(Group Homework)

HW #2

Hwang Jeong Hwan Kim Young Sup Park Jeong Soo Kim Kwang Jung Chapter 7
Real world case 1
Forex Capital Markets and Wyse Technology : The Business Benefits of Customer Relationship Management 1. Why cant Microsoft Excel spreadsheet and Access database software handle the customer relationship needs of companies like FXCM? What functions do CRM systems like Salesforce provide to a company that these software packages do not? The information about customers should be stored exactly without duplications and omissions. However, Microsoft Excel and Access have troubles when the information is stored. Some information is stored twice or omitted. Also the lead volume that Microsoft Excel and Access can control is exceeded by increasing of lead volume. CRM systems should be capable of managing continually increasing lead volume of the company and retain the companys critical focus on building strong

Group #5

relationships with prospects and customers. 2. What business benefits has the Salesforce CRM system provide to FXCM? To Wyse Technology? The productivity of FXCM was up 25 percent by using Salesforce CRM system. Also FXCM easily achieved its various integration projects through Salesforces professional service. In the case of Wyse, Salesforce CRM system helped more than double its sales volume within 12 months. Salesforce helped manage the doubling of business in Europe without adding additional staff. In result, Wyse Technology could reduce expenses. 3. Salesforce.com is an example of an ASP(application service provide), which we discussed in Chapter 4. What benefits do you see in this case for that method of providing a CRM system to a company versus installing a CRM software package? What disadvantages might arise? Which method would you prefer? Why? To invent new software for CRM is not easy. It needs high costs and continuous upgrades because of development of the technology. When the company uses ASP like Salesforce CRM software, the company can reduce expenses in labor costs and invent costs. The disadvantage of using ASP is that ASP is sometimes not fitted to the company because all companies have different conditions. It is important to choose appropriate ASP that the company wants in various ASP. Even though there is disadvantage to use ASP, I prefer to use ASP instead of installing software package. In the future, as the technology development is faster and faster, the needs of ASP will increase. When the company uses ASP, the company can focus on other things like advertising or financial problems.

Real world case 2

Yahoo, Google and Chrysler: How the Internet Is Changing Advertising and Marketing 1. Why are companies like Chrysler now looking more favorably at the Internet as a great medium for their advertising dollars? What has happened to change their view? In the past, all kinds of commercial ads were provided through TVs or radios. However, now a day, because of development of internet, almost customers spend their time to surf the internet. It means to providing ads through internet more efficient than through TVs. Thats why big company focuses on providing ads through internet. 2. How do Googles online ad revenue sources and strategy differ from Yahoos? Which online ad strategy is superior for attracting advertising from small companies? For attracting advertising from large companies? Defend your position. Googles online ads are the targeted and classified text links. Those are simple and easy to recognize. The other side, Yahoos online ads are provided in various ways like pictures or movies. In case of small companies, Google would be attracted. To small companies, it is important how many times their products are exposure to customers. In case of large companies, Yahoos online ads would be appropriate. Yahoo provides online ads in various ways. Large companies can let customers know their products efficiently. It can be more attractive to customers than just providing text links.

3. If you were director of marketing communications at Chrysler, how would you distribute Chryslers advertising dollars among online and traditional TV and print media? Defend your position. In Chryslers case, its main product is car. Customers are various. Now a day, internet users are increasing but TV and print media are still used by old people. If the product is like mobile phones, online ads are efficient to young people than TV or print media. However, Chryslers main product is car so TV and print media is important. If I were director of marketing communications at Chrysler, I would invest the advertising dollars same in internet, TV and print media.

Real world case 3

Tesco : Applying Lean Logistics to Supply Chain Management 1. What key insights of Tescos SCM director Graham Booth helped revolutionize Tescos supply chain and rage of retail store formats? Can these insights be applied to any kind of retail business? Why or why not? Booths key insight was a rapid-replenishment system. A rapidreplenishment system is to minimize touch. By eliminating several touch, they could reduce time and inventories. It can be applied in various retail business. There are various retail business and each company has different condition. However, lean logistics is just to minimize touch. The number of touch is less and less, the profits will be increase. All kind of retail business have similar process so it can be applied in other retail business. 2. How did Dan Jones and his research group from the Cardiff Business School of Wales demonstrate the inefficiencies of the Tesco and Britvic supply chains? Can this methodology be applied to the supply chain of any kind of business? Why or why not? Dan Jones and his research group used taking a walk from starting to end to find a specific process where they can reduce touch. The first step was to hook the point-of-sale data in the store. This step made the customer at the checkout point the pacemaker regulating the provision stream. The second step is that they made the Tesco RDC a cross-dock rather than a warehouse product. The final step is to take the dollies several times a day from the RDC on a milk run to a series of Tesco stores. I think it can be applied to supply chain of other retail business. This method is kind of tracking the process. It is good to find what process is waste. After finding waste points, next step is just to eliminate or fix the process. 3. What are the major business and competitive benefits gained by Tesco as the result of its supply chain initiatives? Can other retail chains and retail stores achieve some or all of the same results? Defend your position with examples of actual retail chains and stores you know. First of all, this method can reduce the number of touch. In Tescos case, total touches on the product have been reduced from 150 to 50. It means less labor costs. The second thing is reducing the time from the filling line at the supplier to the customer. In Tescos case, it has declined from 20 days to 5days. Also the number of inventory stocking points has been reduced from five to two. All companies are under different situation. It means if they apply same method to innovate retail process, results can be different. It depends on how they find appropriate method to fit their company. The GS case is a good example. The GS home shopping remodeled all process from suppliers to

