CHAPTER 12 CASE STUDY: LIFE ON THE GRID: iPhone BECOME iTrack

1. Why do cell phone manufacturers (Apple, Google, and BlackBerry) want to track where their customers go?

Cell phone manufacturers, Apple, Google and Blackberry, want to track where their customers go due to various factors. Firstly, location-based service provided in Apple, Google’s Android and BlackBerry smart phones can be the tool for three of the cell phone manufacturers to earn money. They can earn money by the location-based service in smart phones through advertising. Apple and Google are advertising platforms, so this makes them create the location-based service in their smart phones products.

This can be explained that mobile technologies based on the smart phone make it possible to locate people who use smart phones. After that, the location data of the users will be reported to the smart phone manufacturing company databases, retained and analyzed. The analyzed location data will then be sold to advertisers and others. When the advertising firms received the location data of their customers, they will pay Apple, Google’s Android and BlackBerry for the information of their customers’ location and for the distributing of their mobile advertisements. Once the advertising firms know where their customers are through mobile, they can send the customers advertisements, coupons, and flash bargains based on where the customers are.

Next, Apple, Google and BlackBerry needs the location data of their smart phones’ users as they want to use the information to identify the location of cell phones for WIFI connected phones, and to improve the customer experience of location based services. Furthermore, the location information of users is also needed for them to improve their services.

Moreover, location-based service created in smart phone can also build a strong and closed customer relationship to Apple, Google and BlackBerry. For instance, Foursquare, a 2009 start-up, is a popular mobile social application that allows users to check in to a restaurant or other location, and the app automatically lets friends on Facebook and other programs learn where you are. After starting up Foursquare on a smart phone, smart phone users will see a list of local bars and restaurants based on their cell phones’ GPS position. Foursquare has a widely accepted loyalty program. Each check-in awards users points and badges, which can be used later for discounts and at various venues. Users of smart phones with Foursquare app are also awarded to be “Mayors” of the venue based on how many times they have checked in over a month’s time. Those who become Mayors will be given special offers. Thus, from here, it is shown that Apple, Google’s Android and BlackBerry provide location-based service in their smart phones can help them to create customers’ values.

2. Do you think cell phone customers should be able to turn tracking off? Should customers be informed when they are being tracked? Why or why not?

In my opinion, I think that the cell phone customers should be able to turn tracking off. They should also be informed when they are being tracked. This is because if the systems of the smartphones manufacturers do not have the action of that, they will violate their customers’ privacy for certain scenarios. For example, it is sure that most of the people do not like others from the public, who they do not know, to have known their location and what they are doing. This will be especially when they are enjoying their special occasions, such as, wedding ceremony and dating. So, from here, it is encouraged that customers are informed when they are being tracked.

Moreover, allowing smart phones users to turn tracking off using their smart phones’ functions also acts as a respect of the cell phone manufactures towards their customers. They can show their respect to their customers by giving permission to their customers to choose to check in their location areas or not through their phones’ location-based services.

Last but not least, if there is no awareness of being tracked among customers and customers cannot turn tracking off, users will be scary to use smartphones with location-based services. This may bring bad reputation to the cell phone manufactures and also the smart phones products itself. It is owing to the bad treatment and customers’ services provided by the system of cell phones. Consequently, sales of cell phones with location-based services may decrease.

3. Do you think cell phone tracking is a violation of a person’s privacy?

Many privacy groups are calling for legislation to gain user consent as a condition of cell phone tracking. Go to the Internet to find out one of the privacy groups and summarize its stand and viewpoint. We must support this group in its call for federal regulation cell phone tracking. Because the Cell phone manufacturers (Apple, Google and Blackberry) tracking is indeed an invasion of privacy. A privacy group is Electronic Privacy Information Center (EPIC).The Electronic Privacy Information Center (EPIC) was founded in 1993 and focuses public attention to emerging civil liberties and to protect privacy, the first amendment, and constitutional values. EPIC does not lobby for, consult, or advice companies, nor do we endorse specific products or services. This list merely serves as a sampling of available privacy-enhancing tools. I do support its calls for federal regulation because it does need to be regulated, as this type of tracking is a breach of privacy. Google and Apples position of cell phone tracking is to help improve apps and service. Limitations of cell phone tracking can be specified in the settings from accurate to city locations.

