Technology: Will Robots Replace People in

Manufacturing?
Juanito Chan
All Sections
55 unread replies.77 replies.

–Why have robots caught on in manufacturing? What knowledge to they

require?
–Can robots replace human workers in manufacturing? Explain your
answer.
–If you were considering introducing robots in your manufacturing plant,
what management, organization, and technology issues would you need to
address?
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Collapse SubdiscussionMa. Suzette Dela Cena

Ma. Suzette Dela Cena
FridayMay 1 at 4:31pm
Manage Discussion Entry

1.  Why have robots caught on in manufacturing? What knowledge to they

require?

Robots have become smaller, more mobile, more collaborative and more adaptable,
and their uses are widening. New robot models can work alongside humans without
endangering them and help assemble all types of objects, as large as aircraft
engines and as small and delicate as smartphones. They can also sense whether
parts are being assembled correctly. Robots are becoming easier to operate.
Companies no longer need a software engineer to write program code to get a robot
to perform a task. With some of today’s robots, you can simply push a button, turn
the robot’s arm, and move it through the operation you want it to perform. The robot
learns by doing. Robots are especially useful to go into places people find hard to
 access. Some robots have reach of more than 50 inches and six rotating joints to do
the work. They also verify that parts are properly fastened and check to make sure
the correct part is being used. Some robots are lightweight enough that they can
easily be moved around to different locations as needed. They are also
“collaborative,” designed to work in proximity to people. Using sonar, cameras, or
other technologies, these robots can sense where people are and slow down or stop
to avoid hurting them.
2. Can robots replace human workers in manufacturing? Explain your answer.
At this point in time, it’s highly unlikely that robots will replace all human workers in
manufacturing. They still lack the flexibility, delicacy, and insight provided by
humans. For example, today’s collaborative robots often must slow down or stop
whenever people veer into their paths, disrupting production. Sales of robots used
primarily for simple tasks such as moving materials, picking up parts, and packing or
unpacking boxes have been slow. The robot’s speed is restricted by safety
considerations. For all their recent advances, robots that still can’t duplicate a human
being’s fine motor skills in manipulating materials and small parts. Robots still have
trouble dealing with soft or floppy material, such as cloth or bundles of electrical
wire. Although robots are good at reliably and repeatedly performing defined tasks,
they’re not good at adapting.
3. If you were considering introducing robots in your manufacturing plant, what
management, organization, and technology issues would you need to address?
Management: As robots become more widespread, manufacturing tasks performed
by humans will become higher level and more complex. Workers will be expected to
supervise and perhaps even program robots, and there will be fewer low-level
manufacturing jobs. Workers will need more sophisticated skills to succeed in
tomorrow’s manufacturing plants.
Organization: Robots typically require a large upfront investment. As you research
your business case for purchasing, you need to consider all the costs, including
installation and configuration. You should also evaluate whether your robot can be
easily modified if you need to alter operation in the future. Also, while industrial
robots may reduce some manufacturing labor costs, they do come with their own
ongoing expenses, such as maintenance. In addition, you’ll want to consider the
costs to keep your robot and any related Industrial Internet of Things (IIoT)
connected devices protected from cyber threats.
Technology: Industrial robots need sophisticated operation, maintenance and
programming. While the number of people with these skills are growing, it's currently
limited. As a result, it's important to consider the personnel investment you'll need to
make to bring in that expertise or “retool” your existing staff to take on the task.
 ReplyReply to Comment
o
Collapse SubdiscussionAilyne Genciana
Ailyne Genciana
FridayMay 1 at 6:05pm
Manage Discussion Entry

1. Why have robots caught on in manufacturing? What knowledge to they

require?

Robots used in manufacturing create efficiency all the way from raw material
handling to finished product packing. Robots can be configured to work 24/7 in light-
out conditions for continuous output. Robotic systems are extremely versatile and
can be programmed to perform even complex functions. Robots are very complex
devices, so working with them involves expertise in a broad variety of disciplines.
We've got to be excellent at mechanics, computing, electrical, programming,
sensing, and also psychology and cognition.
 

2. Can robots replace human workers in manufacturing? Explain your

answer.

For this point in time, it is extremely unlikely that robots could replace all human jobs
in manufacturing. They also lack the versatility, delicacy and wisdom that humans
have provided. Today's collaborative robots, for example, often have to slow down or
stop whenever people turn their way, disrupting production.
 

3. If you were considering introducing robots in your manufacturing plant,

what management, organization, and technology issues would you need to
address?

