Case Study: Life on the Grid, iPhone Becomes  iTrack

1.     Why do cell phone manufacturers (Apple, Google, and BlackBerry ) want to track where their customers go ?

          Cell phone manufacturers, Apple, Google and Blackberry, want to track where their customers go due to various factors. Firstly, location-based service provided in Apple, Google’s Android and BlackBerry smartphones can be the tool for three of the cell phone manufacturers to earn money. They can earn money by the location-based service in smartphones through advertising. Apple and Google are advertising platforms, so this makes them create the location-based service in their smartphones products.

            How can they earn money through advertising channel? This can be explained that mobile technologies based on the smartphone make it possible to locate people who use smartphones. After that, the location data of the users will be reported to the smartphone manufacturing company databases, retained and analyzed. The analyzed location data will then be sold to advertisers and others. When the advertising firms received the location data of their customers, they will pay Apple, Google’s Android and BlackBerry for the information of their customers’ location and for the distributing of their mobile advertisements. Once the advertising firms know where their customers are through mobile, they can send the customers advertisements, coupons, and flash bargains based on where the customers are.

             Next, Apple, Google and BlackBerry needs the location data of their smartphones’ users as they want to use the information to identify the location of cell phones for WIFI connected phones, and to improve the customer experience of location based services. Furthermore, the location information of users is also needed for them to improve their services.

             Moreover, location-based service created in smartphone can also build a strong and closed customer relationship to Apple, Google and BlackBerry. For instance, Foursquare, a 2009 start-up, is a popular mobile social application that allows users to check in to a restaurant or other location, and the app automatically lets friends on Facebook and other programs learn where you are. After starting up Foursquare on a smartphone, smartphone users will see a list of local bars and restaurants based on their cell phones’ GPS position. Foursquare has a widely accepted loyalty program. Each check-in awards users points and badges, which can be used later for discounts and at various venues. Users of  smartphones with Foursquare app are also awarded to be “Mayors” of the venue based on how many times they have checked in over a month’s time. Those who become Mayors will be given special offers. Thus, from here, it is shown that Apple, Google’s Android and BlackBerry provide location-based service in their smartphones can help them to create customers’ values.

2. Do you think cell phone customers should be able to turn tracking off? Should customers be informed when they are being tracked? Why or why not ?

            In my opinion, I think that the cell phone customers should be able to turn tracking off. They should also be informed when they are being tracked. This is because if the systems of the smartphone manufacturers do not have the action of that, they will violate their customers’ privacy for certain scenarios. For example, it is sure that most of the people do not like others from the public, who they do not know, to have known their location and what they are doing. This will be especially when they are enjoying their special occasions, such as, wedding ceremony and dating. So, from here, it is encouraged that customers are informed when they are being tracked.

            Moreover, allowing smartphone users to turn tracking off using their smartphones’ functions also acts as a respect of  the cell phone manufacturers towards their customers. They can show their respect to their customers by giving permission to their customers to choose to check in their location areas or not through their phones’ location-based services.

             Last but not least, if there is no awareness of being tracked among customers and customers cannot turn tracking off, users will be scary to use smartphones with location-based services. This may bring bad reputation to the cell phone manufacturers and also the smartphone products itself. It is owing to the bad treatment and customers’ services provided by the system of cell phones. Consequently, sales of cell phones with location-based services may decrease.

3.  Do you think cell phone tracking is a violation of a person’s privacy?

        Cell phone tracking can either a violation of a person’s privacy or not. It depends on the situations. 

        If  the systems of cell phones with tracking functions allow users to decide whether to share their location data or not, then for this case, cell phone tracking does not violate a person’s privacy. Yet, on the other hand, if the phone’s system automatically transmits location data of the users to other parties without getting permissions from the users, then, cell phone tracking is said to be a violation of a person’s privacy.

         Furthermore, for another case, if users of cell phones with tracking services are given benefits and so are willing to share voluntarily their location data, then, cell phone tracking is not violation of a person’s privacy. This is due to the agreement of the users on sharing their location data to public.

          In addition, if the location tracking apps in the cell phones have no privacy policy, cell phone tracking is considered a violation to a person’s privacy. This is because these types of apps transmit location data of the users to their developers after which the information is not well controlled, and that these services are creating a situation where government agencies, marketers, creditors, and telecommunication firms will end up knowing nearly everything about the users including their whereabouts.