CHAPTER 11 CASE STUDY: DST SYSTEMS SCORES WITH SCRUM AND APPLICATION LIFECYCLE MANAGEMENT

1. What were some of the problems with DST Systems’ old software development environment?

DST Systems is a software development company whose flagship product, Automated Work Distributor, increases back – office efficiency and help offices become paperless. DST was founded in 1969 and its headquarters are in Kansas City, Missouri. The company has approximately ten thousand employees, 1200 of whom are software developers.

Some of the problem is DST Systems’ used a mixture of tools, processes, and sourced code control system, different group within the organization used very different tools for software development for example like Eclipse. This makes managers hard to unable to easily determine how resources were being allocated, which of their employees were working on certain project, and the status of specific assets. Another point is the previous method that is “waterfall” method which is used for designing, coding, testing and integrating its product. In the waterfall model of software development, progression flows sequentially from one step to next like a waterfall, with each step unable to start until the previous step has been completed.

2. How did Scrum development help solve some of those problems?

Scrum is a framework for agile software development in which project progress via a series of iteration called sprints. Scrum projects make progress in a series of sprints, which are time boxed iterations no more than a month long. Scrum development help solve some of those problem by relies on self- organizing, cross- functional teams supported by a Scrum Master and a product owner. The Scrum Master acts as a coach for the team, while the product owner represents the business, customers or users in guiding the team toward building the right product. DST tried Scrum with its existing software development tools and experienced strong results. The company accelerated its software development cycle from 24 to 6 month and developer productivity increased 20 present.

3. What other adjustments did DST make to be able to use Scrum more effectively in its software projects? What management, organization and technology issues had to be addressed?

The other adjustments DST was able to make to use Scrum more effectively in its software projects were by setting up a project evaluation team to identify the right development environment. DST wanted the ability to use the new software without significant training and software they could quickly adopt without jeopardizing AWD’s development cycle. After considering, DST settled on CollabNet’s offerings.

CollabNet specializes in software designed to work well with agile software development methods such as Scrum. Its core product is TeamForge, it used to centralize management of users, projects, processes and assets. DST adopted Collabnet's subversion product to help with the management control of changes to project documents, programs, and other information stored as computer files. DST’s adoption of CollabNet’s products was fast, just requiring 10 weeks. Besides, the adjustment allowed DST to complete all of their work within the ALM platform.

For the part of management, organization and technology issues had to be addressed, Jerry Tubbs, the systems development manager at DST systems, says DST was successful in attempts to revamp the software group because some factors.

1.Looked for simplicity rather than complicated

2.Much cheaper than some of the alternatives

3.Involved developers in the decision making process to ensure that change to be greeted enthusiastically

4.Allow for the developers to adopt ALM software on their own

The company was successful because they selected the right development framework as well as the right software to make that change a reality and skillfully managed the change process.

CHAPTER 10 CASE STUDY: COLGATE PALMOLIVE KEEPS MANAGERS SMILING WITH EXECUTIVE DASHBOARDS

1. Describe the different types of business intelligence users at Colgate-Palmolive.

The different types of business intelligence users at Colgate-Palmolive Colgatehad been a global SAP user since the early 1990s, but it was running five separate ERP system to serve its different geographic regions. Over a period of time, disparities in the data developed between different geographic regions and between the data used at the corporate level and the data used by an individual region or business unit

Other than that, Colgate choses to creating a single global data repository using SAP NetWeaver Business Warehouse, SAP’s analytical, reporting and data warehousing solution. Colgate’s regional ERP System feed their data to the warehouse, were the data are standardized and formatted for enterprise-wide reporting and analysis. This eliminates differences in data across the enterprise.

Furthermore, Colgate’s Information Systems specialist then implemented SAP NetWeaver BW Accelerator to speed up data loads and improve user perception and adoption, and then they implemented SAP Business Objects Web Intelligence to build customized reports. SAP Business Objects Web Intelligence provides a powerful, intuitive interface that enables business professionals to ask spontaneous questions about their data.

2. Describe the “People” issues that were affecting Colgate’s ability to use business intelligence.

The “People” issues that were affecting Colgate’s ability to use business intelligence is like every time a sales report was run, it showed different number for orders and shipments. Colgate wanted more useable data to drive business decisions and all of its managers and business units worldwide to work with the same version of data.

In addition, for of the output of the warehouse for senior manager is daily HTML table that showing series of financial and operational metrics for the day compared to the previous month and quarter. However the data were not being used enough employees in their decision making to have an impact on business benefit.