Management:
As robots become more widespread, the manufacturing tasks performed by humans
will become higher and more complex. Workers will be required to oversee and
maybe even program robots, and there will be less low-level manufacturing jobs.
Staff will need more advanced skills to thrive in manufacturing plants tomorrow.
Organization:
Robots typically need a big upfront investment. When you evaluate your purchase
scenario, you need to weigh all expenses, including installation and configuration.
You can also determine whether your robot can be easily changed if you decide to
adjust the process in the future. Moreover, while industrial robots may reduce some
 of the manufacturing labor costs, they also have their own ongoing costs, such as
maintenance. In addition, you'll want to weigh the cost of holding your robot and any
associated Industrial Internet of Things (IIoT) linked devices safe from cyber threats.
Technology:
Industrial robots require sophisticated operation, servicing and programming. While
the number of people with these skills is growing, it is currently small. As a
consequence, it is important to recognize the expenditure in resources that you
would need to make in order to bring in the experience or "retool" the current
workers to take on the mission.
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o

Collapse SubdiscussionAriel Serrano

Ariel Serrano
YesterdayMay 2 at 4:08pm
Manage Discussion Entry
With mass production and the need for effectiveness and efficiency in every
segments or assembly lines, and the increasing costs associated with human errors
and reworks, manufacturing firms decide on application of robotics in the production
setting.
Since accuracy in production is necessary to avoid errors and reworks, there is an
increasing shift in demands of robots and a decreasing manpower supply.
Depending on manufacturing type, robots may replace human workers. However, it
may not be 100% because there will always be human intervention needed.
Although the percentage of human to robot may be very small.
When considering purchase of robots in the workplace, management should
consider the cost and benefit in this decision to take. Will it be good in the long-
term? Will it improve production? Will it lessen the costs associated to reworks? Are
the company's processes ready to accept robots in their production. Etc.
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o

Collapse SubdiscussionRiczie Baldo

Riczie Baldo
 YesterdayMay 2 at 4:38pm
Manage Discussion Entry

1. Robots used in manufacturing create efficiencies all the way from raw
material handling to finished product packing. Robots can be programmed to
operate 24/7 in lights-out situations for continuous production. Robotic equipment
is highly flexible and can be customized to perform even complex functions.

1. At this point in time, it’s highly unlikely that robots will replace all human
workers in They still lack the flexibility, delicacy, and insight provided by humans.
For example, today’s collaborative robots often must slow down or stop
whenever people veer into their paths, disrupting production. Sales of robots
used primarily for simple tasks such as moving materials, picking up parts, and
packing or unpacking boxes have been slow. The robot’s speed is restricted by
safety considerations. For all their recent advances, robots that still can’t
duplicate a human being’s fine motor skills in manipulating materials and small
parts. Robots still have trouble dealing with soft or floppy material, such as cloth
or bundles of electrical wire. Although robots are good at reliably and repeatedly
performing defined tasks, they’re not good at adapting.

1. Management: As robots become more widespread, manufacturing tasks

performed by humans will become higher level and more complex. Workers will
be expected to supervise and perhaps even program robots, and there will be
fewer low-level manufacturing jobs.

 
When you decide to make the jump to automation, you'll need plenty of time
for careful planning and optimization.
You should start by informing the right people about your plans. Sit down with your
core leadership team and explore ways that robots can help increase efficiency
without sacrificing quality.
This is also the point where you can bring in experts to help you draft the plans for
your robotic cells and figure out how to integrate them with your current production
methods.
 
Organization: You must consider the concerns of your employees when you're
implementing robots. Your workers will have questions – and possibly fears – about
the changes that are coming to your manufacturing plant.
 For starters, they're probably worried that they might lose their jobs. Reassure them
that robots are meant to create jobs , and show them how implementing robots in
the plant will provide them with more rewarding jobs. (Of course, you should have a
plan in place to make sure these promises are upheld.)
Safety will also be a major concern. Show your employees how their safety will be
taken into account when installing robots on the factory floor. The robots themselves
will have a lot of built-in safety features that are worth mentioning.
 
Technology: A successful automation strategy requires good decisions on multiple
levels. Companies must choose which activities to automate, what level of
automation to use (from simple programmable-logic controllers to highly
sophisticated robots guided by sensors and smart adaptive algorithms), and which
technologies to adopt. At each of these levels, companies should ensure that their
plans meet the following criteria.
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Collapse SubdiscussionJayson Tasarra

Jayson Tasarra
YesterdayMay 2 at 5:54pm
Manage Discussion Entry

o Why have robots caught on in manufacturing? What knowledge do

they require?

 Robotics and manufacturing are a natural partnership. Robotics play a major role in
the manufacturing landscape today. Automated manufacturing solutions should be a
key part of any operation that strives for maximum efficiency, safety and competitive
advantage in the market. Manufacturing robots automate repetitive tasks, reduce
margins of error to negligible rates, and enable human workers to focus on more
productive areas of the operation.
Robots used in manufacturing fill numerous roles. Fully autonomous robots in
manufacturing are commonly needed for high-volume, repetitive processes where
the speed, accuracy and durability of a robot offers unparalleled advantages. Other
manufacturing automation solutions include robots used to help people with more
intricate tasks. The robot executes components of the process such as lifting,
holding and moving heavy pieces.
Robotic process automation in manufacturing allows companies to remain
competitive globally offering an efficient, viable alternative to offshoring and fulfilling
the skills gap in areas where it may be difficult to recruit the necessary employees.
Manufacturing robots enable employees to focus on innovation, efficiency and other,
more intricate processes that ultimately lay the groundwork for growth and success.
With a dedicated manufacturing automation solution in place, you can see increased
productivity, improved worker safety and satisfaction, and a better bottom line.
 Here are some reasons why have robots caught on/used in manufacturing:

o Robots used in manufacturing create efficiencies all the way from raw
material handling to finished product packing.
o Robots can be programmed to operate 24/7 in lights-out situations for
continuous production.
o Robotic equipment is highly flexible and can be customized to perform
even complex functions.
o With robotics in greater use today than ever, manufacturers increasingly
need to embrace automation to stay competitive.
o Automation can be highly cost-effective for nearly every size of company,
including small shops.

o Can robots replace human workers in manufacturing? Explain your

answer.

In my opinion, it is no. As automation continues to play a larger role throughout the

global manufacturing industry. New technologies and a dwindling talent pool have
led industry leaders to rely more heavily on robotics.
Automation and robotics may have taken impressive steps forward in the past few
year, but they are still not able to replicate the human element in manufacturing. The
days of an entirely automated manufacturing industry are still ways away and the
human element is still very much essential.
Here are some reasons why robots cannot replace human workers in
Manufacturing:

1. Redistributing the Workforce

It is true that robots can take over when it comes to simple, repetitive tasks.
However, this does not mean individuals that once performed those duties have
become obsolete. Robots, as with any technology, will need to maintain and
repaired throughout its life.
A manufacturer that retrains their current workforce to handle this new machinery is
at an incredible advantage. Businesses have found that looking for technology
specialists to work in a manufacturing facility is incredibly difficult. Instead of
spending the time and money looking for new employees, a retraining program could
provide all the talent a modern manufacturer needs. In this case, the workforce
would not be lost because of new robotics systems, it would be redistributed.

1. Enhancing the Current Workforce

all robots are created equal. Some are better at performing repetitive tasks while
others are specifically designed to assist the human workforce. Collaborative robots
have made a huge impression on modern manufacturers and one of the key
applications of these systems is boosting productivity.

1. Humans vs. Robots – Dexterity

Technology still has its limitations especially when it comes to robotics. Regardless
of that, robots have come a long way but there are still certain tasks that are better
left to the human element. Manufacturing processes that require a high-level of
dexterity will still require a person to take control as robots simply cannot keep up.
Robots still have a hard time matching the level of dexterity that a human can
achieve.
When it comes to a smaller manufacturing operation, robotics can instead step in
and assist with repetitive tasks, freeing up the human workforce to work on
processes that require a high level of dexterity or critical thinking. If a robot can take
over some repetitive tasks, the human employee can spend most of their day
working on these delicate procedures instead. This could have a direct impact on the
productivity of a manufacturing facility.

1. Collaboration & Innovation

One area where humans still outshine robotics systems is the ability to collaborate
and innovate. Robots follow their programming with no room for improvisation. A
human employee can locate inefficiencies in a manufacturing process and resolve it
with a little creative thinking. This can be as small as moving a fastener box over a
few shelves to cut down on travel time or as big as solidifying a partnership with a
new supplier to drive down costs and improve a manufacturers supply chain.
Humans will still be a necessary force on the shop floor in order to continually
improve. The humans on the shop floor can identify issues and come up with new
ways to address bottlenecks. Robots will continue to follow their program until an
issue stops a production line in its tracks.
With all the technology making its way into manufacturing facilities around the globe,
manufacturers fear the end of the human workforce. But these concerns are not
necessarily based as the human element is very much a critical component of the
modern manufacturing industry. There are still tasks that robots cannot perform or
not nearly as well when compared to their human counterparts. Furthermore, new
machinery will call for new technicians and engineers to ensure the robots remain in
working condition. As more robots enter the workforce, it will not be the apocalyptic
end of the human workforce as many fears. Instead, it could be the next step toward
a brighter manufacturing future.
 

1. If you were considering introducing robots in your manufacturing

plant, what management, organization, and technology issues would you
need to address?

