Written Case Analysis

Name: Kissah A. Neri

Chapter/Topic: Chapter 6/ Business Networks and Telecommunications
Case Title: Let it Rain
Date Submitted: May 5, 2019

Thinking about the Case:

1. Prior to 1996, electronic communication between stores and headquarters took place
through several different technologies. These technologies includes TCP/IP, Systems
Network Architecture (SNA), X.25, a protocol for wide area networks that uses phone or
ISDN lines with slow maximum speed of 128 kbps and the asynchronous transfer mode
(ATM) protocol. Data was transmitted via three types of lines: satellite, telephone dial-up,
and leased lines. This mix of technologies provided communication that was slow and
unreliable. It did not support real-time monitoring of inventory. If there is heavy rain, the
lin was not operable.

At the same time, to ensure access to inventory and order data—which was stored on
servers at headquarters—each store maintained four or five servers with its own
inventory and order data. Data was often lost, and keeping it synchronized with
headquarters was challenging. When conditions were good, data could be transmitted at
a speed of no more than 19.2 Kbps.

2. The non-IT operational benefits of the newer system are:

a. Customer lines move faster.
b. Store managers can easily access information from the mainframe to use
application through wireless devices.
c. They can easily check inventory, adjust prices, and produce coupon stickers.
d. There is already proper monitoring of inventory movement both in stores and
headquarters.

3. The IT operational benefits of the system are:

a. Lesser media or protocols are used.
b. Cisco Systems installed Quality of Service software which monitors and
maximizes network performance.
c. The CIO was able eliminate 1,000 servers at 100 location and maintained only
one or two servers in each store.
d. POS run on the Linux operating system are all connected to the mainframe at the
headquarters.
e. Verification of credit card information takes four to five seconds only than before.
f. Remote management tools can diagnose IT problems and fix routers, antennas,
switches – reducing the need for a technician to visit store every time an IT issue
needs fixing.
Concept/s or Theory/ies Used in Analyzing the Case:
 The case is an application of the concept of:
o Telecommunication technology
o Networks