Eventually, Colgate’s senior manager and other casual user began requesting deeper access to the warehouse data in a more timely and user-friendly format. They want reports that were easier to run where the data could be interpreted faster. Senior management requested customizable.

3. What people, organization and technology factors had to be addressed in providing business intelligence capabilities for each type of user?

Colgate’s Senior Managers and other casual users, on the other hand did not feel comfortable running ad hoc reports or drilling down into the layers of data to answer questions the data brought to light. They did not have much time to spend developing reports and the standard reports produced for them by the warehouse lacked navigation and drill down capabilities.

Eventually Colgate’s senior manager and other casual users began requesting deeper access to the warehouse data in a more timely and user-friendly format. They wanted reports that were easier to run where the data could be interpreted faster. Senior management requested customizable, real-time dashboards that could be more easily used to drive performance improvement.

Colgate’s information systems specialists then implemented SAP NetWeaver BW Accelerators to speed up data loads and improve user perception and adoption and they implemented SAP Business Objects Web Intelligence to build customized reports.

4. What kind of decisions does Colgate’s new business intelligence capability support? Give three examples. What is their potential business impact?

For Colgate, better reporting tools that can support different kinds of users have greatly expanded the use of business intelligence throughout the company. Currently about 4000 users interact with Colgate’s SAP system daily, but this number is expected to expand to 15000 or 20000 users in the future. People who are accustomed to seeing reports stuffed with numbers are finding that they can use the information presented in dashboards to make faster decisions.For example, managers can determine positive or negative financial conditions by simply looking for negative financial conditions by simply looking for where dashboard reports use the colour green, which reflects improvements in Colgate’s financial position.

CHAPTER 9 CASE STUDY: SOCIAL COMMERCE CREATES NEW CUSTOMER RELATIONSHIP.

1. Assess the people, organization, and technology issues for using social media to engage with customers.

Nowadays, most people will use the social media to keep in touch with friend and let them know what they recently doing. However, these social media such as Facebook, Twitter, and Line can become powerful tools for engaging customers in business for all companies of all shapes and sizes. In addition, location based businesses like gourmet food trucks can tweet their current location to loyal followers and fans. Appointment-based businesses can easily tweet or post cancellations and unexpected openings. Larger companies run sweepstakes and promotions and can have an opportunity to shape the perception of their brands and to solidify relationships with their customers.Companies are rolling out ads that capitalize on the social media features of Facebook to achieve greater visibility. For example, Facebook ads feature the ability to ‘Like’ a brand, send a virtual gift, answer a poll question, or instantly stream information to your news feed. Facebook also allow you to following the fan page of the brand and can get the new feed about the brand or the updates news, promotion, and competition.

2. What are the advantages and disadvantages of using social media for advertising, brand building, market research, and customer service?

Advantage	Disadvantage
Companies of all sizes have an opportunity to shape the perception of their brands and to solidify relationships with their customers.	The result can be unpredictable, and not always beneficial, as Starbucks learned. Starbucks launched a social media contest, which was essentially a scavenger hunt for advertising posters in Twitter. The campaign backfired. At the urging of anti- Starbucks protesters, users flooded Starbucks’ Twitter feed with pictures of employees and protesters holding signs criticizing Starbucks’ labor practices.
To achieve greater visibility- Facebook ads feature the ability to “like” a brand, give comment, answer poll question, send a virtual gift
To allow customers to socialize and share their purchases with friends through social media
Answer user question and respond to complaints. Companies can easily manage the complaints of products from user and get improvement overall through these application
A company used text mining to gather data and convert then to useful information and uses the information to gauge the success of promotions, which products are hot and which are duds, and the impact of advertising campaigns.
Use social media- Facebook’s targeting capabilities to determine which types of people respond to the various ads it has created.

3. Should all companies use Facebook and Twitter for customer service and advertising? Why or why not? What kinds of companies are best suited to use these platforms?

Yes, companies should use these social media-Facebook and Twitter for customer service and advertising. This is because Facebook and Twitter more effective compare to others. Facebook and Twitter is a social web and have a large amount of people or companies link their business, company products to social media. Companies with selling digital goods like camera, smartphone and so on are suitable to use the platform because social media need be efficiently and good performance with digital products. Furthermore, with media social, companies easy to communicate with other company. They also can make a good relationship with both companies that make an agreement or contract. Other than that, company can make an improvement about their organization with conversation from the other country. They will changes and share experience and idea to become a good and successful company in the future.

