StyleFeeder is a personalized shopping tool which tracks and records the purchases of customers in order to provide them with future recommendations (1). This system is very similar to the Amazon.com setup which tracks which books consumers purchase in order to make suggestions on which items may suit the shopper’s personal preferences (1). StyleFeeder is thorough, weeding through thousands of different clothing designs in order to “take the guesswork out of what to buy"(1). Recently, Time Inc. has acquired StyleFeeder in an effort to tap the new, lucrative realm of e-commerce (1).
E-Commerce is like a new field of untapped raw materials, stretching to the horizon. In fact, in a financial year including one of the worst recessions since the Great Depression, companies specializing in internet sales, like Google, Amazon.com, or EBay saw an increase in business and fourth quarter profits (2). Even discount retail giant WalMart has tapped into the goldmine of e-commerce, vowing to "overtake Amazon.com." (3). Time Inc. specializes in advertising, but obviously has many competitors in this field. The need to tap into the online world of e-commerce isn't just recommended for success, it's necessary for survival. Pressures of a world moving towards globalization beget the need to be as efficient and low-cost as possible in order to stay alive. Traditional, mass-marketing forms of advertising, such as the television, and even pop-ups or banners placed on websites may only translate into marginal increases in sales. However, direct-marketing, still largely untapped, would provide customers with individual recommendations and could lead to even greater gains in sales for a smaller advertising cost. In the world of e-commerce, the competitive advantage for a firm lies in customer service and efficiency. StyleFeeder fulfills both these requirements with its technologically advanced system, offering a new solution for an advertising firm looking to lower its bottom-line.
What are the implications for us as consumers if our purchases are all tracked and then used to evaluate what we should purchase next? Furthermore, what implications are there in the burgeoning world of e-commerce? The benefits are clear: easy access to most products to fill any need from the comfort of home and with nothing more than the tap of a few keys. With StyleFeeder, consumers don’t even have to search for what they like. Instead, technology provides the answers for what they should be buying.
But what are the consequences?
In the past, sales were all about personal interaction. People visited department stores, browsed the collections offered, and often interacted with a member of the sales staff. While the dialogue was strictly professional, it was a way to venture out of the home, to interact with another human being, and to work towards the accomplishment of a task: a purchase. Maybe the consumer would shop with friends, grab lunch, and make a day trip out of the ordeal. In the end, after a search through many different options, the ideal product that matched the style preferences and needs of the customer was found. There was a sense of accomplishment. Maybe it’s anecdotal, but are we as humans losing something by foregoing this personal interaction, even the “thrill of the chase” in purchasing items, by resorting to a lonely computer screen that allows technology to make our decisions for us?
Imagine the world of car sales, one of the last remaining bastions of true, hardcore, selection-process shopping. The internet is a tool to search out the best price, to option out the vehicle of choice and to view different options, but ultimately a car-buyer needs to “walk the lot” to pick out the car that “feels right.” It’s not always logical. It’s emotional, it’s something physical. After that selection, an intense, exciting, strategic argument takes place over the sales desk to pound out the best number. At the end of the day, if the car-buyer leaves with his or her automobile, they feel the thrill of the sale and the excitement of a new car that they picked out. They may have “wasted the day” searching, but the purchase feels better because they had to work for it.
What if there came a time where a StyleFeeder type program got to know a person’s inner personality. Their wants, their dislikes, and even their needs. Direct marketing became as personal as DNA. Marketing systems, enhanced with automated production and delivery systems allowed technology to not only make our decisions for us, but to deliver on those decisions. Human input in this process wouldn’t even include thought, as it still does now. The tap of a few keys to start the algorithms would finish the process. Several hours later, a personally designed car based on a machine’s determination of your needs through logic would appear in your driveway. You never left your house. You never interacted with the sales team, or felt the warmth of the sun on your face while you walked the car lot. You never engaged in the camaraderie born from the dialogue between you and the salesman. You never wasted your time driving to different stores, walking the lots, or weighing your options. Your purchase was simple, your price was the best, and you got what you needed. In fact, it couldn’t possibly be any easier. But you’ve lost your emotions and you’ve missed out on an experience in the name of efficiency. Haven’t you lost something that makes you human?
