Boston College Session 23 Three IT Sourcing Cases Homework Questions Rephrase the documents I have attached below. Those are the documents I found on the i

Boston College Session 23 Three IT Sourcing Cases Homework Questions Rephrase the documents I have attached below. Those are the documents I found on the internet and I need to turn those into Turnitin. Please use your own word to fill in the blanks. You don’t need to rephrase the requirements. Session 23: Three IT Sourcing Cases – Homework Questions
1. What drove the sourcing decisions on the part of all three business organizations
described in the case studies for this session?
Business
Reasons Behind Sourcing Decision
Southwest Bank Massive growth in the business that forced the company to
outsourcing
have to upgrade its hardware and software system. (Note:
system before was not unsuccessful, just to small now)
The systems in place lacked the abilities and capabilities to
successfully provide the different IT services that were needed
for this successful and growing bank.
The bank had plans to expand their services and banking
outreach to the southwestern part of the USA, Mexico, and
many other Latin America countries.
They had not focused on IT as a core business property. As a
result, they felt it was better source their IT
Reliable Utilities – partnering They were lacking and in desperate need to have more
complex and sophisticated technology systems
They were not able to find or retain the talent that was
needed to improve or keep these systems running successfully
Did not have the infrastructure or capabilities in their IT
department to support a large range of different technical
short term and long-term assignments.
They were pushed for time and needed a solution very quickly
State Retirement System They needed new software so that they could bring their
Insourcing
business into regulation standards as well as compliance of
the government.
New federal government, state government, and
municipalities changes in the tax laws forced State Retirement
System to reprogram
Company was increasing dealing with the highlighted
administrative costs
They needed to keep up with the ever changing industry and
had to modify their systems
2. What were the risks associated with each of these undertakings?
Business
Risks with Sourcing Decision
Southwest Bank The company that southwest bank outsourced would not be
outsourcing
able to meet the required deadlines on time
The company that southwest bank outsourced to might not
have the expertise or ability to help southwest in its needs
Communication is key, and miscommunication could cost
southwest bank tons of money.
Reliable Utilities – partnering
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The outsourced company will have many projects and not
focus of Southwest Banks business and not learn how the
business operates
Their could be increase costs in acquiring a new partner. Also
it could cost a lot to implement that new partner to the old
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Session 23: Three IT Sourcing Cases – Homework Questions
State Retirement System Insourcing
business
The partner might not be reliable and could cause more
problems for reliable utilities.
Lack of Communication and disagreements between both
reliable utilities inc and the partner could be higher than the
company expects
The time to see benefits from partnership may be way in the
future.
The vendor designing system could change their deals and
costs so that it benefits them the most.
The company would require that the vendor or someone else
provide support after the implementation, which could cost
tons of money.
There is a lot of training, training costs, and testing that would
take up a lot of time and money in order for the system to be
successful.
IF there is a mistake in the implementation or tranisitioning of
systems, it will be extremely costly.
3. What actions on the part of each company mitigated these risks?
Business
Risk Mitigation Steps
Southwest Bank Make sure that the company that is picked is good for
outsourcing
Southwest bank. This can be done by diligent researching and
interviewing.
Occasional visits to the outsourced facilities and company to
keep ongoing good relations.
Make sure the contract has benchmarks and checkpoints in
order to make sure that the company meets deadlines and is
on time.
Recommend that the outsourcer higher could Southwest bank
IT employees to help with transition
Reliable Utilities – partnering Make sure that the company that is picked is good for Reliable
Utilities. This can be done by diligent researching and
interviewing.
Make sure that the partner of reliable utilities works on site
and is involved in all meetings and brainstorming discussions
Have exports help the vendor for transferring all old
knowledge to the new system
Have the partner only work on certain projects to make sure
that the company is cost effective.
State Retirement System Make sure that the system provider that is picked is good for
Insourcing
State retirement system. This can be done by diligent
researching and interviewing.
Make sure that planning and analysis is done diligently in
order to know the costs associated with the steps moving
forward.
Make sure that there is someone that the company pays to
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Session 23: Three IT Sourcing Cases – Homework Questions
perform system maintenance. In order to make sure
everything runs smoothly
Have exports or vendors provide all the training and testing to
help take the transition smoothly.
