Question
Read Real World Case 2, "For Companies Both Big and Small: Running a Business on Smartphones” ATTACHED BELLOW
In a 2 to 3-page written report, address the following questions:
1.In which ways do smartphones help these companies be more profitable? To what extent are improvements in performance coming from revenue increases or cost reductions? Provide several examples from the case.
2.The companies described in the case encountered a fair amount of resistance from employees when introducing smartphone technologies. Why do you think this happened? What could companies do to improve the reception of these initiatives? Develop two alternative propositions.
3.CPS Energy and Lloyd's Construction used smart- phones to make existing processes more efficient. How could they have used the technology to create new products and services for their customers? Include at least one recommendation for each organization.
CASE 2 real world For Companies Both Big and Small: Running a Business on Smartphones n early 2006, San-Antonio, Texas-based CPS Energy, the For a CIO to try to eliminate all the resistance from nation's largest municipally owned energy provider, was by senior executive might take forever," Barron says. "So rather all accounts riding the road to riches. The company had the tan try to get to the execs and mollify all their fears about highest bond ratings of any such utility provider. Its work- cost, usage and safety, we've gone to specific groups, engi force and customer base in general expressed satisfaction neers, line workers, office workers, and because it's so cheap And most importantly, it was profitable. In other words, we've been able to give the devices out on 'experimental ba- there were no external signs that the company was about to sis.' There's so much value in these handheld devices and launch a technology program that would redefine the way it two or three applications that they prove themselves," he says. "You just have to get them into the hands of the people There weren't external signs, but for those in the know, that actually need to use them in order to demonstrate that." Three innovative ways CPS staffers employ their smart- and chief information officer, it couldn't have been more clear phones are as digital cameras at work sites, as GPS tracking that a change was imminent -and that the future of the com mechanisms, and as emergency notification receivers. In the pany might depend on it. "We had a much larger workforce past, CPS might have had to dispatch a small group of "gener alist" workers to a service call to make sure the correct person Barron looked at other companies with large mobile was there. Taday, a single worker can visit a site, take a phot workforces like its own, companies like UPS and FedEx ofa damaged piece of equipment or infrastructure, and then and saw a huge disparity in the way his business was oper d it back to headquarters or the office. Then an expert di- ating. For instance, specific CPS workers had little or no agnses the issue and sends along instructions to fix the prob- access to IT systems and resources while away from the lem or dispatches the appropriate worker who's available did business and reshape its workforce of roughly 4,000. including Christopher Barron, CPS Energys vice president than a business our size maybe should have," Barron says. office or warehouse. They were often required to visit immediately via voice, e-mail, and SMS text via smartphone work sites or customer locations to diagnose issues or sug The Magellan Program, through the use of smart- gest fixes before reporting back to the appropriate depart phones and other technology, has or will empower all em- ments or parties, which would then initiate the next step of ployees, no matter what work they perform, to become part the resolution process. That could mean dispatching ad of the greater company's 'thought network Barron says. ditional workers, and the whole ordeal could take days. ch person is now like a node in our network." The com- If we kept with the amount of manual labor that it pany is also seeing significant gains in supply chain efficiency took for us to accomplish that work, we would not be in the rated to Magellan and the smartphone deployment, he says. position to be competitive in the future," Barron says. From For instance, smartphones help speed up the purchase order this realization, the companys Magellan Program was born. process, because in the past a specific person or group of peo- Barron and his colleagues envisioned the Mallan ple needed to be onsite to approve orders. Now the approvers Program as a way to better mobilize and connect its tradi can be practically anywhere with cellular coverage. The com- tionally siloed workforce to the people and systems they pany's supply chain buyers can also visit warehouses to work needed to do their jobs. The goals of the program: Extend with the people who actually order parts, leading to faster CPSs networking infrastructure, build its own secure Wi-Fi order times, and more proative supply chain management networks in offices and warehouses, and deploy smarll. In just one year, the time it takes to close purchasing phones and custom mobile applications to all CPS staffers and procurement deals decreased by more than 65 percent. who didn't currently have a laptop or other mobile device. Also, inventory levels were reduced by more than $8 million For Barron, the first and most significant challenge in dedollars since the Magellan Program began. ploying smartphones to such a large user base was getting executive buy-in. "One of our biggest headaches has been, and continues to be, the perception that the technology brings little to the table other than e-mail, and it costs a lot," Barron says. Additionaly, both emplovee and customer satisfactionn levels are up, Barron notes, due to the fact that staffers now have more access to corporate systems and information and feel closer to the business. Because CPS can now resolve are customer issues with fewer processes, they've reduced
Explanation / Answer
Part 1 ) :
Smartphones helped these companies to be profitable in following ways -
Example from the case -
Before using smartphones the CPS Energy had a workforce of over 4000 peoples, and after the use of smartphone the company's workforce was decreased by 20 percent.As the same, Lloyd's company was also having a workforce of 100 persons but after the use of smartphone the company;s workforce was reduced to 12 drivers, 22 foreman, 7 office workers.
By using smartphones CPS Energy company was able to sell its products online, manage costumer support online and also was able of track of their employee through GPS.The company's repair and maintenance services were also increased.Similarly Lloyd's companies also used smartphone and this took over the use of radios.Now this company was also able to manage its machines and workers efficiently.
Both companies used pen & paper before but after smartphones their way of operating decreased and now all was digitized for both companies.
Improvement in performance coming from revenue increase or cost reduction are -
Part 2 ) :
I think the companies encountered a fair amount of resistance from employees when introducing smartphone technologies mainly because of three reasons -
Two things companies can do to improve the reception of these initiatives are -
Part 3 ) :
Recommendation for CPS Energy -
As CPS energy opened online shopping for customers they can start a new service for a user by providing a private portal for the users of CPS Energy products.By this each customer can a unique account and username and can manage the use of all services from the account.Payment can also be done through this portal.
Recommendation of Lloyd Company -
The company can open a service called live feed by which the user can see and monitor the work company is doing from anywhere.
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