Business Impacts of Microsoft Visio

Most companies are always looking for more efficient ways to keep their businesses growing and expanding. Microsoft Visio allows companies to prepare flow charts, diagrams and tables, which can be incorporated into presentations, employee training or company wide meetings. Charts created on other programs such as Excel or Word do not always translate visually the same way Visio allows. For example, my office is very small but Visio would be incredibly helpful in training new employees  on the flow of inventory and how purchase orders are processed.  Visio makes the visualization of a process much easier for a new employee to comprehend rather than just hearing a bunch of words said about it and not being able to really grasp the entire concept. 

In doing hands on research with Visio I found that it has a plethora of options for companies. It allows you to create diagrams, flowcharts, data flow charts, organizational charts and network diagrams to help a company keep all its employees and clients on the same page. The program is very user friendly and it doesn't take much time to grasp the fundamentals of the workings of the program. It is also easier and much quicker than creating a diagram in Excel or Word. 

For my company I don't think Visio would be a great investment. Firstly, the license costs around $150. and since my company is so small we would have very little use for it outside of new employee training. My company does not have a high turnover rate (most of the employees have been with the company for around 20 years) so to make such a pricey investment and gain so little in return would not be a sound decision. It is so much easier and far less expensive to spend a little extra time creating an organizational chart for inventory and shipping processes in Excel to show new employees. 

My personal recommendation for my company would be not to purchase Visio and continue on our current path of using Excel and Word. This way we are not incurring a not so useful expense in our budget. 

Zara: IT for Fashion Case Prep & Reflection

Problem/Issue Statement:

The main issue of the debate is whether or not to upgrade Zara's current POS system. Zara is the largest chain of retail stores owned by Inditex and their current POS operates on a DOS system. Xan Salgado Badas, the head of IT, and Bruno Sanchez Ocampo, the tech lead for the POS, are trying to decide if Zara should upgrade their system to Linux or Windows or keep working on DOS, which has not be supported by Microsoft since 2003.

The main issue is that all of Zara's stores across the world are using an outdated operating system. Inditex IT's tech lead created a customized POS application that runs successfully on DOS. The program has been stable, effective and easy to implement in newly opened stores without requiring much maintenance by IT or store staff.

The main question is should Zara continue to use the outdated DOS to operate their POS system or upgrade to a new system for their POS needs. Both Salgado and Sanchez are on opposing sides of the debate.

The symptoms of the problem with the current DOS system are that Zara runs a risk in continuing to run their POS on an unsupported system. They run the risk of potentially losing their system if their vendor chooses to abandon DOS in favor of a more current system. If this were to happen then new stores would not be able to install new terminals and the current terminals could potentially become buggy and unstable.  Even though Zara's vendor has assured them that they won't be making any changes to the POS system there has been no written guarantee to state that.

Another symptom of the problem deals with inventory. With the current DOS based system the store managers have to do a manual inventory count each week because their system does not allow an inventory application. Each week when they need to do a re-order with corporate they must do a physical count in the store by department using PDAs rather than being able to look at what they ordered and sold on an in store computer. Another sub-issue is that the PDAs and the POS system do not communicate with each other or with other stores. So if a customer wants to know if another nearby store has a specific garment in their size in stock there is no way for their home store to check without calling the other store and asking one of their employees to check, which takes a lot of time and causes delays in the sales process.

Currently each store's computers can not communicate their daily sales to the corporate headquarters via an internet network. Each day the staff has to copy the sales on each computer to a floppy disk and at the end of the day one of the POS terminals is used to transmit the data using a dial-up modem.    Also, the PDAs are used by store managers to see the new styles that are going to be available to them but in order for them to see this information they need to be linked to the dial-up modem each night to the main network in La Coruna. This process not only takes a lot of time but it is also very difficult for the managers to look at all the information on such a small screen each week.

Currently, this problem affects of all Zara's stores and their main headquarters and need to be evaluated to see if an updated system would better benefit their business.

Situation Assessment: 

Since Zara grew so rapidly due to their unique business model and there has been no indication that they are slowing down anytime soon they must decide whether or not to keep their current POS supported DOS system or upgrade to a new one to keep their business going on the right track.  These two courses of action are really central to the issue. On one hand Zara doesn't want to fix something that isn't broken but they also don't want to get left behind or find themselves in a compromised situation if their vendor all of a sudden decides to drop DOS. The major risk of operating on an outdated system is the possibility that one day the vendor could just drop DOS from their products and then Zara is left in a compromising position - they have to immediately find a new operating system for their terminals or risk loosing money.  On the other hand the risk of implementing a new IT system is that they could be spending a lot of money on a system they don't currently need and may never require.  Zara's higher-ups need to decide if they want to invest in a new operating system, a new POS system and new terminals or continue to stay with their current DOS based POS system.

