Case Study 3.3: IT Makes Cents

1. Is 99 Cents Only on the leading edge of IT? It is on the bleeding edge?

Ans:

The company 99 Cents Only is not on the leading edge of IT and definitely do not like to implement the bleeding edge technologies, the people running this company is smart enough to only use the benefits of IT to its optimum. This means that they do not purchase and install Information Systems that is not needed now by the company. They only develop IS that is currently being use and finish it later and start another IS that has much more importance and finish the previous IS later.

2. What characteristics of the dollar store industry make it so important to increase efficiency?

Ans:

In dollar store industry, where it customers like bargains so it is important that the prices of its items is not so expensive for its customers. To attain this, the dollar store industry needs to purchase items in a low price. But the problem, it is hard to find items that have quality in low prices. So, dollar store industry turns to IT solutions to determine suitable merchandise and when the officers sees an opportunity to buy discontinued products which is offered at a low prices they buy it. In dollar store industry, the competitions are fierce so it is important to remain your item prices at a low rate. To increase the efficiency of purchasing items to be sold is very important to this industry.

3. The company has performed better than its competitors. In terms of the eight initiatives discussed in this chapter, which initiative or initiatives has gained it the competitive advantage?

Ans:

By the company turning to IT to improve company’s performance overall is a big step in realization to increase productivity. Using computer voice commands in the business transaction speed up process and avoid delays thus increasing productivity of the employees. Developing in-house applications instead of purchasing from private company ideally save company’s money. As they can modify the system as they wish without extra charge or expenses, having an IS of your own gives you a formidable advantages over the other competitors.

4. 99 Cents Only must modify its information systems frequently? Why?

Ans:

99 Cents only modify its information system as they see how obvious the return of investment will be. They prioritize only the IS to be develop, depending on the importance of the IS with respect to their business operations.

5. Often, CIOs are frustrated with the time it takes senior management to support their strategic initiatives and with the difficulty of earmarking funds for such initiatives. How is 99 Cents Only different in this respect?

Ans:

We all know that approving budget to buy expensive IT solutions can be very long process because most of the approving committee doesn’t or have a doubt about the return of investment to their company that is why CIO will get frustrated in the process. Not like the other competitors, 99 Cents Only is being run by the family so it doesn’t really require a lot of time to acquire new IT solutions and implement the system in the company.