Assignment Week 3:

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What Is Your Advice?
1/ Here are some strategic initiatives that Kimball can implement to help for its expansion:
1- To reduce costs, Kimball can start by automating operations with advanced
technologies, optimizing inventory management to minimize waste, and negotiating
bulk discounts with suppliers.
2- To raise barriers to entrants, Kimball can develop a unique product or service that will
be hard to replicate, or strengthen customer loyalty through superior quality and
service.
3- To establish high switching costs, Kimball can add loyalty programs or exclusive
benefits for repeat customers, and provide integrated services that make switching to
competitors costly or inconvenient.
4- To create new products and services, Kimball can innovate based on customer
feedback to meet evolving needs, or explore complementary products or services to
enhance the overall customer experience.
Here are some recommendations by Tyler:
Tyler could recommend to perform a market analysis to identify new growth
opportunities, invest in marketing to increase brand awareness among customers,
implement a robust data management system to monitor performance and make
informed decisions, and finally collaborate with professional advisors for strategic
planning and operational improvements. In conclusion, these steps will help Kimball
to develop its position and expand
2/ Tom and Terri’s advice likely holds merit if focused on addressing inefficiencies and
planning for growth.
Here are some Recommendations:
 Conduct a SWOT analysis and gather customer/operational data.
 Train employees and set clear, measurable goals.
Information Technology:
 POS System: Tracks sales, inventory, and customer data.
 CRM: Improves customer engagement and retention.
 ERP: Automates and integrates operations.
 Data Analytics: Identifies trends and optimizes processes.
New Perspectives:
1/ The POS system provides critical information for Liz and Michael to effectively manage
the restaurant. It offers real-time data on sales trends, customer preferences, and high-demand
menu items, enabling informed decision-making. It also tracks inventory levels, helping to
avoid shortages or overstocking.
Additionally, the POS system can monitor employee performance, such as order accuracy and
speed of service, which ensures operational efficiency. Financial data, including daily revenue
and expenses, allows the owners to assess profitability and identify areas for improvement. By
analyzing this data, Liz and Michael can take corrective actions, such as adjusting menu
offerings, optimizing staffing, or implementing targeted promotions, to maintain positive
results.
2/ The lack of data oversight in inventory and labor management can significantly impact
profitability. Poor inventory management may lead to food waste, stock shortages, or over-
purchasing, increasing costs unnecessarily. Similarly, inadequate labor management can result
in overstaffing, underutilization, or employee burnout, all of which affect efficiency and
customer satisfaction.An information system can address these issues by providing real-time
tracking and reporting. Inventory management systems can monitor stock levels, predict
demand, and reduce waste. Labor management tools can optimize scheduling based on peak
hours and track employee performance. Together, these systems enhance operational
efficiency, reduce costs, and improve profitability.
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Review Questions:
3/ A strategic information system should provide a competitive advantage, support long-term
goals, and enhance decision-making.
Strategic systems focus on innovation and market positioning, while operational systems
handle day-to-day processes and efficiency.
4/ An information system can achieve operational efficiency, improve customer satisfaction,
or enhance collaboration without targeting market share.
For example:
 Operational efficiency: Walmart uses IS to optimize supply chain logistics.
 Customer satisfaction: Amazon leverages data to personalize recommendations.
 Collaboration: Microsoft Teams enhances workplace communication globally.
5/ An organization planning a Strategic Information System (SIS) must have clear business
objectives, strong executive support, and a willingness to adapt to technological changes. It
should possess sufficient financial and technical resources, along with a data-driven culture.
Additionally, the SIS must align with the company’s competitive strategy and provide long-
term value.
7/ An SIS provides short-lived advantages because competitors can quickly adopt similar
technologies, reducing its uniqueness. Market dynamics, technological advancements, and
changing consumer expectations also shorten its impact. To maintain a competitive edge,
companies must continuously innovate and update their systems.
8/ Reengineering is the fundamental redesign of business processes to improve efficiency,
quality, and cost-effectiveness. It is often linked to IT because technology enables automation,
data integration, and streamlined workflows, making radical process improvements possible.
9/ Most reengineering projects fail due to poor planning, resistance to change, lack of
executive support, and underestimating the complexity of implementation. Additionally,
unrealistic expectations and inadequate communication can hinder success. Over time,
evolving technology, shifting market conditions, and workforce adaptation challenges have
also impacted reengineering efforts in some companies.
11/ To sustain the strategic benefits of an IS, an organization should continuously innovate,
update technology, and align the system with business goals. Regular performance
assessments, employee training, and strong cybersecurity measures are essential. Additionally,
fostering a data-driven culture and adapting to market changes help maintain a competitive
edge.
15/ Larger airlines face challenges that JetBlue did not, such as legacy systems, bureaucratic
structures, and resistance to change. High operational costs, union agreements, and complex
infrastructures make innovation slower. In contrast, JetBlue started with modern technology, a
flexible strategy, and a customer-focused approach, allowing it to implement efficient and
cost-effective solutions more easily.
16/ "First mover" refers to a company that introduces a new product, service, or innovation to
the market before competitors, gaining a competitive advantage through brand recognition,
customer loyalty, and market leadership.
Discussion Questions:
21/ Beyond technical expertise, the software company should have a strong reputation,
reliability, and experience in your industry. Good communication, flexibility, and a track
record of meeting deadlines are essential. Additionally, they should offer strong customer
support, data security measures, and scalability to accommodate future growth.
24/ Information systems are crucial in reengineering because they enable automation,
streamline workflows, and integrate data across departments. They enhance efficiency, reduce
costs, and improve decision-making, making radical process improvements possible.
27/ Information systems are crucial in reengineering because they enable automation,
streamline workflows, and integrate data across departments. They enhance efficiency, reduce
costs, and improve decision-making, making radical process improvements possible.