Monday, June 2, 2008
The Impact of National Culture On the Meaning of Information System Success
Nestle Tries for an All-for-One Global Strategy
In the past, Nestle allowed each local organization to conduct business in its chosen manner. This decentralized approach allowed for differences in culture and language between each branch. At one point, there were eighty different information technology systems utilized. However, Nestle decided to abandon that traditional approach in managing a multinational company. It wanted to standardize all business processes globally to better serve its customers. It wanted to adopt a single set of business processes and systems for procurement, distribution, and sales management. They wanted to operate as a single country globally.
According to the norm, this was not the appropriate strategy for Nestle's business model. However, it seems to be working despite IT budgeting, data capacity, and delays in implementing the system across all branches. Nestle has achieved better operational efficiencies and is much closer to standardizing all processes, data, and systems. I really didn't think this would work as I read the case study, but it looks like Nestle could reach this goal in the near future.
3. What management, organization, and technology challenges did Nestle have to deal with to standardize its business processes and systems?
Nestle had the overwhelming task of merging eighty different information technology units into one designed system. None of its products are considered to be a truly global brand, so standardizing its processes and systems is quite complex. The biggest challenge Nestle faced was not technical, but personal. Previous attempts in developing cooperate standards had mixed results, most branches responded to the idea in a negative manner. Branches stated how a standard system wouldn't work globally. Branch managers feared the loss of decision-making power. Initially, the project staff was not large enough to design such a system.
Then there was the time challenge, the deadline for the rollout of the new standardized IT system was changed several times. This was also a large financial investment to embark on. Nestle had to invest billions of dollars in this project and still had the challenge to stay in budget. It was challenged to implement the new business processes concurrently with the new systems while not making it noticeable to anyone outside of the company. Managers and workers had no time to train on the system before it was deployed. Finally, Nestle had to deal with some technical issues as the system rolled out across the globe. Specifically, Canada had a problem with the amount of data storage it was allotted to allow for promotion data.
Sunday, June 1, 2008
Great Project Management = IT Success
Health care organizations should:
1. Hire a staff member certified in project management or send an existing staff member for project management training.
2. Form a project management office (PMO). The PMO can free physicians to focus on the development of IT projects that can create benefits to the organization.
3. Appoint someone that can make decisions on money spent on IT.
I think that these 3 suggestions should definitely be implemented by health care organizations designing new information systems. As the chapter, case study and this article reiterate, a project management team should be experienced, have the proper support and knowledge to minimize risks.
Roger Kropf, Guy Scalzi. (2008). Great Project Management = IT Success. Physician Executive, 34(3), 38-40. Retrieved June 1, 2008, from ABI/INFORM Global database.
Tuesday, May 27, 2008
What Went Wrong with Maine's New Medicaid System?
1. How important are information systems for Maine's Department of Health and Human Services? Analyze the impact of its faulty Medicaid claims processing system.
Information systems are critical to Maine's Department of Health and Human Services. Its new Medicaid claims processing system was rejecting claims much more frequently than its old system had. Due to the rejected and frozen claims, the Bureau of Medical Services could not keep up with the processing and number of phone calls in relation to these claims. Some of the Medicaid providers were forced to turn away patients and even close operations because they were not compensated properly. Several others had to seek financing to maintain operations. Maine's finances became threatened as well due to the large segment of the state budget that Medicaid had in the past. The system created overpayments totaling $9 million. This huge disaster cost the state millions of dollars to fix. Maine became the only state not to satisfy the HIPAA requirements.
5. If you were in charge of managing this project, what else would you have done differently to increase the chances for success?
Well I wouldn't have implemented a brand new information system or I would have only went with a designer that already had created a similar successful system for another state. Considering the time constraint and lack of knowledge in creating such an elaborate system, I wouldn't have taken this risk. If it had been decided to create a new system, I would most definitely have done things differently. I would have appointed a Medicaid expert to work with the designer full-time from the beginning. Communication between the designer and Medicaid team would be highly emphasized. I would have also created some sort of online training session for providers to learn how to fill out the claim forms correctly. This would have greatly reduce several of the claim rejections.
Wednesday, May 14, 2008
Physicians Get Help in Safe Medication Prescribing
Tuesday, May 13, 2008
Can Information Systems Make Your Doctor Better?
Many doctors struggle to identify diseases or misdiagnose patients. Substantial drug errors resulting in injury to over 1.5 million Americans. These drug errors include drug interactions, inappropriate prescriptions and forgetting secondary prescriptions. These preventable drug errors may result in $3.5 billion in additional billing annually to patients. Many of these errors can be attributed to human errors including; poor handwriting, memory lapses, fatigue, distractions and the total volume and complexity of available medications. Some information systems used to prevent these errors actually create new ways of making errors because of their design.
