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Chapter 10 : Case Study-Solution

Kozmo.com was an online company that promised one-hour delivery in several major US cities. It used information systems like order entry, billing, and inventory control to manage operations. Customer webpages were also needed to support online services and transactions as an internet-based business.

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Naimmul Fahim
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41 views3 pages

Chapter 10 : Case Study-Solution

Kozmo.com was an online company that promised one-hour delivery in several major US cities. It used information systems like order entry, billing, and inventory control to manage operations. Customer webpages were also needed to support online services and transactions as an internet-based business.

Uploaded by

Naimmul Fahim
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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Chapter 10 (case study- solution)

Summary:
Kozmo.com was a venture-capital-funded online company that
promised free one-hour delivery of “videos, games, DVDs, books, foods,
basic & more and Starbucks coffee in several major cities in the states.
The main client of Kozmo.com is college students and young
professionals because it is bringing convenience to the people. For this
they have to go through many problems in following this free of cost
formula. But the chief operating officer find some solutions by looking
at the traditional businesses have in their way. As it’s now in 5 cities
and has announced plans to expand 30 markets, it has built warehouses
by driving a city into delivery districts from where they will transfer
products to the customer. They have also used different information
technology and other information system which can solve their
problem easily.
Questions
1) Why information technology is important to Kozmo.com?
Ans: - As kozmo.com is an internet-based business information system
is an important part for them. By using information technology, they
can-
 improve communication process
 be more efficient
 get protection against attacks
 get efficiency in employee’s workings
 increase employee engagement
 get expansion easily
 increase the capacity
 segment customer efficiently
That’s why information technology is important for them.

2) Which of the eight basic business information systems discussed in


the chapter are most important in this case, and why are they
important?
Ans: - Kozmo.com was a venture capital funded company that promised
free one-hour delivery of my things and doing so they have to maintain
some information systems to manipulate them. Among those
information systems discussed in this chapter, Order entry system,
Billing system and Inventory control system are very important for this
case. The purpose an order entry system is to accept orders for goods
or services and to prepare the orders in a form that can be used by the
business and as they run an online business this system is kind of
mandatory for them. The purpose of a billing system is to prepare the
customer’s bill or invoice. According to this system, Kozmo.com don’t
follow this part and that’s why it becomes important for them. Lastly
the purpose of inventory control system is to keep track of the
business’s inventory, to indicate when inventory should be recorded
and to compute the value of the inventory and this part is also slightly
followed by them which makes it important for them.

3) What other information systems are used in this case?


Ans: - The other information systems that is used in here is Marketing
Information Systems. The marketing function of a business is
responsible for selling goods and services. Marketing information
systems assist in the marketing function. The common marketing
information systems are-
 sales analysis
 sales forecasting
 marketing research
 direct mail advertising
 electronic commerce
 sales for automation

4) Why are customer webpages needed for Kozmo.com customers?


Ans: - In internet-based business where all the transactions are
occurred by their website, webpages become mandatory. By adding
custom webpages, they can-
 expand the customer base
 create more digital infrastructures
 support online services
 handle massive scale of sales
 customize products
 get unique shipping options
 get secured purchases
5) What information system is used when delivery deadline can’t be
met?
Ans: - Kozmo.com uses a product scheduling technique to measure
products availability & delivery capacity. So, if delivery deadline can’t
be met, they can do several works. such as,
 Auto generated massage system to customers phone
 automatic E-mail delivery system
 sending order confirmation template
 Updating the current status of the product on website

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