(o n 'e n 's

lu fth a n s il: 1 a k in e M o b ile (o m p u tin g 1 0 th e S k ie s W h ile K e e p in g th e M o b ile W o rk to n e (o n o e t1 e d 2 ............................. A v ia llln t: F ro m F a ilu re to S u u e ss w ith In lo rm a tio n T e th n O lo e y .......................................... 5 (o n n e n ta l A irlin e s : T h is (a ll /s B e in e M o n ito re d ............ 7 D e U le v e ra g e s 1 h e In te rn e t, D lre ttly ............... . to M o rg a n S tn le y 's R e tu rn S y s te m N o n in v e s tm e n 1 ... ... 08 13 S lo w le a rn e rs , o r w h a t? ( A ra b ic ) ................. ... 16

 In 200t, Lufthansa launched the "Lufthansa Mobile Initiative "which aimed to provide all pilots with notebook computers. Lufthansa knew that the benefits of mobile computers would translate into major gains for the company as a whole. Chief among the requirements were: The notebooks had to have enough performance capability to run key software applications used by the pilots the notebooks had to weigh less than 2 kilograms (about 4.4 pounds), their screens had be at least 12 inches diagonally as well as be bright and easy to read due to lighting conditions in the cockpit, and battery life had to be at least five hours for long airplane trips. For the early tests of the project in t 998, Lufthansa decided to purchase mobile systems based on the low-voltage Mobile Intel Pentium III ProcessorM operating at 600MHz, with 128MB of RAM and a 20GB hard drive. To phase out the desktop computers that it had previously deployed in airports, thereby streamlining its infrastructure and cutting even more costs. Helping Lufthansa even further is the fact that the total cost of ownership for notebooks has decreased significantly The airline is testing a new FlyNet project that will give passengers in-flight access to the Internet.

Some of information about case study

Lufthansa: taking Mnhile Computing to the Skies While Keeping the l\lobile Workforce Connected

Some of the problems faced by the company Some of the achievements of the company

training used to 'mean preparing training centers, arranging a time when pilots could attend the sessions, and actually getting the pilots to the, training location. The Lufthansa Mobile Initiative is yielding significant productivity and efficiency improvements, while keeping costs manageable.

Today, Lufthansa pilots enjoy state-of-the-art notebook pes with several times the power and performance of the early Pentium il platforms wbile weighing m at l less than 3.5 pounds.
Giving notebooks to pilots provided the company with several key tangible and intangible benefits: t- Pilots are more productive because they can access updated data electronically. 2- They are more productive because they can work in a variety of locations including airplanes, airports, hotels, and other remote locations. 3- Pilots appreciate the convenience of not having to carry heavy manuals and documentation to multiple locations. 4- Pilots can take their required training on their laptops during downtime in any airport.
2

.",

now that all of Lufthansa's pilots have laptops, Lufthansa no longer conducts classroom training. Lufthansa also plans To phase out the desktop computers that it had previously deployed in airports, thereby streamlining its infrastructure and cutting even more costs. Helping Lufthansa even further is the fact that the total cost of ownership for notebooks has decreased significantly He says "We're really leading the way in using mobile computers. Lufthansa CityLine will end up with 800 of its own note books for flight captains." "Most of all, pilots work when they can," says Rolf Mueller. "Whether they are on their way to the airport, waiting during a layover, or away from work. " By deploying mobile PCs to all their pilots they have realized significant productivity benefits while effectively managing costs.

Answer the quastions

1. Are many of Lufthansa's challenges identifies in the case similar to those being experienced by other businesses in today's global economy? Explain and provide some examples. While the specifics of each challenge are particular to Lufthansa's situation, many are shared by other global organizations. Examples could include: Provide a mobile workforce with equipment that fits their needs while it does not get in the way of accomplishing their objectives (not only technical specifications, but also upgrades and updates, stability, etc) Distribute training and other non-directly value-adding activities during nonproductive periods both to maximize efficiency and re~uce downtime Provide adequate support to mobile operations while keeping a tight lid on cost and being able to justify the investment Redefine processes to accommodate new mobile technologies and needs of a distributed workforce - including communication, meeting and decision making practices 2. What other tangible and intangible benefits, beyond those identified by Lufthansa, might a mobile workforce enjoy as a result of deploying mobile technologies. Explain. Examples could include: Increased, all-around, communication, both with the organization and with personal relationships (family, friends, etc). Especially important for a highly mobile workforce such as airline pilots. Remote access to corporate applications, important since increasingly more of the employee's interaction is self-managed (payroll systems, expense reports, etc.) More productive time spent at customer locations and streamlined order taking and processing Ability to timely collect and report data on the competitive environment, both for the own organization and competitors (prices, volume, advertising, etc)
3