CHAPTER 8 CASE STUDY: ACHIEVING OPERATIONAL EXCELLENCE AND CUSTOMER INTIMACY: ENTERPRISE APPPLICATION

1. What type of companies are most likely to adopt cloud-based CRM software services? Why? What companies might not be well suited for this type of software?

The types of companies that adopt cloud-base CRM software service is small businesses that find the on demand model especially appealing because there are no large up-front hardware and software investments or lengthy implementation on corporate computer system. Saleforce’s e-mail and Web-to-lead capabilities helped company quadruple new sales leads.. A task feature automatically generate specific task based on the type of lead and the stage in the sales process. The system automates customer service functions including order confirmation, follow up customer satisfaction surveys and shipping notification. Cloud base software service also appeals to large companies. The system with automated reports and dashboards monitoring key performance indicators, sales calls, and sales volume. CRM software service also help to create more successful marketing campaign. Not all companies experience gains of that magnitude and cloud computing does have drawback. Companies that manage their CRM apps with a cloud infrastructure have no guarantees that their data will be available at all time, or even that the provider will still exist in the future.

2. What are the advantages and disadvantages of using cloud-based enterprise applications?

Advantages	Disadvantages
Cost Efficiency This is the biggest advantage of cloud computing, achieved by the elimination of the investment in stand-alone software or servers. By leveraging cloud’s capabilities, companies can save on licensing fees and at the same time eliminate overhead charges such as the cost of data storage, software updates, management	Security and privacy in the Cloud Security is the biggest concern when it comes to cloud computing. By leveraging a remote cloud based infrastructure, a company essentially gives away private data and information, things that might be sensitive and confidential. It is then up to the cloud service provider to manage, protect and retain them, thus the provider’s reliability is very critical.
Backup and Recovery The process of backing up and recovering data is simplified since those now reside on the cloud and not on a physical device. The various cloud providers offer reliable and flexible backup/recovery solutions. In some cases, the cloud itself is used solely as a backup repository of the data located in local computers.	Limited control and flexibility Since the applications and services run on remote, third party virtual environments, companies and users have limited control over the function and execution of the hardware and software. Moreover, since remote software is being used, it usually lacks the features of an application running locally.
Quick deployment and ease of integration A cloud system can be up and running in a very short period, making quick deployment a key benefit. On the same aspect, the introduction of a new user in the system happens instantaneously, eliminating waiting periods.	Increased Vulnerability Related to the security and privacy mentioned before, note that cloud based solutions are exposed on the public internet and are thus a more vulnerable target for malicious users and hackers. Nothing on the Internet is completely secure and even the biggest players suffer from serious attacks and security breaches. Due to the interdependency of the system, If there is a compromise one one of the machines that data is stored, there might be a leakage of personal information to the world.
Increased Storage Capacity The cloud can accommodate and store much more data compared to a personal computer and in a way offers almost unlimited storage capacity. It eliminates worries about running out of storage space and at the same time It spares businesses the need to upgrade their computer hardware, further reducing the overall IT cost	Dependency and vendor lock-in One of the major disadvantages of cloud computing is the implicit dependency on the provider. This is what the industry calls “vendor lock-in” since it is difficult, and sometimes impossible, to migrate from a provider once you have rolled with him. If a user wishes to switch to some other provider, then it can be really painful and cumbersome to transfer huge data from the old provider to the new one. This is another reason why you should carefully and thoroughly contemplate all options when picking a vendor.

3.What people, organization and technology issues should be addressed in drciding whether to use a conventional CRM system versus a cloud-based version?

People will provide firm wide information to support decision making. They also will enable rapid responses to customer requests for information or products. Besides, removing hardware and its complications Companies Not Suited For ERP and CRM. People also can made large investments on traditional and customized solutions that already work. In organization  the Human-Resource Optimization will act as while traditional ERP and CRM solutions demand for technical staff, cloud-based solutions allows to optimize HR to focus on operation. In technology for security: using the web as infrastructure, cloud-based ERP and CRM solutions have difficulties in offering security-comfort to companies that own sensible data. Besides, Seeks to cut cost Companies That Use Cloud Based ERP and CRM Services: it enables them to achieve operational excellence and customer intimacy.  It releases them from infrastructural maintenance and its respective fixed (servers, storage, networking components) and operational costs. 