See Article:
Shira Ovide. (2010, January 19). Time to Acquire StyleFeeder. Wall Street Journal (Eastern Edition), p. B.8. Retrieved February 11, 2010, from ProQuest National Newspapers Core. (Document ID: 1942356421).
http://online.wsj.com/article/SB10001424052748703626604575011191771805782.html?KEYWORDS=Time+to+Acquire+StyleFeeder
End Notes:
(1) Shira Ovide. (2010, January 19). Time to Acquire StyleFeeder. Wall Street Journal (Eastern Edition), p. B.9. Retrieved February 11, 2010, from ProQuest National Newspapers Core. (Document ID: 1942356421).
(2) Kelly Evans. (2010, January 21). Ahead of the Tape. Wall Street Journal (Eastern Edition), p. C.1. Retrieved February 11, 2010, from Wall Street Journal. (Document ID: 1944029391).
(3) Miguel Bustillo, & Geoffrey A. Fowler. (2009, December 15). Wal-Mart Sees Stores as Online Edge. Wall Street Journal (Eastern Edition), p. B.1. Retrieved February 11, 2010, from Wall Street Journal. (Document ID: 1921198751).
Thursday, February 11, 2010
The Supplier Side of Information Systems
Large software companies such as India’s Satyam Computer Services have fought hard to stay afloat in today’s vicious world economy since innovations in research and development are the backbone to such companies. Last year, the company came under fire for a controversial failed acquisition/merger that was responsible for investor unhappiness and leaders leaving the company. Because of the scandal, critics raised many questions such as “just how interested is this producer in their actual software products?” and “Are they more interested in profiting from similar controversial deals than in the actual quality of their product?” (1) During this crisis in India’s fourth largest software company, other companies stepped in to compete, in line with the threat from Porter’s Five Forces Model. In an attempt to turn things around, Satyam began to use communication skills to improve customer relationships. In addition, they placed much focus on the marketing, sale, implementation, and management of their new ERP systems.
This article is especially interesting because it shows the other side of Information Systems Technology. Instead of discussing a company that implements different systems so that they may run more efficiently, this article addresses a company that not only must implement their own similar systems, but also create and implement these systems for and in other companies. Because of this, they must stay updated with technologies as soon as they are created. One of these that are mentioned in the article is an Enterprise Resource Planning System for the US-based company Caterpillar. An Enterprise Resource Planning System is a collection of integrated software for business management, accounting, finance, human resources, project management, inventory management, service and maintenance, transportation, supply chain management, customer relationship management, and e-collaboration. It is a unified interface across the enterprise, with everything related to technology systems and software connected on one system. In my opinion, this is what Satyam should be trying to implement for itself, as the company has continued along a path towards destruction.
I also believe, however, that there are costs and benefits to implementing such ERP systems. Even IS companies are willing to admit there are many problems (2). These problems include expense, complex maintenance, need for many interfaces, no solid data about benefits or the ERP, and difficult updates. Although it may be beneficial to implement a software system used to manage and coordinate all resources, information, and functions of a business from shared data resources, it is also a risk to put everything together on one system. Therefore, a company must be fastidiously careful when deciding who may implement it. According to Business Week, Satyam has also had a history of fraud and rocky investor relations. Because of this, I would recommend that companies think twice before becoming customers of Satyam’s. It may be cheaper to outsource your Information Systems programs to an overseas company, especially in India, but this company has lost too much reputability in recent years between faulty deals, concern about software products, fraud, and bad customer reviews to take the risk. This statement is especially true with something as important as the company’s dependence on their entire Enterprise Resource Planning System and the information that it contains.
RESOURCES:
"Satyam Struggles to Keep Customers - BusinessWeek." BusinessWeek - Business News, Stock Market & Financial Advice. Web. 12 Feb. 2010. http://www.businessweek.com/globalbiz/content/jan2009/gb2009015_126729.htm.
" The Pros and Cons of Integrated and Autonomous ERP Systems." ERP Software from Lawson. Web. 11 Feb. 2010. http://www.lawson.com/WCW.nsf/pub/FB_43F44F.
"SATYAM COMPUTER SERVICES-ADR (SAY:US): Stock Quote & Company Profile - BusinessWeek." Investing & Stock Research by Company and Industry - BusinessWeek. Web. 12 Feb. 2010. http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=SAY:US.