MANAGEMENT:
Employee Skillset and Training: when new robotic systems are implemented, a
new level of expertise is required from employees. Many will have to be trained on
how to operate in this new environment, while other employees will have to be hired
that have the proper certifications, education, and robotic experience.
Safety Measures: industrial robots introduce many new safety hazards into the
workplace and there are strict regulations, as well as stiff penalties, surrounding
robotic safety. Manufacturers must prepare for this before the robots are installed to
ensure compliance and create a safe environment for workers.
Managing Product Workflow: there are many considerations when determining
what product workflows will look like when a robot is installed. The orientation and
speed of part presentation to the robots must be calculated to ensure maximum
productivity without producing too much for existing systems to handle
ORGANIZATION: 
Robots can certainly handle their prescribed tasks, but they typically cannot handle
unexpected situations. Organization will need to do the decision according to the
change of market, economic over time, the robots cannot do the decision instead of
human.
Humans are still considered far more efficient than robots when it comes to decision
making powers, handling difficult situations, brainstorming, and generally bringing a
sense of emotion and empathy into a workplace.
TECHNOLOGY:
High initial investment: Robots typically require a large upfront investment. As you
research your business case for purchasing, you need to consider all the costs,
including installation and configuration. You should also evaluate whether your robot
can be easily modified if you need to alter operation in the future.
Cost of Technology: Purchasing robots outright can be an expensive venture for
large manufacturing companies. Even small ones may not be able to sustain the
cost. To combat this, a new wave of companies is offering robotics as a service. The
concept involves renting the robots for a decreased rate than simply buying them
outright. In this way, companies can quickly and effectively implement robots into the
 workforce and still stay within budget. There are also companies who offer modular
solutions which allow manufacturers to spend only what they need.
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Collapse SubdiscussionJonathan Princesa

Jonathan Princesa
11:03amMay 3 at 11:03am
Manage Discussion Entry
TECHNOLOGY: WILL ROBOTS REPLACE PEOPLE IN MANUFACTURING?
 

o WHY HAVE ROBOTS CAUGHT ON IN MANUFACTURING? WHAT

KNOWLEDGE TO THEY REQUIRE?

Robots used in manufacturing fill numerous roles. Fully autonomous robots in

manufacturing are commonly needed for high-volume, repetitive processes — where
the speed, accuracy, and durability of a robot offer unparalleled advantages. Other
manufacturing automation solutions include robots used to help people with more
intricate tasks. The robot executes components of the process such as lifting,
holding, and moving heavy pieces.
Robotic process automation in manufacturing allows companies to remain
competitive globally — offering an efficient, viable alternative to offshoring and
fulfilling the skills gap in areas where it may be difficult to recruit the necessary
employees. Manufacturing robots enable employees to focus on innovation,
efficiency, and other, more intricate processes that ultimately lay the groundwork for
growth and success. With a dedicated manufacturing automation solution in place,
you can see increased productivity, improved worker safety and satisfaction, and a
better bottom line.

o CAN ROBOTS REPLACE HUMAN WORKERS IN MANUFACTURING?

EXPLAIN YOUR ANSWER.

o Robots used in manufacturing create efficiencies all the way from raw
material handling to finished product packing.
o Robots can be programmed to operate 24/7 in lights-out situations for
continuous production.
o Robotic equipment is highly flexible and can be customized to perform
even complex functions.
 o With robotics in greater use today than ever, manufacturers increasingly
need to embrace automation to stay competitive.
o Automation can be highly cost-effective for nearly every size of the
company, including small shops.

3. IF YOU WERE CONSIDERING INTRODUCING ROBOTS IN YOUR

MANUFACTURING PLANT, WHAT MANAGEMENT, ORGANIZATION, AND
TECHNOLOGY ISSUES WOULD YOU NEED TO ADDRESS?

The first thing to consider is the level of technology that is needed to introduce
robots in a manufacturing plant. Robots is a very expensive investment as it can
optimize the work process. A company must have sufficient funds to maintain the
efficiency of robots. Next, the organization must align its functional specialties with
the use of robots. Organizational culture, objectives and structure must be
established as it increases the efficiency and improves the business process. Lastly,
management should tackle and address strategies with regards to the use of robots,
and how it can affect the existing organizational capability and the long term benefits
for the firm and the external environment as well.
 ReplyReply to Comment

Collapse SubdiscussionImelda Mateo

Imelda Mateo
1:44pmMay 3 at 1:44pm
Manage Discussion Entry
Technology: Will Robots Replace People in Manufacturing?

o Why have robots caught on in manufacturing? What knowledge do

they require?

Robots have become smaller, more mobile, more collaborative and more adaptable,
and their uses are widening. New robot models can work alongside humans without
endangering them and help assemble all types of objects, as large as aircraft
engines and as small and delicate as smartphones. They can also sense whether
parts are being assembled correctly. Robots are becoming easier to operate.
Companies no longer need a software engineer to write program code to get a robot
to perform a task. With some of today’s robots, you can simply push a button, turn
the robot’s arm, and move it through the operation you want it to perform. The robot
learns by doing. Robots are especially useful to go into places people find hard to
access. Some robots have reach of more than 50 inches and six rotating joints to do
the work. They also verify that parts are properly fastened and check to make sure
 the correct part is being used. Some robots are lightweight enough that they can
easily be moved around to different locations as needed. They are also
“collaborative,” designed to work in proximity to people. Using sonar, cameras, or
other technologies, these robots can sense where people are and slow down or stop
to avoid hurting them.

o Can robots replace human workers in manufacturing? Explain your

answer.