          Last but not least, the most significant factor that makes cell phone tracking the violation of a person’s privacy is the location-based services of the cell phones that locate people automatically and persistently without users having a chance to go off the grid, and without being able to turn off the location features of their phones.

Group 9: Smart Leisure ( 3 Case Studies ) 

Automakers Become Software Companies

1)  How is software adding value to automaker products?

Ø  The eventual system would require the cars feed increasing amounts of information to systems which can minimize highway congestion.

Ø  By using software in automaker products, the products are entering uncharted territory.

Ø  Raise the same privacy concerns surrounding location tracking improve navigation controls, the music and phone features, and also can control the car temperature

2)  How are the automakers benefiting from software-enhanced cars? How are customers benefiting?

  A) Automakers benefiting from software-enhanced cars

Ø  This will enable Ford and other automakers to significantly improve the passenger experience and the automaker can add new features to cars after a few year

  B) Customer benefiting

Ø  Enable drivers to connect their tablets and smartphone to the Sync system to access music and other apps using voice commands

3) What value chain activities are involved in enhancing cars with software? 

Ø  Automobile companies are enhancing their vehicles with onboard software that will improve customer experience and the automaker can manage to car via the cloud

Ø  Ford has doubled its investment in vehicle-to-vehicle communication technologies.

4) How much of a competitive advantage is software providing for automakers? Explain your answer.

Ø  The Ford can analyze how their customer reaction when using the software

Ø  The automakers can interact with the customer by software

Ø  The engineer can also make changes on software with customer feedback

Starbucks

1. Analyze Starbucks using the competitive forces and value chain models.

Ø  Competitor Forces, they pursue a more aggressive product differentiation strategy by using high quality beverage and emphasize to improve their customer service.

Ø  Implementing Wi-Fi technology enabled Starbucks to increase the in-store presence of district managers by 25% without adding extra managers.

Ø  Starbucks using fast-food chains to increase the profit.

 2. What is Starbucks’ business strategy? Assess the role played by technology in this business strategy.

 Starbucks implemented a technology that allows customers to pay using smartphone apps as their business strategy. This app is integrated with the Starbuck Card System which allows regular customers to pay with a pre-paid and rechargeable card at any Starbucks branch.

3. How much has technology helped Starbucks compete? Explain your answer.

Wireless technology enhanced Starbucks’s business process simplification effort. Starbucks district managers use the in-store wireless networks to run store operations and to connect to the company’s private corporate network and system.

Interactive session: People “Should You Use Your iPhone for  Work ?

1)  What are the advantages and disadvantages of allowing employees to use their personal smartphones for work?

Advantage of allowing employees to use their personal smartphones for work:

a) The company does not need to spend their own money on the mobile device

b) Make the business processes easier:

Ø  By using employees’ personal smartphones in work, it will make the business processes more efficient on generating order, submitting order, checking credit, assembling product to ship product

c)  It will help the company’s leverage mobility to become more effective

Ø  Smartphone can connect to the firm existing IT platform and also company system like CRM, which will increase the company mobility.

d) Easy to communicate with customer and senior management

Ø  Employees can directly communicate with customers, it will improve the relationship with customers. In return, it will raise the company profit.

Ø  Senior manager can monitor the work of employee at any time

Disadvantages of allowing employees to use their personal smartphones for work:

a)      Company may face some difficult problem of allowing employees to use their personal mobile device.

Ø  Like security, inventory management, support and integrating mobile devices

b)      Leakage of confidential information of the company to the third party.

Ø  When employees lose their smartphones or their smartphones are stolen by people, the information of the company will leak.

c)      The performance of  employees will be affected

Ø  Because of using their personal smartphones, they may do other things during working period and they will not pay fully attention on their work. The employee may use their phones to online or chat with their friends

d)     Data flowing over networks, steal valuable data during transmission or alter messages without authorization

e)      The security of  smartphones are not stronger than that of computer.

Ø  The data in smartphones will be easier to leak out than that of computer system.

2) What people, organization and technology factors should be addressed when deciding whether to allow employees to use their personal smartphones for work?

