Case: Submit Electric Light Up with a New ERP system

Q1. Which business processes are the most important at Summit Electric Supply? Why?

There are several business processes that were used by the Summit Electric Supply company. Among them the important ones are: 1) ERP software from SAP-> Scalability and investors visibility was the two factors most important to the company and both these factors were very well tackled by the ERP software. SAP functionality in sales and distribution, materials management and financials greatly benefited the company to boost its distribution capacity. 2) SAP’s NetWeaver BW – For Business Intelligence reporting and analysis this process was used. This helped the company to evaluate the profitability of its sales channels, using what-if solutions. 3) The “Batch management” process- Wires and cable are Summit most important product category. It buys these products in reels of length 5000 feet and then cuts them into various lengths and sells to the customers which make it difficult to maintain the inventory of this product. The batch management process removed the problem of maintaining the inventory of such products.

Q2. What problems did Summit have with its old systems? What was the business impact of problems?

There were a few problems that Summit went through with when they were using the old legacy systems. Some of the few problems they came across were--- The old system caused them to have delay with their supplies. Also the system was complicated as it would separate different categories of products which eventually was difficult to combine when needed. The business impact from the problems was that the system was not able to keep up with the fast growing business. It limited the business as it was only able to handle a few range of numbers and location at a time. 

Q3: How did Summit’s ERP system improve operational efficiency and decision making? Give several examples.

ERP improved operational efficiency and give scalability and the ability in Summit’s business process, especially in supply chain areas like sales and distribution, inventory management and financial reporting system-as the company expected strong growth in these areas.

Running more frequent inventory updates

It’s running smaller and frequent inventory update throughout the day, instead of a night-which caused a delay. New system provided accurate information of shipping order, which Summit’s was able to ship immediately.

Adapting the inventory tracking process

To replenish wire and cable, the ERP batch material management identified the customer purchase amount, length of wire and product manufacturer. Each time a customer buys a length of wire, the length is entered into the system to track how much of the “batch” was sold.

Changing how inventory is managed at job sites

To secure inventory for special customers, with long term projects, Summit created a “parent- child” warehouse relationship in ERP system to secure the materials in inventory as well as on premises.

Business intelligence

To make a better manage its finance and ordering system, Summit implemented the SAP’s/NetWeaver BW data warehouse and business intelligence. By integrating the NetWeaver, Summit was able to analyze the profit of each sales person, manufacturer, customer and branch. Using SAP software, Summit was able to improve its ROI, by automating sales tax and chargeback’s. The SAP/Paybacks and Chargeback’s application was able to identify the billing activity, if there was a chargeback, the SAP system would automatically submit the information to bill the chargeback- increase its chargeback claims of up to 118%. Summit decision making for implementing the new ERP system was based on the growth of the organization, the complexities of processing orders, analyzing finances and back and reporting. Once the new ERP/SAP was in place, Summit management was able to focus on sales and orders and quotes, supplier performance and delivery schedule. The new SAP/ERP has allowed Summit to run its operations with flexibility and allow the SAP to operate efficiently. The new ERP system allowed management to have a greater vision for decision making and managing its operations.

Q4: Describe two ways in which Summit’s customers benefit from the new ERP system.

Firstly, customer can rely on the company for their needs and products- the company now more efficient. The company wants that customers to feel that they can provide that they have produced products the customer want and sent to them in short time period.

Second is to accommodate large customers with long term job sites. SES sets up temporary warehouse on site to supply these customers with its electrical products. Create “parent – child” warehouse relationship to be able to work with customers. If the SES office has more than a few temporary onsite warehouses, the warehouse can be controlled like subparts of the main SES warehouse. It helps to prevent anybody from selling the consigned inventory into the warehouse.

Q5: Diagram Summit’s old and new process for handling chargebacks.

Chargeback is the return of funds to a consumer. The chargeback mechanism exists primarily for consumer protection. For the distribution company, chargeback occurs when the supplier sells a product at a higher price to the distributor than the price they have set with the end user.

Old process

For handling charger backs had flaws in it where the company was losing money and sometime barely making any profit. Processing chargeback has to compare the sale to contract. A distributor can have up to hundreds maybe thousands of contract. SES need to identify the chargeback and which manufacturer with enough documentation of the contract or a lot of manual work. SES need go through the customers invoice with detailed manufacturers identified and put the chargeback in Microsoft Excel.