At this point in time, it’s highly unlikely that robots will replace all human workers in
manufacturing. They still lack the flexibility, delicacy, and insight provided by
humans. For example, today’s collaborative robots often must slow down or stop
whenever people veer into their paths, disrupting production. Sales of robots used
primarily for simple tasks such as moving materials, picking up parts, and packing or
unpacking boxes have been slow. The robot’s speed is restricted by safety
considerations. For all their recent advances, robots that still can’t duplicate a human
being’s fine motor skills in manipulating materials and small parts. Robots still have
trouble dealing with soft or floppy material, such as cloth or bundles of electrical
wire. Although robots are good at reliably and repeatedly performing defined tasks,
they’re not good at adapting.

o If you were considering introducing robots in your manufacturing

plant, what management, organization, and technology issues would you
need to address?

Management: As robots become more widespread, manufacturing tasks performed

by humans will become higher level and more complex. Workers will be expected to
supervise and perhaps even program robots, and there will be fewer low-level
manufacturing jobs.
 ReplyReply to Comment

Management: Data Drive Starbucks

Location Decisions
Juanito Chan
All Sections
55 unread replies.77 replies.

1. How important is location data to Starbucks’s business strategy?

Explain your answer.
2. How do location analytics help Starbucks managers make better
decisions? Give examples of two decisions that the Atlas system helps
support.
3. Compare Starbucks decisions about store location in 2007–2008 and
2012. What made the later decisions more successful? What
management, organization, and technology factors were involved?
4. What is the value to Starbucks of a good decision about where to
open a Starbucks store? Explain your answer.
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Collapse SubdiscussionRiczie Baldo

Riczie Baldo
FridayMay 1 at 1:13am
Manage Discussion Entry

1. Location for Starbucks Company is very important because it dictates

how a certain business will boom for a certain location. The business thinks
that improperly situated stores could cannibalize sales of more established
stores. They also think that there is a possibility that Starbucks stores become
too commonplace and consumers tire of the Starbucks Brand. In this scenario,
we can infer that the business didn’t want to close hundreds of stores again
because of its improper placing which may lead to decrease in sales and loss
of customers. The company wanted to grow the business in such way that they
plan every detail of the business because one wrong movement means a lot.

1. Location analytics help the Starbucks management to make a

good decision in money aspects. By having this analysis, the management
can check or verify whether or not the place where a new shop will be put up will
be profitable. By using the Atlas system, they can see the demographics,
workflow and store performance. It can check the environment of the store
location and it can also examine the customers, the nearby stores, the
 transportations and many more aspects and from the conclusion of the analysis.
They can decide whether or not it is good to put that business in that place. 

1. In lately 2007-2008 many Starbucks store were subsequently closed due

to lack of sufficient expertise and tools to analyze data properly. Using GIS is
not enough to conquer all data just like inundated date and making
decisions. So, Starbucks senior management approach new strategy and tried to
open again a new series store in 2011 and 2012 and the results has a big impact
to continue the grow in sales in US Business by using ATLAS powered by
software ESR it is a market planning and store development application. Also, it
is the leading vendor of GIS that analyze the massive amount of location- based
and demographic data to determine the best place to open Starbucks store
without hurting sales at other Starbucks location.

1. Starbucks now uses a market planning and store development application

called Atlas powered by software from ESRI, a leading vendor of GIS and
location analytics system. This time around, Starbucks took a more disciplined,
data-driven approach to store openings and used Esri’s mapping software to
easily analyze massive amounts of data about planned store openings. The
software analyzed location-based data and demographics to determine the best
place to open Starbucks stores without hurting sales at other Starbucks
locations.
 ReplyReply to Comment

Collapse SubdiscussionMa. Suzette Dela Cena

Ma. Suzette Dela Cena
FridayMay 1 at 3:09pm
Manage Discussion Entry

o How important is location data to Starbucks’s business strategy? Explain

your answer.

Location data gives an overview of consumers buying pattern based on

demographics, it aids in participation of being the key demographics by showing
geographical trends and patterns relating to information on consumer behavior.
Location for Starbucks Company is very important because it dictates how a certain
business will boom for a certain location. The business thinks that improperly
situated stores could cannibalize sales of more established stores. They also think
that there is a possibility that Starbucks stores become too commonplace and
consumers tire of the Starbucks Brand. In this scenario, we can infer that the
business didn’t want to close hundreds of stores again because of its improper
placing which may lead to decrease in sales and loss of customers. The company
wanted to grow the business in such way that they plan every detail of the business
because one wrong movement means a lot.

o How do location analytics help Starbucks managers make better

decisions? Give examples of two decisions that the Atlas system helps support.

