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Global & Large-Scale Information Systems

Fernando Morales

Jorge Sotomayor 105610

Case 1: Operation & Logistics in a successful Mexican company

Estafeta’s technology incorporation in logistics to amply its revenue

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Pregunta

¿Quién ha recibido algún paquete de Estafeta ?

Pregunta

¿Quién ha enviado algún paquete?

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Logistics

• The process of planning, implementing and controlling the efficient and effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements (Logisticsworld.com, 2008).

Logística de Estafeta

¿Cómo lleva Estafeta a cabo este proceso de logística?

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Sobre Estafeta• Fundada en 1979.• Más de 4500 empleados.• Más de 1800 fletes vehiculares.• Fletes aéreos: 5 Boeing 737-300 F y 2 Bombardier CRJ 100.• Más de 500 zonas de descarga en México.• Centros de operación: 55.• Más de 8000 clientes regulares y miles casuales.• En promedio 2.1 millones de paquetes enviados al mes.

Caso

• ¿Cómo es que pueden llevar a cabo un proceso tan complejo?

http://www.youtube.com/watch?v=bf0WkK0KG7w

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¿Cómo la tecnología da valor a la compañía?

• Rodolfo Cobos Sainz, director de planeación de Estafeta, nos dice: “desde hace mucho tiempo la empresa le ha apostado a la tecnología como una ventaja competitiva. De hecho, hoy en día es lo que nos diferencía en muchos casos de otras firmas que ofrecen los mismos servicios”.

Tecnología de logística aplicada

• Tecnología: MySAP CRM.• Decidieron que la mejor solución era SAP

gracias a su solidez y liderazgo en elmercado, porque daba soporte y desarrollocontínuo de sus aplicaciones.

• El proceso de MySAP CRM los convenció conNetWeaver que es una plataforma basada enWeb que permite conectar distintasaplicaciones SAP o externas.

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Cotizador en línea

Sistema de Rastreo

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Beneficios al aplicar esta tecnología

• La adopción de CRM y en especial el uso dedispositivos móviles, ha colocado a Estafeta en lavanguardia tecnológica.

• Implementaron la versión mobile sales handled 5.0• Para poder implementar esta versión, que aún no

había sido liberada, tuvieron que trabajar con gentede soporte en Alemania, personal de desarrollo enIndia, todos ellos coordinados por SAPlatinoamérica.

Pregunta

• ¿Qué inconvenietes y ventajas sepudieron haber generado al tener quetrabajar con gente de Alemania e India,y al mismo tiempo interactuar con SAPlatinoamérica?

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Servicios de logística

• Servicio puerta a puerta.• Recolecciones y entregas en tiempos definidos.• Rastreo GPS.• Guía por pallet.• Confirmación electrónica de entrega.• Documentos de acuse de recibo.• Servicio de seguro opcional.

Cobertura en México

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Clientes

Clientes (Fullfilment)

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Case 2: Outsourcing in sales supply chain

Hp plus FedEx Large-Scale Information System

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HP’s Case

• Provide the best technology products available.

• Exceed customer expectations.

• So, in August 1997, HP decides to create an Internet sales channel to “go direct” to its customers, specifically an e-commerce store.

HP‘s objectives for this case

• Create a convenient and easy way to access products, accessing U.S. households through an extensive distribution network.

• Strengthen consumer relationship.• Manage demand.• Increase revenue and reduce cost.• Prove expertise in information technology.• Experience in electronic commerce and supply

chain management.

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HP’s special needs in a provider

• Analyze business processes, assess opportunities, and recommend a solution.

• Integrate multiple solutions from various alliance partners with HP business processes to meet customer needs.

• Oversee the supply chain and information management components of the solution, thus freeing HP to focus on strengthening customer relationships.

• Quickly deliver the solution to market.

How FedEx fits in

• FedEx proposed a flexible, scalable, and integrated solution that helped build the online business.

• FedEx partners bring an online solution.

• FedEx delivers an integrated solution that meets consumer needs.

• FedEx manages the entire delivery process.

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Shipping & Delivery Process

Sales channel

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Sales channel

Technology involved

• Almost all transactions occur via Web Services.

• FedEx has its own Web Services, that are used by company customers and delivery customers.

• Delivery customers use this Web Services in Web as a consult service. Company customers integrate this Web Services to their company applications to do some operations and documentation with FedEx.

• FedEx has its own platform named FedEx Ship Manager Server, which gives control over customers in different

locations. This is allocated in the company data center.

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Technology involved

• For package tracking, they use bar-code and radio-frequency technology.

• This provide an efficient and real-time inventories as a service for other companies.

Warehouse management

• FedEx is the proprietary of the warehouse, providing HP warehouse services.

• In this way, HP know its sales and service information, so it could improve and include marketing solutions or solving an specific product problem.

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Inventory management

• HP monitors its real-time inventory in Memphis FedEx Fulfillment center.

• Clients could track their shipping through the web or the customer service phone number.

• Customers can return their products through the same channel, giving HP the possibility to track the returned product through FedEx Return Manager.