CHAPTER 7 CASE STUDY: INFORMATION SECURITY THREATS AND POLICIES IN EUROPE

1. Botnet.

A botnet is a network of autonomous malicious software agents that are under the control of a bot commander. The network is created by installing malware that exploits the vulnerabilities of web servers’ operating system, or applications to take control of the infected computer. A botnet also refer to the collection of internet –connected programs in order to perform task. This can be as mundane as keeping control of an internet relay chat (IRC) channel, or it could be used to send spam email or participate in distributed denial-of-service attacks. The world botnet is a portmanteau of robot and network.

2. Some of the main points of the Digital Agenda for Europe.

Digital Agenda for Europe has recently launched by European commission. The goal of this initiative is to define the key role that information and communication knowledge technologies will play in 2020. The initiative calls for a single, open European digital market. Another goal is that broadband speed of 80Mbps be available to all European citizens by 2020. The initiative is considering the implementation of measures to protect privacy and the establishment of a well-functioning network of CERT to prevent cybercrime and respond effectively to cyber attacks.

3. How cyber attack can be carried out.

The cyber attack on Estonia start in late April 2007 and lasted for almost three weeks. During this period , vital parts of Estonia internet network had to be closed from access from outside the country, causing millions of dollars in economic losses. At round same time, Arsys important Spanish domain registration company also targeted international hackers. Arsys reported hacker had stolen codes then use the code to insert links to external server containing malicious codes in webpage of its clients. French the UK and Germany were amount European countries suffered most inspection.The French navy had grown all military planes when discovered its computer network was infected. In UK, Worm infected computers in ministry of defence, the city of Manchester’s city council and police network. Computers in network of German Army were infected too. Once, install on computer, co flicker is able to download and install other malware from control the website infected computer could be under full control of hackers.

4. Weakness exploited by malware.

Malware may exploit weakness to initially infiltrate a system or to gain additional privileges on an already- compromised machine. The weaknesses may be exploiting automatically by malware authors creations or manually by attempt will be generically called attackers. Weaknesses fall into 2 broad categories, based on where the weakness lies. Technical weakness involves tricking people. The malware, hidden in shortcuts to executable programs (files with extension .ink) was executed automatically when the content of an infected USB drive was displayed. Employing this same technique, the worms were capable of installing other malware.

Data gathered later by other experts indicates that the worms was actually looking for some specific programmable Logic Controllers(PLC) devices used in a specific industrial plants. A facts that points to the possibility that malware was part of the sites infected with sabotage.

The significance that such a sophisticated treat represents to the industrial recourses in Europe and others parts of the world cannot be underestimated.

CHAPTER 6 CASE STUDY: MONITORING EMPLOYEES ON NETWORKS: UNETHICAL OR GOOD BUSINESS

1. Should managers monitor employee e-mail and Internet usage? Why or why not?

Based on our opinion, we think that managers should monitor employee email and Internet usage. Many companies have begun monitoring employee use of email and Internet, sometimes without their knowledge. Monitoring employee e-mail and internet usage is a hotly debated subject. Some will argue that it amounts to an invasion of privacy where as others will state that managers have a right to expect that employees will do the job which they have been hired. Using corporate resources such as email and the Internet on company termed service theft. When employees use company time and computer equipment to participate in e-mailing or Web surfing activities that are not part of their duties, they are valuable corporate assets. Employee use of e-mail, instant messaging, and the Internet is supposed to increase worker productivity.

Besides, it can impact the company’s success. Many employees take advantage of the internet accessibility at work and spend more time on the internet than deems necessary. Although it can be looked at as “big brother,” the company pays their employees to do work and provides these services because they are necessary for the work environment. The company needs to do what is best for its success and if they need to monitor their employees than they have every right to do so.

2. Describe an effective e-mail and Web use policy for a company.

Like all policies an effective e-mail and Web use policy must be carefully designed and communicate to all persons who use these corporate resources. There are a number of different policies in existence. Some companies allow absolutely no personal activities to be done on corporate networks whereas others allow some degree of activity, and this activity is acceptable and what is not allowed. The policy should clearly articulate sanctions that will be followed for any and all offenses in relation to the policy. An effective e-mail and Web use policy for a company would comprise of a detailed description of what employees are allowed and prohibited from doing while at work. This policy should allow employees at least 30 minutes a day for personal use.