Location analytics help the Starbucks management to make a good decision in

money aspects. By having this analysis, the management can check or verify
whether the place where a new shop will be put up will be profitable. By using the
Atlas system, they can see the demographics, workflow and store performance. It
can check the environment of the store location and it can also examine the
customers, the nearby stores, the transportation's and many more aspects and from
the conclusion of the analysis. They can decide whether it is good to put that
business in that place.
Starbucks uses GIS to analyze where its customers spend more money than
average on coffee purchases to support decisions on where to install its high-end
Clover Brewing System, which brews one cup of coffee at a time at a precise
temperature and length of time to create exceptionally flavorful coffee. Geographic
information systems (GIS) play an important role at Starbucks for both site selection
and product placement. For years, Starbucks has continued to grow throughout the
United States and internationally, opening franchises at an extremely rapid rate—as
many as 800 per year.

3. Compare Starbucks decisions about store location in 2007–2008 and

2012. What made the later decisions more successful? What management,
organization, and technology factors were involved?

In lately 2007-2008 many Starbucks store were subsequently closed due to lack of
expertise and tools to analyze data properly. Using GIS is not enough to conquer all
data just like inundated date and making decisions. So, Starbucks senior
management approach new strategy and tried to open again anew series store in
2011 and 2012 and the results has a big impact to continue the grow in sales in US
Business by using ATLAS powered by software ESR it is a market planning and
store development application. Also, it is the leading vendor of GIS that analyze the
massive amount of location- based and demographic data to determine the best
place to open Starbucks store without hurting sales at other Starbucks location.

3. What is the value to Starbucks of a good decision about where to open a

Starbucks store? Explain your answer.
 Starbucks now uses a market planning and store development application called
Atlas powered by software from ESRI, a leading vendor of GIS and location
analytics systems. The software analyzes massive amounts of location-based data
and demographic data to determine the best place to open Starbucks stores without
hurting sales at other Starbucks locations. Atlas handles workflow, analysis, and
store performance. An Atlas user can see on a map local trade area, retail clusters,
demographics, traffic and transportation nodes, and locations where new offices are
being built that might be important sources of customers. After adding a new target
area, Atlas provides a workflow window to help the user move the new Starbucks
store site through approval, permitting, construction, and opening. Starbucks real
estate staff start out with certain assumptions about where to locate a new store;
Atlas helps them test different scenarios to ascertain whether the original
assumptions are correct.
 ReplyReply to Comment

Collapse SubdiscussionAilyne Genciana

Ailyne Genciana
FridayMay 1 at 3:58pm
Manage Discussion Entry

3. How important is location data to Starbucks’s business strategy? Explain

you answer.

Location data offers an overview of consumer purchasing patterns on the basis of

demographics, aids in the participation of key demographics by showing regional
trends and patterns in consumer behavior information. However, this proves to be a
powerful resource for Starbucks' business strategy, as mentioned in the case where
Starbucks uses the GIS (Geographic Information System) to help with site selection
and product placement. Starbucks also uses the added functionality of ESRI's
marketing mas technology software, which lets Starbucks analyze a vast amount of
location-based data and demographics to find the best place to open a shop. It
allows Starbucks to be effective in providing the customer with demand and, more
so, aids in the success of stores.
 
2. How do location analytics help Starbucks managers make better decisions? Give
examples of two decisions that the Atlas system helps support.
Location analytics allow Starbucks management to make good decisions on the
aspects of income. Through carrying out this review, the management will test
whether or not the position of the new shop would be profitable. Through using the
 Atlas framework, they can see the demographics, the workflow and the output of the
shop. It can test the location of the store area, and it can also analyze the consumer,
the surrounding shops, transport and several other aspects, and from the end of the
study. They will determine whether it is good to put the business in that position or
not.
 
3. Compare Starbucks decisions about store location in 2007–2008 and 2012. What
made the later decisions more successful? What management, organization, and
technology factors were involved?
Many Starbucks stores were subsequently closed due to a lack of sufficient
expertise and tools to properly analyze the data in late 2007-2008. Using GIS is not
enough to conquer all data just like a flooded date and make decisions. As a result,
Starbucks' senior management implemented a new strategy and tried to re-open a
new series store in 2011 and 2012 and the results had a significant effect on
continued revenue growth in US Business through the use of ATLAS driven by ESR
software as a marketing and storage creation application. This is also the leading
GIS provider that analyzes the vast amount of location-based and demographic data
to assess the best place to open Starbucks stores without harming sales at other
Starbucks locations.
 
4. What is the value to Starbucks of a good decision about where to open a
Starbucks store? Explain your answer.
Starbucks is now using a market forecasting and storage technology program called
Atlas operated by ESRI software, a leading provider of GIS and location analytics
systems. The app analyzes vast quantities of location-based data and demographic
data to assess the best place to open Starbucks stores without affecting revenue at
other Starbucks locations. Atlas manages workflow, analysis and storage capacity.
Atlas users can see local trade zones, retail clusters, populations, traffic and
transport hubs and places where new offices are being constructed that may be
significant consumer sources on a map. After adding a new target area, Atlas offers
a workflow window to help the consumer push the new Starbucks store through
approval, planning, building, and opening. Starbucks real estate workers begin with
some assumptions about where to place a new store; Atlas helps them check
various scenarios to see if the original assumptions are right.
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Collapse SubdiscussionAriel Serrano

