Importance of Information Systems to Danaher Work Leaner - Assignment Example

Importance of Information Systems to Danaher Work Leaner Question 1: Analyze the problem that Tom Mathis and Danaher Sensors and Controls needed to solve in this case? What were the surrounding issues of the problem? (500 words) The lack of specific knowledge and implementation of Information System is the core reason behind the hindrances of Danaher Business System (DBS). The problem of lagging behind in case of an updated information technology and the non involvement in the atartegies of e-business1, is really getting vital for the workers of Danaher Corporation. It is very clear when we find how hard it was for Tom Mathis, while selling the idea of an e-kanban system at Danaher. Mathis no doubt directed a series of planning sessions for the establishment of a leaner procurement process at Danaher, but he soon realised that Danaher lack the resources to implement the idea to work leaner. Mathis application of ICT strategies were worth getting appreciation, however he could not attain success. The reason is that for the application of ICT strategies, there has to be the access to the use of computers at the initial state. The use of Internet is a compulsion. In order to meet the orders and to work leaner the corporation must have the dynamic Internet access. It will boost the speed and cost with a great difference. While checking Danaher Corporation under the scrutiny of Porter’s Five Forces Analysis, we can see that the lack of awareness regarding the Information and technology is the biggest weakness in its growth. As the parameter of Danaher Corporation gets accessed in order to determine the modes of its success, it becomes specific that it needs to make the company strong enough for the forthcoming challenges of the market. The whole inspection has to be done on market for the attainment of better speculative insertion in the working process2.(Kimes 1989). The five forces specified by Porter acts both the ways3(Michael, 1985). They will either harm the company or the company has to make it safe by applying the same to others. It has to make itself efficient to have a regular check over the degree of rivalry, threat of entry, threat of substitutes, buyer power and the supplier power. It is important for Danaher Corporation to get the reap added value. Instead of reprinting the cards the company could have simply enter the new information in the database and that would have helped the bar codes stay static. Mathis discovered that by the knowledge of entering the database the employees would save 28 minutes a day to give leaner performances. The value chain and SWOT can make the analytical level more specific and detail. The application of strategic planning tool is something that SWOT analysis too advices all the corporations, in order to have a scale of evaluation about the Strengths, Weaknesses, Opportunities, and Threats of the company. With the rapid change and development in the peripheries of all types of business it is very important for Danaher Corporation equip itself with the upgraded technology. SWOT involves in specifying the objective of the business and in identifying the internal and external factors that are favorable and unfavorable to achieving that objective. With this analysis it becomes the demand of the company to have a well trained stuff for informational and technological application in the company. Question 2: From a critical prospective explanation the solutions that were available to solve the problem? Were there any solutions of which Danaher did not think? What are they? (500 words) -There is a recent Economist Intelligence Unit report on ICT usage in Europe. It states that there is the lack of ICT knowledge in senior management in various companies. It has been said that this is the biggest internal barrier to European companies in availing the benefits of ICTs. A number of reports have also been published and the insisting of ICT is getting higher4. Considerable importance has also been placed on the advancement of IT skills for the ICT producing sector. This is something that is directly applicable to Danaher Corporation. Danaher needs to apply some policies in order to promote infrastructural availability to the leaner work supply. It has to more prompt with the issues that are demand-driven and are applicable for the utilisation of its capacities5. The process can equip Danaher Corporation to run the risk of encouraging incompetent investment decisions in all the levels of communications. It is no doubt that the company is very weak on ICT strategy skills and this is due to the lack of proficiencies in the information and technological application. Significantly enough the attempts made by Tom Mathis denotes the interest of the company in the extra investment in ICT. It gets warranted in only a minority of cases. the application in a way needs more speculative perception and acceptance for a steady growth of the company. According to the CSO survey there are almost 30% of enterprises in industry who have been selling goods using eCommerce. These strategical applications of IT with such sales are accounting for approximately 25% of turnover to most of the companies in the world. It has been discovered that, the Electronic Data Interchange (EDI) financial backup for about half of eCommerce sales. It is about 25% of businesses in the services division had sales via eCommerce that keeps on representing about 13% of turnover to the respective company6. Under a rough estimation, it has been found that, the half of all businesses have purchased some goods or services using eCommerce, although the percentage of total purchases made in this way is still very small. Even then the effect is strong and is the most recommended procedure. The exclusion is in the retail and wholesale areas where 9% of purchases are made by EDI. Alternatively, Danaher Corporation will have to make strategical decisions for the same. However for now the matter needs a shift. Rather than investment there is the need for growth in IT. As a replacement for the investment, the key need for the company is to make better decisions about IT investment this will grade