Fast Internet Powered by Google
On Wednesday Google announced their plans to offer ultra high speed internet access to some communities. The plan is to build and test a high speed fiber optic broadband network capable of allowing people to surf the Web at a gigabit a second or about one hundred times the speed of many other broadband connections. Google’s announcement has generated mixed reviews. Supporters believe this is what American Internet Service Providers need in order to compete with internet services in other well developed countries. For example, Julius Genachowski, the chairman of the F.C.C. welcomed Google’s announcement, stating, “This significant trial will provide an American test bed for the next generation of innovative, high-speed Internet apps, devices and services.” While critics, however, believe that this is just another ploy of Google to remain the dominating hand on the industry. To critics, this is just another example of the internet search company using its money and industry influence to help shape the future of the Internet to its liking. Google announced its plans for a high speed network just as federal regulators were debating new rules for the Internet and preparing a national broadband plan commissioned by Congress that could call for higher-speed networks to be available nationwide. Chairman of Netcompetition.org, Scott Cleland, said, in response to Google’s “beat them to the punch” announcement, “This is mainly a P.R. stunt, with one hand Google is urging regulations that stifle broadband deployment, and with the other hand, they are saying that telecommunication companies should spend hundreds of billions to give ultrafast internet service to all Americans.” Despite the controversy, Google is set to fulfill its announcement with the a futuristic vision of the Internet, that includes live streaming of 3-D medical images from a rural health clinic to a specialized medical center and downloading of a full length movie in a matter of minutes and much more.
In my opinion, the competition that would be created if Google succeeds in establishing such a high speed network is much needed in the Internet Service Provider industry. The premise of the internet was to provide people with the ability to gather “instant” information, but in comparison to the speed of internet services in other developed countries such as Japan, Denmark and Sweden, American internet services seem rather “sluggish.” So, if Google’s success provides the necessary jolt for internet service providers to improve their services then by all means Google should continue. Also, I disagree with critic’s assumption that Google is trying to monopolize the industry. In one class session, we discussed traits that are attributed to successful business. Some words were visionary, efficient, adaptable, innovative, dominant and effective, all of which describe Google. Google is a business that wants to stay in business; therefore, they must to all things to maintain their relevancy and effectiveness. Google developers notice that Broadband speed in the United States lagged far behind those of other developed countries; in order to maintain the upper hand in the internet industry they have developed the fiber optic broadband system. This is not a public relations stunt for Google, but in fact, an example of them utilizing the Business Continuity Planning in order to remain a successful business. Developers analyzed a problem and organized and designed a strategic plan that would solve the problem. At this stage, before implementing the plan, Google must test to ensure the effectiveness and efficiency of the plan. Change and innovation is what keeps businesses going, so, if Google has developed something, other companies need to follow suit.
In my opinion, the competition that would be created if Google succeeds in establishing such a high speed network is much needed in the Internet Service Provider industry. The premise of the internet was to provide people with the ability to gather “instant” information, but in comparison to the speed of internet services in other developed countries such as Japan, Denmark and Sweden, American internet services seem rather “sluggish.” So, if Google’s success provides the necessary jolt for internet service providers to improve their services then by all means Google should continue. Also, I disagree with critic’s assumption that Google is trying to monopolize the industry. In one class session, we discussed traits that are attributed to successful business. Some words were visionary, efficient, adaptable, innovative, dominant and effective, all of which describe Google. Google is a business that wants to stay in business; therefore, they must to all things to maintain their relevancy and effectiveness. Google developers notice that Broadband speed in the United States lagged far behind those of other developed countries; in order to maintain the upper hand in the internet industry they have developed the fiber optic broadband system. This is not a public relations stunt for Google, but in fact, an example of them utilizing the Business Continuity Planning in order to remain a successful business. Developers analyzed a problem and organized and designed a strategic plan that would solve the problem. At this stage, before implementing the plan, Google must test to ensure the effectiveness and efficiency of the plan. Change and innovation is what keeps businesses going, so, if Google has developed something, other companies need to follow suit.
Dell acquires Kace Networks
On Thursday Dell announced that the company would acquire the security vendor Kace Networks, which is a popular systems management program. In buying Kace Dell hopes to "expand its system management offering for small- and medium-sized businesses."[1] Kace specializes in providing security to mid-level businesses and Dell hopes to generate greater return on investment by allowing Kace Networks to expand operations within Dell's company. Dell did not comment on any potential layoffs from the acquisition and plans to keep Kace in tact by continuing operations from the company's headquarters in Mountain View, California. By making this move and keeping Kace's operations separate from their own, Dell hopes to cater to the medium businesses while keeping its customer service relationship high with sustained efficiency.