3. Lufthansa was clearly taking a big risk with their decision to deploy notebook computers to their pilots. What steps did they take to manage that risk and what others might be needed in today's business environment? Provide some examples. Steps taken to manage the risk: Ensured that technical specifications for the equipment were acceptable to both pilots and the union, given the very special work environment they would
be used in

Increased the chances of user buy-in b)' providing convenient alternatives to traditionally
cumbersome tasks (such as carrying manuals and technical documents around) Standardized on a unique hardware and software platform to reduce support and upgrade costs Structured the process in phases, pilot and general deployment, to both assess feasibility and obtain feedback before mass implementation Other (not mentioned in the case): Training users (pilots) in the skills required to operate and become productive with the new hardware and applications, if they did not have them already Ensure that project analysts and support personnel had the skills required to __ carry on a project of this magnitude
. .
--

Avialllnc: From Failure to Success with lnformation Technology

Some of information about case study
Joseph lacik, does't try to measure the return on investment of his copallY's ebusiness website. The fact that Dallas-based Aviall Inc.(www.aviall.com) was saved from financial disaster by a controversial multimillion-dollar IT project that included developing the website as one key element is all the return he needs to see. He say" and they did it even though the airline industry shrank over the last three years" In early 2000, with quarterly sales dropping and Aviall on the ropes ,"We invested $30 million to $4million to build this infrastructure .says Lacik. He implemented the CEO's vision of transforming Aviall into a provider of supply chain management services through the integration of a range of Web-enabled ebusiness software systems. All of these systems were integrated by using common business databases managed by database software from Sybase.Inc. The development of Aviall.com was one of the least expensive parts of the project at a cost of about $3 million, lacik says. But it provides big benefits.

Some of the problems faced by the company

The results of the project have been extremely s-uccessful and represent a huge comeback from Aviall's recent businessflT problems, Which sprang from a failed enterprise resource planning (ERP) system that had been designed to automate and integrate the company's order processing, Inventory control, financial accounting, and human resources business systems. There were major problems in implementing the new ERP system that resulted in Aviall's inventory getting out of control.

Some of the achievements of the company

The new combined system has to properly access and deal witb customized pricing charts for 17,000 customers who receive various types of discounts, and it has to deal with an inventory of 380,000 different aerospace parts. When customers products on the Aviall website, it costs the company about 39cents per order ,compared with $9 per transaction if an Aviall employee takes the order over the phone. The ability for customers to transfer their orders from an Excel spreadsheet directly to the website. Can also receive price and availability information on aerospace parts in less than five seconds-a real-time feature tbat had't been available before.
5

 The process also frees the company's sales force from routine order taking and follow-up, thus allowing them to spend more time developing relationships with customers. The website now generates$60 million of the company's $800 million in annual revenue, or 7.5 percent up from less than 2 percent a year ago. "over the next three to five years, it could become more than 30 percent" lacik says.
6

Cotinental Airlines: This Call /s Being l\lonitored

Some of information about case study
Building 'customer loyalty has become crucial in the beleaguered airline industrywhich is why Continental enlisted the help of witness Systems,whose call-center software more than eavesdrop: It records conversations and captures every keystroke, so managers know whether theright actions were taken. And because the exchanges reveal what customers really want, Continental is also mining the data to help craft marketing plans and shape overall strategy. Fortunately for Witness, which saw its revenues jump 60 percent to $108 million in 2003, that trend is catching on: 53 percent of its clients are now using such data beyond the call center. The witness data revealed that some agents "weren't attempting to look up the answers on their own," says Andre Harris, director of reservations training and quality. Harris soon realized that the data could be a treasure trove for marketing and service operations too. we thought we were just replacing tape recorders," she says, "but it dawned on us that we could use this system to drive business decisions. To make the call monitoring more effective, Continental added CallMiner, a laborsaving Witness program that auto-matically transcribes conversations into text. it discovered that about 10 percent 0 f the calls co ntain the actua I word reconfirm. Harris says she used the, Call Miner analysis to justify the deployment of a new IVR system just for flight confirmations. Continental currently has" eight people listening to samples of calls in order to manually prepare a "call-mix report," which is used for analytical purposes by marketers and business planners at the airline. "The pilot test [of Callminer] helped me realize very quickly that I can do this with one person instead of eight," she Harris. Before the software was installed in 2001, Continental's agents were unable to resolve about 6 percent of the 60 million calls they fielded annually. From the manually prepared call-mix report, Continental could see that it makes a sale on only half of all calls, but it couldn't tell why sales were lost. 7

Some of the problems faced by the company

Some of the achievements of the company

New standards were put in place" and within a year, nearly 20 percent fewer calls were being sent to the help desk. saving the company $1 million. In addition, customer satisfaction rose b)' 10 percent and e-ticket sales increased by 8 percent. Tying speech systems to mainstream corporate IT systems, and the lise of Internet-based voice systems such as Voice over IP (VoIP), are making it easier to mine databases.