the company towards a better state of management. The implementation of the proper analytical IT strategy has to own proficiencies. The target is to have as much as possible the IT facilities and the skill to make more use of these facilities in making the correct approaches. There should be the space for the implementation of training teams and groups to help the same. This will help in faster adaptation. Question 3: Provide an analysis of how much Danaher have to change the way it conducted business to take advantage of the SupplyWorks software? What were the changes? What were the obstacles to change? (500 words) - As the the combined human resources at Danaher Corp. gets checked, it has been noted that the company seriously is facing a kind of drawback in the utilisation of human resources.. In order to e leaner than what it is now, it is no doubt must have certain important changes in its structure. SupplyWorks has adjusted its software in the matter of application in all levels. It has enabled Danaher to get hold over the timely alerts. However, SupplyWorks is not always so enthusiastic on the process of customization. To a great extend it prefers updates that could be rolled out for multiple customers at the same time. Some other observations have found that SupplyWork’s, size and approach were a little demoralizing. These approaches are basically in regard of the software dealings. These are the vital aspects that need serious concentration and some major changes. The changes have to be in regard to the software approaches. It also laid emphasis on the implementation of the software functioning’s more strong and systematic. Changes are in demand both in dealing with SupplyWorks and in making the division leaner than what it is now. The attempt as yet made by Mathis in 2005 by a selection of a small vendor; is something that can be a part of the change. As the commercial vendors often report different qualitative descriptions and industrial classifications from one to another, the choice of small vendors is a compatible choice. These depictions and categorizations may also be of great significance while making the assessments. The result was that the product was received with lesser expense. It costs that irt derived was half of what the SupplyWorks MAX estimated to produce. Danaher purchased the productions through SupplyWorks. This process gave the company some specific benefits and static rise. However the cost of materials and non-productive time among the employees were drastically declining. While calculating the industry labor-productivity and labor-utilization norms this company has seen the strategical hurdles up close. The major obstacles come up in worldwide speculations. It does not seem to believe services state of affairs involving technology, where labours are not corporeally in attendance in the company’s production stipulation, but still have an intense service encounter7 (Froehle and Roth, 2004). The survey findings reveal an overall low appreciation among the employees of the company. The maintenance of The IT system has to be applied on every possible level. The judgment across various sources in order to determine a reasonable classification is the best way of making the work leaner. The company though understood it but is lagging behind in the process of its implementation. According to ICT the use firewalls should be an integral part of the latest process of rating is a part of compulsion. There should be an account kept in consideration of the growing usage of ADSL, fixed high-speed connections and ISDN, the low level of firewall usage. These are the major sides of keeping the security track of a company intake. Through a meta-analytic process, and thereby by combining various sources, linking a classification’s keywords to qualitative descriptions the obstacles can be well handled. Question 4: Provide a critical summary of what the new system did. How did it benefit the business? Were there any negative issues concerning the new system? What were they? (500 words) - The e-kanban implementation, Gurnee installed a new wireless inventory system to accommodate the scanning of kanban card bar codes. This new system got the procurement electronically and had the current SME supply base. There is of course the demand to be able to adapt to this way of implementing works in a meaner way. This was a sequel implementation of the idea led by Mathis in making the employees save 28 minutes a day. This saving was from the time as consumed in updating kanban cards. Execution of SupplyWorkd was made the basic process to follow this trend. It was considered as the ‘pilot program’ at Gurnee. There was the utilization of the plant’s parts inventory at the initial level. During 2004, there was the full deployment at Gurnee, yet it never had achieved such a high rate of success in the previous years. This particular new system reduced non-productive time by 57 percent. This gave a kind of boost among the employees to have leaner works. The limitation to this new system was very specific in its own way. For the vendor the software was not losing data but that the problem is with the workers. The process of e-kanban, depends on the sector which with more substantiality is within an SME operational field. For the implementation of e-kanban it can have the implications with all sorts of valued significance. With the positive insight and with the optimistic viewpoint, there can be some added prospects for suppliers while dealing with Danaher. It is a mandatory factor of giving them the necessary assistance to guide through the connection failures. In a way it is all due to the lack of skill8. Mathis paved some solution for this hurdle by replacing the original Hewlett-Packard handheld units with units from Symbol Technologies, which have stronger radio reception. Troubles also persisted for sending e-mail alerts to suppliers with the products of SupplyWork. The system sometimes inundated suppliers with unnecessary alerts; sometimes it would prompt a supplier to send advance notification of a shipment when the shipment had already arrived at Danaher. These created trouble in the operational section and as a result there came up many