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Session 24: Allergan Case Study Questions
1. As the chief executive of an Allergan line-of-business, what would please you and what
would concern you as the company grows its use of cloud computing.
What pleases the Biz. Executive:
What concerns the Biz. Executive:
add more rows as needed….
2. As the chief information officer (CIO) at Allergan, what would please you and what
would concern you as the company grows its use of cloud computing.
What pleases the CIO:
What concerns the CIO:
add more rows as needed….
3. According to the CISR team, what are the implications of the six imperative for cloud
computing for the Allergan IT organization?
The Six Imperatives:
rethink the IT value proposition
re-architect your digitized platforms
redesign your governance
reallocate IT budgets
refocus on user needs and preferences
redevelop the IT organization
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Implications for Allergan IT
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•
•
•
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Session 25: Capital One Case Study Questions
CapitolOne Case Homework Questions:
1) What is Capital One’s business and who are their competitors? (lists)
a) .
b) .
c) add as many lines as required…..
2) Per the case study, what is one of their major strategies to grow profitably and
compete? (list)
a) .
b) .
c) add as many lines as required…..
3) How do they use information to implement their strategy? What kinds of
information do they use and where does it come from? (table)
Information Employed in the Capital
One Credit Card Process
Sources of This Information
add as many rows as required….
4) List and describe the information technologies used to support their strategy?
(table)
IM/IT Enabling Information System
Description
add as many rows as required….
5) Describe their notion of a “scientific test”. Contrast this approach to product
development and launch with a more traditional approach that a
manufacturing company might use to determine how much product to
produce. (table)
Traditional Manufacturing Approach
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Capital One’s Scientific Testing Approach
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Session 25: Capital One Case Study Questions
add as many rows as required….
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Session 12: Capital One Case Study Questions
Capital One Case Homework Questions:
1) What is Capital One’s business and who are their competitors? (lists)
Capital One’s Business
Competitors
a) Credit cards
(i) Morgan Stanley
b) Loans (auto, business, commercial etc.)
(ii) Wells Fargo
c) Offers consumer banking (savings, checking) (iii) American Express
d) Offers Commercial banking
(iv) JPMorgan Chase & Co.
e) Financial portfolio management
(v) Citigroup
f) Investment management
(vi) Ally Financial
(vii) A host of other financial institutions
2) Per the case study, what is one of their major strategies to grow profitably and
compete? (list)
a) . Adopted an information-based approach where data, readily available through
Capital One’s transaction processing system is analyzed and exploited.
b) . Formulated a credit risk model which broke the ‘normal rule of credit’ by
allowing the company to extend credit resources (cards, loans etc.) to low credit
holders who have been denied by their competing companies.
c) Viewed the credit card as a machine with the power to divulge important
customer specific information and patterns to help in developing customized
products, rates, rewards, fees etc.
d) Experimented with offering higher interest holding credit cards to weed out good
credit risk customers who will quickly repay debt to avoid financial constraints
e) Placed the company’s IT capabilities at the very core of their business processes.
f) Developed ‘scientific tests’ using their knowledge of customer behavior to create
credit risk assessment model
(i) Call center and website scripts for new applicant interaction
(ii) Card hopper testing to gage and encourage customer retention
3) How do they use information to implement their strategy? What kinds of information
do they use and where does it come from? (table)
Information Employed in the Capital One
Credit Card Process
• Customer payment/account history
•
•
•
•
•
Individual and average credit scores
•
•
POS data (transaction total, location,
time & date
•
•
•
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Sources of This Information
CRM
Bank-client database
Financial/accounting management
system
Transaction Processing system (TPS)
Credit Bureau database (Equifax,
Experian)
Customer
POS system
eCommerce sites
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Session 12: Capital One Case Study Questions
•
•
•
•
•
•
•
Demographic & personal info of
•
customer
•
•
Customer behaviors, trends and
•
patterns of credit card use
•
•
•
•
Data on who customers are, the people •
they live among, and their financial
•
capabilities and preferences
•
•
•
Current terms of competitors/market
•
credit/loan offerings
•
•
Any special customer needs,
•
presenting promotional opportunities
•
•
Bank-client database
Financial reports
Application management system
CRM
Extranet website activity
Internet/online platforms / social media
Call center database
CRM
Decision support system (DSS)
Historical customer data
Customer Surveys
Internet websites
Surveys
Social media
Logistics reports by third part companies
Research and Development reports
Market analysis
Competitor websites
Marketing & sales dept database
Call center database
‘Scientific testing’ results
4) List and describe the information technologies used to support their strategy? (table)
IM/IT Enabling Information System
Description
• Transaction Processing System (TPS) This system functions almost like a POS by
processing and stores all current and
historical transactions (spending, payments
etc.) of Capital One’s credit card holders. It
also captures the location, time and date of
every customer transaction. That
transactional information is then fed over to
the DSS to help track customer patterns and
assist the company in taking important
decisions.
