Information Technology Reference
In-Depth Information
The city is moving forward with the deployment of the new
cab information system. It has justified the expense to the cab
drivers by pointing out the increase of cab fares over the past
two years that doubled driver wages to $28 an hour on aver-
age; an increase that was imposed with promises to cus-
tomers for better service and in-cab technologies.
New York City's Taxi & Limousine Commission versus the
New York Taxi Workers Alliance provides several lessons
about business interactions and information systems. Today's
businesses have an incredible amount of pressure on them
to implement the latest and smartest technologies and infor-
mation systems. Often it is a business's information system
that gives a business an important advantage over its com-
petition. The City of New York no doubt feels pressure to
provide visitors and locals with high-quality service and
smooth running transportation systems. If it fails in this
regard, visitors and locals may begin to find other cities more
attractive to visit and reside in. Information systems also allow
businesses to operate more efficiently and effectively. The
new system for New York City cabs ultimately saves drivers
and passengers time and energy.
Finally, this story illustrates a resistance to change that is
often experienced when implementing sweeping new infor-
mation systems in large businesses and organizations. Many
businesses today are revamping entire corporate systems
and investing in retraining employees and winning them over
to the new system. This is an integral and challenging part of
new system implementation. So should you visit New York City
anytime soon, and experience the cool technology built into
the cabs, remember the struggle that went into bringing this
new system to life, and give your driver a generous tip.
Hamblen, Matt, “N.Y. taxi drivers set strike date to protest GPS systems,”
Computerworld, August 23, 2007,
www.computerworld.com/
rss_news10.
Lopez, Elias, “City Cabdrivers Strike Again, but Protest Gets Little
Notice,” New York Times, October 23, 2007,
www.nytimes.com/2007/10/23/
More than ever before, Chinese retailers are facing local
competition from foreign companies. China's highly regu-
lated economy has insulated businesses from competition.
Now that China is loosening its regulations in an effort to
benefit from international trade, its own businesses must
work harder to become more efficient and effective and keep
customers.
Yansha is one of China's biggest retailers. It sells upscale
designer clothes from around the world along with other fine
merchandise. One of its largest retail stores occupies 215,000
square feet in Beijing's famous Youyi Shopping City.
Yansha has long experienced market leadership in China,
but in recent years has felt increasing competition from inter-
national companies. Yansha's management team was aware
that its methods of communication with suppliers—the plac-
ing and receiving of orders—was less than efficient. It was
also aware of other inefficiencies in communication through-
out the organization. For Yansha to maintain its leadership
role in the market, it would need to cut the waste and
become lean and mean in its application of information
system technology.
Yansha turned to IBM China Research Lab to evaluate its
information systems and recommend the latest technologies
to bring it up to date. IBM implemented a massive system
upgrade across the entire enterprise: an enterprise resource
planning (ERP) system. The ERP allows Yansha executives
and managers to view real-time performance data, such as
sales across all locations, in certain regions, or in one par-
ticular store. Using this system, managers could, for exam-
ple, determine the success of a particular marketing
approach. The new ERP interfaces with a new supply chain
management (SCM) system that provides close communica-
tion between Yansha and its suppliers. These two systems
working together, the ERP system and the SCM system, allow
for Yansha and its suppliers to work as one tightly knit
organization.
The new systems required a substantial investment of
time and money for Yansha, but the benefits have vastly over-
shadowed the costs. The new systems reduced the time it
takes for suppliers to ship merchandise to Yansha (order lead
time) from 2.5 days to 4.5 hours. The order acknowledgment
rate has increased from 80 percent to 99 percent. Order
errors have been reduced from 9 percent to 1 percent.
Discussion Questions
1.
Were New York City cabbies justified in their concern over
GPS tracking in their cabs? Why or why not?
2.
What might New York City's Taxi & Limousine Commis-
sion have done to create a smoother transition to the new
system?
Critical Thinking Questions
1.
Many cabbies expressed the opinion that the technology
being installed in their cabs was inevitable, no matter what
their opinion. Do you agree with this assessment? Why or
why not?
2.
As a customer of a cab service, would you appreciate the
benefits provided by the new system in New York City?
Would it help provide you with a favorable view of the city
in general? List the benefits and provide your view of each.
SOURCES:
Hamblen, Matt, “N.Y. taxi agency says cabs will get GPS technology,
despite strike threat,” Computerworld, August 7, 2007,