This was a smart investment for Dell to make, it allows them to build new relationships with more clients in different markets while managing the new wing of the company from a distance. Security issues are ever increasing for every company and the need for more efficient system management is obvious for businesses across the board. Kace's Kbox series gives Dell the ability to automatically update servers and software from a distance giving its clients an easy way to save time and money. Dell will gain an advantage in the smaller markets over other companies like IBM and HP who manufacture similar system management tools for larger companies. Dell will also be able to make Kace's manufacturing much more efficient allowing them to build on the existing relationships that Kace has established with smaller firms. Kace's former CEO Meinhardt said that, "For our customers this translates to increased product development investment, greater international support, and higher levels of support that come with joining forces with one the world’s leading technology companies,"[1] Kace should expect to see rapid development from the merger and its clients should see substantial advances from the move making this beneficial for all parties involved.
This move was clearly aimed at making new relationships with customers for Dell and goes along with the idea that most companies going forward need to find ways to increase customer satisfaction. Not only does the merger coincide with customer service, but also with the growing trend of being consciousness of network security. By making this move Dell is trying to make higher level system management tools available to smaller businesses. This would appeal to the small businesses who need the opportunity to implement new servers and the availability of multiple system management tools without the need of adding new positions or rearranging their operations to maintain the network. The implementation and ease of use for Kace's systems is a big reason that companies choose the Kbox series and will only improve with Dell's funding. "KACE says most of its customers have deployed their KBOX appliances in a week or less, and almost two-thirds said the products paid for themselves in less than three months."[2] If medium size businesses return their investment that quickly it would be hard to imagine that Dell would not gain from this investment in Kace Networks.
Article:[1] http://www.infoworld.com/t/mergers-and-acquisitions/dell-acquires-systems-management-vendor-kace-044
Additional Sources:
[2] http://blogs.zdnet.com/BTL/?p=30687
This was a smart investment for Dell to make, it allows them to build new relationships with more clients in different markets while managing the new wing of the company from a distance. Security issues are ever increasing for every company and the need for more efficient system management is obvious for businesses across the board. Kace's Kbox series gives Dell the ability to automatically update servers and software from a distance giving its clients an easy way to save time and money. Dell will gain an advantage in the smaller markets over other companies like IBM and HP who manufacture similar system management tools for larger companies. Dell will also be able to make Kace's manufacturing much more efficient allowing them to build on the existing relationships that Kace has established with smaller firms. Kace's former CEO Meinhardt said that, "For our customers this translates to increased product development investment, greater international support, and higher levels of support that come with joining forces with one the world’s leading technology companies,"[1] Kace should expect to see rapid development from the merger and its clients should see substantial advances from the move making this beneficial for all parties involved.
This move was clearly aimed at making new relationships with customers for Dell and goes along with the idea that most companies going forward need to find ways to increase customer satisfaction. Not only does the merger coincide with customer service, but also with the growing trend of being consciousness of network security. By making this move Dell is trying to make higher level system management tools available to smaller businesses. This would appeal to the small businesses who need the opportunity to implement new servers and the availability of multiple system management tools without the need of adding new positions or rearranging their operations to maintain the network. The implementation and ease of use for Kace's systems is a big reason that companies choose the Kbox series and will only improve with Dell's funding. "KACE says most of its customers have deployed their KBOX appliances in a week or less, and almost two-thirds said the products paid for themselves in less than three months."[2] If medium size businesses return their investment that quickly it would be hard to imagine that Dell would not gain from this investment in Kace Networks.
Article:[1] http://www.infoworld.com/t/mergers-and-acquisitions/dell-acquires-systems-management-vendor-kace-044
Additional Sources:
[2] http://blogs.zdnet.com/BTL/?p=30687
iQor looks to save costs by using thin clients
Last semester when I went to work, I would see the tradition blueprint of any company, including Loyola- individual offices with their own PCs. I imagine if you walk into any company, you would most of the time see cubicles all with their own desktop PCs or laptops. Working at Loyola, I do know that the individual computers all have their own C drives where they store data on their computer, and then there are also network drives, which are shared by the computers in a given department.
Seeing this as the traditional model, a company, iQor, a call center company, has decided that individual PCs were too much of a hassle to maintain, for "50 cents on the dollar maintaining it", says Vikas Kapoor, the CEO of iQor(1). For a whole PC, this is A LOT of money every year. Loyola has a call center, "phone-a-thon", that operates like this- individual PCs for every phone line. Each call station has its own computer, its own cpu, monitor, keyboard, and mouse. The program that lets users call is shared by a central server.