List of Plausible Alternatives: 

There are two courses of action for Zara:

1) To continue to employ the use of their current IT system - relying on their vendor to keep supplying them with DOS.

2) Upgrade their operating system to use Windows or Linux etc., upgrade their POS system so they don't have to manually count inventory, order new merchandise via a PDA, contact stores via telephone to find out about their inventory, connect their terminals to one main terminal by floppy disk, and upload new styles to their PDA's via a dial-up modem each night to the main store in La Coruna.

The major difference in between these two is that of cost. It will take a good deal of money to switch to a new system but since Zara's parent company does not spend much on advertising for their stores - it is roughly 0.3% of their revenue.

Evaluation of Alternatives: 

Looking at these two options for Zara, the issues that seem to be the most important involve finances, potential growth in the coming years and minimized time and effort for company.

To adopt a new system it would cost money, bottom line. Finances would take a hit but we can look at a breakdown of the costs: (All costs are looked at per store - each store has an avg. of 5 terminals)

Operating System:
Licensing costs: €0-€700 (one time fee)
Annual Maintenance Fee: €125-€150
Service Contract (Linux only): €10-€150

Hardware:
POS Terminals: €5000
Wireless Router: €180
Wireless Ethernet Card: €250

Connectivity:
€240

Overall Programming:
Cost of Day of Programming Time: €450/day
Estimated hours: 20,000
(includes porting old POS system, expanding POS application, inventory evaluations and transfers)

Time Required:
Cost/day of Installation/Training Time: €2,000
Estimated hours: 32

Taking out the calculation of programming and time hours/pay we are looking at a base cost between €5,805-€6,670 per store.

On top of the financial aspect would be the idea that a new POS system would potentially facilitate future growth. If Zara were to adopt this new system they would be able to cut down on the amount of time spent taking physical inventory counts, connecting their terminals'  sales reports via floppy disks, and connecting their PDA's through a modem to look at new styles and make their weekly orders. This alone would facilitate not only their in-store process but it would also help their shipment and order fulfillment process. The other option that a new software system would possibly bring to the table would be that of an e-commerce store. Right now their website is more or less akin to window-shopping but if Zara upgraded their new system might be able to be formatted to one day work well with an online shopping experience.

On the other hand the current IT system is working for Zara without any technical issues. The inventory and fulfillment process takes longer due to the slow nature of the PDA and the force of having the managers hard count their inventory is more of an inconvenience than an actual problem  for the company.

Recommendation: 

My recommendation for Zara is a two phase process. I think they should continue to operate on their current DOS system for the next 1-3 years and during that time frame save up additional funds and start developing a new POS system to work on their new IT system, wether it be Windows, Linux or Unix - they would have to decide which platform best suits their needs. Then after the 1-3 year time frame they should institute their new system. I believe it is highly important for them to turn to a new operating system. Continuing to use the old platform beyond the 1-3 year timeframe is parallel to standing on the edge of a cliff with a giant crack in it. At some point it is going to come tumbling down and you don't want to be on the edge when it does. I think preemptively switching to a new system will cause more room for improvement company wide down the road. Having a system that allows all terminals to communicate to each other and to the main store is highly important. It is critical for the main management to be able to track how each store is selling throughout the day not just once the store is closing for business. I think being able to track sales quicker will allow them to forecast re-orders more timely and effectively. It will also help the main team figure out cross store merchandise trades earlier than every two weeks like it is at the current system. Also, having the possibility of opening an online store in the future would be much more easily facilitated if they had a more current POS system to rely upon.

1-888-Junk-Van Case Prep & Reflection

Problem/Issue Statement:

1-888-Junk Van's current IT issue has lead to negative customer interactions. Marcus Kingo needs to find an affordable IT system that functions well for small businesses without a lot of hassle that allows him to help grow his business.  The symptoms of the problem are errors in customer contact information, forgotten emails, manual calculations and billing mistakes. The biggest mistakes originated with the data clerk who accidentally sent the wrong version of the database to the morning operator, which resulted in some jobs that were already booked not showing up in the database. All of these resulted in frustrated customers.  Kingo needed to find an inexpensive IT solution that he can implement as quickly as possible to help retain his customers.

