Popular in Course
Popular in Management Information Systems
This 2 page Class Notes was uploaded by Brendan Metz on Wednesday September 23, 2015. The Class Notes belongs to MIS347 at Drexel University taught by DavidGefen in Fall. Since its upload, it has received 19 views. For similar materials see /class/212362/mis347-drexel-university in Management Information Systems at Drexel University.
Reviews for DomesticandGlobalOutsourcingManagement
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 09/23/15
Professor Answer to Assignment 1 Based on Units 1 and 2 discuss why or why not Voici should outsource and what they should pay special attention to This is a very hard question to answer because it will depend so much on the assumption you will make and where you stand in the course My answer is based on units 1 and 2 only It will change as we add the other units Please review this answer You may need it for the midterm The answer will also depend on exactly What is going to be outsourced This fits in line with the issue we discussed in unit 1 of whether to do total outsourcing or selective outsourcing You could answer this regarding their manufacturing as Supply Chain City assumes or their actual supply chain lS In both cases the same principles but not details apply know and measure your risks being the foremost one In unit 1 we learnt that outsourcing is a not a panacea and should not be treated as such Clearly Jack is toying with the idea that it might be That is a mistake If he expects it to be so then he should not outsource Expectation management and having the right person in charge are the keys to success In his current mindset Jack Emmons would not be wise to make any decision about outsourcing He also seems to be entertaining the idea that there might be some kind of boilerplate solution viewing how Marquise has done it This too is a mistake Remember Sun Tsu While Jack in his current mind is in charge Voici should be careful about outsourcing Regardless of the issue of Jack which is a serious issue because having the right person in charge is among the most important decisions outsourcing is necessary in many cases because IT and IS have gone through a revolution every 5 years or so and introduced major new technologies every 18 months IT and IS have also become more standardized and integrated and the market is segmented all of which make outsourcing easier and more attractive This is the technology imperative and it applies to Voici too Besides Voici has no choice It must catch up quickly on capabilities and cut its costs Outsourcing is one attractive way of doing so Outsourcing is not a revolutionary idea for Voici On the diffusion of innovation their supply chain part resembles a late majority Be aware however that in the fashion design part Margie for one may occasionally be in the Early Adopter part As such Carr 1 would argue for them to outsource their supply chain lS As long as their technology is infrastructure and it seems to be so then they should outsource The issue is that it just must be done correctly The crutch of the matter is risk assessment and control The benefits are there Outsourcing will allow Voici to cut costs have better speed to market and acquire capabilities This would be an appropriate step to take but only if Voici does not lose control in the process But first and foremost Voici must know what it faces and what it expects from this relationship The question now becomes whether Voici should outsource 1 the design and development of a specialized supply chain lS designed for their specific needs or outsource or 2 outsource the customization of an existing lS that does supply chain management or 3 just go with BPO outsource the entire business process of supply chain management to another company rather than only the IS such as having UPS or Supply Chain City do it for them In choosing among these 3 options Carr would probably advise options 2 or 3 This is an infrastructure technology and everyone who needs it can have it quickly I would advise option 3 because it is faster and because Voici has no idea how to manage a complex lS BUT even with option 3 there is a tremendous amount of IS systems analysis and design and change management that needs to be done in standardization of their current processes and adding measurements before anything can be done It all boils down to the question of risks Risks are abundant First there are the risks of Voici not knowing what they want understanding the process realizing what the impact might be Risks also relate to their personnel and to implantation As we shall see there are also risks relating to the vendor and the contract This is where you could have added a detailed listing of the risks Voici has These include personnel IP maneuverability losing the edge in the market not knowing what the new technologies might be if they realize where they are on the diffusion of innovation are they outsourcing because everyone else is only and so on If Voici does not know these risks or does not know how to measure them then outsourcing would be very risky Ravi is correct As Drucker put it lllf you can t measure it you can t manage it 2 They should outsource also because they do not really have time to consider other options Allowing that they know their risks and start measuring the question is really HOW to go about doing it I will not elaborate on this but Voici could outsource to a vendor as a captive center or a joint venture or apply multiple sourcing and micro sourcing And closely related they must have a detailed plan with measureable CSF and their critical values and tolerance levels around those values at each of the milestones And as an integral part of that plan Voici should expect things to go wrong so have an exit plan and contingency plans Without such a comprehensive plan do not outsource Another reason not to outsource is if the governance is inappropriate If the contract should be fixed price but the vendor insists on time and materials then reconsider if to outsource with that vendor The terms Supply Chain City has in mind clearly might not be what is best for Voici Going with Supply Chain City under such circumstances would be a mistake You also need to make the point of why outsourcing and not some other answer is the best Just because the course is about outsourcing does not mean that the answer to any case study if to outsource Along the same lines the question in the assignment did not explicitly say what the objective of the outsourcing was I left it to you to decide if this meant their entire supply chain the IT that manages supply chain activities or their shipping and management activities In each of these there is the question of selective or total outsourcing FP or TampM objectives controls risks and so on Regardless of how you understood the question and it is vague that way on purpose to encourage you to seek alternatives and realize the complexity involved you need to explain why you chose one option in view of why it is better than any other 1 Carr NG lT Doesn39t Matter Harvard Business Review 815 2003 4149 2 Drucker PF The Coming of the New Organization Harvard Business Review 661 1988 4553
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'