“Never has so much technology and brainpower been applied to improving supply chain

performance …. Nonetheless, the performance of many supply chains has never been
worse.” (Prof. Marshall Fisher, The Wharton School, Harvard Business Review 1997).

OMS 6072: Managing Technologies in the Supply Chain (4 Credits)

Spring Semester 2003, Day Section: Tuesdays & Thursdays, 9:55-11:35AM in CSOM 1-143

Instructor: Kingshuk K. Sinha

Office: 3-227 Carlson School of Management
Work Phone: (612) 624-7058
Home Phone: (952) 920-5018
E-mail: ksinha@csom.umn.edu
Office Hours: This class is my top priority during the Spring Semester. Please
give me a call and stop by my office if you have any questions
related to the course. Do not hesitate to call me at home during
evenings or weekends.

Teaching Assistant: Xiaowen Huang

Work Phone: (612) 626-9723
E-mail: xhuang1@csom.umn.edu

OVERVIEW
The focus of this course will be on managing technologies (i.e., hardware, software, and
knowledgeware) via which a network of manufacturing and service firms in a supply chain
coordinates, collaborates, develops, produces, and delivers both physical and digital goods and
services to customers. The central question we will address in the course is how supply chain
technologies can be managed to enhance the competitiveness of a manufacturing or service firm
and its network of trading partners. The context of this course will be a variety of technologies
via which a firm coordinates and collaborates with its supply chain trading partners and
customers, in addition to the technologies used for production and delivery of physical and
digital goods and services.
Who should take the course? Any MBA or graduate student who cares and/or is curious
about decisions related to development, justification, implementation, and execution of
technologies in ways that enhance the competitiveness of a firm along with its network of trading
partners should take this course. It is never too early or too late to take this course. There are no
pre-requisites for this course.
The course is an elective for MBA concentrations in operations management and supply
chain management. 2 credits from this 4-credit course can be applied toward MBA concentration
in management information systems (MIS). The course is intended to support the Carlson
Consulting Enterprise. With individuals and organizations becoming increasingly technology
dependent, students regardless of their functional orientation and career aspiration are
encouraged to take this course to prepare themselves to take advantage of technologies and
technological change in their professional lives.

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LEARNING METHODS AND OBJECTIVES
The course will be conducted using lectures, case studies, and exercises that will involve
evaluating (i) supply chain management technologies and (ii) the implementation of technologies
to improve supply chain performance.
The objectives of the course are two fold:
 To develop a comprehensive understanding of the various types of supply chain
technologies, appropriateness of the application context of the technologies, and business
potential of the technologies.
 To learn the basics of effectively managing supply chain technology implementation
projects.

COURSE MATERIALS
 A case packet containing Harvard Business School cases listed in the course schedule.
 Readings and lecture notes that will be posted on the course website and/or will be
handed out in the class.

GRADING
Class Participation – 25%
All course participants are expected to have read the assigned readings and cases, and contribute
constructively to the class discussion. Constructive contributions imply: (i) being attentive to the
class-discussion, (ii) reacting thoughtfully and substantively by way of questions and comments,
and (iii) supplementing the course content by way of additional information, examples,
illustrations, etc.

Executive Case Summaries – 10%

Executive summaries are intended to ensure that all class participants are adequately prepared for
the case discussion. On the discussion day of a case, all participants should individually submit
an executive summary (1-2 pages) addressing the assigned questions for the case. The executive
summaries should be submitted electronically to the teaching assistant, Xiaowen Huang
(xhuang1@csom.umn.edu). The summaries will be graded as satisfactory or unsatisfactory. If
graded satisfactory, the summary will be given full-credit and will NOT be returned. If graded
unsatisfactory, the summary will receive either partial credit or no credit, and will be returned.

