TESCO's success came from the introduction of Clubcard and its diversification through other investments. However, IT played a very important role to derive that success.
First, the point-of-sale technology and the supporting computer systems to handle the Clubcard information managed to process the complicated loyalty scheme, which efficiently resulted an increase of sale within 6 months of the Clubcard introduction.
Second, Tesco kept on spending on IT in order to handle the increasing volume of Clubcard information as the loyal scheme continuing expanding. The case described that Tesco invested in the NCR Teradata data warehouse to provide a 360º-view of its customers.
Third, Tesco also devoted itself in developing online e-grocer through Tesco.com and linking Clubcard with Tesco's banking services. All the diversifications could only be made possible by implementing a sound IT platform. Although not being mentioned in the case, I would suspect that Tesco must have implemented ERP in order to channel information efficiently.
2010年6月21日 星期一
CasaDelLibro.com
If I were the manager of Casa del Libro in 2002, I would have switched to the new platform mainly due to cost reduction. During that time, the global economic environment was surrounded with uncertainties, trying to recover from the 911 terriost attack and recession. Moreover, the online market was still trying to gain acceptance from consumers and, therefore, income from the online business did not seem to be forecastable. As a result, the cost saving would be my most important criteria, and I would have adapted the new system of Microsoft then perhaps switch to a more comprehensive and sophisticated system after consumers started getting used to the online shopping.
2010年6月14日 星期一
Chicken first or Egg first - Brief thought about ERP
According to Wikipedia's definition, Enterprise resource planning (ERP) is an Integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise wide system environment.
In my opinion, ERP should adapt to companies' need. The idea of ERP is to integrate different infomation of different department into one homogenous software infrastruture. As different firms may have different structure to suit their specific neends, it is difficult, if not impossible, for firms to adapt into one system that may only define "standardised" organisational structure. However, as customised ERP system is limited, firms may nevertheless need to adjust themselves to the pre-set ERP and, therefore, may lose a degree of competitive advantage due to the "standardisation".
In my opinion, ERP should adapt to companies' need. The idea of ERP is to integrate different infomation of different department into one homogenous software infrastruture. As different firms may have different structure to suit their specific neends, it is difficult, if not impossible, for firms to adapt into one system that may only define "standardised" organisational structure. However, as customised ERP system is limited, firms may nevertheless need to adjust themselves to the pre-set ERP and, therefore, may lose a degree of competitive advantage due to the "standardisation".
2010年6月13日 星期日
Dell and Toyota
Recently in the Information Class, the Dell Hell case was discussed. Basically it was about a Blogger, Jeff Jarvis, who bought a Dell lemon in 2005 and constantly encountered unpleasant experience by Dell's incompetent customer service. He then started publishing comments regarding to his frustration on his blog, and various international news agencies also started referring to the comments on their magazines and websites. Interestingly, Dell's share price started declining.
Regardless whether the decline of the share price could be attributed to the comments, Dell's poor crisis management was something worth to analyse. If one is put in the same situation like Dell, what should he/she do to resolve the tension and further improve the company. The following points are some of my thoughts.
- Jeff Carrol, my classmate, suggested that perhaps Dell could "hire" Mr. Jarvis as an internal advisor so that Dell could understand what the customers need.
- Size does not matter. Internet has become transnational and allows information to flow on a click of the mouse. One customer may represent the entire community of the existing or prospective Dell users and, therefore, an organisation should not think a random criticism is that random.
- Do not be reactive. Be proactive. Sometimes apology may imply that a firm has committed a fault, but it is perhaps the best way to save its reputation and move on to improvise.
- Over the long term, a firm should put more attention on understanding what customers want. Although it may be more costly, a clear communication channel between customers and firms should be established.
The Dell case reminds me alot of Toyota. Toyota also denied the allegation at first but the chairperson was forced to apologise in the end. Reputation and trust are the souls for firms to survive in the modern world. Only by implementing and adopting sound crisis management, firms could still save itself from disasters if they do occur.
Regardless whether the decline of the share price could be attributed to the comments, Dell's poor crisis management was something worth to analyse. If one is put in the same situation like Dell, what should he/she do to resolve the tension and further improve the company. The following points are some of my thoughts.
