Study Case
AACS4794 MANAGEMENT INFORMATION SYSTEMS
Case Studies
Case Study 1: A Giant Step for Mattress Giant (May 2007)
Mattress Giant is one of America's largest bedding retailers, with 240 stores in 14 states. For years, the company spent more than $20 million (about RM70 million) annually, about 10 percent of its revenue, advertising to people in their mid-30s, whose household income was $30,000 - $40,000 (about RM105,000 - RM140,000) per year .and who drove domestic car. As it turns out, the company, headquartered in Addison, Texas, targeted the wrong audience. Market research was practically nonexistent. The audience was not determined by any rational analysis; it was based on the executives' gut feeling.
When Steve Williams joined the company as its new chief information officer (CIO), he convinced the chief executive officer (CEO) to do things differently. Interestingly, sometime before Williams was hired, the company started to implement an information system that integrated point-of-sale (POS) and inventory/distribution systems. However, because salespeople complained that the system was too complicated to use, the implementation project was halted after the system had been installed only in 35 percent of the stores. Williams knew he had to change the CEO's mind and proceed with the system's implementation.
To learn the business, Williams took a month away from his office. He visited Mattress Giant stores, listened to salespeople, watched the sales process, sold mattresses and encouraged employees to speak out about the information technology (IT) department. He traveled to distribution centers, observed the delivery process and loaded delivery trucks. He also read e-mail from customers and learned about their experiences with the service.
Listening to Williams' experience, the executive vice president of sales was convinced of the need for the POS system in all the stores. Next,
Case Studies
Case Study 1: A Giant Step for Mattress Giant (May 2007)
Mattress Giant is one of America's largest bedding retailers, with 240 stores in 14 states. For years, the company spent more than $20 million (about RM70 million) annually, about 10 percent of its revenue, advertising to people in their mid-30s, whose household income was $30,000 - $40,000 (about RM105,000 - RM140,000) per year .and who drove domestic car. As it turns out, the company, headquartered in Addison, Texas, targeted the wrong audience. Market research was practically nonexistent. The audience was not determined by any rational analysis; it was based on the executives' gut feeling.
When Steve Williams joined the company as its new chief information officer (CIO), he convinced the chief executive officer (CEO) to do things differently. Interestingly, sometime before Williams was hired, the company started to implement an information system that integrated point-of-sale (POS) and inventory/distribution systems. However, because salespeople complained that the system was too complicated to use, the implementation project was halted after the system had been installed only in 35 percent of the stores. Williams knew he had to change the CEO's mind and proceed with the system's implementation.
To learn the business, Williams took a month away from his office. He visited Mattress Giant stores, listened to salespeople, watched the sales process, sold mattresses and encouraged employees to speak out about the information technology (IT) department. He traveled to distribution centers, observed the delivery process and loaded delivery trucks. He also read e-mail from customers and learned about their experiences with the service.
Listening to Williams' experience, the executive vice president of sales was convinced of the need for the POS system in all the stores. Next,