Case Analysis and Presentation – 15%

Case analysis and presentation is a group exercise. Each group will be assigned a case and will
be expected to (i) analyze the case in light of the assigned questions and (ii) present it before the
class. As part of analyzing the case, the group should research for information that goes beyond
what is contained in the case. As part of presenting the case, the group members should plan on
engaging the class in a discussion.

Evaluation of Supply Chain Management Technologies – 20%

This is a group exercise. Each group should identify a technology vendor either from the
INFORMS website (http://www.lionhrtpub.com/orms/RD/products/scm.html) or on their own
and evaluate the vendor’s supply chain management technologies. By Thursday, February 6
each group should let the instructor know about the technology vendor they have chosen. As part
of this exercise, each group should submit a 5-page report that describes (i) the vendor’s

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technologies/technology categories, (ii) capabilities of the technologies, and (iii) examples, if
any, of technology application and impact. The report is due on Tuesday, March 25 (first day of
class after the Spring Break). On this day (i.e., Tuesday, March 25), each group should plan on
making a 10-minute presentation on their findings in the report.

Final Course Project – 30%

The final course project is also a group exercise. As part of this project, each group should
identify either a company or a network of companies and analyze the implementation of one or
more supply chain management technologies. By Thursday, February 20 each group should
electronically submit to the instructor and the teaching assistant 1-page status update on the
course project. The deliverable of this project will be a report that should not exceed 15 pages (of
12p font and double-spaced text) in addition to the cover page and 1-page executive summary.
An Appendix may be attached if deemed necessary. There is no page limit on the number of
pages in the Appendix. The report should address the following questions:
(i) What was the problem that motivated the company or the network of companies to
invest in one or more supply chain technologies?
(ii) What were the technologies and what were their capabilities?
(iii) What was the operational context of technology application?
(iv) How were the technologies selected and justified?
(v) How was the technology implementation managed and what were some of the
positive and negative experiences?
(vi) What, if any, was the impact of technology on supply chain performance?
(vii) What is your overall evaluation of the technology implementation project?
(viii) What would you recommend the company/companies to do differently if they were to
do such an implementation elsewhere or all over again?

Each group will be expected to make a 20-minute class presentation of their course project. The
presentations will be scheduled during the last two class-sessions of the course (Tuesday, May 6
and Thursday, May 8). The project report should be submitted by the last day of class
(Thursday, May 8).

GROUP FORMATION
Each group should contain no more than 3 students. By Tuesday, January 28 each group should
e-mail the instructor (ksinha@csom.umn.edu) and the teaching assistant
(xhuang1@csom.umn.edu) letting them know the names of the group members.

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 OMS 6072: Managing Technologies in the Supply Chain (4 Credits)
Spring Semester 2003, Day Section: Tuesdays & Thursdays, 9:55-11:35AM in CSOM 1-143

COURSE SCHEDULE

Session 1. Tuesday, January 21

Topic: Introduction and Course Overview
Readings
 “Meet the Real Revolutionaries – Commerce Chain Executives,” Star Tribune, November
11, 2002.
 “From Buyer to Integrator: The Transformation of the Supply-Chain Manager in the
Vertically Disintegrated Firm,” G. G. Parker and E. G. Anderson, Production and Operations
Management, Vol. 11, No. 1, Spring 2002.

Session 2. Thursday, January 23

Topic: Introduction to Supply Chain Management
Readings
 “Chapter 1: Supply Chain Management – An Overview,” by Harmut Stadtler in Supply
Chain Management and Advanced Planning, Second Edition, Springer, 2002.
 “New Business Models for Supply Chain Excellence,” N. Mulani and H. Lee, ASCET
(Achieving Supply Chain Excellence through Technology), Vol. 4, May 15, 2002.

Session 3. Tuesday, January 28

Case 1: Ford Motor Company: Supply Chain Strategy
Readings
 “The Power of Virtual Integration: An Interview with Dell Computer’s Michael Dell,”
Harvard Business Review, March-April 1998, pp. 72-84.