- Jeff Carrol, my classmate, suggested that perhaps Dell could "hire" Mr. Jarvis as an internal advisor so that Dell could understand what the customers need.
- Size does not matter. Internet has become transnational and allows information to flow on a click of the mouse. One customer may represent the entire community of the existing or prospective Dell users and, therefore, an organisation should not think a random criticism is that random.
- Do not be reactive. Be proactive. Sometimes apology may imply that a firm has committed a fault, but it is perhaps the best way to save its reputation and move on to improvise.
- Over the long term, a firm should put more attention on understanding what customers want. Although it may be more costly, a clear communication channel between customers and firms should be established.
The Dell case reminds me alot of Toyota. Toyota also denied the allegation at first but the chairperson was forced to apologise in the end. Reputation and trust are the souls for firms to survive in the modern world. Only by implementing and adopting sound crisis management, firms could still save itself from disasters if they do occur.
2010年6月6日 星期日
Facebook to be faced-off?
I love facebook and I never deny that my addiction has become un-curable. The social website has helped me to reconnect with my friends, some had been lost for ages, chase back my memory and know new friends before knowing each other face to face.
But where will Facebook be in 2 years time?
In my opinion, perhaps Facebook will be the Google of personal profile (maybe it has already become one). The privacy issue will still be a huge question that Facebook needs to deal with.
Furthermore, although Facebook is not generating enough revenue, it is certainly one of the hottest acquiring target and it will even magnify the concern over privacy issue. Just imagine if XYZ company acquires Facebook, the profile data may face the risk of leaking information.
But should Facebook follow Google's path to generate revenue from advertisement, Facebook may also get IPO and potentially becomes one of largest internet company in the world.
Who knows? I wish I know. As a loyal fan of Facebook, I hope the website can also "don't be evil" and soon get IPOed. I will surely become one of shareholders of Facebook. For now, let me continue spying my friends' profile.
But where will Facebook be in 2 years time?
In my opinion, perhaps Facebook will be the Google of personal profile (maybe it has already become one). The privacy issue will still be a huge question that Facebook needs to deal with.
Furthermore, although Facebook is not generating enough revenue, it is certainly one of the hottest acquiring target and it will even magnify the concern over privacy issue. Just imagine if XYZ company acquires Facebook, the profile data may face the risk of leaking information.
But should Facebook follow Google's path to generate revenue from advertisement, Facebook may also get IPO and potentially becomes one of largest internet company in the world.
Who knows? I wish I know. As a loyal fan of Facebook, I hope the website can also "don't be evil" and soon get IPOed. I will surely become one of shareholders of Facebook. For now, let me continue spying my friends' profile.
2010年5月30日 星期日
Google, Google, and there is no trouble as long as "Don't Be Evil"
When it comes to technology, I must confess that I am not a gadget man. For example, I only discovered how to use internet in 1998 and bought my first laptop in 2000. Before that, information was extremely difficult to obtain and I, as a student at that time, could only obtain knowledge by spending time in library or money to get books.
However, it was only upon the launch of Google, my world had been changed completely. Simply by putting key words in its search engine, I could findmajor websites that matched the words, andy pace and depth of research and knowledge of learning leaped. Nowadays, I still rely on Google to search, to find directions, to translate, to share documents and to write my blog! It has certainly penetrated my life and become one of my necessities.
In my opinion, the most important functions of Google are 1) Search Engine, 2) Google Earth/Map, and 3) Google Wave!!!!
The search engine: Need I say more? Although Google has been critised for invasion of privacy and copyright, it is probably the most important invention in the internet industry and has revolutionised our mindset and chaned the way we view the world. Just by "Googling" it, one can find almost every relevant information that is available from the net. I cannot imagine my life without it.
Google Earth/Map: "Everywhere I go, I'll be watching it". Before arriving Madrid, I had already known where I would stay and how I could walk from my hotel to IE. By using street view, I am extremely confident to walk around the town and know exactly which building would appear when I reach my destination. Furthermore, I will also know which restaurant or cafe is nearby.
Google Wave: Wikipedia described that Google wave is "a new web application for real-time communication and collabaration as Google claimed". In another words, it is a platform that combines communication such as email and chat, and work-in-progress such as documents and videos. What an application (to sink Mircosoft Office). Seeing is believing, please refer to the following videos to check it out. For those who are not techs, the second one is easier to understand.
