MBALN-736A - NYC Cabbies Strike: Analyzing Information System Impact

This assignment presents a case study analysis of the New York City cabbies' strike resulting from the Taxi & Limousine Commission's mandate to install new information systems in cabs. The analysis covers the capabilities of software like SIMATIC IT Preactor APS and its benefits for companies like Elmwood Reclaimed Timber. It also contrasts it with competitors like NetSuite ERP. The study further discusses the distinctions between e-commerce, m-commerce, and e-business, highlighting the competitive advantages of online business models and strategies for traditional businesses to transition online. Finally, it addresses the concerns of NYC cab drivers and owners regarding privacy, costs, and potential impacts on their independence due to the mandated information system.

ENTERPRISE INFORMATION SYSTEM
NAME OF STUDENT
NAME OF COLLEGE
AUTHORS NOTE
ENTERPRISE INFORMATION SYSTEM
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Contents
Discussion........................................................................................................................................3
References......................................................................................................................................11
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Discussion
1. There are various capabilities which are offered by the SIMATIC IT Preactor Aps
software which are as follows:
 As stated by Amani and Fadlalla (2016) the order inquiry functionality of the
software has been improved for taking into account the materials availability and if
required to produce subassembly and purchase orders which enables the system to
provide a more accurate CTP date for inquiry. The system can currently store
information regarding parts produced and materials purchased, thus enabling the
functionality for calculating accurate production times for subassemblies and take
into account lead time and reorder quantities for purchased items.
 The built in logic can be extended and altered in case of the software which allows
the use of alternative logic when creating the required orders to meet the demands
from the inquiry.
 The software brings a new approach to combine with third party systems for
improved maintainability and ease of use.
 Third party data can be elaborated with extra information in the software.
 The software includes the ability to use open data protocol sources as a provider
which can be used for both conventional import and external data mapping.
 As stated by Kharuddin, Soon-Yau Foong, and Senik (2015) The software has also
the capability of encrypting sensitive data held in the software database.
 The software also includes the latest version of Microsoft Report Viewer software in
the sequencer window which allows the creation and viewing of reports built using
Microsoft Report Builder 3.
 As opined by Dmaithan, Masa'deh and Tarhini (2016) thesoftware offers offers
various functional enhancements which are targeted at the software standard and the
software user which include the capability of modelling overall resource efficiency,
the inclusion of priorities in the trace chart window and SIMATIC the weighting rule
and the extension of material control functionality in the software professionals for
allowing linkage to many operations with the same operation number and different
names.
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 It offers the users with a host of new integration possibilities due to the changes in the
underlying way that calendar information is held in the software.
 It provides the user with powerful new visualization tool.
 It improves modelling of additional constraint groups.
 It improves integration with SIMATIC IT Unified Architecture Discrete
Manufacturing.
There are plenty of success stories of companies who have used the SIMATIC IT Preactor APS
software in their business operations. One such company who have enjoyed various benefits in
their business by using the SIMATIC IT Preactor APS software is Elmwood Reclaimed Timber.
Elmwood Reclaimed Timber is based in Kansas City in Missouri which manufactures and
markets the highest quality reclaimed wood products which adhere to standards by embracing
the company’s deep respect for the environment.
The business challenges which were faced by the company included:
 As stated by Ramli and Widayat (2017) improving on-time delivery for enhancing
customer experiences.
 Eliminating manual scheduling and firefighting as a result of short term visibilities.
 Overcoming scheduling limitations which are offered by the ERP systems of the
company.
The implementation of SIMATIC IT Preactor APS software benefitted the company in various
ways which are as follows:
 As stated by Elkhani, Soltani and Mohammad (2014) in 2016, as a result of the impact of
software on the systems of the company, led to the increase in sales of the products of the
company by 10% and also resulted in improvement of profitability of the company
through accurate visibility and effective resource utilization.
 The implementation of the software enabled the company to expand their capacity and
automation.
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 As stated by Mostafa and Mouakket (2016) the ability to constrain materials to
production in the software enabled the company to gain knowledge regarding what
materials from their warehouses had to be planned for production.
 According to Oldacre (2016) the implementation of the software in the business
operations of the company enabled the company to re-plan their materials in case of any
dynamic changes.