Session 4. Thursday, January 30

Topic: Introduction to Technology Management
Readings
 “Developments in Manufacturing Technology and Economic Evaluation Models,” by C.
H. Fine in Logistics of Production and Inventory (S. C. Graves, A. H. G. Rinnooy Kan, and P.
H. Zipkin, eds.) North-Holland, 1993.
 “A Framework for Technology in Services,” by C. M. McDermott, H. Kang, and S. Walsh
in IEEE Transactions on Engineering Management, August 2001.

Session 5. Tuesday, February 4

Readings
 “The Real Virtual Factory,” by D. Upton and A. McAfee, Harvard Business Review, July-
August 1996, pp. 123-133.

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Case 2: AeroTech Service Group

Session 6. Thursday, February 6

Topic: Enterprise Resource Planning (ERP)
Readings
 “The ABCs of ERP,” by C. Koch.
 “The Impact of Enterprise Information Technology Adoption on Operational
Performance: An Empirical Investigation,” by A. McAfee, Production and Operations
Management, Vol. 11, No. 1, Spring 2002, pp. 33-53.

Session 7. Tuesday, February 11

Case 3: Tektronix: Global ERP Implementation

Session 8. Thursday, February 13

Topic: Advanced Planning System (APS)
Readings
 “Chapter 4: Advanced Planning,” by B. Fleischmann, H. Meyr, and M. Wagner in Supply
Chain Management and Advanced Planning, Second Edition, Springer, 2002.
 “Chapter 5: Structure of Advanced Planning Systems,” by H. Meyr, M. Wagner, and J.
Rohde in Supply Chain Management and Advanced Planning, Second Edition, Springer,
2002.

Session 9. Tuesday, February 18

Case 4: Quantum Corporation: eSupply Chain

Session 10. Thursday, February 20

Topic: Coordination and Integration
 “Chapter 12: Coordination and Integration,” by J. Rohde in Supply Chain Management
and Advanced Planning, Second Edition, Springer, 2002.
 “Optimize and Execute: SCM Applications are Converging,” by K. Peterson and J.
Woods, ASCET , Vol. 4, May 15, 2002.

Session 11. Tuesday, February 25

Case 5: i2 Technologies

Session 12. Thursday, February 27

Topic: Collaboration
 “Chapter 13: Collaborative Planning,” by C. Kilger and B. Reuter in Supply Chain
Management and Advanced Planning, Second Edition, Springer, 2002.

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 “Building a Collaborative Supply Chain,” by B. Temkin, ASCET , Vol. 4, May 15, 2002.
 “From Supply Chain to Collaborative Network: Case Studies from the Food Industry,” by
B. Walton and M. Princi, ASCET, Vol. 4, April 15, 2000.

Session 13. Tuesday, March 4

Case 6: Syncra Systems

Session 14. Thursday, March 6

Topic: Product Design and Supply Chain Management
Readings
 “Product Design Collaboration,” by M. E. Johnson, ASCET, Vol. 4, May 15, 2002.
 “Designing Product for the Synchronized Supply Chain,” by W. Walker, ASCET Vol. 4,
May 15, 2002.

Session 15. Tuesday, March 11

Case 7: Lucent Technologies: Global Supply Chain Management

Session 16. Thursday, March 13

Topic: Collaborative Logistics
Readings
 “Give and Take: Collaborative Logistics – Building a United Network,” by John Yuva,
Inside Supply Management, May 2002 .
 “Collaborative Logistics Networks – Breaking Traditional Performance Barriers for
Shippers and Carriers,” by Kevin Lynch, Nistevo White Paper.

Tuesday, March 18
SPRING BREAK

Thursday, March 20
SPRING BREAK

Session 17. Tuesday, March 25

Topic: Managing Supply Chain Management Technology Projects (I)
Readings
 “Chapter 2: Supply Chain Analysis,” by C. Surie and M. Wagner in Supply Chain
Management and Advanced Planning, Second Edition, Springer, 2002.
 “Chapter 14: The Definition of a Supply Chain Project,” by C. Kilger in Supply Chain
Management and Advanced Planning, Second Edition, Springer, 2002.