customers. They try to find the solution that fit to their company and they can success in innovation

Discussion Questions
1. Refer to the Real World Case on FXCM and Wyse in the chapter. How could CRM systems like salesforce.com help a business you deal with provide you with better service? When the company uses CRM, the information about customers should be exact. It means that the information about customers should be stored without duplications and omissions. CRM systems like salesforce.com help the company to store the information exactly. Also CRM systems have ability to control lead volume that increases continually. In FXCMs case, that company can manage the doubling of business in Europe without adding additional staffs. 3. Which of the 13 tools for accounting information systems summarized in Figure 7.28 do you feel are essential for any business to have today? Which of them do you feel are optional, depending on the type of business or another factor? Explain. Among 13 tools for accounting information systems, order processing, Inventory control, account receivable, accounts payable, payroll and general ledger are essential. In accounting information systems, those tools are very important. In Tescos case, they considered those processes. When they try to reduce touch and use the method which is called taking a walk, they track these processes. As a result, they find out some problems. They can success. It means those tools are basic factor in accounting information systems. Other tools including billing, sales analysis, cash receipts, cash disbursements, financial reporting and timekeeping are optional. 5. Refer to the example about Charles Schwab & Co. in the chapter. What are the most important HR applications a company should offer to its employees via a Web-based system? Why? In my opinion, the most important HR application is the e-board to exchange opinions between employees. Always there are some problems which the executives dont know. To solve them, first, the executives should know about problems. I think the e-board will be good chance for the executives to know problems which only know employees while the executives couldnt consider. 7. How can Internet technologies be involved in improving a process in one of the functions of business? Choose one example and evaluate its business value. Among internet technologies, web sites are very good tool for advertising the products of the company. In the past, the company just used TV or print media. However, those tools were not powerful as much as internet. Now a day, internet is very powerful tool for advertising. For example, in case of Yahoo, each month more than 430 million people worldwide typically visit one of its myriad sites. It means if one company advertises its products through Yahoo web site, 430 million people see its ads. In the future, there will be no company which doesnt use internet for advertising its products. 9. What are several e-business applications that you might recommend to a small company to help it survive and succeed in challenging economic times? Why?

A small company doesnt have enough a budget to invest on advertising its product compared with a large company. However, now a day, ads through internet is cheaper than through TV or print media. It can be a powerful tool to a small company.

Analysis Exercises
1. Application service Provider Marketplace a. Would you use or recommend any of Intuits online application services to a small business? Why or why not? Intuits online application services are good to a small business. First, they are cheap. First 90 days are free. They are easy to control. They provide 2,000 different forms of professional-designed websites. Also if you use Intuits online application services, you can save time to make website. Intuits online application services provide various applications which the company needs. It means that the company doesnt need other applications. b. America Online provides a free instant messaging service (AIM, for AOL Instant Messenger). This service enables instant messaging, file sharing, and voice and video conferencing through a free application anyone can download and install. Is AOL operating as an ASP? How so? The ASP definition includes web interface, internet-based server-side processing and data storage. As this definition, AOL operating can be the ASP. Instant messaging, file sharing, and voice and video conferencing are good tools to manage the company. Those things help the company to exchange opinion easily. They dont need to meet directly for having a discussion. Wherever they are, they can have a discussion. c. Visit AOL s Enterprise AIM services Web site. What additional features does AOL provide to enterprises? Why do you suppose AOL moved away from the ASP model for its enterprise solution? The website enterprise.aim.com doesnt exist. So I cant answer this question.