Answer the questions:

L What are the business benefits ofthe Call Miner System? Provide some additional examples beyond those discussed in the case. Business benefits accrue in several different areas, such as Sales & Marketing, Customer Service and Operations. The CallMiner system allows Continental to understand the reasons why their (current or prospective) customers contact them, the value of those communications, and the effectiveness of its service representatives in addressing the customers' needs. It also allows for a significant reduction of the human resources needed in what traditionally has been a labor-intensive process. Additional benefits could include: Measuring the response to a Dew offer or destination by reviewing both. the amount and timing (relative to the announcement) of calls inquiring about it. Providing data to support new initiatives, either to solve issues being currently presented or to justify new investments. 2. How can new technologies like Call Miner help companies improve their customer service and gain a competitive edge in the marketplace? Explain. Examples could include: Accurately capturing concerns and needs of customers. By eliminating manual processes, technologies like this one improve the response time. By comparing the reason for the call with the representative's actions, thus determining the effectiveness of the response and need for further training. Identifying calls that can be preemptively solved or routed appropriately in order to free agents to take reservations and make sales.
8

3. Andre Harris refers to calls to reconftlm a flight a "quite frankly, low-value calls." Why are they classifies as low value? Why do you think so many customers are placing such calls? Reconfirmation calls are classified as low-value mostly because they do not provide an avenue for interaction with the customer in an)' significant way. A person who is calling to reconfirm a flight is in a position where (a) only wants a quick answer to his request, (b) is about to fly and not interested in making a new reservation, and (c) feels that there is a need to reconfirm a flight, which shows has some doubts about the accuracy of its ticket. Reconfirmations are probably a remnant of older practices in the airline industry. While it is not usually necessary to reconfirm domestic flights, many airlines still require passengers to do so for international ones. As this practice varies across companies, customers err on the safe side and call even those airlines that do not require them to do so.
9

Dell Leverages the I nternet, Directly

Some of information about case stud)'
computers were sold only in retail stores. Manufacturers shipped to wholesalers, who shipped to retail stores, which sold to end users. Companies maintained expensive inventories at each stage of this supply chain. Dell thought that if he could eliminate the retail channel by selling computers directly to consumers. he could dramatically reduce the machines' prices. In 2004, while speaking to a group of students in New York City, he recalled, 1 was inspired by how 1 saw computers being sold. It seemed to me that it was very expensive and it was inefficient. A computer cost at the time about $3,000 but there were only about $600 worth of parts inside the computer. And so 1 figured, hey, what if you sold the computer for $SOO? You don't need to sell it for $3,000. And so we changed the whole way computers were- being sold by lowering the cost of distribution and sales and taking out this extra cost that was inefficient. Now, what I didn't know was that the Internet would come along and now people can go on the Internet and they can go to Deltcom and buy a computer and that makes it a lot easier. I'd say the most important thing we did was listen very carefully to our customers. We asked, what do they want, what do they need and how can we meet their needs and provide something that's really valuable to them? Because if we could take care of our customers, they'U want to buy more products fJom us, and they have.2
10

Some of the achievements of the company

Dell employs over 50,000 people worldwide, and its investors have benefited as well. A share of Dell purchased for $8.50 in the initial public offering would be worth over $2,400 in 2006 (allowing for multiple stock splits over the years). Eliminating retail stores not only reduced costs, but it also brought Dell closer to the customer, enabling it to listen better than the competition. It also eliminated sales channel inventories, which allowed Dell to rapidly bring new This eliminates the need to recycle or sell off existing pipeline inventory whenever a new model is announced. In fact. today Dell builds every computer system to customer order. Dell pays close attention to its suppliers and shares information with them on product quality, inventory, and related subjects via its secure Web site valuechain.dell.com. According to its Web site, the first two qualities Dell looks for in suppliers

are 1. cost competitiveness 2. an understanding of Dell's business. Dell listens to its customers, and it expects its suppliers 1.0 do the same in return.