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Session 18. Thursday, March 27
Topic: Managing Supply Chain Management Technology Projects (II)
 “Chapter 15: The Selection Process,” by C. Kilger in Supply Chain Management and
Advanced Planning, Second Edition, Springer, 2002.
 “Chapter 16: The Implementation Process,” by U. Wetterauer in Supply Chain
Management and Advanced Planning, Second Edition, Springer, 2002.
 “Up and Running: Helping Supply Chain Technology Work,” S. Happek and J. R. Oliver,
ASCET Vol. 4, May 15, 2002.

Session 19. Tuesday, April 1

Student Presentations: Evaluation of Supply Chain Technologies

Session 20. Thursday, April 3

Case 8: FedEx Corp: Structural Transformation through e-Business

Session 21. Tuesday, April 8

Guest Speakers: Jamey Wojciechowski (Best Buy)

Session 22. Thursday, April 10

Topic: Customer Relationship Management (CRM) Technologies
Readings
 “Chapter 6: Integrating Processes to Build Relationships: Customer Relationship
Management,” in e-Business 2.0 by R. Kalakota and M. Robinson, Addison Wesley 2001.
 “How to Rescue CRM,” by M. Ebner, A. Hu, D. Levitt, and J. McCory, McKinsey
Quarterly, No. 4, 2002.

Session 23. Tuesday, April 15

Case 9: Grey World Wide: Strategic Repositioning Through CRM

Session 24. Thursday, April 17

Guest Speaker: Craig Levinsohn and Steve Kickert (HighJump Software)

Session 25. Tuesday, April 22

Topic: Mobile and Wireless Technologies: Implications for Supply Chain Management
Readings
 “Chapter 8: Supply Chain Focus,” in M-Business by R. Kalakota and M. Robinson,
McGraw-Hill, 2001.

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 “How Wireless Networks Are Reshaping the Supply Chain,” V. Shankar and T
O’Driscoll, Ebusiness Center Working Paper, Pennsylvania State University, September
2002.

Session 26. Thursday, April 24

Guest Speakers: Sunil Karnawat (Deloitte Consulting) and Mike Foster (Medtronic)

Session 27. Tuesday, April 29

Case 10: Netotonomy

Session 28. Thursday, May 1

Case 11: Pass Act, Inc.

Session 29. Tuesday, May 6

Student Final Project Presentations

Session 30. Thursday, May 8

Student Project Presentations
Topic: Course Wrap-up

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 Case Assignment Questions

Case 1. Ford Motor Company: Supply Chain Strategy

Overview
The teaching objective of this case is to convey an understanding of issues that surround
technology enabling of supply chains, and to directly confront the difficulties of incumbent firms
(e.g., Ford) as they struggle to re-engineer complex legacies (systems, physical facilities,
historical baggage in relationships with partners, etc.). The context of this case is the Ford Motor
Company, where Teri Takai, Director of Supply Chain Systems, has been asked by senior
executives of the company the question: How should Ford be using the emerging technologies to
improve the way it interacts with its suppliers? To answer this question, Teri realizes that she
needs to think about relationships not only with the suppliers but also with dealers and
customers. To this end, she and the Supply Chain Staff members study the “virtual integration”
model of Dell Computers. They learn that virtual integration must include design not only of the
supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that
had long been considered separately within the Ford. So, the question posed to Teri is in fact
explosive in its implications, because it inevitably leads to fundamental questions about the way
Ford has historically operated internally and how it has interacted with important trading
partners, including dealers.