New process

For handling chargebacks had flaws more efficient. It automatically reviews Summit’s billing activity for the day. All chargebacks agreements loaded in the SAP system by the end of every day. There is a match in the system and they are able to claim. New process is able to create a separate chargebacks document outside the customer invoice and able to process more quickly with review in the same day. SES increased its claim by 118% over the old system.

Case: Customer Relationship Management Heads to the Cloud

Q1. What types 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?

Types of companies that are most likely to adopt cloud-based ERP and CRM software services are small to midsize companies that lack the knowledge about ERP and CRM. Companies that are struggling with lots of data, using too many systems to perform business functions and would like to cut cost are also companies that are most likely to adopt cloud-based ERP and CRM software services. These companies adopt cloud-based ERP and CRM software services because they want to achieve operational excellence and customer intimacy. Besides that, it releases the companies from infrastructural maintenance and its respective fixed (servers, storage, networking components) and operational cost. Operational ubiquity is also one of the reasons the companies would want to adopt cloud-based ERP and CRM software services. Moreover, it allows them to subscribe and cancel the subscription without losing large up-front software licenses and hardware investments. Companies that might not be well-suited for this type of software are companies that are concern about security issues. In addition, companies that are concern about control of their data are also not well-suited for this software. Moreover, large companies that had made huge investments on traditional and customized software that already work will also not be well-suited for this software.

Q2. What are the advantages and disadvantages of using cloud-based enterprise application?

One of the advantages of using cloud-based enterprise applications is availability. These services are accessible irrespective of anything given that there is internet connection. Another advantage is it is environmental friendly. Users who uses cloud-based enterprise applications gets to reduce electricity expenses. Through saving electricity, the users also save on resources to cool off computer and its component. Besides that, it has higher security. Clouds tend to be more secure than traditional business models because clouds offer real-time backup which results in less data loss. Moreover, it is easy to expand and uses fewer resources. Users can immediately access more resources if they need to expand their business. 

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.	Security and privacy in the Cloud: Security is the biggest concern when it comes to cloud computing.
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.	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
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.	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.
	Dependency and vendor lock-in: One of the major disadvantages of cloud computing is the implicit dependency on the provider.

Q3: What people, organization and technology issues should be addressed in deciding 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 are companies not suited for ERP and CRM. People also can made large investments on traditional and customized solutions that already work. 

In an organization, the Human-Resource Optimization will act as while traditional ERP and CRM solutions demand for technical staff, cloud-based solutions allows optimizing 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 infrastructure.

Case: Apple, Google, and Microsoft Battle for your Internet Experience

Q1: Compare the business models and areas of strength of Apple, Google, and Microsoft.

Microsoft’s business model is operating systems which 95%of all computers use worldwide. Apple’s business model mainly focuses on mobile devices; such as iPhones and iPads which account for 52% of apples profits. As for Google’s bas of the market from the mobile, advertising and operating systems. The strengths for Microsoft are that they are still the leader in PC operating systems and desktop productivity software. But has failed miserably with regards towards smartphone hardware and software, mobile computing, cloud-based software apps; its internet portal.

The strengths for Apple are mobile devices, such as iPhone and tablets. These devices combine and contribute 52% of apples business. They already have a head start on the mobile phone industry where they have over 250,000 applications. Apple controls 27% of the mobile market and the iPhone is the highest grossing cellphone ever.

The strengths for Google are that they dominate in advertising with their search engine. And their Android OS controls 41% of the mobile market share. This mobile market is constantly growing 3 times faster than the iPhone market share. “They bought Android Inc. to enter the mobile market.” also bought out Motorola Inc. for 12.5 billion.

Q.2: Why is mobile computing so important to these three firms? Evaluate the mobile platform offerings of each firm.

Mobile computing is important to Microsoft, Apple and Google because by 2012 the mobile market will be 200 billion dollars, with a 200% increase every 2.5 years. Therefore, it has been projected that by 2015 the mobile market will be worth 400 billion dollars. It is important for these firms because they want to maximize profit and market share by being aware of changing trends. 70% of the mobile market is dominated by Apple and Google while Microsoft failed to put its name in the mobile market with less than 3%.

Apple offers you over 250,000 applications, which has a loyal user base that has steadily grown and is very likely to buy future product offerings. Apple provides the most applications out of the three firm, Apple has been accredited as the dominate leader of mobile devices (iPhones and iPads). Microsoft offers Xbox live service on your phone, which has dramatically been a failure along with applications that it offers. Microsoft is not key figure in the mobile market yet.