Situation Assessment:

The context of the problem is that emails were sent to the drivers that were filled in with incorrect information, which only caused the customers to suffer, resulting in their wanting to switch to another waste removal provider. While the company was busy growing its business from 2008-2009 it ended up outgrowing its current email based system leading to data errors.

List of Plausible Alternative Courses of Action:

There are five possible alternatives to help Kingo solve his current IT problem. He is looking for potential options that include a few key features: a central database that can be accessed remotely so that everyone can work on it simultaneously and he also wants emails to be sent to customers automatically from the system to avoid mistakes and delays.

The first option is Microsoft Access Database. This option can be implemented in a relatively short amount of time and on a small budget. The access can be installed locally on multiple computers but it can also be installed on a centralized server to be accessed remotely through the internet and secure virtual private network (VPN). Licenses cost around $179 per computer and Kingo things he could have the system ready in a couple of weeks. The biggest downside to this option would be that the option would not allow for remote access so the database would have to be updated manually everyday. Also, Kingo would not be able to figure out how to install this program on a shared server and it would require him to either hire someone to install and monitor the system or for Kingo himself to get involved with highly technical IT work, which might still lead him to having to hire someone eventually. The latter issue was not financial feasible for him.

The second option is Custom Application. This web-based system would have someone build a customized application for Kingo's business. It would meet the requirements of having a central database, providing remote access and the system would also have very basic functionality included. On the reverse end, it would take roughly four weeks to build and the upfront cost was around $2,000. This system didn't allow for any changes or adjustments that might be required down the road. Any maintenance would incur a charge of $60 per hour per developer needed and there was no way to find out how much maintenance would be needed exactly. Another downside was that the initial quote did not cover any data migration so there was another additional charge to Kingo's bill. One of the biggest concerns with this option was the fact that a custom made software program could not be viewed beforehand to find out if it has all the options the owner would really require to make the software successful in his business. Kingo runs the risk of spending over $2,000 for a program that is not fully functional for his business with no way out.

Google Docs brings us to our third option. Google Docs would enable Kingo to create text documents, spreadsheets, slide-based presentations and forms. The form application would be the most beneficial for Kingo's business because the forms could be created quickly and shared easily with all employees. All the users could work simultaneously work on the same files without there being any disruption in the information flow. This system would also allow for email distribution, which would be very beneficial for Kingo because his staff could email a link to the form for the customer to fill out and send back to them via the internet without having any miscommunication of data or payment information. Another benefit is that Google Docs is free for up to 10 user accounts and the fee for small businesses is only $5 per user per month or $50 per user per year. Google Docs would also be quick to implement and very easy to use for all of Kingo's employees.  There are a few downsides to Google Docs. One of the biggest issues is that data being input into the online spreadsheets cannot be cross-referenced , which would result in all the data being shown in a single, very large form rather than in an organized chart. Another issue is that there is no customer support and cloud computing is still rather new so many people are nervous to rely on it fully. There is also an issue with confidentiality and the thought of Google suspending or canceling the service would prove to be very problematic for their business.

Kingo's fourth option would be to use Platform as a Service (also known as PaaS). This system is delivered on a cloud-computing infrastructure. PaaS allows users to utilize  common applications as well as help them build their own unique applications using a shared computing platform that was provided  and hosted by a third party. Another benefit is that the vendors of PaaS offer on-site trials so business owners can get a hands on idea of how the system would work for their individual business and implementation, including data migration, would only take about three days. Some of the negatives of using this system mainly involve the cost. Packages range from $300-$600/month depending on how much storage space and how many licenses and applications are needed but if customization was required it would take more time and money as this option charged extra on an hourly basis of $180.  Overall, Kingo was not completely sure he possessed the necessary IT skills this system would require.

The final option is the Enterprise Resource Planning (ERP) System. This system is built around a central database that is designed to be accessed remotely and it also is designed for small to medium sized businesses that need full integration of the business process from purchasing to finance to e-commerce. Upon doing some research Kingo found that even though these options were meant for small businesses they were very expensive. The average small firm option is built to have 20-25 users and the cost for licenses would be around $2,500 per user per year. If a company had 22 users it would cost them roughly $55,000 a year. Another disadvantage for Kingo is that the various packages come with many options most of would not benefit Kingo's business model.

Evaluating the Alternatives:

It's important to evaluate all of the options and find which option covers all or most of the issues with Kingo's current system. This new IT system should be able to be accessed remotely, have a centralized database where multiple users can be working on the same documents/forms simultaneously, send emails out to clients automatically and can be set up and ready to use in a short amount of time without breaking the bank.