The company can also provide certain computers designated for personal use that their employees can have access to so that when off company time they can use these computers. This may prevent the company from being vulnerable to viruses and hackers because they can be connected to different networks/ servers. The policy can also allow employees to use the internet and e-mail for personal use when on lunch, break or off company time. It is important for the firm to make the work place comfortable and prevent it from feeling like they have no rights. This is why I feel the firm should try to accommodate personal e-mail and internet usage because some employees have very little time and emergencies may arise where they need to use these services.

3. Should managers inform employees that their Web behavior is being monitored? Or should managers monitor secretly?

In our opinion, the manager should inform the employees that their uses of the web are monitored. If the managers let the employees know about their computers are monitored the employees will avoid using their personal business, then they will concentrate during their work hours. My opinion about it, the managers should let the employees know about that to focus in their work.

CHAPTER 5 CASE STUDY: LEGO: COMBINING BUSINESS INTELLIGENCE WITH A FLEXIBLE INFORMATION SYSTEM

1. Explain the role of the database in SAP’s three-tier-system.

Through our discussion, SAP’s business suite is based on a flexible three-tier client-server architecture that can easily be adapted to the new Service-Oriented Architecture (SOA) available in the latest versions of the software. In the first tier, a client interface-a browser-type graphical user interface (GUI) running on either a laptop, desktop, or mobile device-submits users’ requests to the application serves. The applications servers send the processed requests to the database system-receive and process clients’ requests to the database system-the third tier-which consists of one or more relational databases. SAP’s business suite supports database from different vendors, including those offered by Oracle, Microsoft, MySQL, and others. The relational database contain the tables that store data on LEGO’s products, daily operations, the supply chain, and thousands of employees. Managers can easily use the SAP query tool to obtain reports from the databases, because it does not require any technical skill. Additionally, the distributed architecture enables authorized personnel to have direct access to the database system from the company’s various locations, including those in Europe, North America, and Asia.

2. Explain why distributed architectures are flexible.

Based on the discussion, distribute architectures are flexible because they adapting company operations to these  changes required a flexible and robust IT infrastructure with business intelligence capabilities that could help management perform better forecasting and planning. As part of the solution, LEGO chose to move to SAP business suite software. SAP AG, a German company that specializes in enterprise software solutions, is one of the leading software companies in the world. SAP’s software products include a variety of applications designed to efficiently support all of a company’s essential functions and operations. LEGO chose to implement SAP’s Supply Chain Management (SCM), Product Lifecycle Management (PLM), and Enterprise Resources Planning (ERP) modules.

3. Identify some of the business intelligence features included in SAP’s business software suite.

Based on the case study, we can see that SAP’s Supply Chain Management (SCM) included features such as supply chain monitoring and analysis as well as forecasting, planning and inventory optimization. In SAP’s Product Life-cycle Management (PLM) module enables managers to optimize development processes and systems. SAP’s Enterprise Resources Planning (ERP) modules includes among another applications, the Human Capital Management (HCM) application for personnel administration and development. SAP’s business suite is based on a flexible three tier client-server architecture than can be easily adopted to the new Service-Oriented Architecture (SOA) available in the latest version of the software. The first tier, a client interfaces which a browser type running on either a laptop, desktop or mobile device. The second tier is application servers that receive and process client’s requests. In the third tier, it is consists of one or more relational database.

4. What are the main advantages and disadvantages of having multiple database in a distributed architecture? Explain.

Advantages	Disadvantages
Mutiple database contains the tables that store data on products, daily operation, supply chain and thousand of employees.	The additional overhead of these transactions can be a performance penalty when the total amount of data in the network is small. Users also see slower performance when accessing user data that is not local.
Managers can easily use the SAP query tool to obtain reports from the database because it does not require any technical skill.	Increased the use of database space.E very table must exist in every database. When the number of tables is very large, the amount of space used this way can be significant. Administrators must use database storage parameters to size tables and reduce database space consumption.
Distributed architecture enables authorized personnel to have direct access to database system fronm the company’s various locations including in Europe, North America and Asia	Administrators must keep the schemas of all databases synchronized and ensure that the network is configured to take optimal advantage of the distributed-database environment in terms of availability and performance. Although database backups are more flexible in a distributed-database environment, multiple databases add complexity to the backup process.

CHAPTER 4 CASE STUDY: NORDEA GOES GREEN WITH IT

1. What business, personal, and social costs are involved when traveling by airplane between Copenhagen and Helsinki?

Ø  Business: Expensive for the company.