Answer the questions:

t) E xplain howselling directly has given D a com ell petitive advantage?

Product Implementations l.Create a new product or service. 2. to fit every customer's needs. 3. Its services are convent System Implementations 4. Dell and not retail stores. 5. customers 6. Products are cost efficient 7. Establish alliances.
11

8. Reduce costs. Dell'sproductsare customized Enhance product or services. Differentiate products or services. Customer deals directly with Lock in customers and buyers. Lock in suppliers It locks in

Raise barriers to market entry.

2) What information system does Dell need to have to sell directly to the consumer? Direct links to the web site. Making purchases online Set up automatic payments Make payments directly from customer's bank accounts or credit cards. 3) Resides selling direct, what other programs has Dell created that give it a competitive advantage? _ Created the most efficient value chain in the industry. Paid close attention to suppliers _ Focused 011 Suppliers' needs Shared information with suppliers about products quality, inventory, and related subjects via a secure web site. 4) Dell computers are cheaper than its competitors (Sony, Toshiba, HP, etc.) because ... There are no middle men (vendors, distributors, etc.) _ Dell sells directly to the, public Dell makes every computer system to customer order Every computer in Dell's finished goods inventory is sold. 5) Assume that because of the need to sell through a channel, HP's computers will always be more expensive than Dell's. How can HP successful compete with .. Dell? Bringing the product directly to the consumer. _ Reduce prices for existing and new customers. _ Eliminate the need to recycle or sell off existing inventory. Strategize new advertising campaigns to reduce cost. 6) What information systems can HP set up that will better enable it to compete with Dell? A web site that customizes HP computers to the customers' needs. 7) Do you think Dell would have been successful if the Internet had not been invented? Opening Dell retail stores Difficulty to customize products if customers want same day purchase Availability of generic brand with limited capabilities

Difficulty in tracking inventory U navaila bility of products f ea tu res to suppliers via value chain

12

[\llorgan Stanley's Return on System Noninvestmcnt

Some of information about case stud)'

Morgan Stanley is a global financial services firm with more than 600 offices in 30countries and over 53,000 employees. It was founded in 1935 and is headquartered in New York city. The firm operates in our segments: 1. Institutional securities. 2. Asset management. 3. Retail brokerage. 4. Discover. The business sectors to suffer the most which manages $616 billion in client assets. Financial services to individual investors globally, with 9,526 worldwide representatives in more than 500 retail locations including 485 in the united states. The feeling persisted and many retail brokers viewed their job security as tenuous at best. Some ofthe firm's technology problems couldn't be hidden from clients' who routinely complained about the customer web site and sparsely detailed year-end tax reports they received.

Some of the problems faced by the company

The retail brokerage group was never accepted as an equal partner by the rest of The Morgan Stanley. Brokers had to visit their offices on weekends to print portfolio summaries in advance of client meetings ,because the outdated computer systems could not handle the task during normal business hours. even on those off-hours ,desktop pes, which hadn't been up grand in years, would often crash and printers clogged if they were being used by more than two people. Some of the firm's technology problems couldn't be hidden from clients' who routinely complained about the customer web site and sparsely detailed year-end tax reports they received. During this time, nearly 1,500 brokers left the company. Pointed out that the business was ailing partially as a result of a lack of investment in technology. He therefore focused his business strategy on maximizing profits instead of generation revenue but its cutting costs. Purcell of course had miscalculated the market rebounded within a few and morgan was not positioned to compete in retail. Merrill was spending $1 billion on new systems for its brokers the turmoil in the inner sanctum of Morgan leadership also contributed to company's woes. Purcell locked horns with investors' executives and former executives over a number of issues one of which was selling the underperforming discover credit

card division.
13

In march 2005 ei~ht former executives appealed to Morgan board of directors to remove

Purcell as CEO for his mismanagement of discover and retail brokerage.

Some of the achievements of the company

With new leadership in place Morgan has finally begun to address the issue of technology in its retail brokerage division which has been renamed the global wealth management group. in October 2005 the firm hired Eileen Murray as its head of global operations and Technology. she directly under Chief Executive john Mack with whom she a strong professional history. Murray has committed to boosting morgan investment in technology for retail saying "we expect to make substantial improvements" that "will ultimately help our financial advisors better serve our clients while also helping our clients better manage their relationship with us. Mack has been under some pressure to sell the retail division, a choice he has been reluctant to make. He subscribes to the view that ownership of a retail brokerage business is an investment in the firm because, in addition to providing revenue from individual investors, it gives Morgan a direct channel for selling its own investment banking products. The new systems are better integrated with backend systems so that brokers have a better view of client portfolios. The cO,mpany also rolled out a new tax-reporting application that automatically reconciles gains and losses and allows users to download information from its client web site into popular tax programs. In june2006 , Morgan generated second-quarter net income of S1.96billion . The retail brokerage division posted $157million in pretax profit, the largest profit since the first quarter of 2005