In the end, I just want to express something that I have always felt regretted. "Damn! I should have bought Google's share when it was IPOed." (It went from $85 in 2004 to $700 in 2007)
However, it was only upon the launch of Google, my world had been changed completely. Simply by putting key words in its search engine, I could findmajor websites that matched the words, andy pace and depth of research and knowledge of learning leaped. Nowadays, I still rely on Google to search, to find directions, to translate, to share documents and to write my blog! It has certainly penetrated my life and become one of my necessities.
In my opinion, the most important functions of Google are 1) Search Engine, 2) Google Earth/Map, and 3) Google Wave!!!!
The search engine: Need I say more? Although Google has been critised for invasion of privacy and copyright, it is probably the most important invention in the internet industry and has revolutionised our mindset and chaned the way we view the world. Just by "Googling" it, one can find almost every relevant information that is available from the net. I cannot imagine my life without it.
Google Earth/Map: "Everywhere I go, I'll be watching it". Before arriving Madrid, I had already known where I would stay and how I could walk from my hotel to IE. By using street view, I am extremely confident to walk around the town and know exactly which building would appear when I reach my destination. Furthermore, I will also know which restaurant or cafe is nearby.
Google Wave: Wikipedia described that Google wave is "a new web application for real-time communication and collabaration as Google claimed". In another words, it is a platform that combines communication such as email and chat, and work-in-progress such as documents and videos. What an application (to sink Mircosoft Office). Seeing is believing, please refer to the following videos to check it out. For those who are not techs, the second one is easier to understand.
In the end, I just want to express something that I have always felt regretted. "Damn! I should have bought Google's share when it was IPOed." (It went from $85 in 2004 to $700 in 2007)
2010年5月24日 星期一
Microsoft at crossroad
I still remember that my first computer was a 386, which used DOS 4.0 (if I remember correctly), and I used to remember every command in order to run various programs. Afterwards Windows 3.1 became available and looked much more user-friendly and fancier, but I did not use it much as it was more like a compliment for DOS instead of a true operating system. At that moment, I did not quite know where Apple was.
From 1995, as Microsoft released Windows 95, I had became a loyal user of Windows due to its compatibility and easy to use infrastructure until the shocking Vista came to the market. Suddenly I questioned whether Microsoft was still a market leader or had fallen behind as a market follower. Ironically, thanks to the failure of Vista, Apple's Powerbook that boosted internet security, stability and better graphic performance started to attract attention and gain more market share.
So WHERE IS MICROSOFT STANDING NOW?
In my opinion, Microsoft may still be the market leader in terms of the market share. Companies and organisations still use Windows as it is preloaded with the purchase of computers, and most of programs are only compatible with Windows, not Mac. For example, Mac's iWork or office for Mac cannot install various add-on for Excel, which may be a pain for engineers or analysts. Various games still rely on Windows, although more and more games have been put online.
However, Windows is continuously criticised for its internet security problem (every PC needs an anti-virus program) and imitating Apple's OS. The list can go on and on.
In sum, I think the company is at the crossroad. In terms of operating system, Microsoft is not as innovative and attractive as before when comparing to Apple. Microsoft doesn't only need to compete with Apple, but also face the new threat of Google Chrome. The company definitely needs more attention on developing a program that can at least match Apple's OS and understanding customers' need. At the end, I just wanna confess that I switched from Mac back to PC due to its better compatibility and stability; Windows 7 has improved a lot and I feel satisfied so far.
From 1995, as Microsoft released Windows 95, I had became a loyal user of Windows due to its compatibility and easy to use infrastructure until the shocking Vista came to the market. Suddenly I questioned whether Microsoft was still a market leader or had fallen behind as a market follower. Ironically, thanks to the failure of Vista, Apple's Powerbook that boosted internet security, stability and better graphic performance started to attract attention and gain more market share.
So WHERE IS MICROSOFT STANDING NOW?