Ø  Personal: Time consuming and energy for the person.

Ø  Social: Frequent travelling means less time with family and friends, and less time for oneself. It also cause environmental pollution.

2. How can IT be both the culprit and the solution to environmental problems?

Ø  Solution to environmental problems: Creating more technologies that can reduce travelling times. As examples: video conferencing, teleconferencing, and others.

Ø  Culprit to environmental problems: IT can be a culprit security purposes or break downs.

3. What are the arguments against corporate social responsibility?

These are the obstacles of IT going green, and the idea of changing people's behavior and well established practices. In general people do not like change, because of the expected uncertainty.

4. Why should firms be engaged in making the world more sustainable?

Sustainable world mean stable minds. Firms are there for the people. People work in these firms. Therefore this can result to efficient output. For example: In parallel to the World Sustainable Energy Days, the Energies parmesse, an exhibition and trade show dedicated to renewable energy sources and energy efficiency, is held. It attracts around 100,000 visitors and around 1,000 exhibiting companies.

CHAPTER 3 CASE STUDY: STARBUCKS

1.  Analyze Starbucks using the competitive forces and value chain models.

The following case study on the global coffee chain Starbucks is based on the ability of competing with the assistance of technology. Companies are using management information systems to assist them in many ways such as product quality and efficiency as well as customer service/customer intimacy. Starbucks is proud owner to 16,850 coffee shops and has internationally opened global franchises. Starbucks hit a few business implications in the year of 2008 and had to use different business strategies. In regards to the competitive forces, Starbucks had to alter their ideas in order to remain at a competitive level.

The use of information systems achieves a low cost leadership; there are low operational costs and therefore a company can afford to charge lower prices. Starbucks engaged in the mobile digital platform when realizing over a third of their customers were smart phone owners. The Starbucks App allows regular customers o pre pay/top up their card and use this at every branch to pay for their drinks by scanning bar code displayed on their phone. The app allows customers in a hurry to pay quickly, showing the use of management information systems at a retail level of the supply chain making the customer experience more efficient and of a better quality. Streamlining business processes meant a shorter customer wait due to the time of making the drink being reduced, which essentially meant each barista could make more drinks by the hour, therefore increasing revenue.

Starbucks also used product differentiation and information systems to alter their existing menu. They have now enabled new products for customer convenience and offered price reduced specials; to be able to charge lower prices Starbucks had made alterations in their supply chain. They had to match what their fellow competitors were offering, although thanks to low cost leadership Starbucks were able to operate more efficiently and save on operational costs due to faster and better customer service. The reductions spent in making the drinks allowed the company to return to the profitable level.

The third competitive force being to focus on the market niche meant Starbucks had to attempt on narrowing the target market better than their competitors. An information system assists this strategy as it can produce data to analyze future sales and marketing techniques. Using the fact that the mobile digital platform meant many consumers use smart phones; Starbucks engaged into the ‘Starbuck Digital Network’ which is a portal designed specifically for mobile devices and optimized for smart phone operating systems. The site offers free Wall Street Journal access, iTunes downloads and various other perks. Starbucks loyal customers spend time in the stores and receive free Wi-Fi access.

Strengthening customer and supplier intimacy is essential for large companies whose consumers may feel insignificant. The case study displays customers felt as though they were visiting a fast food chain due to the their experience being very brief. Management information systems and streamlined business processes have allowed time saving to transfer into providing a better customer service; customers now feel more connected with a friendlier service, the chain have also started adding names to their customer drinks to offer a more personalized service and better customer experience.

2. What is Starbucks’ business strategy? Assess the role played by technology in the business strategy.

Starbucks business strategy was to continue serving high end speciality coffee and improve the customer service so that consumers did not feel like they were visiting a local fast food chain. Additionally, it is to also improve customer service and eliminating inefficiencies in coffee production. Technology assisted the business strategy due to the addition of the mobile digital platform and the Starbucks Digital Network, giving customers the benefit of free Wi-Fi access and Starbucks Apps to access on their smart phones.

 3. How much has technology helped Starbucks compete? Explain your answer.

Without the use of technology within the innovation of Starbucks, the company would have been unable to launch the Starbucks Digital Network, and the use of paying via the Starbucks App on smart phones. To add, the newer in store technology helped the baristas to make drinks faster, improving customer service and speed of service, allowing the company to generate a higher level of revenue.