3. What obstacles prevent computer systems from improving the medical industry? How can these obstacles be removed?
One obstacle includes designing the information systems too much for physicians rather than nurses, who feel the greater impact from these systems. Designers of these information systems must acknowledge who will be utilizing the systems most frequently and accommodate these nurses. Another drawback of these systems are that they can be more rigid than traditional paperwork, not allowing a physician to write orders until a patient is admitted. Duke has addressed this problem by adding a new unit to the system that permits virtual admissions of patients.
Doctors and nurses must trust the system and not ignore automated prompts, which can be another obstacle. Many doctors resist the idea of needing help remembering procedures and treatments. To remove this obstacle, medical staff need to be informed of the accuracy of these systems and be educated on the time-saving component of these systems. Finally, some doctors argue that Diagnostic Decision-Support systems have not proved to be more successful than human diagnostics. They also grown at the cost and time involved with these systems. Physicians need to be provided with a ROI calculation and all the data that proves that these systems can prevent errors, which ultimately saves lives and money.
Friday, May 9, 2008
Analysis: Stripping the eBay Mall of Its Community Spirit?
Some business critics agree with eBay by stating that its core business is no different from Amazon.com and that allowing sellers to criticize buyers is not a good idea. Buyers don't like to be criticised in the real world. eBay explains that they have leveled out the playing field for buyers and sellers. However, eBay needs to be careful not to lose the sense of community that has made it so popular. Its recent changes may keep it above its competitors, but it must be careful not to alienate its users.
Analysis: Stripping the eBay mall of its community spirit? (2008, May). Marketing Week,8. Retrieved May 9, 2008, from ABI/INFORM Global database.
Thursday, May 8, 2008
Can eBay Continue Growing?
Thursday, May 1, 2008
How Video Ads Will Change Google Forever
I have a Google AdWords account for my business, Baja Tan. It has been a great tool to advertise my business service. You determine the search words you would like your ad to display on after a search. You can ad hundreds of different combinations of words if you like, I chose about 20. Then you set your monthly budget amount and maximum bid amount. You only pay for the impression if a web searcher clicks on your ad. You may log on anytime to view the ad campaign's performance. It records the number of impressions and clicks for each keyword along with the total charge.
Screenshot of my AdWords Campaign:
I think that video would be a nice addition to this service. Yellowpages.com already offers this video advertising service. You pay a monthly fee each month instead of using cost-per-click pricing. It is a directory service, not a search engine. My yellowpages.com ad rep asked if I would like to place a video along my ad and I declined because of the high pricing. Here is a link to my ad on Yellowpages.com, the video would be positioned to the right of the ad.
http://www.yellowpages.com/name/Milwaukee-WI/baja-tan?search_mode=all&search_terms=baja+tan
The photo and link below is a sample provided to me by my sales rep, Ocean Mystique Ink Gallery.
http://www.yellowpages.com/name/VA/ocean-mystique?search_mode=all&search_terms=ocean+mystique+
I also have an account with Yahoo Marketing Solutions. It's not as effective as Google AdWords. However, the same features are included; cost-per-click pricing, display ad, reports, budget and bid setting. Below is a screenshot from my Yahoo account.
I will utilize Google's video feature if it becomes available to everyone because I would be able to set a reasonable budget and pay per click. It's difficult to fit your ad within the 70 character limit and a picture is worth a thousand words. I look forward to this new tool by Google.
Google Takes on the World
I think that Google has several sources of competitive advantage. The search engine technology that combined the Page's PageRank system and Brin's Web crawler was initially the competitive advantage because Google's searches became so effective. Today, I think there are other search engines that use similar technologies, but Google's IT infrastructure is it's biggest source of competitive advantage. It has 450,000 servers between 25 locations around the world. The servers use inexpensive hardware to run a customized version of Linux operating system, MapReduce, Google WorkQueue, and Google File System. These programs simplify processing, create large data sets, groups queries and schedule them for distributed processing, and keeps copies of data in several places so that the data will always be available even if a server fails.
Google spends a third of what its competitors spend to generate a similar amount of computing power. Its infrastructure is flexible and inexpensive which creates a competitive advantage. Its competitive advantage creates value to its users. Google performs searches at a fast rate and provides its users with many different Web-based services and software tools. Google's Adwords provides value to advertisers by positioning the most relevant ads in the most prominent positions from keyword searches. As a business owner, this has been a great valued service to me. My article discusses this Web-based service further. Other services and software tools that create value to its users include; Google Spreadsheets, Google Apps, Google Toolbar, Google News, Gmail, Google Desktop Search, Froogle, Google Maps, Google Talk, Google Checkout and Google Video.