3. Job search Database

Field Employer Job Title Region Location Business Function Description

Accounting/Finance/Insurance FCG Seoul Regulatory & Financial Senior Manager South Korea South Korea Finance/Accounting The successful candidate will act as the deputy head of the Finance department to manage the Financial, regulatory and tax functions of the bank. This role offers an excellent opportunity to work in a Multinational Company with dynamic environment. This position would suit someone who is looking for real challenges to work in the Korea banking industry where one can leverage and expand his/her business knowledge, leadership and management skills. More than 8 years working experience in finance department of banking industry and at least 3 years in managerial role In-depth understanding of Korean Regulatory capital rules and financial reporting requirements Good knowledge in Fixed Income products including foreign exchange, interest rate swaps and other derivatives and their associated risks. Strong sense of internal controls and good analytical mind Good management and interpersonal skill Good Korean and English language skill International company exposure and working experience is an advantage

Qualificatio ns

Salary Range

Field Employer Job Title Region Location Business Function Description

aerospace BAE System Technician I COM South Korea Teagu Engineering BAE Systems is the premier global defense and aerospace company, delivering a full range of products and services for air, land, and naval forces, as well as advanced electronics, information technology solutions, and customer support services. With 105,000 employees worldwide, BAE Systems had 2008 sales of $34.4 billion. Qualifications Knowledge is mandatory of: programming; C-CS systems and elements; capabilities, functions, and technical methods for C-CS operation;

Qualificatio ns

organization and functions of Air Force automated C-CS and elements; communications-computer flows; operations and logic of electromechanical and electronic C-CS systems and their components; techniques for solving C-CS operations problems; and C-CS security procedures and programs including IP. For entry into this specialty, completion of high school with courses in mathematics and computer science is recommended. The following training is mandatory: Completion of a basic C-CS operations course and the advanced C-CS operations course. Experience. The following experience is mandatory: Experience in C-CS functions such as system operations, control, micro and multi-user technical support, system restoral, resource accounting, or security. Also, experience supervising one of the following functions: analysis of system failure and restoral, C-CS operations, micro and multi-user systems support, system or network management or administration, resource management, or security management. Salary Range

Field Employer Job Title Region Location Business Function Description

Healthcare Services Capario Healthcare EDI Analyst CA, USA Santa Ana EDI Analyst Capario provides industry-leading, revenue cycle management solutions connecting payers, providers and partners nationwide. The companys real-time solutions help providers speed and improve reimbursement, payers gain business performance improvements and partners increase their competitive edge in the marketplace. By automating manual processes, organizations can reduce operational costs, minimize paperbased methods, improve efficiency and streamline communications. Familiar with standard concepts, practices, and procedures of EDI formats (ANSI, NSF, HCFA, HIPAA). Strong MS office skills required. Extensive knowledge of EDI X12 standards for healthcare insurance (Claims, ERA, Eligibility, Claim Status Inquiry, ect.) Basic understanding of Windows and PC operations. Strong written and oral communication skills required. Excellent customer service skills required Ability to work and communicate effectively with programmers and other technical IS staff, business users and other non-IS functional areas.

Qualificatio ns

Salary Range

Field Employer Job Title Region Location Business Function Description

Sales CyberCoders Sales Manager GA, USA Saint Simons Island Hotel Manager Hospitality/Hotel, Sales Manager, Hotel, Sales Representative, Sales Rep, Account Rep, Outside Sales Rep, Outside Sales, Sales, Hotel, Resort, corporate accounts, cold-calling, prospecting, negotiating, customer service, client relations, Marketing Representative. If you are an experienced Sales Manager with a hotel/resort background with a solid book of business, please read on! A beautiful hotel in St.Simons Island is seeking an energetic Sales Manager to join their team! Hospitality/Hotel, Sales Manager, Hotel, Sales Representative, Sales Rep, Account Rep, Outside Sales Rep, Outside Sales, Sales, Hotel, Resort, corporate accounts, cold-calling, prospecting, negotiating, customer service, client relations, Marketing Representative $40,000 - $50,000

Qualificatio ns Salary Range

Field Employer Job Title Region Location Business

Marketing Linea Pelle Ecommerce Marketing Manager CA, USA West Los Angeles Clothing and Textile Manufacturing

Function Description

Qualificatio ns Salary Range

Managing Drop Ship partner relationships & inventory levels. Developing and executing an online customer acquisition plan designed to maximize site traffic and sales demand. Work with PR Agency & Stylists for Celebrity gifting in support of marketing efforts. Building and following annual marketing calendar for ecommerce activity as well as some off-line ventures, (reviewing calendar with staff & VP on a bi-weekly basis). Maximizing paid/natural search traffic and order conversion, while meeting cost per acquisition targets. Directing interactive agencies on our marketing and media campaigns to meet business performance objectives. Executing effective affiliate programs/publisher management activities to achieve business development goals. Creating effective email marketing campaigns and developing plan for long term email solution (including RFP requirements, contract negotiations and tool demonstrations to choose the best fit solution for the brand). Tracking and measure online advertising programs; designing test strategies and creative to optimize results. Ensuring effective creative development and execution to support program and media efforts. Bachelors Degree from accredited university. 2-5 years online marketing experience. Entrepreneurial spirit, someone looking to own the entire operation of the ecommerce store from strategy and planning to execution.

