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Case No.3 Questions 1. in Which Ways Do Smart Phones Help These Companies Be More Profitable? To What Extent

Smartphones helped companies improve efficiency and reduce costs. CPS Energy saw a 65% reduction in time to close deals and an $8 million reduction in inventory. Lloyd's Construction reduced accounting costs by $1,000 per week and saw routing and job logging become 1.5 times faster. This led to a 10-12% improvement in performance, or $1 million, for a $50,000 investment. Employees resisted smartphone technologies due to fears over job security, failure, and distrust. To improve reception, companies should communicate effectively, involve leadership, address the root causes of resistance, and leverage the right technology. Smartphones allowed CPS Energy and Lloyd's Construction to create new services like remote diagn

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Gidey Yibeyin Gunner
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346 views2 pages

Case No.3 Questions 1. in Which Ways Do Smart Phones Help These Companies Be More Profitable? To What Extent

Smartphones helped companies improve efficiency and reduce costs. CPS Energy saw a 65% reduction in time to close deals and an $8 million reduction in inventory. Lloyd's Construction reduced accounting costs by $1,000 per week and saw routing and job logging become 1.5 times faster. This led to a 10-12% improvement in performance, or $1 million, for a $50,000 investment. Employees resisted smartphone technologies due to fears over job security, failure, and distrust. To improve reception, companies should communicate effectively, involve leadership, address the root causes of resistance, and leverage the right technology. Smartphones allowed CPS Energy and Lloyd's Construction to create new services like remote diagn

Uploaded by

Gidey Yibeyin Gunner
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case no.

Questions

1. In which ways do smart phones help these companies be more profitable? To what extent
are improvements in performance coming from revenue increases or cost reductions?
Provide several examples from the case.
The improvement On CPS energy Provider Company is, in one year, the time it took to close
purchasing and procurement deals decreased by more than 65 percent. Also, inventory levels
were reduced by more than $8 million since the Magellan Program began.
When we see Lloyd’s Construction before eTrace, the company paid an accountant 40 hours a
week to do the books. But after eTrace, that person comes in one day a week for 6 hours, saving
roughly $1,000 a week. Data entry and job logging by the dispatcher and foremen, this means 1½
times faster than paper and radio. More efficient routing has cut fuel costs by about 30 percent.
And employees have stopped making unauthorized stops. Lloyd estimates a net improvement in
performance of 10–12 percent, or roughly $1 million for 2007—not a bad return on $50,000. “It
really does work,”

2. The companies described in the case encountered a fair amount of resistance from
employees when introducing smart phone technologies. Why do you think this happened?
What could companies do to improve the reception of these initiatives? Develop two
alternative propositions.
The main reasons for resistance of introducing smart phone technologies is
 Loss of status or job security in the organization
 Fear of failure ( fear to adapt the new technology)
 Poor reward systems
 Fear of the unknown
 Peer pressure
 Climate of mistrust
 Organizational politics

1
So, the solutions of resistance are
 Expect resistance
 Identify the root cause of resistance
 Involve executive leadership
 Communicate effectively
 Leverage the right technology

3. CPS Energy and Lloyd’s Construction used smart phones to make existing processes
more efficient. How could they have used the technology to create new products and
services for their customers?

CPS staffers use their smartphones as digital cameras at work sites, as GPS tracking
mechanisms, and as emergency notification receivers. A single worker can visit a site, take a
photo of a damaged piece of equipment or infrastructure, and then send it back to headquarters or
the office. Then an expert diagnoses the issue and sends along instructions to fix the problem or
dispatches the appropriate worker, who is available immediately via voice e-mail and SMS text
via smart phone. On the other hand in Lloyd’s Construction in Eagan eTrace gave rise to a
delicate labor problem. The software featured integrated mapping and travel data that showed the
real-time locations of all company assets.

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