 The application of the software has also helped the company in improving general
business management with a better visibility of customer delivery and sales, improved
materials planning and reductions in work-in-progress inventories.
 The implementation of the software in the business processes of the company also helped
in increasing the production output of the company without increasing the headcount.
 As opined by Glowalla and Sunyaev (2014) the implementation of the software led to an
improved on-time delivery of the company.
According to Link and Back (2015) the main competitor of SIMATIC IT Preactor APS software
in the market is NetSuite ERP software by Oracle. The NetSuite ERP software operates in SaaS
platform and provides free trial of the software to their clients. The NetSuite ERP software also
provides training in the form of documentation, webinars, live online and in person.
The benefits which are offered by NetSuite ERP are as follows:
 Efficiency in the process across the organization
 Helps in improving visibility across the organization
 As stated by Hiebl, Gärtner and Duller (2017) enables significant IT Time and Cost
Savings
 Helps in accelerating growth in the organization
 Helps in facilitating user driven innovation.
2. According to Jahongir and Shin (2014) E-commerce which is also termed as electronic
commerce or internet commerce refers to the process of purchasing and selling of goods
and services through the internet, and the money and data transfer for executing these
transactions. E-commerce is also used to describe the sale of offline products through the
internet, but it also helps in describing any sort of commercial or business transactions
which is facilitated through the internet.
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As stated by Choi (2018) M-commerce is the purchasing and selling of products and services
via handheld devices which are wireless for instance smartphones and tablets. M-commerce
is a type of e-commerce which allows the users to use online shopping platforms without
requiring a desktop computer. Some examples of m-commerce include purchasing through
apps, mobile banking, virtual market place apps or a digital wallet.
As opined by Abdullah et al. (2018) E-business or the electronic business refers to the
utilization of the web, internet, intranets, extranets or some condition thereof for conducting
business. E-business is quite similar to that of E-commerce but it does extend beyond the
usual purchasing and selling of products and services online. E-business includes a greater
range of business processes such as management of supply chain, processing of electronic
order and management of customer relationship. Therefore the processes of e-business helps
to enable companies for operating in a more effective and efficient manner.
The companies which work using the online model can obtain a competitive advantage in
relation to regular business model in the following ways:
 The companies using the online model reaches to their target customers irrespective
of their location and therefore the availability of the company to the customers are not
limited to a particular geographical location which helps in improving the sales of the
product of the company. Therefore as they are able to reach to a large number of
customers over the glove, online model earn a competitive advantage in the market
over regular business model.
 As stated by Rahayu and Day (2017) the companies using the online model are able
to reduce their operational costs as they do not have to spend additional money
regarding renting of office space, electricity and telephone bills and other expenses
regarding physical location set up. Further the companies following the online model
are also able to save their operational time as they can communicate with a large
number of customers at a single time. Therefore the reduction of operational cost and
operational time helps an e business model to earn a competitive advantage in the
market.
 According to Singh (2014) the companies using the online model are able to provide
excellent customer services to their customers as they are able to respond the
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customer complaints and issues round the clock through online platform, whereas
regular business model do not have the necessary infrastructure to respond to their
customer enquiries and issues. As, customer prefer companies who provide excellent
customer service, therefore the companies with online model gain a competitive
advantage in the market over regular business model on grounds of excellent
customer service.
A traditional business with a traditional status, can implement the online model in the following
ways:
 Regular businesses need to sell their products and services to the customers not only from
the physical platform but also through the internet which will help them to implement the
online model while keeping their traditional statuses.
 Regular businesses need to develop and maintain a website of the company in order to
create a platform for interacting with the customers of the company apart from interacting
with them in a face to face manner which will enable them to implement the online model
while also keeping their traditional statuses.
 Traditional business need to offer various customer services to the customers through the
website of the company apart from offering them customer services while interacting
with them in a face to face manner which will enable them to implement online model
while also keeping their traditional statuses.
 Conventional business need to advertise their product and services to the customers
through the website and other online platforms apart from advertising the products and
services through various offline platforms such as print media which will enable them to
implement the online model while also keeping their traditional statuses.
