Question # 1 (Finals)

Research one company from the Internet and describe their MIS strategic plan in 1-2 paragraphs. Discuss too the impact of this strategic plan on the company's management, competitors, customers and the company as a whole.

Evaluate how can this strategic plan be applied to any local company in the Philippines. Discuss too the possible effect on the company.

Include your reference.



National Bookstore

Rapid growth and expansion can lay some tough demands on even the most successful enterprises. Such difficulties weren't lost on National Bookstore, the Philippines' biggest retailer of books and office supplies. As well-stocked branches of the store mushroomed around the country in the early 1990s, the resulting higher purchasing costs had to be addressed by integrating its entire supply chain.

As an emerging retail giant, National had been aggressively launching new branches, and even new store concepts, such as Powerbooks and Office One Superstore. Such expansion begged for robust information systems that could provide critical decision support---from tracking company sales at a moment's notice to monitoring inventory to the last item---delivered in time, of course. National thus undertook a strategic I.T. initiative in 1996 to streamline its retail operations and also improve the quality of in-store service. By aligning its I.T. and business objectives, National was ultimately hoping to get a good return on its I.T. investment.

The company initially hired international consultants who evaluated the stores' needs and long-term goals, developed a technology road map and recommended appropriate applications software. Hardware selection was just as judicious in view of universal worries over runaway operating costs, including expenses for managing upgrades and maintenance. NBS chose to address the total-cost-of-ownership issue by standardizing its store automation platform on a single solution from a single vendor.

The consultants examined a number of offerings, before endorsing the proposal of Fujitsu Philippines, Inc. FPI offered to implement front-office automation for the first thirty branches of National Bookstore, using Fujitsu teamPOS point-of-sale terminals, Fujitsu DESK POWER PCs and Fujitsu team servers. Fujitsu's reputation as a high-quality hardware brand, with minimal unplanned downtime and superb after-sales service, helped in closing the deal.

"For sure, Fujitsu's reputation as a superb hardware manufacturer played a big role in clinching the deal. But equally important, FPI was the only proponent who proposed total responsibility for implementation - a full turnkey systems integration project. That was also part of the attraction," recalls Aleth Pusta, manager of the General Business Systems Division at FPI.

The bookstore chain was won over, too, by Fujitsu's plan for integrating front-line data from the stores, with the back office systems at headquarters. The Fujitsu POS runs SoftwearPOS, a software application specifically designed for specialty stores such as a bookstore. This application captures an immense amount of customer transaction data, which can then be transferred to the existing JDA back-office system of NBS.

More important, the same data could now be analyzed by Powerprobe, a Decision-Support-Software tool recommended by FPI. Powerprobe produces both printed reports and colorful user-friendly graphs that highlight sales trends for each branch or each product. In the future, National Bookstore could implement data warehousing projects and customer loyalty schemes, also on the basis of the historical data produced by the Fujitsu POS systems. Fujitsu has come a long way since the start of the National Bookstore project. The initial activity was a "proof-of-concept" demonstration in September 1997. Fujitsu installed its equipment and linked branches to a simulated head office, to show that the system would work. After a successful implementation of the first few branches, FPI set up a ten-man team of software and hardware engineers, under a full-time project manager, dedicated to implementing and supporting more NBS branches. Additional Fujitsu people were made available during peak loads, especially when more than two branches were being simultaneously implemented.

Special attention was given to teaching the branch staff in using the new system. In fact, Fujitsu engineers would remain on stand-by for a few days, to support the newly-implemented branches, and instantly respond to any problems that would arise. Pusta believes that "the quality of our support, including our effort in hand-holding the customer during his learning curve, is what differentiates Fujitsu from other I.T. vendors."

The typical NBS branch is outfitted with two Fujitsu DESKPOWER PCs, one Fujitsu team server each, and 10 teamPOS point-of-sale terminals, plus dial-in facilities to transfer transaction data to the head-office at the end of the day. Of course, bigger branches have more POS systems. As of May 1999, FPI had successfully complied with the contractual requirement to implement the new system in thirty National branches. Discussions are now being held to address the need of the remaining fourteen branches.

"Fujitsu's teamPOS, DESKPOWER and team server lines indeed set the standard for top-of-the-line design and superior quality when it comes to high-performance and reliability," says Ruel D. Magat, MIS Manager of National Bookstore. "More importantly, FPI has delivered an impeccable after-sales support which is very critical to our business. This comprehensive support from FPI transcends the common sales pitch that we usually hear from IT vendors before the sale. We look for a responsible partner, not just an IT supplier who disappears whenever trouble comes. And we find such a partner with Fujitsu."

Challenges:

• National Bookstore had been aggressively launching new branches. Such expansion begged for robust information systems that could provide critical decision support---from tracking company sales at a moment's notice to monitoring inventory to the last item---delivered on time.

Benefits:

• The Fujitsu POS runs SoftwearPOS to capture customer transaction data, which can then be transferred to the existing JDA back-office system of NBS. The same data could be analyzed by Powerprobe, which produces both printed reports and colorful user-friendly graphs to highlight sales trends for each branch or each product.
• In the future, National Bookstore could implement data warehousing projects and customer loyalty schemes based on historical data produced by the Fujitsu POS.

Note:

Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers.
Fujitsu is the world's third-largest IT services provider and Japan's market leader.


Reference:

www.fujitsu.com