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Management Information Systems Chapter 1 Case Study

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Everything you need to know about selling on Stuvia

1) Mass customization from the standpoint of the customer is:  Information system that helps easy customization of the product.  Helps in calculating the costs of the customization.  Gives wide range of options available to the customer.  Calculate the estimated delivery time of the customized product. Below are the pros and corns of mass customization: Pros Gives wide choice of verity available Gives different costs and alternative to those costs. Better meets the customers need. Helps in cutting cost of the firm of surveys and market research. Helps the firm to know its customers better. Corns No expert available, customer needs to take his or her own decision. Don’t know if the decision taken by them is the best. Might take a lot of time to deliver the specific kind of product. The customization might be over price or expensive. The product delivered might not match up to customer’s expectation. 2) Manufacturing system Customer SAP (ERP) Supply Chain System Customer ordering system. Information Flow Process          Description Customer accesses the different parts and options available. Manufacturing system tells them the price and the time it will take to manufacture their car. Customer puts in information like preferred delivery store. Supply chain system makes sure to place the product order on time for the delivery. Collects the information from the customer. Collects basic preference from customer. Lets customer know more information about the product. Collects information from COS and makes it available for manufacturing. Lets the COS know the update on manufacturing process of the customer. 3) Benefits Low costs, as now resources are not wasted for manufacturing process. Increases efficiency of the business as the business understands its customers better. It allows customer to better make the company stand up to its expectation. Allows the firm to know the current trend in the market. Allows the firm to test or market its new available technology, in a cost effective manner. Helps in better market research. Risks Long time to reach the customer increasing the costs. All the products displayed might not to fully tested leading to low customer satisfaction. Might not be able to provide the best customer experience. Totally technology based which might lead to a few errors, costing a lot to the business. Low quality product might be provided to the customer leading to low customer satisfaction. Low level of customer relation. 4) How does VW remain profitable By reducing costs as VW can now order material based on the customer requirement. By charging the customer a premium price for their choices. Less cost spent on customer satisfaction. Making new product and service available easily to the customer. Reducing the laps time involved in the manufacturing process. By rapid transfer of information between department and suppliers. Role played information management system.  The supply chain system orders the goods for the manufacturing process.  Arranges transportation and other materials when needed.  Manufacturing system helps in knowing the cost of the product.  Helps in calculating the premium price to be charged to the customer.  Data of customer preference collected by the CRM system.  The customer order information keeps a track of customer’s needs and preferences.  By updating the manufacturing system the customers will know about new product and service.  Helping in pushing offers and costs.  The supply chain system helps in making products available.  The ERM system helps in managing the resources.  ERM system helps in this.  Leading to reduction in costs.


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