Assignment Questions
1. Based on your reading of the Harvard Business Review interview with Michael Dell,
CEO of Dell Computers, what is your conclusion about the advantages Dell derives from
virtual integration? How important are these advantages in the auto business?
2. What challenges does Ford face that are not faced by Dell? How should Ford deal with
these challenges?
3. If you were Teri Takai, what would you recommend to senior executives? To what degree
should Ford emulate Dell’s business model?

Case 2. AeroTech Service Group, Inc.

Overview
The teaching objectives of this case are the following: first, to show the power and utility of
internetworking technologies for operations by means of concrete examples; second, to develop
an understanding of the mechanisms by which open networks allow for straightforward growth
and long-term flexibility of collaborating companies; third, to show that technical capabilities of
a firm can shape its strategic decisions, and that these decision in turn affect the development of
future capabilities. The context of this case is AeroTech Service Group which has maintained and
expanded a system of geographically dispersed computers (an internetwork), for MacDonald
Douglas Aerospace (MDA) and a growing number of its trading partners. This system, CITIS
(Contractor Integrated Technical Information Service), relies heavily on open protocols
developed for the Internet to allow dissimilar computers to share information resources easily.
George Brill, the President of AeroTech, is considering transforming AeroTech into a consulting
firm and is confident that strong demand exists for the expertise that the company has developed.

9
A second option for AeroTech is to replicate the ‘virtual factory’ built for MDA for another large
defense contractor, Tyrell Industries. A third option is for AeroTech to undertake another
internetworking project for MDA; this one is much smaller than CITIS and would be carried out
for a flat rate. George Brill must evaluate each of the options, and determine how each will affect
the growth and development of his small company.

Assignment Questions
1. What are the most valuable aspects of CITIS for its participants?
2. What does AeroTech have that can’t be copied?
3. As the internetworking technologies mature, do you think that the demand for services
like AeroTech’s will expand or contract?
4. Which business option(s) would you encourage George Brill to pursue? Why?

Case 3. Tektronix, Inc.: Global ERP Implementation

Overview
The teaching objectives of this case are the following: first, to provide an example of a large
scale technology implementation project in a traditional, multidivisional, global firm; second, to
facilitate an understanding of project management methods that makes it possible to learn from
experience, manage risks, and eventually realize success; third, to discuss whether and to what
degree technology ought to be used as a means of forcing organizing organizational change;
fourth, to provide an example of how (non-technical) General Managers can integrate themselves
effectively into infrastructure management issues, even those that lie below the level of visible
business functions. The context of this case is ERP implementation at Tektronix. The case
addresses the issues that arose in managing a complex, global, technology implementation
project and suggests adaptive strategies for managing mega-projects, in which the unexpected
sooner or later always happens, and for which detailed planning is very difficult. The case
provides a spectacular illustration of the degree to which IT infrastructure, if not well managed,
can seriously constrain a company’s business performance. It thereby provides a big reason why
general managers as well as technology managers should attend to infrastructure management,
even if the subject seems uncomfortably technical. Carl Neun, CFO of Tektronix, is an example
of a non-technical manager who is extremely effective in leading a very technical project; he is a
model for strong infrastructure management practitioners.

Assignment Questions
1. Why did Tektronix implement ERP in stages? How should a company decide between
implementing in stages or going big-bang?
2. How did Tektronix manage the risks of ERP implementation?
3. What is your overall assessment of the Tektronix ERP project?

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Case 4. Quantum Corporation: eSupply Chain Group

