Chapter 16 - Minicase 2

American Stock Exchange Seeks Wireless Trades

In preparation for answering the questions, review the American Stock Exchange web site.

  1. As a consultant to Amex, you need to identify the problems associated with implementing the handheld computers. How would you approach your case?

    A key hurdle will be the resistance of the traders to innovation; it is natural for peoiple to fear change. People need to have the new system explained to them, and their questions need to be answered. A series of orientation and training events needs to be offered and presented. Even some economic and/or status incentives will need to be provided.

  2. The President of Amex is considering laying off traders like Maxwell. Would you support this decision or not?

    With innovation, some people will be displaced. This is one of the problems with the introduction of new technology. But they do not need to be fired. Many will leave, since they may not like or may fear the new technologies, and will not adapt to the new systems. All should be offered training, perhaps for other tasks that do nor require using the new technology, but still needed by the firm. Compliance auditing in the case of Maxwell, a 26 year veteran, will show how he and others have cut corners that are to the detriment of the clients.

  3. Find the status of the computerization that is going on in several stock and commodity exchanges in several countries.

    Many exchanges are automating. OBM of Sweden sells and runs such systems. Frankfurt, London, Tokyo, Toronto, Santiago, San Jose, Caracas, etc., are automating. NASDAQ is on the second-generation of their software. The new innovation is wireless trading by clients using a cell phone, which Japan and Finland have already deployed.

  4. How would you convince a trader, who may soon lose his job, to use the new device?

    You need to gently and patiently show them and teach them.

    Often you will also need to warn people that failure to adopt the new technology moves them further down a one-way street that leads to the end of their world/job, as they know it. Computers cannot be stopped from intruding into our jobs and our lives.