Chapter 3 Questions and Post

Name

Institution

 

Information Technology at COSCO

Having been allowed to use the IRIS, Integrated Regional Information System, developed by OOCL, COSCO has effectively adapted the IT age. By upgrading the purchases IRIS, the company is able to improve the experience of its customers. This is by fully integrating the shipment management system for customers in terms of booking, documental, tracking, and other linked functions. In addition, the IRIS speeds up the global information system for the company in terms of container transportation, which helps in improving management while significant improving customer satisfaction. Using the highly sophisticated IT system, COSCO improves communication and integration in its different lines to cut on cost while improving quality and customer satisfaction. It is through the integrated IT system that the company has launched experimental disbursement control standard in Southeast Asia, China, and northwestern Europe Express services. This is aimed at ensuring use of the lower disbursement standard thus cutting on cost (McFarlan, Chen & Lane, 2005).
One of the major challenges is that of network breakdowns as it has been noted in the past, which would lead to shutting down of telephone and email systems. Once the company faces network breakdowns, communication among its regions would be negatively affected since passing of information from one line to the other would be a problem. The second expected challenge is that of cyber-attacks. In the current world of increased cybercrime such as ransomware attack, it is possible that staff might be unable to ignore suspicious emails that would lead to attack on their communication lines. Another expected challenge is on increased globalization in which businesses and especially multinationals are expected to connect with people across the globe. This included connecting with all types of stakeholders such as customers, employees, suppliers, competitors, and government agencies among others. With the challenge of globalization, the implemented IT system might not work for all these stakeholders leading to serious challenges (McFarlan, Chen & Lane, 2005).
In order to have an effective IT system, Capt. Wei should ensure that the implemented system has strong defenses to protect the company’s information. This would ensure that the network of the shareholders and customers is not compromised. Since the system would have confidential information for its major stakeholders, the IT system would be effectively functional if protects this type of information. The company should also mind the issue of competition by ensuring that its IT system beats that of its rivals. In order to come out of the market as the best performing company in terms of information technology, this would be achieved if the company identifies and addresses any system loopholes. Capt. Wei should also make the system as unique as possible and hard to imitate. This would help the company get the best from the system thus ensuring customer satisfaction, which helps in increasing market share.

PART 2: Chapter 3

Key Points Learned

Based on the challenges faced in the current business world, it is notable that companies require new capabilities. This is to avoid a scenario evidenced in the 1980s and 1990s in which large companies were swept by downsizing, reengineering, and delayering. New capabilities would help in addressing faced challenges and making it possible to deliver customized solutions in the global market. With new capabilities, companies would be able to determine problems that they need to resolve based on their sizes in order to remain competitive. For instance, while small companies struggle with challenges of increasingly global and complex scale, big companies struggle with issues of being small and big simultaneously. The companies that understand their issues better in the global world are efficient in their operations.

Considering the example of numerous companies that have failed in the past, the chapter insists on learning from mistakes. This means that mistakes should not be weigh companies down but rather to act as learning experiences. This is by ensuring that when facing similar circumstances, the involved parties can identify the warning signs and act on them. Nevertheless, all these should be done by understanding that businesses are transitioning to a global network and thus should do everything possible to avoid careless mistakes. This way, they should understand how to operate in the market full of larger firms and big players. In such situations, a small mistake might lead to closure of a business. However, considering how the organizational design fits in the business environment helps in dealing with huge business challenges.

Response to Marta’s Post

I agree with your post. You seem to have thoroughly read and understood the chapter. It is true that the chapter is about operating in a global business environment, which is full of numerous challenges. This by understanding the business environment and aligning it with the organizational design, it is evident that a company would identify and respond to risks and threats in a timely manner and more effectively. It is also notable that company executives should no longer rely on their instincts when making decisions but rather consider the organizations decision and its effect on business decisions. It is also true that history is repeating itself that much of the hierarchies that were developed in the twentieth century failed. It is unfortunate that businesses are still using them implying that they might easily fail.

 

 

Reference

McFarlan, F. W., Chen, G., & Lane, D. (2005). Information Technology at COSCO. Harvard Business School Case, 305-080.

