Kristine Joy M.

Inciong

IE-5201

1. Amazon.com tries to take strategic advantage of its resources. Of what

physical resources does Amazon. com take advantage?

The business strategy of amazon.com was very simple and forward. Their one
and only strategy was to sell books to the customer through online. They invested to the
customer and offer them a huge collection of books through online. It has numerous
physical resources but they provide a technological infrastructure that has reliable
storage networks and they called it S3 stands for Simple Storage Service. Amazon
operated some of the largest databases in the world, which is use of SmugMug an
online photo sharing company, which they use to storage the photos and S3 is efficient
to do the backup if ever there is an incident happen.

2. Does Amazon.com strategically leverage anything else in addition to

physical assets?
Consumers know that Amazon is a well-stocked, competitively priced, safe,
reliable and efficient platform for shopping, so they keep coming back. One of their
strategy is the reliability and fast access in their service that are available anytime. This
is essential to companies that offer or need to store large quantities of data and have
access periodically to be exchanged by their users or customers.
3. What are the benefits of S3 for small companies?
Amazon S3 is a pioneer in cloud data storage and has uncountable benefits. Like
Amazon said, the S3 enables the small company to compete with the larger without
spending a lot of money on backup data storage to cater and store the data of the client.
Small businesses can spend just 15 cents for 1 GB of data as they will just compensate
for which they only need. And also they don’t need to hire extra employee to handle the
data storage maintenance.
 4. At its current rates for S3 services, Amazon.com does not make a great
profit (or any at all). Why, then, do you think Amazon.com offers S3?
While Amazon.com said it does not expect to make a ton with its S3 offerings,
the technical advantages they now have would surely not be inefficient. It's all about
building or moving in a new direction. Sometimes the first attempt isn't always
successful, but the second attempt is special. There has to be information on what the
S3 provider can provide.
Kristine Joy M. Inciong

IE-5201

1. What problems did IGT face before the implementation of the ERP system?
Growing businesses face a range of challenges. As a business grows, different
problems and opportunities. Before implementing the ERP system, the IGT face a
problem in terms of their information system. The company had different systems for
handling sales, customer orders, manufacturing, and accounting. If they required
consumer buying details, they had to get a piece of information to each device and this
is really a time consume and it also includes the additional costs for the business only to
be sent to each branch. The problem affects in particular the company's accounting
department, which also had different software programs for each transaction. So it was
extremely difficult to obtain a simplified or detailed results. The accountants have to
follow a very long process.
2. How does the new system help control processes?
The new process is Enterprise Resource Planning (ERP) which is SAP helps the
company’s control processes. If workers disregard special requirements or "cut
corners," the program will not authorize a project to proceed. The process is also made
efficiently and with fewer errors. With one of the system modules, which is project
management, managers can monitor the changes in designs and costs associated with
new production design.
3. Compared to the situation in 2002, what are the benefits of the ERP
system?
The benefits of the new ERP system between year of 2002 and 2005 includes
the average period of order that improve the shipping time from 9-10 weeks to 7-8
weeks. When they have rush order, IGT can complete it in just four weeks instead of
seven weeks. In terms of error rates in order for raw materials, it decreased from 10
percent to almost 0. And inventory turn increased from 6.3 to 8.4 percent per year.
 4. IGT decided to continue operating its older factory control system. Why do
you think it did so?
The IGT forced to use the new system to change of its business processes. The
IGT continued to use its factory control system because they already tried to use the
factory system with the old MRP system that they already know which data is required.
It will discourage future expenses from being incurred if any system is implemented.
The monitoring system is a mechanism that allows the organization to deliver supplies
in the correct location and time to the assembly line.