Case: Supply Chain Management and Application Software Packages

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Info from case
total revenue for last reporting = 110 million

cio reviewed 3 following implementation strategies:

-classic disintermediation - removal of intermediaries in a supply chain. connects supplier directly with customers -remediation-working more closely with ecisting middlemen partners. strategy could be affected by high contracting risks. -network-building alliances and partnerships with both existing and new suppliers and distributors involving a complex set of relationships. Networks tended to reduce search costs for obtaining information, products and services.

-selected remidiation - because it best fits the firms goal of simplifying data sharing throughout the supply chain -also had longterm and positive relationship with its primary distributors, which would ameliorate the high contracting risk. "The firm purchased stock woods from a number of producers and processed them to meet specific customer specifications. Approx. 60 percent of woodsynergy sales were in high-end furniture"

Problems
1 - Choice of implementation plan is wrong – LONG TERM
-CIO chose remediation because
"it best fit the firm's goal of simplifying data sharing throughout the supply chain; furthermore, the CIO noted that woodsynergy had a long-term and positive relationship with its primary distributors which would ameliorate the high contracting risk issue" -the best way of simplifying data sharing is eliminating any unnecessary party that the information needs to travel to. -remove the distributors and engage the customers directly

-who are we to decide how your existing distributors will feel after you amend any contracts to include any new information system to the SCM that ultimately creates more overhead for them? -the business model of woodsynergy suggests that

"the firm was committed to delivering information to the right people at the right time so that strategic and operational decisions were made properly and quickly" -benefit going national prevented by local distributors – if woodsynergy engages their end users directly it will promote better customer relationships as well as open potential national and international markets/ Causes

-long-term relationships with distributors
-contracts with distributors
-CIO decision seems biased

Alternatives
-choose classic intermediation
-stay with remediation
-choose networking

Solution: Chose Classic intermediation
Removes the middleman
The middle man share shift to suppliers, Woodsynergy and to the customer, making the company more profitable and increasing the customer loyalty •Efficiency – instead of suppliers shipping first to the Woodsynergy and then Woodsynergy shipping the products to the customer, supplier can ship straight to the customer Implementation: (implanting the plan – find the need, develop the program, and implement it and the evaluate it)

Business need
System investigation
System analysis
System design
Proframming and testing
Implementation
Operation and mainenance

2 – Prototype Built - short term problem ***

-"due to budget and time constraints the project team chose to build a gateway prototype without addressing problems of integrity and timeliness with the systems data. The project team decided to improve the data quality at a future date" - customers data needs to be secure. Period. For any duration no matter how short. -"Two of the key drivers included in gateway design were data standardization and real-time interface" -It should be real-time interface and data integrity as aligned with Woodsynergy’s business goals. -release data standardization at a later time instead of data integrity

Causes

-budget
-time constraint
-phase 1 of prototype does not directly correlate to business goals

Alternatives
-cloud system from 3rd party
-key drivers in phase 1 = data integrity and real-time interface/data standardization at future date/release •Application software...
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