The logical recommendation for Kingo would to look at the pros and cons of the five different options and find the one that addresses as many of his current issues as possible, while being easy to use and cost effective.

Recommendation:

After hearing the consultant's presentation on the various options we have at our disposal, as a board member I am left feeling a twinge of doubt as the validity and solving power these alternatives have for our company.  I think we need to implement a multi step solution to our problem in order to expedite a system change while maintaining fiscal responsibility. Right now we have a current IT issue that needs to be solved almost immediately. Looking at all the options on the table I feel that Google Docs will be the quickest and easiest to implement as a temporary solution to our problem. It allows us to create and share forms quickly with multiple users, all of the employees could work simultaneously on the same file in the collaborative system environment and Google Docs allows us to set different user profiles so that we can limit each individuals access to specific documents. Email distribution is also supported on this feature, which is another key issue for us currently. This option is also fiscally responsible on the short term. It is free to up to ten users and there is a small $50 fee per user per year.  I think this would help us cut down on data errors and doing double work with our drivers as well. Now I am suggesting this as a short-term solution only because we do not know how long this service is going to be around for. It could go down next month or next year but at the end of every week one designated employee could download all the files being stored on Google Docs to their computer as back up just in case something should happen over night so we do not loose all of our documents in a snap.

Looking forward I think our company needs to have a long-term solution to this problem as well. The best fit in my mind would be Platform as a Service (PaaS). It allows us to continue our business on the cloud-computing infrastructure route as well as utilize both common and custom applications. Also, since this platform would be provided and hosted by a third party it would take some of the burden of providing it off of our shoulders, which would benefit us greatly since we as a company are not tech savvy enough to handle that burden this early on. Since we have already reached out to a vendor and received an on-site trial we know much more about how the service works. Mr. Kingo believes he can build the forms etc. himself, which would be perfect since Mr. Kingo knows exactly what he is looking for in these various forms and charts. Packages range from $300-$600 a month but since there is no contract we could essentially start on the $300 end and work our way up as we continue to progress as a company to using all the features of the Cadillac package at $600 a month. Initially if we go the $300 route it will cost us $3,600 for the year. There may also be isolated costs for customization and other IT issues that will cost us an hourly rate but those are variable and will again only be one-time fees.  I believe this option would be the best for us in the long run because it allows us to customize as much as we want while still running on a cloud infrastructure, it doesn’t completely break the bank so to speak and it would help us to continue growing as a company.

So my final recommendation would be to institute Google Docs as a temporary solution while we set aside funds to make the transition to a more permanent solution of using PaaS.  I think this will give us the best shot at keeping our data errors to a minimum, making sure our clients stay happy, finding time to recruit new clients and allowing all of our employees to work together more cohesively. Implementing a two step solution will also allow us to have enough time to set aside funds for our long term goal while we start wiping the slate clean of errors and double work.

P&G: Electronic Data Capture and Clinical Trial Management

Problem/Issue Statement:

The main issue is that Proctor & Gamble’s health care division is facing delays in its Clinical Data Management Process. P&G needs to brainstorm new ideas to help diminish the time it takes to complete the process for clinical trials of prescription drugs. Right now the process can take up to several years before the prescription makes into the market. There is a claim that for "each day of delay in market entry for the product costs the sponsor roughly $1M in lost sales" (Harvard Business Review, Huckman & Cotteleer, 2006). This means that the faster P&G can get their product on the market the faster they can begin to turn a profit.

Currently, P&G relies on a paper-based system for collecting all clinical patient information. This paper system is the main cause of the delay issue. This process actually causes patient information to be entered, checked and double checked numerous times over varying time frames, which causes inaccuracies and human errors to potentially go unchecked for weeks, leading to various delays. And this is all before the trial has even been completed. Once all the data is verified in the database it is locked and can no longer be edited or reviewed. The time frame for the period between the data lock and the last patient visit falls between 8-12 weeks. Having potentially incorrect data sitting there for 8-12 weeks without the ability to modify causes long delays in the entire process because of the freeze out of potential corrections in the system. These delays and usage of additional manpower and time to make corrections affects the entire clinical data management process and it needs to be examined to help find ways to reduce the length of time and the  inconsistencies with the process. 