In my opinion, Microsoft may still be the market leader in terms of the market share. Companies and organisations still use Windows as it is preloaded with the purchase of computers, and most of programs are only compatible with Windows, not Mac. For example, Mac's iWork or office for Mac cannot install various add-on for Excel, which may be a pain for engineers or analysts. Various games still rely on Windows, although more and more games have been put online.
However, Windows is continuously criticised for its internet security problem (every PC needs an anti-virus program) and imitating Apple's OS. The list can go on and on.
In sum, I think the company is at the crossroad. In terms of operating system, Microsoft is not as innovative and attractive as before when comparing to Apple. Microsoft doesn't only need to compete with Apple, but also face the new threat of Google Chrome. The company definitely needs more attention on developing a program that can at least match Apple's OS and understanding customers' need. At the end, I just wanna confess that I switched from Mac back to PC due to its better compatibility and stability; Windows 7 has improved a lot and I feel satisfied so far.
2010年5月18日 星期二
Four Square = 16?
I am a powerful (addicted) facebook user but, only after arriving Madrid, I have noticed one interesting phenomenon - lots of my tech-classmates have been checking-in at various bars, restaurants or even in gyms or IE Business School. Only until being mentioned in my IS class, FourSquare has entered my life.
What is FourSquare
FourSquare is a program for smartphone that changed the mindset from thinking “What are you doing?” and “Where are you?” to “Where are you and doing What”.
The rules of the game:
1) Users check-in at venues such as restaurants, gyms, schools or even at their own home.
2) the most visited user at a specific venue becomes mayor and may be eligible to collect badges or enjoy benefit or promotion such as free beer or meal. So in order to collect those badges and points for becoming a major, users need to return to the venues regularly and, therefore, provide sales revenue for those venues.
How does FourSquare derive its revenue:
Although FourSquare is not making a big revenue, its outlook appears to be very bright. According to a comment from businessinsider.com: Foursquare is starting to build the foundation of a revenue model on location-based marketing services. Foursquare is planning paid services for three tiers of businesses: small, privately owned stores and restaurants; brands with retail chains, such as Tasti D-Lite; and huge multinational marketers such as Pepsi. For bigger brands, Foursquare is developing an analytics dashboard so businesses can track who's coming into their stores. Then, deals could be sold against impressions such as web ads, clicks such as search ads, or a completely new model: cost per check-in.
Therefore, it would not be a surprise if FourSquare is going to be acquired by other giants such as Yahoo or Microsoft in the future.
Final Concerns:
Despite being a neat program, there are also concerns for FourSquare. For example: 1) I do not have data plan on my iPhone, immediately FourSquare becomes useless. If there is another program that imitates FourSquare but without using data, FourSquare might be threatened. 2) Venues may engage free-riding without paying FourSquare for marketing fees.
2010年4月28日 星期三
So Here We Go!
Blog? What Blog? To be honest, I have never thought that I'd need a blog to "broadcast" myself, give opinions that may provoke someone, or simply use it as a dumping site for the rubbish from my mind. Nevertheless, I will do it since it is complusory for marks. Haha
Well, the problem, which initially came to my mind, was that "what should I write in this blog?". Should I write something relating to finance and economics? Could I talk something about IE or MBA? Or should I simply use it as my journal - just to write anything or everything that happens to my life. As walking back home last night and wondering where I could find a place to eat, this idea of "A Donde Va" appeared in mind: to explore and introduce various restaurants, cafés and bars nearby IE or in Madrid. I will post pictures, address, location link from Google Map and the ¨co-starring¨person who accompanies me to the place.
For example, Chocolate con Churros at Chocolateria San Gines nearby Sol is one of my favorite places in Madrid
Chocolatería San Ginés
Address: Pasadizo de San Ginés, 5, 28013 Madrid, Spain
Tel: 913 656 546
Comparing to other places where the hot chocolate is watery and is probably prepared from instant hot chocolate powder, San Gines really uses high quality dark chocolate and condenses it into a thick ¨chocolate lava¨. The month'watering melted dark chocolate with crispy churros is a perfect combination for snack in a lazy afternoon. (but maybe not for those who follow serious diet though) On average, one only needs to pay around 2 Euros for a heart-melting treat. Defintely worth it.
Ok, so from now on I'll start posting my visits to the places like San Gines. So Here We Go. "A Donde Vas?"
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