Trial Exam – BDIS 2024 Dear all, In the following you will find a case study sim larto the ones seen in class. The case portrays a company experiencing problems that can be solved with the help of the IS theories seen in class. You will have to answer the following 5 questions. It is important that you read the entire case before you start answering the questions. Formalities: Start the answer to a new question on a new page. Include the question at the beginning of the answer. The total length of the response must not exceed 24.000 characters, including spaces (equivalent to 10 standard pages). Every figure count for 800 characters. Every question has the same weight. 1) Describe the information system used by th earse sales representatives at PC-Inc. What are the effects of the sales reps’ use of the information system on the ability of PCInc to generate knowledge and run effective operations? Answer from lecture: Explain why is Accurate not being used difficult, have to go back and forth with other system, time consuming, 1.people don’t use technology as its not easy to use and useful at all 2.Process they are forced to use is not aligned with technology 2 BDIS What they are using instead Yellow part (unused features) is big - they are not using Accurate. The used features is Excel. The company pays for Accurate, What is the effect: Bad integration within company. Loss of information as its so much of them in a messy system. 1.if you use excel you will not put data into the storage of the organization 2.data quality depends on all of the factors, if you use excel it may not be that bad. Big problem with data accuracy. 3. You need data in order to create information, information to create knowledge…. Bad data destroys the whole process PC-Inc’s information system is called Accurate. It supports the sales workers in creating product configurations, allowing them to set a price for them. The system offers outputs such as configuration diagrams, component lists, and warnings about issues that could affect the technical performance of configurations. The system’s idea was to reduce the errors and costs in product rework, as before there was a problem with creating inaccurate product configurations. This case is freely inspired by ”The Accurate Case” by Ruey-Lin Hsiao However, according to page 4 of the case, only 10% of sales representatives actually use the system. It is due to many reasons - as one of the workers states on page 4 - “the system is just too complex.”., “Accurate” does not fit the way we work.” The text mentions the complexity and lack of intuitiveness in Accurate (My people need to focus on the customers. They cannot just look at a screen when they are out there, page 2 of the case”)., furthermore using it takes a very long time, as it is necessary to use it with parallel Pricing Systems programme, which is highly timeconsuming and not efficient. In the end actually, the sales rep do not use Accurate at all - they simply prefer to use the old, manual way of putting the data in an Excel sheet and produce the orders for clients in that way. This has a very negative effect on PC-Inc’s ability to generate knowledge and run effective operations - the sales reps often put a wrong specifications, as Accurate is too complex, causing the Manufacturing Department to incur additional costs and delay for a wrong order. The knowledge that Manufacturing has is wrong and is not configurated with the actual orders. Furthermore, also the IT department is affected - as they are unaware of the Excel sheet usage, they put more and more money into the improvement of Accurate, which is still not used. Accurate is not integrated with other critical systems, such as the Pricing System, which creates friction in the sales process. Sales reps must work across multiple platforms to configure systems and produce price quotes, which they perceive as inefficient and time-consuming. This disconnect reduces sales reps' effectiveness and discourages them from adopting Accurate, further limiting PC-Inc's ability to collect valuable data on customer purchasing patterns, preferences, and requirements. Without seamless integration or full use of Accurate, sales reps are unable to efficiently capture customer data that could inform broader market insights or shape future sales strategies. This loss of potential customer knowledge constrains PC-Inc’s ability to proactively understand customer needs and offer tailored solutions, which is a central objective of its Phoenix strategy. 2) What kind of information systems are the A ratean cu d Pricing System? Assuming that your recommendation would be to substitute Accurate and Pricing System with an integrated system that could do both functions, what kind of system should this be? What functionalities and advantages could PC-Inc expect to obtain from an integrated system? 4 BDIS Answer from lecture: Accurate is best of breed which is hard to implement. CRM would allow for sales process, analytics. ERP could be good as well, would set pricing This case is freely inspired by ”The Accurate Case” by Ruey-Lin Hsiao Pricing System bases on the data coming from Accurate, in order to produce quotation letters, in the system it is described as a “stand-alone system”. It is a Decision Support System, as it helps to make decisions, based on the data from internal database. In this case, Pricing System is basing on the inputs about product specifications, such as cables, cameras etc, provided in Accurate and based on those creates a quotation with a price for the customer. Regarding the idea of creating one system, which would be able to do Accurate’s and Pricing Systems’ functions, I believe it should be the Customer Relationship Management System (CRM). CRM systems are used for sale management, it is a database storing all of the sales and customers details, enriched with data analysis. It would be a highly fitting match instead of two separate systems working right now - CRM, due to its database of sales details, would take on the Accurate’s function in fitting the order’s components and details, whereas the Pricing System’s function would be replaced thanks to the existing in CRM databases with previous orders and sales, allowing it potentially to set the price for new orders. Thanks to the integrated system, PC-Inc could definitely improve its overall performance in the Sales Department - it would take much less time for sales reps to provide information and the price of the order, as they could do it all through one, integrated system. Furthermore, it would allow for integration with the Manufacturing Department - such system would surely