Chapter 2 - Minicase 1

E-Commerce Supports Field Employees at Mabelline

  1. IVR systems are still popular. What advantages do they have over even older systems in which the reps mailed or faxed reports?

    IVR systems allow for faster report gathering and processing, since these taaks are completed on a frequent, usually nightly basis. There is no delay whil waiting for reports to be received through the postal mail.

  2. Summarize the advantages of the new system from Thinque Corp. over the IVR system?

    The new system is faster and more accurate. Reps no longer had to wade through a menu of 50 items, submitting a response to each one. Now, the data from the PDAs are uploaded and downloaded daily. This process allows for more flexibility in the items tracked, and a larger range of things being tracked. It also allows for a quicker output of reports, and the ability to change reports at any time.

  3. Explain why Maybelline’s new reporting system is an e-commerce application.

    Mabelline’s new system allows for the electronic transfer of information, which aids them in their commercial enterprise. E-commerce is not just the sale of products, but includes the exchange of information in the aid of commerce.

  4. The existing technology enables transmission of data any time an employee can access the Internet with a wireline. Technically, the system can be enhanced so that the data can be sent wirelessly from any location as soon as they are entered. Would you recommend a wireless system to Maybelline? Why or why not?

    Most of the decisions that Mabelline needs to make are not time sensitive on a day-to-day basis, so the company does not need the continuous connectivity and added expense of wireless.

    In a more volatile market, like the paper industry, the cost would be justified. In that industry, real time pricing and availability is the only way to sustain a competitive advantage, so wireless would be very useful. In cosmetics, most women will wait a few days, or go elsewhere to get the product, so whilst inventory levels are important, they are not critical.