Holds all the other company systems under
• ERP system
one enterprise umbrella to effectively enable
credit card account management. Consists of
the TPS, Accounting system etc. to track
customer behavior, even while keeping
abreast of overall company performance.
This platform serves as an aid tool to Capital
• Decision Support System (DSS)
One’s management teams. Collects and
combines stored information from the
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Session 12: Capital One Case Study Questions
•
CRM system
•
Intranet/Extranet
•
Knowledge Management system
(KMS)
•
“Expert System”
•
Internet servers/networks &
Hardware
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company’s other transaction systems,
performs the necessary analysis to reveal
different patterns of use. This helps upper
management in their strategic planning and
decision making.
Collects and stores all the company’s
customer sensitive information. This system
is often connected to the TPS, which
transmits relevant customer info, including
those from website activity. Helps in
accessing historical customer data,
demographic & personal info, and also
tracking consumer trends and behavior
patterns.
Extranets are used by customers to access
their account information, make payments,
report issues etc. right from the comfort of
their homes. Potential customers are able to
browse the company extranet to get a sense
of what the company is presently offering.
The intranet provides Capital One employees
with the secure environment to communicate
within places like the call center, and also get
certain testing done.
Used in storing the company knowledge
derived from all the ‘scientific testing’ being
done, as well as the information being
gathered on customer behavior. Also deals
with how best that gathered knowledge can
be effectively utilized to the company’s
advantage.
Developed from research and tracking of
customer behavior, using the data and
information from other systems. Resulted in
a very targeted approach to customer
interaction, specifically that of new
applicants.
To facilitate all the connection and
integration of all the above systems, Capital
One has to be have very power servers,
which serves as their foundation. To also
connect them to their many locations,
partners and customers, different network
connections including those like VPN, LAN
& WAN are securely in place. The company
also has a wide range of high powered, fully
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Session 12: Capital One Case Study Questions
functioning computer hardware to facilitate
their processes.
5) Describe their notion of a “scientific test”. Contrast this approach to product
development and launch with a more traditional approach that a manufacturing
company might use to determine how much product to produce. (table)
Traditional Manufacturing Approach
Depends heavily on an SCM system to
make decisions on the necessary volume
of production
Conducts time consuming external market
research efforts (surveys, focus groups,
sales trends) and collect resulting data
A Decision Support System is not very
necessary for deciding production
Very little testing required in this
approach. Volume of production is
determined based on estimation of
demand
KMS and BI use are less in this approach.
Data being utilized in this approach will
tend to lean toward the area of production
The end result is often a
forecast/estimation on the volume of
product required or demanded
Utilizes past or historical production and
demand data
Will mostly focus on operational
efficiency and management and control
features
Does not involve any soft or phased
launch, but requires a plunge launch
approach
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Capital One’s Scientific Testing
Approach
Utilizes a complete ERP system to fully
analyze company processes and gain the
full scope and extent of the problem at
hand
Utilizes DSS to analyze consumer
behavior and involves the use of an
established expert script system to interact
with customers.
Capital One makes very heavy use of their
Decision Support Systems to analyze
customer patterns.
Various scenarios are tested using both
employees and consumers, to ensure
product viability
Relies upon their KMS and utilizes a lot
of Business intelligence to decide on
marketable products
Data utilized by Capital One in their
Scientific Testing will stem from a
number of dimensions.
Aims for the ending result to be the
development or improvement of a
product, and the gathering of critical
knowledge
This requires a perfect mix of past,
current and future estimation data.
Requires a bit of diversification
Will focus mainly on maintaining both
product leadership and customer intimacy
through strategic decision making and
management
Due to constant testing, Capital One
utilizes a more phased launch approach,
taking it steps.
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