CASE STUDY ON IMPACT OF

INFORMATION SYSTEM

SUBMITTED BY SUBMITTED TO
NIVEDITA SINGH MS. MANSI SAXSENA
DIVYA
BAY NETWORK INC.
 Bay network Inc. Uses the internet to link with its suppliers. The driving force behind Bay Network
extranet, however, was the company’s need to link its supply chain systems with its distributers. For years
we have wanted daily point-of-sale information from our distributers; says Maynard Webb, CIO of the
Santa Clara, California, manufacture of networking devices. With such data
the company new its manufacturing unit could match production levels better to demand. After meeting
with several distributers, Webb discovered that these business partners had the technical resources to
provide the data, but needed a link between their sales tracking systems and Way Networks supply chain
systems.
 In, effects, Bay Networks wanted to have a look into its partners ordering systems and it’s devised an
extranet to do so.
 Partner Net, the company’s extranet, is a conduit for Bay Networks to give distributers the timely sales
data they need. But Webb still had to cajole distributors in to giving them data back, because some tracked
their sales weekly, not yet daily. Moving from weekly to daily sales reports required distributors to do some
order-system recording.
 They were a little hesitant to do the extra work, Webb says. But by pointing out that Partner Net would give
distributers critical information such as Bay Networks’ production capacity and inventory data,
Webb persuaded them to accept the system and do there coding. When taking customer orders, distributers
now can check Bay Networks inventory status to see how many routers are available for immediate
shipping, for example, and how many will be available within a week. Enabling distributers to track
shipment status with Federal Express Corp. Did not hurt either.
 ‘The real issue is that {distributers} have to believe that this will radically change the
business for the better,’ Webb says,‘ for themselves as well as for Bay Networks.’ On
the other end of the supply chain, Bay Networks can see how many order shave been
placed so it can step up production during peak
sales periods. The result, Webb says, is that customers get their order faster.
 Both distributers and Bay Networks benefit from that. When you are going outsiders
access to sensitive data such as production schedules for the first time, security is the
major concern,’ he says to address that issue, Bay Network distributors and suppliers
each have a unique account number and passwords that give them to access to the
system, but only to the information pertaining to their own business. For
example, a distributer can access to the status of its own backlog orders, but not that of
its competitors. Bay Networks uses SAP’s ERP system with an Oracle database for its
supply chain transactions.
 In order to capture Way Networks ’ERP’s data, most production scheduling information
from Partner Net in to a spread sheet program.
They then import that data in to their own back office database systems. The ideal
method, says Webb, would be a direct transfer of data from Partner Net to a supplier’s
back-endsystems. To accomplish that, Way Networks is testing
 SAP’snew release of the ERP system, R/3, release 3.1, which is internet capable. Not all of Way
Networks’ business partners, however, are equipped with SAP. Those that are do not require a
mechanism for translating Bay Networks’ R/3 data protocol to their own.
 A potential solution to that problem may come from Actra
Business Systems, a joint venture formed in 1996 between Netscape Communications and
GEIS. Actra sells software that converts conventional EDI software in to internet formats such
as the secure stocks layer encryption protocol, allowing EDI users to do business on the internet.
 It is still very early in the game, though, and CIOs may have to find the right solution by trial and
error, according to Webb. ‘You have to be willing to throw some stuff out,’ he says, ‘because this
stuff is in its infancy and changing so fast.’
Question-1 Discuss the advantages of the E-SCM solution
deployed by Bay Networks for its distributers.
Answer-
 Bay network Inc. uses the internet to link with its suppliers. It is called the Electronic-
Supply Chain Management(E-SCM) technique. There is the following advantage of the E-
SCM solution deployed by Bey Networks for its distributers: By the using of E-SCM, the
Bey Networks has able to know daily point-of-sales information from its distributers. The
Bay Networks can match production level better to the demand.
 When taking customer orders, distributers can check Bay
Networks inventory status to see how many will be available within a week.
 It is helpful for both Way Networks and distributers if any radical change in the business has
taken place. Bay Networks can see how many orders have been placed so it can step up
production during peak sales period.
 There is no security problem because distributers and suppliers each have a unique account
and password for access to information.
Question-2 What are the problems associated with the proper
implementation of E-SCM. Find solution to overcome these
problem?

Answer-Problems associated with E-SCM

 The electronic technique of supply chain used by Bay Network is very good
because it provides all the information related to production and demand at the
time.
 But some problems are associated with this which are as following
The distributers and suppliers may be share the account
number and password which is made for the security purpose.
 Due to this the information may be leak outside of the organization and the
competitor may take the advantage of it.
 In order to capture Bay Networks, ERP data most suppliers has started to use
their browsers to download production scheduling information from Partner
Net(work as conduit)in to a spreads sheet program.
Solution to overcome the problems :
 There are the following ways to overcome the problems: The security system should be
tighter. The account should be distributed only few big distributer sand suppliers.
 A potential solution for the above problem has been find
out by Actra Business Systems in 1996, which has launched a software, in to internet
formats such as the secure sockets layer encryption protocol, allowing EDI users to do
business on the Internet
THANK YOU