connect with customer departments. This network was responsible for determining training needs, analyzing a security procedure, coordinating training, and gaining valuable input from the various stakeholders. Ultimately, the goal of this process was to maintain the lines of communication among the employees and other stakeholders. The process involved not simply words, but also actions. In addition, since quality training was an important component of the system rollout, the Information Systems department worked closely with Chesterfield University to develop and conduct training sessions as well as to provide technical assistance to support employees through the installation. An essential component of change management is to gain acceptance by the system’s stakeholders. The County understood that appropriate communication would help gain acceptance and reduce employee anxiety. The final version of the communication plan changed “substantially” from the initial version. As input was received and evaluated, so did the methods and approach to how and what they communicated. Constant and interactive communication through newsletters, emails, surveys, meetings and an intranet site provided timely and constant information flow. Over 300 issues were reported and tracked during the first parallel test run of the new system. A total of four system changes were approved to be implemented, resolving 285 issues, with only seven issues unresolved before the second parallel test. At the final implementation, the employees successfully used the new timecard system with only six payroll checks processed in error for the first payroll period. Sources: Brown, P. J. (2013). Change Management Makes the Difference in Chesterfield County. Government Finance Review, 29(1), 60–62.

Thinking About the Case 1. Consider the statement“A well-developed information system without an appropriately planned implementation with its stakeholders can often fail.”Why? Provide examples and details.

2. The County’s initial approach to assembling their plan for change was a critical factor to the success of the implementation. Taking the role of a County employee, discuss how the County’s approach would reduce anxiety as well as create an environment for success with the new information system. 3. Communication is a critical factor to any new initiative and to change management. Does too much communication adversely affect an initiative? Why or why not? 4. Considering the 300 issues that arose during the parallel pilot, did the change management system work effectively? Should the number of issues have been less? Discuss your position.