          The security, inventory management, support, integrating mobile devices into pre-existing IT functions and systems and measuring return on investment should be addressed when deciding whether to allow employees to use their personal smartphones for work. The corporate IT resources are important for managing and maintaining a large number of devices in an organization. The company’s networks must be configured to receive connections from the employees’ mobile devices and operating system to access the company’s information. When employees make changes to their personal phones, companies need to quickly and flexibly ensure that their employees are still able to remain productive. Firms need an efficient inventory management system that keeps track of which devices employees are using, where the device is located, whether it is being used, and what software it is equipped with. Besides that, company needs to provide adequate technical support for every employee who is using a variety of phones and operating systems. When employees are not able to access critical data or encounter other problems with their mobile devices, they will need assistance from the information systems department. A firm’s software development teams need to have one professional focused on ensuring that new applications will be easily used and useful on smartphones. The applications and software need to be used on mobile devices to connect to the firm existing IT platform and company-wide CRM, SCM, and ERP systems. The mobility experts can make company’s leverage mobility more effective. Companies need to ensure that sensitive or confidential information is secured by using technologies that allow them to wipe data from devices remotely or encrypt data when a device is stolen or missing so that it cannot be used.

3) We agree that allowing employees to use their own smartphones for work will save the company money.

a) Using smartphone to replace stationeries/ assets

Ø  Smartphone is like a mini computer that employees can take notes, review and edit the appointments, contacts and documents in the smartphone without using any stationery.

Ø  Smartphones today have bigger money capacity. With this, employees can easily store files particularly those that are important for the business which means company does not need to purchase assets to store the data

b) Free communication tools

Ø  Employees can connect to the internet for using free communication applications in smartphone such as Wechat, Facebook Messenger and Line that provide free texting, voice messages and video calls to communicate with the customers without any cost.

Ø  Employees also can save costs by using email to send the documents to customers. Many documents that used to be sent through the mail at regular postage rates can be sent by email. These savings add up significantly over time. Money is also saved by the speed of email.

Interactive Session : Technology

UPS Competes Globally with Information Technology

1) What are the inputs, processing and outputs of UPS’s package tracking system?

           Inputs of UPS’s package tracking system is scan bar-coded label attached to a package which contains detailed information about the sender, the destination and when the package should arrive.

           The processing of UPS’s package tracking system is before the package is picked up, information from the “smart” label is transmitted to one of UPS computer centers in Mahwah, New Jersey or Alpharetta, Georgia and sent to the distribution center nearest its final destination.

            The output of UPS’s package tracking system is customers download and print their own labels using special software provided by UPS or by accessing the UPS Web site.

2) What technologies are used by UPS? How are these technologies related to UPS’s business strategy?

             UPS has used the dispatchers in computer center to download the label data and use special software to create the most efficient delivery route for each driver that consider traffic, weather condition and the location of each step. By using the software, UPS estimate it save 3 million fewer gallon of fuel of every year. This technology related to UPS’s business strategy which is best services and lowest rates.

             Moreover, to accomplish business strategy which UPS want to increase cost savings and safety, UPS are train driver to use “340 Methods” to optimize the performance of every task from lifting and loading boxes to selecting a package from a shelf in the truck.

              UPS has also used handheld computer called Delivery Information Acquisition Device (DIAD) which can access wireless cell phone network. Drivers can know their task by handheld, the DIAD has a function which is automatically captures customers signatures.

 3) What strategic business objective do UPS information system address?

 The strategic business objective that UPS information system address were provided best customer services to the customers. Every year UPS spend more than $1 billion to maintain high level of customer services.

                UPS also focus on improve the efficiency of the performance. UPS invest and use a lot of systems or software to increase the company performance. For example, Package Tracking System, UPS using this system to monitor and re-route package throughout the delivery process. The UPS can always improve operational efficiency.

                The others strategic business objective is lower cost. UPS was keeping costs low to compete with competitors like FedEx. By using information system in UPS, it can reduce cost of operation.

4) What would happen if UPS’s information systems were not available?

 If UPS’s information systems were not available, UPS will face some problems. The process of providing information to customer will become slow. The customer cannot receive the information rapidly.

The operation of UPS will also become slow. Because UPS is using technology and information to monitor and control the operation when information system does not available, it will effect to the operation of the organization.

 Moreover, UPS need to spend more on cost. The cost to deliver the product and monitor the performance of driver will increase when information system does not occur.