Seeking an alternative, iQor has opted for thin clients- what they call "lollipops"(1). These are stripped down computers that aren't equipped with hard drives(1). These "lollipops" rely on a central server for most of their functions, processing and storage(1). This is much like the client/server model that has been discussed in class. This model, especially for a company like this, is much more efficient than the traditional model. For iQor, they have a lot of information- phone numbers, addresses, probably social security numbers- for a long list of clients. If everyone has access to that information in their call center, it will make it much more efficient. No more asking around to get information, or a report on a client. Now employees are empowered and have all client information at their disposal. Also, if the "lollipop" fails, you throw it out and get another one(1). The article I read doesn't give it a price specifically, but there are pictures attached to the article that suggest thin clients go for around $ 200. The thin clients also use way less energy than a PC computer. Besides, what would a calling associate have to do other than make and receive calls? Not much on a traditional PC is needed for this business employee. In addition, for the most part, people don't use nearly all the hard drive space that is given to them on a computer. So, in addition to time, energy, and accessibility, the thin client model improves hard drive storage space for iQor.
However, a downfall of this model is that if the server goes out, all of the "lollipops" are out of order. Without the server, the "lollipops" can't do any work. This makes the server the most vulnerable and targeted area when hackers try to hack into a business. Installing the new thin clients might take some time, as well as disposing of the PCs while maintaining their stored data. Transferring data as well from the PCs to the server might take a considerable amount of time as well.
In addition, iQor has made this decision to cut costs. iQor "expects to cut its IT staff to about a quarter of its previous size"(1). Some people might look at this statement and say, "bad- it's a bad economy, people are losing jobs". This is the approach if you don't want to critically think about the good that can come out of this. The company becomes more efficient. IT adds only secondary value to a company usually. If costs can be cut in this division, they will be. This will free up considerable capital for the company to use, whether it be through reinvestment, dividends, or paying its employees more. In addition, all the IT workers that will be cut will find new jobs. IT is obviously a rapidly growing field so there should be no problem for them, even in this economy. In addition, when people are laid off, they either sulk or they get moving on a new job- or a new idea. Lay-offs can foster new business ideas- way to make businesses more efficient, or in some cases, new ideas all together-sometimes revolutionary.
Loyola could easily implement this client/server model to its campus call center. This would make the center more efficient, use less energy (Loyola claims to be going green), and cut maintenance costs it could incur. It would probably be easier to have everyone able to access the same data at any time. The thin client model makes companies, and particularly iQor, more efficient and can help spur more growth within a company through lower costs for the IT sector of a company.
See article:
King, Rachael. "Companies seek alternatives to the old desktop PC," BusinessWeek, January 4, 2010, http://www.businessweek.com/technology/content/jan2010/tc2010014_392808.htm (accessed February 11, 2010).
End notes:
1. King, Rachael. "Companies seek alternatives to the old desktop PC," BusinessWeek, January 4, 2010, http://www.businessweek.com/technology/content/jan2010/tc2010014_392808.htm (accessed February 11, 2010).
Pegasystems Inc. Releases Revolutionary CRM System
Legacy Customer Relationship Management systems have been found as a hindrance in many businesses as they try to retain customers and increase profits, forcing them to resort to other cost saving initiatives such as decreasing operational spending. A major global survey based on international businesses across the UK, Europe, and the U.S. found that “62% of respondents saw differentiating their value proposition by customer service rather than by product as essential” (1). Furthermore, it was found that 74% of customers were “very likely” to buy more from a company who’s service was excellent and went above and beyond that which was expected.
Call centers were found to be one of the major issues with existing CRM systems held by the companies in the survey. Only slightly more than half of the businesses surveyed have a CRM system that goes beyond the call center, and “only two in five have customer service represented at the board level” (1). Pegasystems Inc. has created a process-driven CRM system that allows a business to “look across the whole organization as a part of a fully joined-up, end-to-end process, in dealing seamlessly with the customer’s issue”(1). A business can achieve this customer relation method either by completely transforming their existing enterprise, or through an extended process of implementing new systems with the old, both of which are cost effective, quick, and provide “customer service benefits”(1).
