Scribd
Upload
79 views2 pages

Case #1 Background Railco LTD

RailCo Ltd is an established air brake parts supplier for railways that has grown from 12 to 40 employees over the past 20 years. It primarily sells parts in North America. RailCo uses outdated client-server systems for accounting, inventory, and contact management that are manually fed by clerks. Profit margins have declined as a competitor provides the same products more efficiently through online transactions. RailCo's largest client, Transit Line Systems, now uses the competitor's online system. RailCo must upgrade its automation environment and participate in online transactions with Transit Line Systems to remain competitive.

Uploaded by

Sankar Jaikissan
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
79 views2 pages

Case #1 Background Railco LTD

RailCo Ltd is an established air brake parts supplier for railways that has grown from 12 to 40 employees over the past 20 years. It primarily sells parts in North America. RailCo uses outdated client-server systems for accounting, inventory, and contact management that are manually fed by clerks. Profit margins have declined as a competitor provides the same products more efficiently through online transactions. RailCo's largest client, Transit Line Systems, now uses the competitor's online system. RailCo must upgrade its automation environment and participate in online transactions with Transit Line Systems to remain competitive.

Uploaded by

Sankar Jaikissan
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
You are on page 1/ 2

Case #1 background RailCo Ltd

RailCo Ltd. is an established parts supplier for railways, specializing in air brakes and related installation tools.
RailCo ships air brake parts internationally, but 90% of its sales are in North America. Though its primary line of
business is product resale, RailCo also has a small group of specialized technicians that are hired out locally
for installations and repairs.

2.2.1. History

Established in the early 90s, this company has gradually grown from a staff of 12 to 40. It started out as a
brokerage for various railway wholesalers, but then came to specialize in air brakes. The narrowed business
focus resulted in increased opportunities, as RailCo was able to become a wholesaler in its own right by
dealing directly with air brake parts manufacturers.

2.2.2. Technical infrastructure

Five employees and one manager are dedicated to full-time IT duties, responsible primarily for maintaining
client workstations and back-end servers. Custom development tasks have typically been outsourced to local
consulting firms, whereas periodic upgrades and maintenance fixes have been the responsibility of in-house
staff.

2.2.3. Automation solutions

RailCo's automated environment consists of the following applications:

o A two-tier client-server system governing all accounting and inventory control transactions. Two
administrative clerks manually feed this solution with standard transaction document data (primarily
incoming and outgoing purchase orders and invoices). Receipt and submission of these documents
typically initiates corresponding inventory receiving and order shipping processes.
o A contact management system in which customer and business partner profile information is stored
and maintained. This simple application consists of a database fronted by Web-based data entry and
reporting user-interfaces. Users range from managers to administrative assistants and accounting
personnel.

2.2.4. Business goals and obstacles

Profit margins have been noticeably declining over the past year. A recent review revealed that the overhead
associated with RailCo's current business processes is becoming less acceptable. Clients have been switching
to a competitor providing the same products in a more efficient manner and at a lower cost.

Further investigation led to the discovery that this competitor has implemented an extension to their existing
accounting system, allowing them to perform various transactions online via B2B solutions provided by some of
the larger clients. They have subsequently been able to reduce the staff required for processing orders, while
increasing response time and lowering their overall price point. A further unpleasant revelation was that
RailCo's primary client, Transit Line Systems, has started an online relationship with this competitor as well.

RailCo is a company with outdated technology automating inefficient business processes. It is looking to
overhaul its technical environment to better respond to new business trends and automation requirements.

To remain competitive and minimize losses, RailCo must upgrade its automation environment as soon as
possible. Its top priority is to participate in online transactions with TLS. Before our storyline begins, RailCo has
already hurried to build a pair of Web services (Figure 2.1) that enable it to connect with the existing TLS B2B
solution
Figure  RailCo's initial set of Web services, designed only to allow RailCo to connect to TLS's B2B solution.

The design of this solution, though, is revisited and expanded in Part V. By that point RailCo runs into some
limitations and decides to re-evaluate its environment in consideration of establishing an SOA. Further, RailCo
realizes that it must also seek new clients to make up for the lost sales to TLS. This new requirement ends up
also affecting the design of its SOA

Note that though technically a Web service with its own WSDL, the Invoice Submission Service frequently acts
as a service requestor, issuing invoice documents to a TLS Web service. It is important not to view this service
as just a Web service client program. It begins to perform more of a provider role in later chapters where it
evolves along with RailCo's SOA

You might also like