Field Employer Job Title Region Location Business Function Description

Aerospace and Defense Direct Hire Associates, LLC Master Planner CA, USA Orange SAP with inventory analysis Develop comprehensive plant production schedules to include material, equipment and labor needs in addition to identifying the manufacturing process order in order to achieve maximum cost effectives Coordinate with the engineering, purchasing and manufacturing to ensure materials are available and processes meet product specifications Perform critical path and risk analysis Develop cycles in support of proposal process Execute MRP simulations in support of the business planning process Responsible for running the sales & operations planning process Prepare and deliver various analyses of schedules using spreadsheets, charts, and written reports including options for schedule adjustments and what-if analysis to depict the impacts of proposed changes

Qualificatio ns Salary Range

Requirements for this position include current/recent SAP experience in a large MRP manufacturing environment, exceptional Excel skills, above average organizational and communication skills. 85,000. 00 - 95,000. 00 USD / year

Field Employer Job Title Region Location Business Function Description

Insurance Multi-State Insurance SOFTWARE PROJECT MANAGER CA, USA Valencia Computer Software Manage projects from conception through launch. Own project vision and communicate to all parties involved. Maintain quality and consistency of website features. Ensure projects are implemented according to requirements. Ensure projects are launched according to schedules. Keep business owners up to date on project status and potential issues. Resolve project, design, or resource issues before they cause schedule delays. Understanding and experience in user interface best practices. Understanding of development process, including development, testing, and deployment as well as work breakdown, dependencies, responsibilities. Understanding of web technology, including asp.net, HTML, CSS, and Back end technologies such as MSSQL and c# Proficient with Microsoft Office. Strong written and oral communication skills is an absolute must. Strong organizational skills, attention to detail, and follow-through. Highly analytical, logical, and good problem solver. Able to plan work, organize time, and maintain workflow. Able to interact professionally with all levels of staff. Depending on Experience

Qualificatio ns

Salary Range

Field Employer Job Title Region Location Business Function Description

Real Estate Brackenhoff Management Group, Inc Accounting Director CA, USA Carson Real Estate/ Property Management Responsible for assisting in all phases of accounting; to follow established accounting policies and procedures; Provide financial administrative leadership for a defined functional area. Protect the physical and financial assets of the company. Advise senior management on all financial matters. Bachelors degree or equivalent to appropriate 4-year college program in Accounting or related discipline. CPA certification with 6+ years industry or public accounting experience; or a non-CPA with 8+ years related experience or any similar combination of education and experience. Proven ability to motivate, train, manage and lead employees. Strong computer software application skills. Ability to manage multiple assignments with accuracy and adhere to deadlines. Strong ethical standards. Strong interpersonal skills and problem solving ability. Excellent written and verbal communication skills. Proven record of providing excellent internal and external customer service.

Qualificatio ns

Salary Range

Field Employer Job Title Region Location Business Function Description

the gaming industry Aerotek Professional Services Japanese Translator WA, USA Redmond Translator Aerotek in partnership with a world leader in the gaming industry is currently hiring for a Japanese Translator. This person will be responsible for translating both technical and non-technical documents from Japanese to English and English to Japanese. Candidate must be able to commute to the job site located in Redmond, WA.

Qualificatio ns Salary Range

Qualified candidates must be fluent in reading, writing, and speaking proper Japanese and English. They must also be comfortable working in a fun, upbeat, fast-paced environment, where meeting deadlines is key. USD 18.00 /hour

Field Employer Job Title Region Location Business Function Description

Motors Yamaha Motor Corporation ATV/SxS Product Trainer CA, USA Cypress Education/Training Administer all facets of the demo tour & presents training seminar. Lead off-road ride demonstrations to showcase vehicle capability. Maintain training records/presentations, generate reports pertaining to attendance, event functions, and determines how to best maximize efforts. Coordinate with on-site people as well as district managers for maximum area impact. Provide input, suggestions and feedback for continuous improvement to training curriculum, content, and delivery, for purpose of improving customer satisfaction & program. Work with marketing manager & program coordinator to maximize regional impact, program scheduling, and area marketing event opportunities. On-site representative of Corporate takes charge of on-site coordination

& responsibilities problem solver. Administers and coordinates event set-up such as signage, banners, hospitality and demo track location & on-site/local marketing events. Minimum 2 years of relevant industry experience in dealer training, sales or field service operations in motorsports or automotive. (Bachelors Degree a plus). Excellent written and verbal communication skills and strong presentation skills. Strong MS Office applications (Excel, Word, PowerPoint). Ability to provide creative input in development and refinement of training courses Must be able to ride and demonstrate off-road vehicles (specifically ATVs). Relies on experience to provide creative input in development and refinement of training courses. Ability to travel nationally approximately 95%. ary Range