mismanagement follies. This somehow got solved by SupplyWorks. However the troubles regarding customisation persisted in most of the sites. Preferring updates that could be rolled out for multiple customers is one such predominating case. To a great extend the vendor is not prepared to make a deal with the problems. In order to achieve the competence on international grounds, there is the need to get substituted with the changing trend. With the specific related knowledge these is every possibility to safeguard all the barriers to entry. There has to be an increase in the demands on IT capability, pressure on prices and service levels. No space could be allowed to have the inability to manage larger orders. This will block the development and expansion facilities for the company. In a way the hurdles are to be given broader speculative insight and solution for not being able to get repeated. Question 5: What were the results of implementing the new system? Was it a successful solution? Why or why not? (500 words) -The new system was no doubt giving some kind of boost in the operational sector, yet the targets were not exactly satisfied. The results were not of much satisfaction to Mathis as his target was leaner than what came up on the scene. Fortunately the percentage of parts that Danaher bought through SupplyWorks was achieving some success but the cost of materials and non-productive time were detoriating in a rapid average rate. The execution of the exclusive filtering process in the concept of working leaner, is considered as the source for corporate success . However as in accordance to the criteria stated by Fitzsimmons and Fitzsimmons, (2006), it has got some kinds of eliminated outliers in its technological sector9, it needs to have rectifying steps on it. The involvement of ICT strategy can give the company a better footing than what it has now. The policy led by ICT, is in a way the paving ground for having more effective and result oriented solutions that Danher should follow. The implementation of the IT skills is the predominant factor behind the results that Danher is looking to have. The demand was to have ICT Internet to search for or use email to contact customers and the respective suppliers for the purpose of strict time strain. The basic "ICT housekeeping" such as data back up and security are still the most vital factors behind the strategic growth of the industrial structure. The negation to these factors by Danaher Corporation is the chief cause of not being able to reach the estimated target of working far more leaner than what it is having now. In this category the attempt of the company has to be prolific. According to ICT, the key policy purpose should be to make certain confirmations regarding a sufficient competition in the market to give an alternative when purchasing ICT systems and telecom services10. The policies thus need to be scrutinized to have proliferating results and outcomes. This too will support the company to have the structural growth among the employees. Danaher should follow ICT and should believe that inventories of the employees are usually much higher holding costs than non-customer inventories, although the costs can be mitigated by psychological means11 (Maister 1985). DBS priorities include the priorities and facilities to analysis of flow of work and information to identify improvement priorities. It has to continue with the evolvement of the DBS point of reference for daily management. There should be the scope to develop and deploy DBS lean tools and growth tools for better orientation and growth. There should be the development of inhouse capacity regarding the software developments. These will help in creating the management in determining direction and initiative, and thereby coach and train company employees for static growth and leaner work pattern. Added to this is the need of benchmarking studies. These are the best factors that can not only support the prolific strategical units but also will give the company the boost of implementing the factors to give the result oriented leaner work. References 1. European Commission Report "Adapting eBusiness policies in a changing environment – The lessons of the Go Digital initiative and the challenges ahead".March 2003 http://www.europa.eu.int/comm/enterprise/ict/policy/doc/com_2003_148_en.pdf 2. Fitzsimmons, J. A., and Fitzsimmons, M. J., 2006. Service Management: Operations, Strategy, and Information Technology, Fifth Edition, Irwin / McGraw-Hill, New York. 3. Forfás:‘e-Commerce the Policy Requirements’, 1999 . http://www.Forfás.ie/publications/ecommerce.htm 4. Forfás:‘Leg islating for Competitive Advantage in eBusiness and ICTs’, October 2002Information Society Commission:‘Building the Knowledge Economy’, December 2002 5. Forfás:‘eBusiness Monitor’ November 2003, http://www.Forfás.ie/publications/ecommerce.htm Information Society Commission:‘Building Trust Through the Legal Framework’, 2002 6. Froehle, C. M., and Roth, A. V., 2004. "New measurement scales for evaluating perceptions of the technology-mediated customer service experience." Journal of Operations Management, vol. 22 7. Grove, S. J., Fisk, R. P., and John, J., 2003. "The future of services marketing: Forecasts from ten services experts." The Journal of Services Marketing, vol. 17, 8. Karmarkar, U. S., 1996. "Integrative research in marketing and operations management." Journal of Marketing Research, vol. 33 9. Kimes, S. E., 1989. "Yield Management: A Tool for Capacity- Constrained Service Firms." Journal of Operations Management, vol. 8, no. 4, October, pp. 348. 10. Laroche, M., Bergeron, J., and Goutaland, C., 2001. "A threedimensional scale of intangibility." Journal of Service Research, vol. 4 11. Lovelock, C., 1983. "Classifying Services to Gain Strategic Marketing Insights." Journal of Marketing, vol. 47 12. Maister, D. H., 1985. The psychology of waiting lines. The Service Encounter, J. A. Czepiel, M. R. Solomon, and C. F. Suprenant, eds., Lexington Books, Lexington, MA, 13. Michael Porter in his ‘Strategic Management Model for Value Chain Analysis’ (2007) from ‘Competitive Advantage, (1985) 14. ‘New Connections: Second Information Society Action Plan’, March 2002 Read More