Overview
The larger purpose of this case is to illustrate the complexities of defining and implementing a
digital technology strategy in the presence of competitive necessities, existing IT infrastructures,
and organizational realities. The specific teaching objectives of the case are the following: first,
to discuss how a company IT infrastructure can assist in improving performance; second, to
understand the potential problems that accompany enterprise technology initiatives; third, to
show that digital technology is not a silver bullet; fourth, to communicate a model of process-
enabling information technology (PEIT) implementation management. The context of this case is
Quantum Corporation, a leading global provider of solutions for digital storage needs and is the
only supplier selling to the world’s top 10 PC manufacturers; it also offers the broadest range of
desktop products. At the time when the case is set, Quantum was facing a sharp deterioration in
the prices it was able to charge for its products, and its margins suffered as a result. Furthermore,
the company had to contend with its suppliers and customers who were becoming increasingly
demanding and unwilling to make changes to order or forecasts. For example, the inflexibility of
Quantum’s disk drive vendor (MKE) often left Quantum with stockpiles of finished disk drives –
and severely unbalanced supply. In addition, customers had become much less willing to honor
purchasing commitments they had made, resulting in more excess inventory. To address these
problems, Quantum’s Hard Disk Drive Operations (HDDO) began a series of initiatives aimed at
reducing supply chain costs while improving fulfillment efficiency. As part of this effort, it began
the process of implementing a comprehensive advanced planning and scheduling (APS) software
package made by i2 Technologies. This technology solution is built on the enterprise information
system already present in the company.

Assignment Questions
1. What are the biggest challenges facing HDDO? How can technology help to address
these challenges?
2. Why is time so critical in this business? What efforts should the eSupply Chain group
advocate to allow Quantum to reduce the lead-time for its products?
3. How should the eSupply Chain group best accomplish its mission within Quantum’s
organizational structure?
4. How should Quantum and HDDO use the new eHITEX consortium? If we think of the
adoption of eHITEX by high tech companies as a kind of implementation process, what
kinds of pitfalls will this implementation face?
5. The new IT-enabled product allocation process (described on p. 12 of the case) has the
potential to be an improvement over the current one. What difficulties, if any, do you think
there will be in moving to the new process? What organizational groups might not be
enthusiastic about moving to the new process?

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Case 5. i2 Technologies, Inc.

Overview
The teaching objectives of this case are: (i) to develop an understanding of what is required to
package algorithms into commercial supply chain management technologies, (ii) to learn the
differences between the technologies, e.g., between ERP and SCP systems, and (iii) to learn what
it takes to successfully implement technologies in operating environments, with emphasis on the
importance of algorithms, an effective sales and implementation process, and understanding of
information technology. The context of this case is i2 Technologies, one of the leading supply
chain technology vendors in the world. i2 is in the business of converting cutting edge supply
chain management algorithms developed by academic researchers into supply chain
technologies. The case illustrates the role of business knowledge and the provision of services in
the adoption and implementation of supply chain technologies, and hence, highlights the vital
role that MBAs and general managers can play in such enterprises.

Assignment Questions
1. Identify the factors behind i2’s success at the time when the case is set.
2. Examine the company’s products, its sales and implementation process, and its SOA (supply
chain opportunity assessment) process?
3. At the time when the case is set, Hasso Platter, co-CEO of SAP, was quoted saying, “We’re
SAP. We dominate the most important category of enterprise software. We intend to control
all the enterprise software our customers use. We will select handful of partners. If our
partners cross, we will crush them into dust.” Given SAP’s ambitions, what do you think is
i2’s future in the Enterprise Application Market.
4. What do you think of i2’s plans to become an e-BPO company?

Case 6. Syncra Systems

Overview
The teaching objectives of this case are: (i) to detail the roles of technology in shaping and
affecting alliances between supply chain trading partners, (ii) to examine CPFR (collaborative
planning, forecasting, and replenishment), an important supply chain alliance-level business
process, and (iii) to examine PEIT (process-enabling information technology) components. The
context of the case is Syncra Systems, a leading vendor of supply chain alliance-level
technologies. The setting of the case is one where Jeff Stamen, CEO of Syncra Systems, met
with Gertrude Indolare, CEO of Holliday Shops, a large supermarket chain and prospective
customer. Stamen hopes to convince Indolare of the value of adopting a pilot CPFR process with
one of Holliday’s large suppliers, and use Syncra’s supply chain alliance-level technologies to
assist with this effort. Indolare is proving to be a tough sell. Just how could Syncra outperform
Holliday Shops’ current planning and forecasting systems? Why would she risk sharing sensitive
data with vendors, especially when they have worked with Holliday Shops’ competitors as well?
Stamen has work to do to convince Indolare (and others) that Syncra’s technologies and the
CPFR on the whole can yield substantial benefits for Indolare’s company, let alone to convince
her that she should purchase Syncra’s products.