Qualificatio ns

Chapter 8
Discussion Questions
1) Most businesses should engage in electronic commerce on the Internet. Do you agree or disagree with this statement? Explain your position. In my opinion, most businesses should engage in electronic commerce on the Internet. Nowadays most people use Internet in the world. In 2008, there are 1.4 billion internet users in the world. It will be 1.9 billion in 2012. As a result, Internet has effect on not only IT industry but also related industries such as media industry, advertising industry, and the distribution industry. If business doesnt engage in electronic commerce, it couldnt have competitive advantage against other businesses. 3) Refer to the Real World Case on eBay versus Google and Microsoft in the chapter. What recent or new consumer uses of the Internet may these companies be overlooking or underutilizing that would help their competitive positions? Defend your proposals. When new consumers, at first, buy some products in online, they are afraid to be swindled. If these companies in real world case can guarantee security for trading, it can help their competitive positions. Another thing is that recent consumer uses of the Internet want to participate in online. UCC is one of examples Internet user want to participate. These companies also can use that features to get competitive positions. 5) Do the e-commerce success factors listed in Figure 8.11 guarantee success for an e-commerce business venture? Give a few examples of what else could go wrong and how you would confront such challenges. E-commerce success factors listed in Figure 8.11 cant guarantee success for an e-commerce business venture. If a core competence of an e-commerce business

venture is same with success factors listed in Figure 8.11, the venture can success in e-commerce. However if the venture just follows e-commerce success factors, they cant success in e-commerce. 7) All corporate procurement should be accomplished in e-commerce auction marketplaces, instead of using B2B Web sites that feature fixedprice catalogs or negotiated prices. Explain your position on this proposal I think all corporate procurement doesnt need to be accomplished in ecommerce auction marketplaces. Of course, it is cheaper to trade in e-commerce auction marketplaces. However B2B e-commerce sites make business purchasing decisions faster, simpler and more cost-effective, because companies can use Web systems to research and transact with many vendors. Business buyers het one-stop shopping and accurate purchasing information. They also get impartial advice from infomediaries that they cant get from the sites hosted by suppliers and distributors. Thus, companies can negotiate or bid for better prices from a larger pool of vendors. . 9) If you were starting an e-commerce Web store, which of the business requirements summarized in Figure 8.13 would you primarily do yourself, and which would you outsource to a Web development or hosting company? Why? I will concentrate more on serving customers. Nowadays there are a lot of e-commerce Web store and they have usually similar form. What makes my Web store differ from other is service. I will concentrate to make Web store to be easy and convenience to transact products. In addition support system such as Customer service e-mail or Q&A board will be concentrated. On the contrary, developing a Web Store will be outsourced. Of course it is important for contracting customers. But Web developments can afford to make good Web Page. Even though I concentrate to develop a Web Store, it cant give big competitive advantage. In addition, I will outsource managing a Web store. Web development has experience and technology to manage web sites. It spends a lot of money and effort to manage a web site by myself.

Analysis Exercises
1) a. Check out small business center and the other e-commerce portals mentioned. Identify several benefits and limitations for a business using these Web sites. These Web sites provides a one-stop resource for all the Internet services and web-based business tools that businesses need to succeed in todays market. Using these Web sites a company makes Web store easily and they guarantee good quality. However its hard to make competitive advantages through these Web sites. b. Which Web site is your favorite? Why? Entrabase.com is better than other sites. Because they focus on a team approach to meet each client's specific needs. Entrabase is made up of talented and seasoned web design and development experts who are deeply grounded in both technical expertise and practical business sense. As a small, local business ourselves, Entrabase understands how best to use the Internet to increase business's online presence, promotion and profitability. c. Which site would you recommend or use to help a small business wanting to get into e-commerce? Why? Id like to recommend Entrabase.com site. As I mention in b problem, they focus on a team approach to meet each clients specific needs. If a company wants to get into e-commerce, they need, at first, to know

core competence and then outsource to Entrabase.com to maximize their competitive advantage since they focus on each clients specific needs. 3) a.b. Author Aladdin 19000 11520 9750 Price(won) Yes24 18050 11520 7800 Kyobo 18050 11520 7800 Aladdin 3 2 3 Rating Yes24 1.5 2 1.5

Kyobo 1.5 2 1.5 6000 6000 6000 2 2 2 5850 6300 6300 1 2.5 2.5 Sum of ratings 11 9.5 9.5 c. I usually use e-Commerce sites to buy books such as Yes24, Kyobo, not Aladdin. In my experience, Yes24 and kyobo both of them are really good to buy books. But Kyobo has more books which cant find easily in offline. However sending book of Yes24 to customers is faster than kyobo.

Title of book

Real World Case 1.