Situation Assessment:

The main issue is with the paper-based system. This portion of the system requires that all patient information is stored in hard copy form. This process moves very slowly because it requires human entry on both the hard copy and digital form for each page. The time it takes to enter each page twice causes delays in time and costs more money.  P&G needs to find alternative solutions to help cut down wasted time and money. If they find a way to create a system that avoids as many inaccurate data inputs and revisions not only will it help cut down on the length of time the process takes but it will also limit many hours and additional funds it takes to have people fixing these mistakes. Plus, having a system that is efficient and available to all divisions will help cut down on the time it takes to review patient files and correct any mistakes by hand as well.  On boarding the Electronic Data Capture (EDC) is one option to reduce the number of errors and lower the period of time to takes for the process to occur but a number of other concerns must be addressed before P&G can total implement  this process. 

List of Plausible Alternative Courses of Action:

There are three viable alternatives that can be used to address the current ineffective process:

The first would be Improving the paper-based system, which would include the use of express mail shipment from investigator sites on a daily basis and it would also add extra man power to perform system monitoring and the verification of data to help hurry the process along. But this process only seems to deal with one aspect of the problem, that of the time delays. 

The second alternative would be the Digital Imaging Process. This process essentially uses the same paper based system  but it would allow the transmit of data to be done through the use of faxes rather than mail service. These faxes would then be stored and the data entry would comprise of digital images rather than keeping hard copy forms in patient binders. This option reduces the time spent on delivering and receiving hard copy forms to various sites. The main issue that this process faces is the availability and reliability of fax machines and the people working with them. 

The last option is Electronic Data Capture (EDC). This process allows the data to be directly input into the electronic system direct from the investigator site. This process would also allow the site to create specific, clear-cut requirements that would be self-checked by the database constantly to weed out patients that are not eligible or pick-up on human entry errors. This would also allow the data to viewed almost immediately after it has been entered allowing the time that would have been taken to view these files by the checkers to be cut drastically. This system seems to address all areas of the problem: fixing the paper based system, cutting down on errors, the physical movement of hard copy files, the double entry and manual double checking issues all of which help reduce the total time of the process. 

Assessment: 

After reading the case my current assessment would be to have P&G adopt of the EDC process because it seems to focus on correcting and eliminating all the facets of the problem. Once the company and its employees understand the system I believe it will make their whole process run much smoother and will help eliminate double work. 

Reflection:

As a response to the consultant presentation held last week to review P&G's current system and explore other alternatives to help improve system efficiency, cut down on cost and shorten the amount of time it takes to enter the data lock phase I have analyzed each option on it's ability to cure all aspects of our current issue. My recommendation is that P&G should adopt the EDC method to help us eliminate both time and money waste. At this point in the world I think being on the forefront of the Internet and the use of electronic data capturing is going to help revolutionize our business. Not only were the initial EDC trials successful but it showed a reduction in errors in human data entry, it eliminate the time consuming issue of double entry and it showed the amount of time taken between the last patient visit and the data lock period cut in half. Since EDC would allow us to work with more accurate patient data, enable a quicker time line and cut down on unnecessary expense I find that this solution covers all of our bases and allows us to be on the cutting edge of modernization and technology. 

Business Impacts of Blogging

Blogs have become one of the most popular forms of digital free speech over the last decade. From personal to professional, blogs have been a useful tool to grow a client/fan base for local and national companies. Within the fashion world blogging can be a great tool, especially if you own a small local boutique trying to gain a wider client base.

For many small boutiques blogging and other social media outlets are the best way to attract new clients and get people talking about their store. Not only does it get the name out beyond the local towns but it can also showcase inventory. Sharing the store's merchandise can not only lead to increased foot traffic in the store but it can also help spur new sales via an online store. The key to sales in the ever changing world of fashion is brand/name recognition. Blogs help to increase that recognition.

One of my company's clients uses blogging as a way of sharing their new products but to also help connect the world of high fashion to their customers. It not only keeps them coming back to their online site but it also engages the customers by getting them to come back each week to look at the trends and designs going on in New York, Paris and Milan. It helps bridge the gap between haute couture and local street style. The blog also gives the boutique a chance to allow customers to have their own piece of runway fashion. If a boutique does a copy of a high end piece for a quarter of the price and they showcase both their look and the runway look side-by-side it helps get customers on board to buy their merchandise because what fashionista doesn't want to look like a runway model?

Blogging is a great tool for boutiques to help build brand image and connect with their customers on a bigger playing field. And it's a tool that doesn't take much training or time to craft. A blog can help propel sales and get more customers on board with the boutiques brand and style while not breaking a store's marketing budget.