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Benefits & Results

• HP’s online store was launched in early 1998 and experiences revenue growth of over 500% annually.

• HP decreases returns cycle times by 80% and per unit return product costs by 70% through FedEx Return Manager.

• Online status tracking offers complete visibility throughout the returns process.

• Learned more about how our customers shop for and buy their products.

• Capture online customers. Recently this customers recommend HP’s products through social networks, incrementing sales significantly.

A happy ending…

• http://www.youtube.com/watch?v=89SKOBQTEuY

• http://www.youtube.com/watch?v=WAKhtYgoIqE&p=0E6FB7164CF683D8&playnext=1&index=3

Or not…

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Questions

• Who is guilty of what happened?

• How does HP has to react to this kind of situations?

• Are customers always guilty of malfunction or missing parts?

• How do we improve this service?

One possible solution

• The problem of subcontracting is a delicate and risky matter to both companies, compromising their status.

• One possible solution could be that FedEx commits to HP to complement the service.

• How? Very simple, this service needs FedEx deliverers become HP’s technicians.

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One possible solution

• So, whenever there’s a delivery, FedEx deliverers/technicians supports the client to install and verify the product in order to check the conditions of the product.

• If the customer doesn’t approve the state of the product, the deliverer/technician will take note of the problem and make the return process immediately.

One possible solution

• If the customer approves the state of the product, the deliverer/technician will take note that the product was in perfect condition until the delivery.

• This will help HP to track the quality of the service, so if the customer calls after the delivery, the most probable cause of malfunction was because of the customer and not the deliverer.

• There could also be some hardware malfunction that should be taken care of HP.

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Conclusions

• Advantages:– When you make outsourcing, you reduce cost

significantly.– A good integration of the solution could bring the

expected and other results.

• Disadvantages:– When a company does outsourcing, the company

doesn’t have absolute control on the product.– The incorrect operation of the outsourcing company

could bring risks to the buyer company.

Case 3: Global Information System Case

ASTA & Orbitz technological implications

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Question

¿Who has bought airline tickets through the Internet?

About ASTA

ASTA, short for the American Society of Travel Agents, isthe world's largest association of travel professionals. Ourmembers include travel agents and the companies whoseproducts they sell such as tours, cruises, hotels, carrentals, etc. We are the leading advocate for travelagents, the travel industry and the traveling public.

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Consumers

Members and tools

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Consumer’s Web Site

Orbitz

Orbitz is an Internet travel company.Through its primary web site Orbitz.com, Orbitz Worldwide enables travelers to research, plan and book a broad range of travel products, facilitating 1.5 million flight searches and one million hotel searches every day.

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Orbitz & IBM

Orbitz for Business, announced it will seamlessly integratetravel reservation data into IBM's Global Expense ReportingSolution (IBM GERS) in order to offer its corporate travelcustomers more flexibility and choice in how they manageand report travel expenses. The announcement bolstersthe Orbitz for Business portfolio of expense managementsolutions at a time when chief financial officers andcorporate travel managers are looking for greaterintegration, automation and control in how they managetravel expenses.

Orbitz & IBMIBM GERS will give Orbitz for Business customers a standard, scalable expense management option that supports multiple currencies, languages and corporate cards. Key features and functionality include:•One seamless tool with real-time visibility and analysis for booking and expense data•Automated credit card expense and travel reservation matching•Easy-to-use interface that helps accelerate online tool adoption and reduce costs•Enhanced corporate travel policy control and compliance•Global coverage supported by country-level travel policies and practices

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Orbitz TechnologyOrbitz runs on a Red Hat Linux, Sun Solaris based platform andwas an early adopter of Sun's Jini platform in a clustered Javaenvironment. Both JBoss and Oracle WebLogic Server are usedas application servers within their environment along withvarious other proprietary and open source software. Orbitzlicenses ITA Software's Lisppowered QPX software to powertheir site. Orbitz and ebookers are developing a commontechnology platform, which would enable the same platform toservice multiple travel brands in multiple languages in differentmarkets and currencies as well.Orbitz has released parts of its Complex EventProcessing infrastructure as Open Source.

Case 4: Mexico vs. India

Tiempo Development vs. Infosys. Outsourcing opportunities for Global

Information Systems

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About Infosys

• Founded on July 2, 1981.• Indian company, HQ located in Bangalore.• Helps companies improve sustainability.• Not only outsources to US, also almost every corner of

the world, among China, Germany and Japan.• Infosys has offices all over the world, in 29 countries,

including Mexico (Monterrey), spread in all continents.• Works in 21 industries, including Health, Automotive,

Manufacturing and Education.• 114, 822 employees around the world.• It has 5 billion dollars in revenue.

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Infosys’s Services• Consulting Services:

– Information & technology Strategies.

– Product Innovation.– Next Generation Commerce.– Core Process Excellence.– Learning & Complex Change.

• Engineering Services:– Lifecycle Management.– Manufacturing Process and

Plant Solutions.– Product Engineering.

• BPO Services.• Software Outsourcing.