 Ariel Serrano
YesterdayMay 2 at 4:26pm
Manage Discussion Entry
Location data provide the necessary and useful information for the management of
Starbucks in defining business strategy. Since most of its consumers are mobile, it
can define strategies based on location and the consumers pattern of behavior
(purchasing, coffee/tea preferences, browsing, etc.) - for example, whether to
establish a new store in a specific area.
In the past, managers have to decide based on the traditional way of lengthy
feasibility studies and cost prediction. Now, with investment in technology, the
gathering of data becomes too quick. Databases can store vast information needed
by sales, marketing, or business development team, in determining whether stores
are generating profit or losing money, whether there are forgone costs from
unserved customers because of long queues, whether the stores are not generating
enough income or at break-even points, and a lot of other decisions. Decisions
become more relevant because location analytics provides the needed information.
Other information irrelevant to the decision are ignored. Only those relevant are
considered. 
 
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o

Collapse SubdiscussionJayson Tasarra

Jayson Tasarra
YesterdayMay 2 at 7:33pm
Manage Discussion Entry

1. How important is location data to Starbucks’s business strategy?

Explain your answer.

Location data to Starbucks business strategy is very important since it is an accurate

picture of consumers buying habits. If Starbucks stores become too common,
consumers might get tired of the company. Geographic Information Systems (GIS) is
a valuable tool to Starbucks considering it helps with site selection and product
placement. As well as Starbucks uses a market planning store development
application called Atlas. The software analyzes massive amounts of location-based
data and demographic data to determine the best placement of stores without
decreases sales at nearby locations. Overall, location data is critical for Starbucks
due to the growth of new stores and well-known locations, as well as consumer
habits.

1. How do location analytics help Starbucks managers make better

decisions? Give examples of two decisions that the Atlas system helps
support.

Location analytics help Starbucks managers make better decisions due to

application called Atlas. Atlas system analyzes location-based data and
demographic data to determine the best place to open without disturbing sales in
other nearby locations. As well as Atlas handles workflow and store performance
analysis. This can help manager since it can show data like local trade areas, retail
clusters and locations that are newly built. Also, it can help individual stores be more
profitable in the long term.
More so, Starbucks uses GIS to analyze where its customers spend more money
than average on coffee purchases to support decisions on where to install its high-
end Clover Brewing System, which brews one cup of coffee at a time at a precise
temperature and length of time to create exceptionally flavorful coffee. Geographic
information systems (GIS) play an important role at Starbucks for both site selection
and product placement. For years, Starbucks has continued to grow throughout the
United States and internationally, opening franchises at an extremely rapid rate—as
many as 800 per year.

1. Compare Starbucks decisions about store location in 2007–2008 and

2012. What made the later decisions more successful? What management,
organization, and technology factors were involved?

In 2007, Starbucks started to rapidly open franchises throughout the United States,
as many as 800 per year. As the economy turned down, Starbucks had to closen600
stores. Starbucks was trying to expand and growing the company their brand by
adding more and more locations, however, did not focus on individual location
growth. In 2012, Starbucks began opening a series of new stores after collecting
location data. The stores were very strong and some of the best unit economics. The
decision to close hundreds of stores, analyze location data and use the location data
help Starbucks create more growth and profit.
Management: Management factors that are involved are the senior management. In
2007, management wanted to open as many stores as possible and see them
succeed just because of Starbucks brand. After seeing these stores not doing too
well, senior management decided to close hundreds of stores to focus on individual
growth.
Organization: Organization factors that are involved is Starbucks strategy. In 2007,
the business strategy was to grow the U.S business in a fast rate. In 2012,
Starbucks strategy was to focus on individual store success and growth.
 Technology: Technology factors that are involved is GIS. Starbucks used it since
the late 1990s and used it to make the decision to open many stores 2007-2008 yet,
they closed many of stores. Using GIS in 2012, helped Starbucks to analyze the
data to open a few stores that exceeded sales expectations.

1. What is the value to Starbucks of a good decision about where to

open a Starbucks store? Explain your answer.

The value of a good decision about where to open a Starbucks store is about 1
million. Rob Sopkin, Vice President of Store development advises to open a
Starbucks franchise it would cost around 1 million dollars due to data driven location
decisions. This is due to the theory of one poor decision will negate five good
decisions. As Starbucks learned in the past to work on individual store success
rather than growing the Starbucks brand. The theory is based on working towards a
successful decision rather than a poor decision.
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Collapse SubdiscussionJonathan Princesa

Jonathan Princesa
11:05amMay 3 at 11:05am
Manage Discussion Entry
 
MANAGEMENT: DATA DRIVE STARBUCKS LOCATION DECISIONS
 

o HOW IMPORTANT IS LOCATION DATA TO STARBUCKS’S BUSINESS

STRATEGY?

EXPLAIN YOUR ANSWER.