 

 

 

 

 

 

Chapter 3 Questions and Post

Name

Institution

 

Information Technology at COSCO

Having been allowed to use the IRIS, Integrated Regional Information System, developed by OOCL, COSCO has effectively adapted the IT age. By upgrading the purchases IRIS, the company is able to improve the experience of its customers. This is by fully integrating the shipment management system for customers in terms of booking, documental, tracking, and other linked functions. In addition, the IRIS speeds up the global information system for the company in terms of container transportation, which helps in improving management while significant improving customer satisfaction. Using the highly sophisticated IT system, COSCO improves communication and integration in its different lines to cut on cost while improving quality and customer satisfaction. It is through the integrated IT system that the company has launched experimental disbursement control standard in Southeast Asia, China, and northwestern Europe Express services. This is aimed at ensuring use of the lower disbursement standard thus cutting on cost (McFarlan, Chen & Lane, 2005).
One of the major challenges is that of network breakdowns as it has been noted in the past, which would lead to shutting down of telephone and email systems. Once the company faces network breakdowns, communication among its regions would be negatively affected since passing of information from one line to the other would be a problem. The second expected challenge is that of cyber-attacks. In the current world of increased cybercrime such as ransomware attack, it is possible that staff might be unable to ignore suspicious emails that would lead to attack on their communication lines. Another expected challenge is on increased globalization in which businesses and especially multinationals are expected to connect with people across the globe. This included connecting with all types of stakeholders such as customers, employees, suppliers, competitors, and government agencies among others. With the challenge of globalization, the implemented IT system might not work for all these stakeholders leading to serious challenges (McFarlan, Chen & Lane, 2005).
In order to have an effective IT system, Capt. Wei should ensure that the implemented system has strong defenses to protect the company’s information. This would ensure that the network of the shareholders and customers is not compromised. Since the system would have confidential information for its major stakeholders, the IT system would be effectively functional if protects this type of information. The company should also mind the issue of competition by ensuring that its IT system beats that of its rivals. In order to come out of the market as the best performing company in terms of information technology, this would be achieved if the company identifies and addresses any system loopholes. Capt. Wei should also make the system as unique as possible and hard to imitate. This would help the company get the best from the system thus ensuring customer satisfaction, which helps in increasing market share.

PART 2: Chapter 3

Key Points Learned

Based on the challenges faced in the current business world, it is notable that companies require new capabilities. This is to avoid a scenario evidenced in the 1980s and 1990s in which large companies were swept by downsizing, reengineering, and delayering. New capabilities would help in addressing faced challenges and making it possible to deliver customized solutions in the global market. With new capabilities, companies would be able to determine problems that they need to resolve based on their sizes in order to remain competitive. For instance, while small companies struggle with challenges of increasingly global and complex scale, big companies struggle with issues of being small and big simultaneously. The companies that understand their issues better in the global world are efficient in their operations.

Considering the example of numerous companies that have failed in the past, the chapter insists on learning from mistakes. This means that mistakes should not be weigh companies down but rather to act as learning experiences. This is by ensuring that when facing similar circumstances, the involved parties can identify the warning signs and act on them. Nevertheless, all these should be done by understanding that businesses are transitioning to a global network and thus should do everything possible to avoid careless mistakes. This way, they should understand how to operate in the market full of larger firms and big players. In such situations, a small mistake might lead to closure of a business. However, considering how the organizational design fits in the business environment helps in dealing with huge business challenges.

Response to Marta’s Post

I agree with your post. You seem to have thoroughly read and understood the chapter. It is true that the chapter is about operating in a global business environment, which is full of numerous challenges. This by understanding the business environment and aligning it with the organizational design, it is evident that a company would identify and respond to risks and threats in a timely manner and more effectively. It is also notable that company executives should no longer rely on their instincts when making decisions but rather consider the organizations decision and its effect on business decisions. It is also true that history is repeating itself that much of the hierarchies that were developed in the twentieth century failed. It is unfortunate that businesses are still using them implying that they might easily fail.

 

 

Reference

McFarlan, F. W., Chen, G., & Lane, D. (2005). Information Technology at COSCO. Harvard Business School Case, 305-080.