The Pegasystems’ Customer Process Manager is built on its “SmartBPM platform” which allows businesses to boost operations, transform the customer experience, and reach new markets, which was found to a be another major problem with existing CRM systems in multi-national firms. Alan Trefler, CEO of Pegasystems Inc. believes that “Because of the rising debt levels in the US, businesses will use information technology to boost productivity and fuel growth”(2). They will also need to reach new global markets because of the “tapped-out US consumers” (2) who were previously their main source of growth.
I feel like the CRM by Pegasystems Inc. is a strong solution to the constantly evolving customer. It is “outside-in” (3) focused rather than “inside-out”, meaning it is entirely devoted to meeting the needs of the customer and not selling more goods and services to achieve growth. The new CRM system “eliminates callbacks and reworks” (3) and provides “consistent customer experience across all interaction channels”(3). I have had countless bad experiences with call center customer service in the past with companies such as Verizon and Comcast, and it definitely had a negative impact on those respective companies. Aside from the actual systems and products of Pegasystems Inc., which prove to be superior to most existing systems in assisting other companies grow, it is important to realize the growth of Pegasystems Inc. itself. Knowledge Rules Inc., a “highly specialized consulting organization focusing exclusively on Pegasystems rule-based technologies in workflow, BPM and CRM applications” (4) has earned the 1141 position on the 2009 Inc. 5000 list of the fastest growing private companies in America. In another article entitled, “TechWeb’s Intelligent Enterprise Announces 2010 Editor’s Choice Winners Showing Exceptional Vision, Innovation and Leadership”, Pegasystems Inc. Was awarded third place for “Companies to Watch”(5). It seems that Pegasystems Inc. is growing as fast as the companies it provides its services to.
References
1.“Traditional CRM Is Not Delivering Desired Customer Experience Transformation,” Wall Street Journal- Market Watch, February 9, 2010, http://www.marketwatch.com/story/traditional-crm-is-not-delivering-desired-customer-experience-transformation-2010-02-09?reflink=MW_news_stmp, (Accessed February 10, 2010)
2. Robert Weisman,“What will business as usual look like?” Boston Globe, March 15, 2009, http://www.boston.com/business/articles/2009/03/15/what_will_business_as_usual_look_like/, (Accessed February 10, 2010)
3.“Six Competitive Differentiators for Delivering a Better Customer Experience,” Pegasystems Inc., February 1, 2010, http://www.1to1media.com/view.aspx?docid=32162, (Accessed February 10, 2010)
4.“Explosive Growth in Pegasystems BPM Software Fuels Rapidly Emerging Market for Knowledge Rules,” Knowledge Rules Inc., December 18, 2009, http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docKey=600-200912171548PR_NEWS_USPR_____PH28200-30RSQRFG1H92MRIS4MPQKEPOC2&provider=PR%20Newswire&docDate=December%2018%2C%202009&press_symbol=227325&scp=3&sq=pegasystems&st=cse, (Accessed February 10, 2010)
5.“TechWeb’s Intelligent Enterprise Announces 2010 Editor’s Choice Winners Showing Exceptional Vision, Innovation and Leadership,” TechWeb, February 11, 2010, http://finance.yahoo.com/news/TechWebs-Intelligent-prnews-2709093336.html?x=0&.v=1, (Accessed February 11, 2010)
Qatar Steel Chooses GE Intelligent Platforms Proficy Software to Increase Efficiency and Decrease Costs
Since the 1970's, the Middle East has become an important region of the world with regards to the steel production industry. Forbes recently published an article, entitled "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production," which explains that Qatar Steel, a forerunner among Middle Eastern companies in the production of raw steel, recently announced its plan to implement GE Intelligent Platforms Proficy(R) Software "to provide a complete production management solution designed to improve operating efficiency through a reliable and optimum production process" [1]. The software focuses on collecting data from various systems involved in the production process to allow Qatar Steel to more effectively monitor important measurements of performance.
Qatar Steel was named one of the top four steel producers in the Middle East in October 2008, and, according to its website, it has "garnered a reputation for unrivaled quality, flexibility and reliability" [2]. The article claims, "The Middle East is expected to produce over 60 million tons of raw steel by 2010" [3], which is supported by Director and General Manager of Qatar Steel, Sheikh Nasser Bin Hamad Al Thani, on the company website. Even as a forerunner in a growing and very profitable industry, Qatar Steel needs to find ways to stay ahead of the competition. That is why the company signed a contract with GE Intelligent Platforms to use IT in order help it gain a competitive edge in the steel production industry.