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Assignment Questions
1. What is a potential application of Syncra’s technologies? (It may be helpful to consider
environments you have worked in, and what their collaborative requirements were.)
2. How “smart” is Syncra’s technologies? What (if anything) does it optimize?
3. How would you respond to the objections voiced by the potential customer at the start of the
case? Which of them are, in your opinion, the most valid?
4. How important are forecasting and planning processes to the groups that adopt CPFR? How
enthusiastic do you think they will be about adopting new ways of doing business?
5. Would Syncra consider a CPFR effort a failure if the people involved stop using its
technology? Would Syncra’s customers consider such an effort a failure?

Case 7. Lucent Technologies: Global Supply Chain Management

Overview
The teaching objectives of this case are: (i) to illustrate the close relationship between product
design and supply chain design, (ii) to highlight the changing nature of resources and problems
facing supply chain design, and the need for supply chains to continually evolve, and (iii) to
highlight the technological challenges faced in managing a global supply chain. The setting of
the case is Lucent Technologies. In 1996, Lucent Technologies implemented a major change to
their Asia supply chain for their flagship product, a sophisticated digital switch. The change
resulted in major improvements in delivery time, inventory management, product reliability, and
customer satisfaction. By 2000, however, development of local Asian manufacturing
infrastructures combined with the component supply problems suggested that the supply chain
design should be re-evaluated.

Assignment Questions
1. Outline the factors that explained why the original supply chain network strategy used by
Lucent in Asia was adequate prior to 1996.
2. What were the factors that drove the necessary changes in Asia in 1996? What did you see as
the benefits from those changes?
3. What internal and external factors had changed from 1996 to 2000, which necessitated a re-
visit of the supply chain strategy for Lucent? What would you recommend Lucent to respond
to the new challenges?

Case 8. Fedex Corp: Structural Transformation Through e-Business

Overview
The teaching objectives of the case are: (i) to examine the role of technologies in the evolution of
virtual supply chain management, (ii) to understand the way in which logistics has changed from
a focus on physical transportation and internal inefficiencies, to a focus on information as a
commodity and the provision of value-added services, (iii) to show how technology is helping to
integrate supply chain of various companies and the benefits of virtual integration, and (iv) to
appreciate and understand of how “the whole is greater than the sum of the parts” – i.e., how a

13
digital technology strategy requires the aligning of the organizational structure with technology
infrastructure and integrated business processes to leverage the synergies in a company.

Assignment Questions
1. As a major customer of FedEx (say, an international retailer of clothes), how would you
design your supply chain? How does FedEx fit into the virtual supply chain of its customers?
2. What are the pre-requisites for a virtual supply chain? (Integration: internal and external)
3. How has technology changed the definition of “logistics”?
4. How has FedEx gone about building its e-business? What are the main components of this
business strategy?

Case 9. Grey Worldwide: Strategic Repositioning Through CRM

Overview
The teaching objectives of the case are: (i) to develop an understanding of the difference between
traditional customer service and a technology enabled CRM strategy, (ii) to learn how a CRM
strategy can reposition a traditional (communications) company, (iii) to understand the
development of back-end and front-end processes involved in a technology enabled CRM, and
(iv) to recognize the Internet technology’s process capabilities in enabling a firm’s marketing
transformation into an e-business. The context of this case is Grey Worldwide Hong Kong and
China, a communication agency. The CRM team of the company is in the process of developing
an Asia-specific CRM blueprint for its internal management, something that is transferable to
Grey’s clients. The company is considering merging technology with traditional marketing
philosophy, and the team is expected to deliver a proposal that outlines the CRM technologies
that Grey should use to reposition its brand and build customer loyalty.