A traditional business can fully convert into an e-business in the following ways:
 As opined by Dai and Chen (2015) a conventional business can fully transform into
an e-business by only offering their products and services to the customers through
their website and other e-commerce and m-commerce platforms.
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 A conventional business can fully transform into an online by carrying out all the
processes and activities of the business such as sales, marketing and supply chain
management through the internet only.
 As opined by Kartiwi et al. (2018) a conventonal business can fully transform into an
online by offering customer services to its customers for its products and services
through the website of the company round the clock.
 A traditional business can fully transform into an online by carrying out financial and
monetary transactions only through the internet and not through any other physical
means.
The benefits of e-commerce for the customers of such businesses are as follows:
 Can get access to the products and services of the company at any time through the
internet.
 Can get customer services from the business organization round the clock.
 Can make payment regarding their purchase of product and service through various
convenient online payment options.
 Can view and compare a large variety of products and services offered by the business at
the same point of time.
3. a. There were various concerns of the cab drivers and owners of New York City over the
new use of the new information system. The first and foremost concerns of the cab
owners and drivers related to the new use of new information system was that regarding
their privacy and independence as the new system will track their movements which they
perceived as a privacy issue. As about 85% of the New York City cab drivers are
independent in nature, who uses their cabs for their own purposes while being off duty,
therefore they felt that the use of the new system interferes with their privacy. The second
most important concern of the cabbies was regarding the $1300 charge they required to
pay for installing the new system in their cabs and a 5% required fee they will have to
pay for every credit card transaction by the customers, as they deemed that the charges
were a little high for them which will impact their day to day business. The most
important concern of the cabbies regarding the new use of the system was that they were
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upset as they were not a part of decision and design making process which contributed to
the introduction of such mandate in the city.
Their concerns were justified as they had no prior idea regarding the advantages and benefits
of the introduction of such system in their cabs and therefore they were not able to
demonstrate their support towards the introduction of such new system in their cabs.
b. If I was the manager of the New York City’s Taxi and Limousine Commission, the first
and foremost think which I would have done is to conduct a diret meeting with the owners of
the cabs and would have provided a clear picture regarding the new information system
which was being planned to install in their cabs so that the cab drivers and owners fully
understood the advantages and benefits which are associated with the introduction of the new
system which would have helped them in addressing their concerns regarding the system.
Furthermore, I would have addressed each and every query and doubts of the cab drivers and
owners which were being raised by them during the meeting in order to make them fully
believe in the capability of the new system and the future of such system. Furthermore, I
would have included few representatives from the cab owners and drivers association in the
decision making and design making process regarding the new system in order to ensure
smooth transformation of the cab drivers and owners in the new system.
c. I fully agree to the opinion which were stated by few cab owners and drivers that the new
technology which were being installed in their cabs was about to happen not withstanding
their opinion were because of the fact that the new technology or system which were being
installed in their cabs will help in driving the growth and development of the taxi and cab
industry in the future. The new technology or system which was being installed in their
system was also considered as inevitable as technology will play a major role in the future in
enhancing passenger experience regarding cab ride. As stated by Dias et al. (2017) the new
system which was being installed in the cab can also be considered as inevitable as there was
increasing demand among the customers regarding the installation of such system in their
cabs as it will help in ensuring their safety and also because it will help in enhancing their
cab riding experience. As stated by Skok and Baker (2019) the new system which was being
installed in the can also be considered as inevitable as it provided flexibility to the customers
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regarding hiring a can and also regarding payment option which will help in future growth
and development of the taxi and cab industry.
d. As a customer of the cab service I would applaud the advantages which are being provided
by the new information system in the cabs of New York City as it will offer various benefits
to me as a passenger such as greater chances of getting a cab as the new system will help the
can to reach to nearby passengers, it would provide the passengers with greater options
regarding payment and also it will help in enhancing the safety of the passengers as the
movement of the cab can be tracked, and it also offers refreshments to the passengers in the
can by providing them access to music in the cabs. According to Roy (2017) the
implementation of the new system in the cabs will also help the passengers to get a favorable
city view in general as through the global positioning system, the passengers can get to know
about the nearby attractions of the city while they are travelling and will get to know about
the various routes of the city through interactive mapping system which will enable them to
get favorable city view.
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