According to Malek Hamdieh, Manager of IT for Qatar Steel, the contract with GE was offered after "an exhaustive evaluation process including current and future requirements analysis, return on investment scenarios and implementation methodology" [4]. It is worth $2 million and spans 14 months, which is how long it will take to implement the software solution. The solution will solve the main problem in Qatar Steel's production plant, which is monitoring the input of raw materials into the plant, an essential aspect of maximizing efficiency. I like how the article gives details of the contract and lays out exactly what problem the Proficy Software will be solving.
The article does not stop at "what", however; it goes on to explain how the software will positively affect the production process. Quotes from various company executives and a short explanation of how the software works give insight into the specific ways in which the Proficy Software will increase production efficiency and decrease time spent locating and streamlining information.
At the end of the article, a brief synopsis of the functions of the Intelligent Platforms division of GE is given, which gives the reader a broader sense of the importance of IT, whether used in business or otherwise. For example, the United States Military uses "GE Fanuc vetronics solutions" in "ground combat vehicles" which allows them to be "more maintainable and more inexpensive" [5]. For Qatar Steel, the Information Technology provided by GE helps it keep a competitive edge, but for other clients, including those involved in protecting the environment, GE provides IT that is solving major world problems.
Link to the article:
http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html
References:
[1] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[2] "Qatar Steel Named in Top Four Steel Producers in Middle East." Qatar Steel. 19 Oct. 2008. Web. 11 Feb. 2010. <http://www.qasco.com/news/detail.php?ID=922>.
[3] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[4] Ibid.
[5] Howard, Courtney E. "Warfighters call for innovative, responsive, and reliable vetronics in combat vehicles." Military & Aerospace Electronics Magazine Online. Web. 11 Feb. 2010. <http://mae.pennnet.com/display_article/367892/32/ARTCL/none/EXCON/1/Warfighters-call-for-innovative,-responsive,-and-reliable-vetronics-in-combat-vehicles/>.
Qatar Steel was named one of the top four steel producers in the Middle East in October 2008, and, according to its website, it has "garnered a reputation for unrivaled quality, flexibility and reliability" [2]. The article claims, "The Middle East is expected to produce over 60 million tons of raw steel by 2010" [3], which is supported by Director and General Manager of Qatar Steel, Sheikh Nasser Bin Hamad Al Thani, on the company website. Even as a forerunner in a growing and very profitable industry, Qatar Steel needs to find ways to stay ahead of the competition. That is why the company signed a contract with GE Intelligent Platforms to use IT in order help it gain a competitive edge in the steel production industry.
According to Malek Hamdieh, Manager of IT for Qatar Steel, the contract with GE was offered after "an exhaustive evaluation process including current and future requirements analysis, return on investment scenarios and implementation methodology" [4]. It is worth $2 million and spans 14 months, which is how long it will take to implement the software solution. The solution will solve the main problem in Qatar Steel's production plant, which is monitoring the input of raw materials into the plant, an essential aspect of maximizing efficiency. I like how the article gives details of the contract and lays out exactly what problem the Proficy Software will be solving.
The article does not stop at "what", however; it goes on to explain how the software will positively affect the production process. Quotes from various company executives and a short explanation of how the software works give insight into the specific ways in which the Proficy Software will increase production efficiency and decrease time spent locating and streamlining information.
At the end of the article, a brief synopsis of the functions of the Intelligent Platforms division of GE is given, which gives the reader a broader sense of the importance of IT, whether used in business or otherwise. For example, the United States Military uses "GE Fanuc vetronics solutions" in "ground combat vehicles" which allows them to be "more maintainable and more inexpensive" [5]. For Qatar Steel, the Information Technology provided by GE helps it keep a competitive edge, but for other clients, including those involved in protecting the environment, GE provides IT that is solving major world problems.
Link to the article:
http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html
References:
[1] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[2] "Qatar Steel Named in Top Four Steel Producers in Middle East." Qatar Steel. 19 Oct. 2008. Web. 11 Feb. 2010. <http://www.qasco.com/news/detail.php?ID=922>.
[3] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[4] Ibid.
[5] Howard, Courtney E. "Warfighters call for innovative, responsive, and reliable vetronics in combat vehicles." Military & Aerospace Electronics Magazine Online. Web. 11 Feb. 2010. <http://mae.pennnet.com/display_article/367892/32/ARTCL/none/EXCON/1/Warfighters-call-for-innovative,-responsive,-and-reliable-vetronics-in-combat-vehicles/>.
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