1) Do you agree with Google and Microsoft that eBay is now vulnerable to their assaults via Google Base and Windows Live Expo? Why or why not? eBay is not vulnerable to their assaults via Google Base and Windows Live Expo. On the contrary, it could be an opportunity for eBay. Practically Google and eBay announced a multi-year partnership in 2006. Google provides adjustable information for customer of E-commerce and divide profit. For example, when someone who live in London access eBay site to buy audio, information which Google provided about audio shop in London offered to customer. In addition, eBay and Google launched a "click-to-call" service to link eBay's net phone service Skype and Google's messaging and voice telephone service Google Talk. This allowed eBay buyers to call sellers by clicking a link on a webpage.

2) What are the major advantages and limitations of Google Base and Windows Live Expo? Which do you prefer, or would you use both? Why? Go to their Internet Web sites and read reviews at other sites to help you answer. Google Base enables users to add attributes that better describe their content so that users can easily find it. The more popular specific attributes become, the more often well suggest them when others post the same items. Similarly, items that become more popular will show up as suggested item types in the Choose an existing item type drop down menu. A major focus of Windows Live Expo is that users could choose whose listings they want to search, sorted either by friends and contacts or by geographical proximity. However Windows Live Expo ceased operations on July 31, 2008.

3) Are eBays development of Kijiji, acquisition of Skype, alliance with Yahoo, and other acquisitions as noted in this case enough to ward off the competitive assaults of Google and Microsoft? Defend your position. I think eBay is enough to ward off the competitive assaults of Google and

Microsoft. Even though Google base and Microsoft Windows Live Expo provide a lot of information, they dont sell the product directly. They just offer information about it. However E-commerce is more convenience to trade products. Moreover eBay has PayPal payment service and communication system which is Skype. It could help consumers to trade in online. In addition, as the mention in question 1, eBay go into partnership with Google. It makes eBay conquer their shortcoming such as navigation function and lack of information.

Real World Case 2.

1) Is the second-mover advantage always a good business strategy? Defend your answer with examples of the companies in this case. No, the second-mover isnt always a good business strategy. Sometimes first movers have advantage. For instance, Korean So-ju market in which Jinro is the leader. With its wide marker share, a lot of new consumers of this marker get used to the leaders goods at first. Thats why it is having its leader position over 30 years. For another example, after Intel invented micro processer first in the world 40 years ago, it has maintained its leader position with its superior technology.

2) What can a front-runner business do to foil the assaults of second movers? Defend your answer using the examples of the front-runner companies in the case. Using its wide market share and large capital, front-runner can disturb the second-runner come into the market. For example, Microsoft, the leader in software market had beaten the Netscape by releasing the free web browser Internet Explorer. For another example, Coca-cola the coke company had made contract with some big pizza companies and fast food companies to supply only their product to disturb other companies getting bigger market.

3) Do second movers always have the advantage in Web-based business success? Why or why not? Evaluate the five strategies given in the case and the companies that used them to help defend your answer. Second movers dont always have the advantage in Web-based business success. Because sometimes first movers have advantage being front-runner. For example, There so many homepages in Korea use active-x that works only for Microsofts web browser IE. That make really annoying when someone tries to use other browser like Mozillas Firefox or Google Chrome even these are much better in other respects. Of course the five strategies given in the case is good for send movers. However these strategies can be used for front-runners. Just front-runners dont need to use that kind of strategies. Therefore second movers have to find core competence and develop it to beat front runner.

Real World Case 3.

1) How does the Web foster the growth of social media and social

networking Web sites? What potential benefits could such Web sites offer a business? Visit several sites like Flickr, MySpace, Facebook, and YouTube to support your answer. Most social network services are primarily web based and provide a collection of various ways for users to interact, such as chat, messaging, email, video, voice chat, file sharing, blogging, discussion groups, and so on. Users make a kind of society through these sites. So these sites can secure regular access users. It is one of benefits offering a business. 2) What business benefits does Yahoo hope to gain from its acquisition of Flickr and drive to Flickrize its business? How realistic are such planned benefits for Yahoo at the present time, given the acquisition of MySpace by News Corp. and YouTube by Google? Defend your position. Even though Yahoo has 191 million registered users, they are not loyal users who always access Yahoo. Though the Flickr, Yahoo can know how to make layal users because flickr offer friendly services for users. Its one of benefits which Yahoo can gain from its acquisition of Flickr. In addition, Yahoo want to turn Web searching itself into a social event-the idea being that you can find what youre looking for faster if you first see pages saved and tagged by people you know and trust. It can be benefits for Yahoo against Google. 3) Can social media and social networking serve as a strategic competitive differentiator for Yahoo, enabling it to overtake Google in the multibillion-dollar targeted search ads market? Why or why not? Of course it could be a strategic competitive differentiator for Yahoo. Through the acquisition of Flickr, Yahoo can pan out social search and it could give Yahoo a much needed edge over Google. Google takes an automated approach to search, throwing armies of Ph.D.s and thousands of servers at the problem. It wants to make search more relevant by creating better algorithms. Yahoo also does algorithmic search, but it cant beat Google at that game. However through the social search, users efforts to index all the artifacts of human knowledge. It can give competitive advantage for Yahoo to beat Google.