Answer the Questions

Why did Morgan Stanley under invest in information technology? When CEO Philip Purcell took on the task of overseeing the development of tbe merger between Morgan Stanley and Dean Witter, some in the organization saw it as a daunting task, to say the least. His main focus was on management and organization changes and not information technology, when trying to restore revenue. Also, when the two publicly held companies merged together, their operations were still running as if they were two different entities. Dean Witter's Retail Brokerage which managed close to $616 billion in client assets where never fully integrated into Morgan Stanley's information systems. Moreover, it even ran on a different server than that of Morgan Stanley. Some individuals mainly Philip Purcell, thought that the merger could be successful without the heavy investment into technology. Unfortunately, the problem with this is that it caused a lot of headache and tension with employees from Dean Witter. They were not accessible to the same technology as the Morgan Stanley employees by any means. They experienced problems with desktop PCs, which badn't been upgraded 14

in years, that would just completely shutdown. Printers that were being used by more than one individual at the same time would eventually cause paper jams. Needless to say, this caused a lot of problems with the employees of Dean Witter and many ofthem left and departed for better job opportunities. Eventually, due to the decisions ofthe CEO Philip Purcall when running the company at this time, he would be forced to resign under intense pressure from shareholders, employees, and investors as well. Why was the merger with Dean Witter disruptive for the company? The merger was disruptive for a multitude of reasons. One being that the companies' technology was never implemented properly causing countless hours of problems which caused the company to lose much needed revenue and profit. For 15

Case study 10 Slow learners,or what?

J,.1i\\l~ .} j..l~ ~i w i'-F' ~.;J\ u1..l~ ~

. u:.''ii!"
.~IJ.>:P
~J~\ j.A ;jL S ).i'i\ ~

.11 ~..J~ J..P.'J roJ& .

~..J j..l~ ~l.1ll ("

(,

.~ ~ ~ e 0J
w'i 4-J\~l

...iJU::.jll A~JA 6 '-'l

J& ~ .;1-1\ t.;ljA vi ~ < .? .iJro ~0\ 1

?' t

6 ~ A

'- '1

~';" I ; ;~

.J S .4

U ,i1 ,Ji,.;J\ ~ ~ ~w.

. \ JI lbiJl.: ..:.li..i\ ;';;"\.,j~1 Jl.:i.JI ~ ~ ~I J\

t)jA .) rolJajj\~lJ ~I JS I ...\ :o " ,J \ ~ 0l.S

.~ .;# -

-?~I roU;,,;31 ~) t..P.'}\ vi ~ 1 .4 ::lS 1 ~ ;~ < .? .iJ 1.) ~lt;ljA.) ~lytJl

:...r;;"""'I;.i.ll ~~ ~l:l.l ~l.S ;';;"I.:I~~I y~" ~

I I

i*

rolJajjl11\ J,JJ . ~.l.il.l\

;;"""'.;IJ u~

r o ' '\t '\ vi I"~

. uliw;I,yJ\J

~~l

~,.\,A

J.Jo1'J ro$ (\

l2Jy131

~.>:P ("

. u~yJj i~\ u~~\ (r . ~I .) J......\Ji~ L..J\,1,\\ ~1\ ~l;

,'\ \~ ~ ~...)'u. ~~ .) . ~\.;W ~ ~ l u\J~ ('
~J .>"'1,5~..J..p,. ~J~\ I"y. t
i

ro .) ~

L \JJ U l' >

: 0 ~\:i.lll u~1

~,Ol";je' \6A ~..Y+" ~;~ ~J ~ta.

u ..H y l Jl..Q,j"ill"~ ( y ~
~\J3\ u\J\~'i\ iylJ .)l ~I
(.)AiJ

~ .J 'b J;"il ~\ 01 ~\i)1

roy,.

I"~ ~

: ~L.jla..Jl ~ If.:ij,J ~l ~\..Jl

.~I)iJ1

. oe ~4 U:!JW ~o)J
~J.Jo1'\ )JJ

,;1 .w JI t.;ljA.) ~~ \~J\

U H iI.)o..,ll~la.11 'l

d'Ji ~\ t;l.jo\

r t.li& .i

16