ISM 50 - Business Information SystemsLecture 6UC Santa CruzOctober 12, 2010Class AnnouncementsFor next timeRead Cisco CaseAssignment 2Folio 1 due todayBusiness Paper Proposal Due in 1 week!Class AnnouncementsProject proposals due in 7 days!!2-3 pagesGive a plan what you will cover in reportCite some references, and show that you have started your research!Remember references must be cited in the body of the text with footnotes or end notes.See website for more details.Student TalksFrito-LayHand Held Computer Project3 stated objectivesReplace optical scanner system used nowIBM will stop supporting it soon½ hour per day per driver paper-work reductionMarketing effectivenessDetailed sales data will help make regional marketing decisionsNegotiate with stores for more shelf spaceHHC Project Good Idea?Yes:oReplaced optical scanner system that IBM would stop supporting soonoSaves sales force time: 2.5 hours per week per driveroDetailed sales data supports:- Regionalized marketing- Negotiations for shelf space with supermarketsoReduce errors No:oExpensiveo(~50 million)oRiskyoMight not work technicallyoSales force might not like it-Already upset about segmentationoEquipment vendor might not be reliableFrito LayHHC was a $50+ million projectHow did they mitigate risks?Risk MgmtPilot test of technology3 layer rollout1) essential systems2) sales compensation3) strategic uses of new data (fuzzy)How to mitigate risks?Action planRegion by region? All at once?Weakest or Strongest region first?Frito LayHHC deployed to LA area first, a region that won a sales award.By the end of the 80s HHC deployment completedDevelopment of Information Systems to process HHC data to support operations. Early 90s re-org to decentralize decision making to different regions1985Revenue: $2847Profit $4012004Revenue: $9091Profit $2366Revenue growth ~ 6% per year on
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