Chapter 9 Discussion Questions

2) Are the form and use of information and decision support systems for managers and business professionals changing and expanding? Why or why not? As the boundary among industries disappeared, top managers role became more and more important. In addition, thanks to the highly advanced science and technology, managers began to fight with the lack of the time. In this situation, Because DSS can support managers making correct decision correctly and rapidly and save the time, it became more important than before. From now on, society will be more and more complex rather than now, the more functions would be added to DSS. Because people will depend on developed DSS more and more, its role would be more diversified. 4) Refer to the Real World Case on Sew What? in the chapter. In the companys early years, Megan Duckett lost a major contract because a prospective client said that without a Web site, her business lacked credibility. Does this hold true today for all businesses? Why or why not? Before analyzing the difference between two kinds of ability, we should know the difference between MIS and DSS. More than anything else, what is the most important difference between them is that MIS supporting structured decisions while DSS supporting semi structured business decisions. While solving the structured problem, high working performance can be defined as the time to finish the task. In unstructured case, correctness of decision is more important than its speediness. Therefore, unstructured cases require more working experience and responsibility. Because of these reasons, DSS support higher managers than what MIS does. 6) In what ways does using an electronic spreadsheet package provide you with the capabilities of a decision support system? Visualization is the most important function which electronic system supporting. Electronic DSS represents complex data using interactive three-dimensional graphical forms such as charts, graphs, and maps, so they are very helpful to make managers understanding. 8) Refer to the Real world case on Harrahs Entertainment, Lending Tree, DeepGreen Financial and Cisco Systems in the chapter. What other Webbased applications of automated decision making can you propose that would have a high chance of business success? Defend your proposals. Even several companies already adopted this system I think it should be expanded more and more. BC Card adopted loss system to avoid injustice card using. This system records all of information about the card date, cost, place and so on. This system is established based on neural network. System educates computer automatically while users using cards, analyze the characteristics and pattern on users. When computer decides the using is rare or doubted, computer requires the confirmation from the users. By this system, society can reduce the fraud risk. 9) Which applications of AI have the most potential value for use in the operations and management of a business? Defend your choices. Natural language processing (NLP) is a field of computer science and linguistics concerned with the interactions between computers and human languages. http://en.wikipedia.org/wiki/Natural_language_processing) it is one of the applications of AI and it would be most potential value for use in the operations and management of a business in that many people can speak and write in English, but few people can do them perfectly. Because business require correct and delicate contract, this application of AI would be more and more common in

the convention and reports.

Analysis Exercises
2) eCommerce Web site Reviews a. Use BizRate.com to check out a product of interest. How through, valid, and valuable were the product and retailer reviews to you? Explain. I have log on BizRate.com and searched the laptop Apple MacBook 13.3in. 2.0 GHz Intel Core 2 Duo T5800. BizRate provided me with 13web sites selling the computer, and each product has a number of comments from under 20 to over 75,000. In addition, there was point indicating satisfaction of customers who bought it before. Therefore it seemed that very efficient and useful when we buy it. However, because BizRate just offers information, it was inconvenient in that I should enter another web site to buy the product. b. How could nonretail businesses use a similar Web enabled review system? Give an example. In champstudy.com, there are many comments to online English classes. Comments are useful in selecting classes rather than selecting products because almost online classes do not provide refund system. c. How is Bizrates Web site functionality similar to a decision support system?(DSS?) In establishing DSS, visualization is very important because it can make decision makers simply understand the situation. BizRate is also adopting visualized interface and to be seem that they have done their best to describe information understanding. So we can say that they have common thing in that they focusing on how to describe information understanding to help people making decision. 3) Case-Based Marketing a. What is the source of expertise behind Amazons online book recommendations? The source of online book recommendations is data taken by the referral programs. This program collects information from customers clicks and counts their route while customers doing web surfing. This program is very powerful and becomes more and more popular. b. How do you feel about online merchants tracking your purchases and using this information to recommend additional purchases? Sometimes, people dont know what they need while they feeling serious lack of something. I believe that they are also doing well on helping people realize what they need. Therefore, I think their recommendations are also beneficial to us also. What measures protect consumers from the governments obtaining their personal shopping histories maintained by Amazon? Individual privacy is more important than recommendation system. Therefore the program should be thoroughly automated not to allow anyone getting the data individually. In addition, I think that we do not need customize all of the customers. If we classify people into a number of groups and provide them recommendation, it would not need to take individual personal shopping history.

c.

d. Although Amazon doesnt share personal information, it still

capitalizes on its customers shopping data. Is this ethical? Should Amazon offer its customers the right to opt out of this information gathering? They need to get the approvals from the customers. Ethically and legally, it can be considered as invading privacy. However, because the program can be helpful to customers also, as long as company get the approval from customers, it is no problem.