reduce the number of errors, at the same time making the mentioned Department more efficient and decrease The overall costs of errors and the amount of delays for PC-Inc. All of the structured would be finally in order, as there would be just one data base to work with in Sales. *or ERP with CRM 6 BDIS 3) Based on the statement by Sales and M ark etin gDepartment sales reps (p. 4-5), provide a high-level Process Definition (BPMN) of the current Sales Process. Explain why PC-Inc has a need for Process Orientation and Data Orientation in combination in their sales process. Discuss how the process would change if al th e sales representatives would start using the system that you suggest as solution in question 2 and involving sales support from other parts of the organisation (You do not need to draw this second process). Customer places an order collect the business- and technical requirements of the customer, create A LOCATION plan drawing add the configuration of IT components to the drawing send to customer (customers needs to approve) wait for approval receive an answer two ways: got accepted or not accepted: next step / not: adjust requirements, redesign plan drawing, redo IT component list next step means: create a pricre quote in Pricing System customer needs to approve wait for approval receive an answer yes / no yes: end of process no: adjust requirements, redesign plan drawing, redo IT component lis, then end of process This case is freely inspired by ”The Accurate Case” by Ruey-Lin Hsiao Explain why PC-Inc has a need for Process Orientation and Data Orientation in combination in their sales process. The company surely needs Process Orientation and Data Orientation in combination in their sales process for several reasons. Firstly, currently their way of working with data is highly inefficient, leading to many errors and costs for the whole company and repeated steps in the sales process. Furthermore, it is also crucial to notice that the systems are not used consistently - sales reps choose Excel and rather rarely opt for the meant for them Accurate, creating issues within data and other departments. Accurate and the Pricing System are not integrated, making it challenging for reps to generate precise quotes and respond quickly to customer requests. Moreover, PC-Inc fails to leverage customer data for insights, impacting their ability to anticipate customer needs, improve service quality, and inform strategic decisions. Discuss how the process would change if alth e sales representatives would start using the system that you suggest as solution The integrated system would allow sales reps to input configuration and pricing details within a single platform. This would eliminate the need to switch between Accurate and the Pricing System, streamlining the quote generation process. Moreover, The system would include guided configuration tools, reducing errors by ensuring that only compatible components are selected. Sales reps would receive real-time validation and error-checking support. The integrated system would capture customer interactions, product preferences, and sales outcomes in a centralized database. This would provide valuable data for ongoing analysis, helping PC-Inc anticipate future customer needs and refine their product offerings. Sales reps would be able to adjust configurations and prices dynamically within the integrated system, making it easier to respond to customer feedback in real-time and reduce the need for multiple adjustments. 4) Please discuss how the Phoenix Strategy w il ch ePC-Inc’s positioning in 4 digital business g an model options (Weill & Woerner, 2015): Where is PC-Inc in the current situation, and where will PC-Inc position itself when the Phoenix Strategy is implemented? Based on the 4 digital business model options, currently PC-Inc is in the Supplier Model. Firstly, it is mentioned a few times at the ending pages of the case that company’s relationship with customers is rather weak and they do not have much information about them (“we actually know very little about our customers”, p.5 of the case), which is very 8 BDIS characteristic for this model - PC-Inc sells directly to the customers but maintains a really small knowledge about them. Furthermore, one of the other qualities of Supplier Models is lacking the ability to work with the data - as stated previously, it is a huge problem within the company. The systems they operate with are, in eyes of the sales reps, complicated and require a lot of time to provide them with the data. Also, such operations are prone to creating errors and losses in PC-Inc’s orders, making it visible that data management is a serious issue in the business. The data problems concern not only the orders, but the customers themselves - “Information about them is not systematically collected and we are not proactive in our approach to the customers” (p.5 of the case), which illustrates Supplier’s Model typical disability in regard to maintaining customer data. Omnichannel, maybe toward time they will move to Ecosystem Driver After the Phoneix Strategy being implemented, the company will transform into the Ecosystem Model. The mentioned collaboration with other providers and creation of a website is a typical characteristics of the model. This is also going to be done in order to create the value and provide one place and network of various companies with all of the appliances available. Furthermore, they highly aspire to know more about the customers and “own” the relationship with them in concern to the sales and market functioning (“we can also gain access to much better customer and market data.”, p.6 of case). Moreover, typically for Ecosystem Business Model, PC-Inc strives to become a one-stop shopping type of business, regarding the office hardware (“we sell our and their products to our customers, thereby providing our customers with one entry point when they need to buy office hardware.”, p.6 case). 5) As expressed by the CEO when describing th e P ixStrategy, PC-Inc wants to obtain a en o h better knowledge about their customers. Please give your educated guess for how they could leverage a large language model like GPT to contribute to this knowledge: What data would an LLM allow them to collect and analyse, how could this be integrated into the existing systems, and how would that help alleviate one of the established problems in the case? What are LLM, what they are good at doing and what they are bad at. Fe a lot of email, LLM can help to put order and filter the data This case is freely inspired by ”The Accurate Case” by Ruey-Lin Hsiao 3.could they use AI to work with CRM