Information Managment Case Study Example | Topics and Well Written Essays - 1000 words

culture Managment - Case Study ExampleHowever, these retail powerhouses incur weaker market presence in areas where Pamida is located thus creating a competitive, starting time entrant and first mover advantage for the company. (Porter, 1985)ShopKo has implemented a systems application called Markdown Optimizer in order to deal with pricing of a product according to season, store location, local tastes and past demand. The software analyzes historical pricing plus gross revenue data in order to control and price product leftovers of individual stores.Pamida overhauled its inventory management systems in order to address product shortage from its different stores. It has implemented a full service scattering system in three warehouse locations. Initially, the company experienced setbacks and low earnings caused by the carrying into action of the new distribution system. This was due to a inappropriate allocation of resources where Pamida focused on new applied science infrastruc tures and new merchandising software without modernizing their back-door trading operations. The warehouse management system was old, inflexible and outdated. The functionalities and features of the software were not any longer aligned to the new business strategy and it cannot cope up with the growth of the companys demand. The company normalized its distribution operations when it has utilized and employed a better and flexible distribution system software.Results and Business BenefitsThe ShopKo operations have benefited a lot from the new application. The Markdown Optimizer increased the gross margin and decreased its payroll costs from the earlier year. Importantly, it has dramatically decreased the percentage of unsold goods at the end of each season. With these benefits, the net profit of ShopKo has increased.On the other hand, Pamida performed well by maintaining a high in-stock availability of merchandise through effective warehousing, competent distribution and modernize d randomness systems. At the end of 2001, Pamida has turned around its operational setbacks and implemented a functional full service distribution system.. They had become successful such that the company has decided to unify its distribution at two centers instead of three to further save on costs.Key LearningsInformation systems strategies should be aligned with the business strategy of a company. It must not focus on modernisation of infrastructures alone. It is important for IS to give value to the company and compliment the business goals. As part of strategic management, information systems role in the decision making process has become very important in the organization. It functions two as support and driver of corporate strategies.(Pearlson, 2001) An effective information system needs a worthy and useful symbiosis with the rest of the management structures in an organization.(Turban et al, 1999)Case 2 What Happened to KmartBackgroundKmart was the largest discount image in the retail industry. It was established in 1962 and has expanded to 63 stores at the end of 1963 through their base of discount stores.