Walmart employs a special kind of enterprise system called an inter organizational information system it calls vendor-managed inventory (VMI) to improve product flow and lower its store inventories. Under this program, suppliers are responsible for managing the inventory of their products in Walmart’s warehouses. Suppliers are granted access to a Walmart database that contains item-level sales and inventory data for their products only, which help the vendors develop product demand projections using a collaborative planning, forecasting, replenishment process. Each link in the supply chain is interconnected using information technology that includes a central database, store-level-point-of-sale systems, and a satellite network for fast and reliable communications.
Review Questions
1. Do you think that the VMI software is off-the-shelf or proprietary software? Why?
2. Should Walmart allow the suppliers to take a major role in defining and customizing the features and capabilities of this system or should they insist on a “one size fits all” approach?
Critical Thinking Questions
1. What special issues and considerations are likely to arise in the operation and support of an inter organizational system?
2. Given the business criticality of this system, would it make sense for Walmart to consider moving this system into a public cloud environment? What would be the advantages and disadvantage of such a move?
Q27;
You began operating a small general electric contracting company two years ago. Originally, it was just you and your cousin, but it has grown to five licensed electricians, plus one office manager who takes calls from customers, schedules the work, and orders parts and supplies. Your company handles a wide range of work, including installing new circuit breaker panels, rewiring existing electrical systems for renovations and additions, and installing residential light fixtures, security lighting systems, swimming pool lighting, and ceiling fans. Business has really taken off, and your current manual systems and procedures can no longer keep pace. The office manager has been exploring several options and has identified three different software packages designed for small contractors. Each one of the packages includes software designed for managing parts and supplies inventory, scheduling jobs, and invoicing customers. Two of the software packages are from large, well-known companies, and each has an initial licensing cost of roughly $550 plus $100 per year for software support. The other software package is open-source software, with no initial cost and no support cost. The office manager is unsure how to proceed.
Review Questions
1. What is the primary difference between purchasing licensed software from a software manufacturer and using open-source software?
2. What are the pros and cons of using open-source software?
Critical Thinking Questions
1. What risks and start-up issues are associated with the use of any new software that is designed to replace manual procedures?
2. What actions can be taken to reduce these risks?