Thursday, April 17, 2008
Viable Computing Options
I personally think that the Linux revolution may not ever come. I definitely think that there will be an increased amount of use of this open-source software, but it won't be the most used operating system. I think Microsoft and Apple will develop operating systems that are less expensive and involved then their current systems. The time spent training an employee on Linux could very well exceed the cost difference between the two operating systems. I think that Dell has made the right move by offering both Linux and Windows Vista on some of it's PCs. Let the consumer make the decision on which operating system they would utilize the most, maybe having both is the correct choice.
Jabulani Leffall (2008, April). VIABLE COMPUTING OPTIONS. Black Enterprise, 38(9), 60. Retrieved April 18, 2008, from ABI/INFORM Global database. (Document ID: 1463787951).
Merrill Lynch Connects Past and Future Technology
Merrill Lynch needed to update its IT infrastructure in order to remain competitive in the financial market. Its last five years of success was largely due to its information technology infrastructure. Merrill Lynch's IT infrastructure was one of its key competitive advantages. The key in remaining successful in business is sustaining a competitive advantage over time. So, it had to continue to modernize its technology infrastructure to sustain this competitive advantage.
4. Do you think that Merrill Lynch's decision to sell off its successful technology initiatives was a good idea? Why or Why not?
No, I don't think that selling its successful technology initiatives was a good idea. This IT technology helps them sustain its competitive advantage. Part of the deal was for Jim Crew, then head of database infrastructure for Merrill Lynch, and three other key members of the X4mL to shift their employment to the buyer, SOA Software. These four people are to continue to enhance the tool for SOA software. I realize that Merrill Lynch has sold internally developed technology before and it greatly helped its IT budget, but I still don't agree with the decision. Merrill Lynch should have protected that technology, to sustain its competitive advantage. At the very least, it could have sold the technology to customers for $125,000 per customer. That revenue could go towards its IT budget. Finally, I think that the biggest lost was of the four key employees. These employees were a great asset to the company as human capital. They could have continued to develop and enhance programs to sustain Merrill Lynch's competitive advantage.
Thursday, April 10, 2008
Wiretapping, whistleblowing and IT ethics
Since we discussed the ethical issue of wiretapping in the case study, I'm going to discuss what choice I would have made in Klien's situation. I would have most definitely blown the whistle on AT&T's involvement in wiretapping. This is too large of an ethical issue to be overlooked and needed to be reported upon immediately. It's one thing to witness a coworker using the copy machine for personal use, but quite another to know of an ethical wrong at this level. I think that Klien made a good choice and I'm sure a future employer would look upon this act favorably. There are several business owners that would appreciate this honesty and ethical behavior.
Mark Gibbs (2007, November). Wiretapping, whistleblowing and IT ethics. Network World, 24(44), 54. Retrieved April 10, 2008, from ABI/INFORM Global database. (Document ID: 1388463031).
Wednesday, April 9, 2008
Is the Telephone Company Violating Your Privacy?
2. The ethical issue is if the U.S. government is right in obtaining data from all citizens to fight the war on terror. The U.S. government can argue how doing so will provide a great benefit for the war on terror. If they citizens want safety from future terrorist attacks, they must give up some of their privacy. U.S. citizens can argue that privacy and freedoms must always be provided regardless of the situation. It's not right to have the U.S. government analyzing private calls of U.S. citizens. So, a great ethical dispute is created from the government's use of telecommunications data to fight terrorism.
5. I feel like there is a more effective solution to this ethical dilemma. I believe that the Fourth Amendment is extremely important to uphold regardless of the situation. This country needs to continue to honor its citizens rights and privacy, but it also has the responsibility to protect its citizens. I think that stricter rules need to be set by the Senate Judiciary Committee on the NSA wiretapping program. There needs to be boundaries established and more visibility of the program.
Tuesday, April 8, 2008
Blockbuster vs. Netflix: Which Will Win Out?
4. Netflix has become quite successful over the past 10 years. It has become the number one online movie rental service. It's online ordering and delivery through the mail has drastically changed the movie rental industry. Its business model eliminated the need for physical locations, which eliminates a large fixed cost. Currently, Netflix has over six million subscribers and continues to grow.
5. I think that both businesses will lose revenue from the new movie distributors emerging; VOD technology, Movielink, Apple and Amazon. Blockbuster will suffer the most because it has a large fixed cost from its thousands of physical locations around the world. Blockbuster has already closed several locations and continues to see increased losses. The entrance of these new competitors might be the end to Blockbuster. Its subscription service is inferior to Netflix and there is little growth potential for this bricks-and-mortar business today.