Real World Case 1.

1) What is the attraction of dashboards to CEOs and other executives? What real business value do they provide to executives? The attraction is that CEOs can get essential information very easily without killing time. Before adopting this system CEO had to wait for a long time to collect the information. Through this system CEOs can focus on their own job (making decision. Not searching information). To conclude, company can save their core capability through dashboard. 2) The case emphasizes that managers of small businesses and many business professionals now rely on dashboards. What business benefits do dashboards provide to this business audience? Because users can choose index what they will focus, the program can be used by any kind of small business. I think it would be very helpful for restaurants, especially health control. In operating restaurant, it is very important to control the freshness of low materials. However, because small restaurants do not divide whole process specifically, employees can miss this problem when they are very busy. 3) What are several reasons for criticism of the use of dashboards by executives? Do you agree with any of this criticism? Why or why not? One common concern is that dashboards can hurt morale. For example, CEO can realize each persons ability very quickly and easily. Because of this point, someone can feel bummed out sometimes, and it can spoil the harmony in the organization. I agree with the idea. In addition, because data could not display how important the harmony in the organization is, it can make serious problem rather than people are imagining. In this case, if we adopt evaluation based on teams work performance, we can solve this problem.

Real World Case 2.

1) Why did some previous attempts to use artificial intelligence technologies fail? What key differences of the new AI-based applications versus the old cause the authors to declare that automated decision making is finally coming to age The early type of artificial intelligence technology has been slow to materialize. Its function is just looking for problems, contributing little to improved organizational performance. The first difference is about usability. The new system is easier to create and manage than earlier one, which leaned heavily on the expertise of knowledge engineers. Second difference is about simplicity. The new applications do not require anyone to identify the problems or to initiate the analysis. The last difference is about action-based solution. Unlike earlier system, the new ones are designed to translate decisions into action quickly, accurately, and efficiently. 2) What types of decisions are best suited for automated decision making? Provide several examples of successful applications from the companies in this case to illustrate your answer. Some decision type which is repetitive and susceptible to uniform criteria can be made by drawing on the vast supply of data that are available. Transportation industry. After being used initially by airlines to optimize seat pricing, decision-making technology has been applied to a variety of areas, including flight scheduling and crew and airport staff scheduling.

Lodging business. Harrahs Entertainment, the worlds largest casino operator, use combination of yield-management system and loyalty program. The combination ensures that the best customers get the best prices and, in turn, these customers will reward the company with their loyalty.

3) What role do humans play in automated decision making application? What are some if the challenges faced by managers where automated decision-making systems are being used? What solutions are needed to meet such challenges? Managers in charge of automated decision system must develop processes for managing exceptions. There are challenges when the decision making application system has too little data on which to make decision. Manager should have clear criteria for determining when cases cannot be addressed through automation and who should deal with the exceptions.

Real World Case 3.

1) What are the most important business benefits and limitations of 3D virtual worlds like Second Life to real-world companies such as those mentioned in this case? The most important business benefit is that high profit compare to the cost to maintain virtual worlds. In the virtual world, manufacturing does not cost much money. Therefore, this industry can be attractive to the companies. However, there is also limitation of it. Because of low entry barrier, potential competitive companies can enter the market very easy. In addition, people can move to another second life portal easily. 2) Why do you think IBM is taking a leadership role in promoting and using 3D metaverses like Second Life? What business benefits might it expect to gain from its involvement in developing a 3D Internet? Explain your reasoning. Because IBM has developed computer technology for a long time, it would have been easy for IBM to enter the virtual world market. In addition, IBM had fall experience on the computer industry, so they might enter this market very thoroughly. The most positive advantage is that virtual world has unlimited business potential. Second life aided by 3D technology made a new world. In the new world, people should buy many products and need many kinds of services to live in there. In addition, in that virtual world can be expanded unlimitedly, virtual world has unlimited potential.

3) Are 3D virtual worlds like Second Life solutions in search of a problem at this stage of their development, in that do not satisfy any vital business need? Why or why not? Second Life is a just second life for people. According to the text book, second life is phenomena not just game. However, I think it is just highly advanced game. Virtual world is just cyber world, and it cannot make solution in search of a problem, and it cannot replace of the real world. Therefore, people and companies should not consider the virtual world as the new shape of the world. It is just cyber world.