 
Location for Starbucks Company is very important because it dictates how a certain
business will boom for a certain location. The business thinks that improperly
situated stores could cannibalize sales of more established stores. They also think
that there is a possibility that Starbucks stores become too commonplace and
consumers tire of the Starbucks Brand. In this scenario, we can
Infer that the business didn’t want to close hundreds of stores again because of its
Improper placing which may lead to a decrease in sales and loss of customers. The
company wanted to grow the business in such a way that they plan every detail of
the business because one wrong move means a lot.
 

o HOW DO LOCATION ANALYTICS HELP STARBUCKS MANAGERS

MAKE BETTER DECISIONS? GIVE EXAMPLES OF TWO DECISIONS THAT
THE ATLAS SYSTEM HELPSSUPPORT.

 
Location analytics help Starbucks management to make a good decision in money
aspects. By having this analysis, the management can check or verify whether or not
the place where a new shop will be put up will be profitable. By using the Atlas
system, they can see the demographics, workflow, and store performance. It can
check the environment of the store location and it can also examine the customers,
the nearby stores, the transportations, and many more aspects and from the
conclusion of the analysis. They can decide whether or not it is good to put that
business in that place.
 

3. COMPARE STARBUCKS DECISIONS ABOUT STORE LOCATION IN

2007-2008 AND2012. WHAT MADE THE LATER DECISIONS MORE
SUCCESSFUL? WHAT MANAGEMENT. ORGANIZATION AND TECHNOLOGY
FACTORS WERE INVOLVED?

 
In lately 2007-2008 many Starbucks stores were subsequently closed due to a lack
of sufficient expertise and tools to analyze data properly. Using GIS is not enough to
conquer all data just like inundated date and making decisions. So, Starbucks senior
management approach new strategy and tried to open again anew series store in
2011 and 2012 and the results have a big impact to continue the growth in sales in
US Business by using ATLAS powered by software ESR it is a market planning and
store development application. Also, it is the leading vendor of GIS that analyze the
massive amount of location-based and demographic data to determine the best
place to open Starbucks store without hurting sales at other Starbucks location.
 

3. WHAT IS THE VALUE TO STARBUCKS OF A GOOD DECISION ABOUT

WHERE TO OPEN A STARBUCKS STORE? EXPLAIN YOUR ANSWER.

 
Starbucks now uses a market planning and store development application called
Atlas powered by software from ESRI, a leading vendor of GIS and location
 analytics systems. The software analyses massive amounts of location-based data
and demographic data to determine the best place to open Starbucks stores without
hurting sales at other Starbucks locations. Atlas handles workflow, analysis, and
store performance. An Atlas user can see on a map local trade areas, retail clusters,
demographics, traffic and transportation nodes, and locations where new offices are
being built that might be important sources of customers. After adding a new target
area, Atlas provides a workflow window to help the user move the new Starbucks
store site through approval, permitting, construction, and opening. Starbucks
 ReplyReply to Comment

Collapse SubdiscussionImelda Mateo

Imelda Mateo
1:48pmMay 3 at 1:48pm
Manage Discussion Entry

3. How important is location data to Starbucks’s business strategy?

Explain your answer.

Location for Starbucks Company is very important because it dictates how a certain
business will boom for a certain location. The business thinks that improperly
situated stores could cannibalize sales of more established stores. They also think
that there is a possibility that Starbucks stores become too commonplace and
consumers tire of the Starbucks Brand. In this scenario, we can
infer that the business didn’t want to close hundreds of stores again because of its
improper placing which may lead to decrease in sales and lots of customers. The
company wanted to grow the business in such way that they plan every detail of the
business because one wrong movement means a lot.

3. How do location analytics help Starbucks managers make better

decisions? Give examples of two decisions that the Atlas system helps
support.

Location analytics help the Starbucks management to make a good decision in

money aspects. By having this analysis, the management can check or verify
whether or not the place where a new shop will be put up will be profitable. By using
the Atlas system, they can see the demographics, workflow and store performance.
It can check the environment of the store location and it can also examine the
customers, the nearby stores, the transportations and many more aspects and from
the conclusion of the analysis. They can decide whether or not it is good to put that
business in that place.
3. Compare Starbucks decisions about store location in 2007-2008 and
2012. What made the later decisions more successful? What Management,
organization, and technology factors were involved?

In lately 2007-2008 many Starbucks store were subsequently closed due to lack of
sufficient expertise and tools to analyze data properly. Using GIS is not enough to
conquer all data just like inundated date and making decisions. So, Starbucks senior
management approach new strategy and tried to open again anew series store in
2011 and 2012 and the results has a big impact to continue the grow in sales in US
Business by using ATLAS powered by software ESR it is a market planning and
store development application. Also, it is the leading vendor of GIS that analyze the
massive amount of location- based and demographic data to determine the best
place to open Starbucks store without hurting sales at other Starbucks location.
 ReplyReply to Comment