Sourcing Scenarios Case Questions

Julien Levesque June 17, 2010 MISM 2301 Sourcing Scenarios elusion Questions boldness 1 Outsourcing 1. Develop a t sufficient that captures the pros and cons of this incorporate decision. Pros ConsImproved quality * operable and management activities * Accurate record of transactions Jeopardy of quality * unworthy communication between suppliers * Testability * Qualifications of outsourcing compevery Cost effective * Lowers hail profit to the business Quality of service * Stakeholders be affected and there is no single view of quality Allows them to focus on the shopping centre business * Financial services Image of company * Public opinion regarding outsourcing * Staff turnover Operational expertise and access to talent * Too difficult or time consuming to develop it in-house communicating problems with transferred employees * Company have it awayledge could be jeopardized Standardizing business processes, IT services, and application services * More access to services bec ause they lead more resources and time to devote into other aspects of their company Security, legal, and compliance issues * Fraud * Liability for actions is there scarcely only until employees transfer 2. List the reasons why Southwest chose outsourcing? Was it the right survival of the fittest? * Business growth needed the need for computer hardware and software upgrades * This was the reclaim choice It is important to keep clients happy and be able to satisfy their needs while remaining profitable * IT can enable business processes * This was the RIGHT choice * Easier to analyze transactions * Make more informed decisions when manipulating information * Outsourcing vendor hired many of the IT lag * This was the RIGHT choice * Knowledge of clients and necessary procedures * Hardware and software updates meet client needs * This was the RIGHT choice * There was a fee-based arrangement so they only pay for what they need and use Case 2 Partnering 1. Develop a table that captu res the pros and cons of this corporate decision. Pros ConsBetter customer service (focusing on their expertise) unregulated subsidiaries may shake problems incorporating IT if they dont have their own personnel Increased efficiency and cost management Should discuss decision with investors since they are affected Wide range of technical personnel who are only employed when needed Protocol for different subsidiaries may conflict with the IT that the partnering company wants to install flexibility of personnel Can serve different needs of to each one subsidiary 2. List the critical victory factors (CSFs) in making this partnership work. * Meetings with the IT personnel and all groups to see if they can develop a propose together * Focused goal * Communication * Flexibility * Commitment to the projectfinancial and practice Case 3 Unwinding an outsourcing relationship 1. Use a table to list the major risks associated with this in-sourcing solution and how SRS mitigated each risk s. Major Risks SRS MitigationData integrity Converted to run on new software and interrogation Controlled environment for data center Located within building so it is accessible to staff and IT No thorough understanding or knowledge of hardware and software being ordered Clause to have vendors explain in detail all of the hardware they would employ and how it would be configured to work with their growth offering system Staffs adoption and integration of new system Staff study and testing 2. List the critical success factors (CSFs) in making this arrangement work. * Understanding of needs and what hardware can be configured to best suit needs * Thorough training for employees so they know how to use hardware * Data integrity and testing * Standardizing system so it is easy to get any additional IT help and to reduce costs