Assignment Questions
1. What is your understanding of CRM? How can Grey pursue the development of CRM?
2. Compare traditional customer service with CRM. What traditional business assets can Grey
rely on and how it can leverage them to capture e-marketing capabilities?
3. How can Grey redefine client value using CRM; what differentiation technique should it
employ?
4. How can Grey integrate its back-end and front-end processes to enable a customer-oriented
CRM process based on its existing business strengths?
5. Suggest criteria that Grey should use to measure its CRM performance, given its business
model.

Case 10. Netonomy

Overview
The teaching objectives of the case are to illustrate (i) how services can simultaneously reduce
costs (increasing efficiency) while improving customer service (effectiveness) using
technologies, including wireless technologies, (ii) how technologies can be used to leverage
human resource providers through automation, improved communication, and measurement, (iii)

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how self-service can be superior service for targeted customers, (iv) the importance of usability
in any self-service effort, and (v) the difficulty in creating easily usable self-service applications
and the corresponding need to allocate considerable resources for this purpose. The context of
this case is Netonomy, a software company based in Paris and Boston that has developed a
technology enabling wireless telecommunications providers (“telcos”) to transfer some
customer-service functions from call-centers to the Internet, encouraging what it calls “customer-
self care.” The case explores the functions of the technology and also discusses the process of
implementing the technology. The case concludes with Netonomy leadership pondering over the
firm’s international expansion.

Assignment Questions
1. How does Netonomy affect telco customer service from the perspective of (i) employees, (ii)
customers, and (iii) the telco?
2. What will drive end-user adoption of Netonomy’s technologies? Does this have implication
for Netonomy given its business model? If you recommend a change in the business model,
what implications does that change have for Netonomy and its various stakeholders?
3. What recommendations for growth would you make to John Hughes in light of the questions
posed at the beginning and end of the case?

Case 11. Pass Act, Inc.

Overview
eMarketplaces are technology platforms that companies join to meet potential trading partners,
agree on terms, and jointly execute processes before, during, and after this agreement. The
teaching objectives of this case are: (i) to understand the basics of the eMarketplace business
model, (ii) to understand why most eMarketplaces failed to succeed, (iii) to view eMarketplace
adoption as PEIT (process-enabling information technology) implementation, and (iv) to project
the likely evolution of inter-company (i.e., supply chain) technologies. The context of this case is
PassAct, a technology vendor committed to building and operating private marketplaces and
supply chain solutions focused exclusively on leading development enterprises and their supply
partners worldwide. The founders, Louise Rawlins and James Blevins, built the company on the
premise that they could develop an eMarketplace (i.e., technology platform) that would
significantly improve order procurement for the company’s customer base. At the time of the
case, PassAct’s eMarketplace had not grown nearly as quickly as its founders had planned. The
company had not signed up the high volumes of customers or suppliers in its target market, and
even after customers signed up their employees for PassAct’s services, those employees did not
use the PassAct technology solution as often as hoped. PassAct’s managers did not understand
why adoption rates were low, especially since they thought that for many customers the PassAct
eMarketplace was mandatory use; once a customer signed up to use the service, its employees
would be strongly compelled to use PassAct for certain kinds of purchasing.

Assignment Questions
1. What is “workflow” software? Why does PassAct want to make it easy for a customer to
incorporate the PassAct eMarketplace into workflow software?
2. Why has the PassAct eMarketplace not grown as quickly as its founders hoped?

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3. What unmet business needs did PassAct’s founders identify? What problems or inefficiencies
did they see that led them to start a new company?
4. What’s happened to most eMarketplaces? What kinds of businesses have they become?

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