Google’s Android offers you over 200,000 applications and is expanding rapidly. It is predicted that by the end of fourth quarter of 2011Android will surpass Apple’s market of applications by 175,000 applications. This will make Google the premiere provider for applications depending on the users’ preference.

Q3: What is the significance of mobile application, app stores, and closed versus open app standards to the success or failure of mobile computing?

Any computer software that performs specific tasks is called Applications (Bovee 2012, p 256). They can range from large business computer programs such as “Sun Systems” for processing large accounting problems to a simple program that can be used to order something as simple as a pizza, in today’s world applications have become a part and parcel of the day today.

Today’s mobile and tablet users are becoming more and more inclined towards a product which has more number of application than the other product option. Although it can be said that such a thing has happened because of the fact that the devices today have become so specified that a certain range of products shall have the same specs regardless of their make. This change can be determined as a major shift in the consumer psyche and even the big three have not underestimated this change.

The development of applications and software’s to match these expectations is a task that all the companies in the fray to be the leader in the mobile computing market, wither it be Apple, Google, Microsoft or any other new player, shall have to look into great detail and precision.

The importance of mobile applications can be justified on this basis itself that Google has based their future growth prediction on the very same. Mobile applications have such a great scope of growth in the future that they can one day eclipse the sales of the hardware part of mobile computing and form a major market themselves here players like Google and apple shall have tough competition even from small fray players if a common platform for application usage is formed, the very same reason why Apple is resisting Google’s repeated efforts for a common mobile platform.

According to experts (Kevin, Timothy et.al) mobile applications are even today a big part of the on the go access market. Finish mobile giant Nokia too has a say in the application future as it still has the lion’s share in the applications that are used in its mobile phones, which in spite of the recent drop are a very big number. Applications and app stores are also being viewed as a source of major entertainment by many users of mobile computing devices, with games like angry birds and temple run taking the market by storm it is very evident that applications and app stores are a thing for the future.

Lastly it can be said that although all three firms have great opportunity in the market which is still young and in its infancy, the first mover shall have very definitive advantage to take control of this veritable goldmine.

Q4: Which company and business model do you think will prevail in this epic struggle? Explain your answer.

Google:  The search engine giant has a lot of positives going for it rather than the negatives. The clear positives that can make it a winner are:

A well-established name is something which not a lot of players can boast of but Google is one of them, although Apple and Microsoft have chartered territories of their own but Google can fight them out both as an equal if not better. The Company has entered into all the three basic markets of mobile computing including hardware, operating system and the application stores. Their hardware is something which a few competitors can best , however the Android operating system has taken the market by storm and the app store which comes with it is a mean bully in itself (Android 2012)

Google has also bet on of the most time relevant feature of the mobile computing market, the App store, and this is the biggest advantage which the Google business model gives it and makes it the prime contender for the number one position. With hundreds of applications already online and hundreds more in the development stage Google has started to take a sort of lead on the other players in the race to be number one. And this may not be decisive right now but with Google’s recent acquisition of application developers and their heavy R&D expenditure on the same, it is just a matter of time before it will take out companies like Apple and Microsoft. (Android 2012)

Although the Google bandwagon is on its way there are certain roadblocks that it can face that can halt its march and some of them are:

1.      The Google brand is big but it still lacks the appeal of an Apple product and this many say is one of the most major difference between the two.

2.      The Android system although perfected to a large extent still has a few errors in the new versions that can hamper the growth of the operating system and this where a competitor like Microsoft can prevail over the Company

3.      Lastly it can be said that Google’s move towards a common mobile application platform can itself backfire and could increase competition from local app players which can affect the overall profitability from this step.

Thus it can be said that Google does have a lot of positives that can help it in the market and if it can take care of the negatives and maybe tweak the one platform stance, it can just pull ahead of Apple and Microsoft in this battle of the behemoths.

Q5: What difference would it make to a business or to an individual consumer if Apple, Google, or Microsoft dominated the Internet experience? Explain your answer.

Consumers would be forced to buy only one product and use only one service. They would create a monopoly and the positive would be they would create a standard. This would affect quality; prices would be as high as possible because they would have no competition. No competition means nobody could force a monopolist from the outside to improve products, diversify rang or products and lower price. Right now it is too early to tell who would dominate the internet experience but it is good to have competition than just one market leader.