• IT Services.– - Knowledge Services.– Packaged Application

Services.– SOA Services.– System Integration Services.– Application Services.– Architecture Services.– Independent Validation and

testing Services.– Information Management

Services.– Infrastructure Services.

Infosys’s Products

• Finacle.• Flypp.• Infosys ActiveDesk.• Infosys iEngage.• Infosys iProwe.• Infosys mConnect.• Infosys Research On Demand.• Infosys Unified Communications and Collaboration (UC)• iTransform.• Supply Chain Visibility.

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Infosys Advertising

• http://www.youtube.com/watch?v=bFhdAAiSb4U

About Tiempo

• U.S.-based company.• Partnerships with National, State and Local

Agencies and Mexico Colleges and Universities.• Apply Agile Methodologies.• Founded in 2006. • Growth:

– 300% in 2008. – 40% in 2009. – 100% in 2010 (expected).

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Vangtel‘s Advantages

• Nearshoring.• Operate and collaborate in real time as part of the

buyer company’s software team during operation times.

• Shorten development cycle, increase output and doesn’t increase the budget during development.

• Quality service.• Degreed English-speaking developers.• Intellectual property protection.• 50% savings compared to hiring permanent local

employees.

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Tiempo ’s Quality

• CMMI/TMMI Certifications.• Microsoft Gold Certified Partner.• Team Development staff specialist:

– Program Manager.– Senior Software Engineer.– Software Developer.– Senior Test Engineer.– Test Engineer.– Test Analyst.– Software Testers.

Tiempo ‘s Services

• Services:– Application Services:

• Design, Analysis, Development, Test and Support & Maintenance.• Outsourced resources or project delivery models.

– Testing Services:• Functional testing.• Regression and Test Automation.• Performance Testing.

– Software Quality Assurance (SQA).– Resource Group:

• IT Staff augmentation onsite and offsite. • Turnkey programs (Base Point Operations (BPO), shelter).

• Participation in all Software Development Life Cycle (SDLC).

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Tiempo’s Technologies• Expertise in the following technologies:

– C++.– .NET:

• C#.• ASP.net.• VB.

– SQL.– SharePoint.– Java.– PHP.– Flash.– Action Script.– HTML.– Cold Fusion.– Google Open Social.– Others.

Hypothetical case

• Imagine you’re CIO in a big US company. Knowing the expense cost of a new software component for the Global Information System of the company, you decide to do some outsourcing.

• You come in contact with Infosys (Bangalore) and Tiempo Development. Considering the following table, which would you choose to contract?

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Cost of opportunityFactors Tiempo Development Infosys Both

Distance

Time Zone

Arrange meetings

Travel Cost

Travel Time

Culture

Business Culture

Agile Development

Technical Talent

Product Cost

Variety of products &/or services

Tech support

Cost of opportunityFactors Tiempo Development Infosys Both

Distance O X XTime Zone O X XArrange meetings O X X

Travel Cost O X XTravel Time O X XCulture O X XBusiness Culture O X X

Agile Development X X OTechnical Talent X X O

Product Cost X X OVariety of products &/or services X O XTech support O X X

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Cost of opportunityFactors Tiempo Development Infosys

Distance Nearshore (hundred of miles) Offshore (thousand of miles)

Time Zone No time difference 10-12 hour difference

Arrange meetings In-work schedule (instant meetings) Off-work schedule

Travel Cost Low cost (car & plane) Expensive flights

Travel Time Couple of hours (car & plane) Multi-day

Culture Share some habits and traditions Very different

Business Culture Almost the same Vary

Agile Development Real-time coordination Late-night meetings

Technical Talent High quality High quality

Product Cost Low cost Low cost

Variety of products &/or services Few Lots

Tech support Accessible Delayed service

Hypothetical case

• Now imagine you’re CIO or CEO in a Mexican IT outsourcing company (like Tiempo Development) and you want to create a better offer to US companies in order to overcome Indian companies.

• Using Indian and other outsourcing companies as reference (could be Infosys), create a better value in the infrastructure of your company.

• Is it necessary to overcome Indian companies in every aspect? Or maybe offer a different value for the company?

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Conclusions

• If you’ve got to choose, it depends in which services are you buying and what level of expertise the outsourcing company has.

• You’ve got to choose between cost and technical skills most of the times, its difficult to find low costs and high technical skills.

• Also you have to make sure the company has quality certificates like ISO and CMMI to make sure your budget doesn’t change during the development.

Bibliography

• Case 1:

• Case 2:– http://www.fedex.com/us/supplychain/casestudies/

– http://www.fedex.com/us/developer/product/solutions.html

– http://fedex.com/us/services/ftn/gtd/warehousemgmt.html?link=4

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Bibliography

• Case 3:

http://en.wikipedia.org/wiki/Orbitzhttp://pressroom.orbitz.com/index.php?s=43&item=816

• Case 4:

– http://en.wikipedia.org/wiki/Infosys

– http://www.linkedin.com/companies/infosys

– http://www.linkedin.com/companies/tiempo-development– http://www.tiempodevelopment.com/

– http://www.infosys.com/pages/index.aspx