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ISM 50 - Business Information SystemsLecture 6UC Santa CruzOctober 12, 2010Class AnnouncementsFor next timeRead Cisco CaseAssignment 2Folio 1 due todayBusiness Paper Proposal Due in 1 week!Class AnnouncementsProject proposals due in 7 days!!2-3 pagesGive a plan what you will cover in reportCite 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 Project3 stated objectivesReplace optical scanner system used nowIBM will stop supporting it soon½ hour per day per driver paper-work reductionMarketing effectivenessDetailed sales data will help make regional marketing decisionsNegotiate 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 LayHHC was a $50+ million projectHow did they mitigate risks?Risk MgmtPilot test of technology3 layer rollout1) essential systems2) sales compensation3) strategic uses of new data (fuzzy)How to mitigate risks?Action planRegion 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 80s HHC deployment completedDevelopment of Information Systems to process HHC data to support operations. Early 90s re-org to decentralize decision making to different regions1985Revenue: $2847Profit $4012004Revenue: $9091Profit $2366Revenue growth ~ 6% per year on


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UCSC ISM 50 - Business Information Systems

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