Case Study Questions
Abstract:
Technological advances have impacted various areas of everyday life. Augmented reality has created more opportunities for marketing. The flash crash was caused by computers programmed to do high frequency trading. Innovative information systems track performance metrics for Valero Energy. Though these three topic areas seem very different, they all have cutting edge technology in common.
Case Study Questions
The case studies are centered around different types of relatively new technology and the impact that it has made. Augmented reality completely changes the way that products are marketed. High frequency trading has caused, and could potentially cause again, flash crashes that many cannot comprehend. Performance metrics can be tracked on innovative dashboards keeping executives in the know when things veer off the goal path. All of this new technology is changing the way we live our lives and do our business.
Reality Gets Better
1. The difference between virtual reality and augmented reality is that “virtual reality is a computer-generated, interactive, three-dimensional environment in which people become immersed” (Laudon & Laudon, 2012) whereas augmented reality enables the user to “maintain a presence in the real world” (Laudon & Laudon, 2012).
2. Augmented reality is more appealing to marketers than virtual reality because it gives them a wider range of possibilities in relation to the types of ads they develop.
3. Augmented reality is useful for real estate shopping applications because if you are walking around a neighborhood that you are interested in buying property in, applications have been developed that show you where property is available, right in front of your eyes. With augmented reality “a 3-D rendering of a condo tower appears to climb out of a magazine page when viewed with a smartphone's camera and screen (and) other real estate print ads are brought to life with clickable buttons and multimedia” (Roberts Jr., 2012)
4. Other working applications of augmented reality that I would suggest would be useful could be someone modeling clothes when you place your phone in front of folded ones in a store.
The Flash Crash: Machines Gone Wild?
1. The conditions preceding the flash crash involved fearful and uncertain investors and market that was “already down and trending even lower” (Laudon & Laudon, 2012).
2. The benefits of electronic trading are “speed, reduced cost, and more liquid markets” (Laudon & Laudon, 2012) and the use of algorithms that learn what will work in the market and “adjust their stock trading strategies” (Laudon & Laudon, 2012) based on what the market is doing.
3. The features of electronic trading and automated trading programs that contributed to the crash were the “computer selling algorithm that dumbed 75,000 contracts” (Laudon & Laudon, 2012) within twenty minutes triggering other HFTs that used algorithms to begin selling as well.
4. The only way that the flash crash could have been prevented would be if computer were never allowed to have control over buying and selling. When you give computers this type of control, no matter what the limitations are, there is always the potential for something to go very wrong. Unless humans are given back the power. The SEC’s Chairman Mary Shapiro was quotes saying “Can I guarantee we will never have another flash crash? No” (Thomas/Reuters, 2011) .
Piloting Valero With Real-Time Management
1. The issues that needed to be addressed when developing Valero’s dashboard was ensuring that they were measuring the right thing, it limited how innovative they were, and an array of others “from backward-looking metrics and ill-advised goals to antiquated budgeting approaches and technophobic executives” (Henschen, 2009) .
2. The COO of Valero “wanted to see real-time data related to plant and equipment reliability, inventory management, safety, and energy consumption” (Henschen, 2009) performance metrics displayed by the dashboard. The benefit of the information is that executives can receive timely information so they can take immediate corrective actions when plants stray away from the goals.
3. The information systems required for Valero’s dashboard are “SAP’s Manufacturing Integration and Intelligence application” (Henschen, 2009) and “SAP BusinessObjects Xcelsius software” (Henschen, 2009) .
4. Valero’s dashboard is so effective at helping to pilot the company that it has “executive-level, refinery-level, and even individual system-operator-level dashboard views” (Henschen, 2009) . It has been so successful that thousands of company are attempting to create systems similar to Valero’s.
5. Valero’s dashboard should not focus on things that it cannot control. If it is out of their hands, there is no sense in people worrying about it. They should focus on the factors that they are in control of so that they can identify internal issues and correct them in a timely fashion.
Recent technological advances in various fields have enabled us to excel in ways that before weren’t even imaginable. Innovative dashboards have enhanced business practices. Marketing opportunities have expanded due to augmented reality. Millions of dollars can be made by computers with high frequency trading (that comes with a price). Technology is evolving and impacting our lives each and every day.
References
Henschen, D. (2009, November 19). Enterprise Information Management. Retrieved from Smarter Execs Focus On Goals, Not Just Metrics: http://enterpriseinformationmanagement.wordpress.com/2009/11/19/smarter-execs-focus-on-goals-not-just-metrics/
Roberts Jr., G. (2012, January 16). inmanNews. Retrieved from Real estate get dose of augmented reality: http://www.inman.com/news/2012/01/16/real-estate-gets-dose-augmented-reality
Laudon, K. C., & Laudon, J. P. (2012). Management information systems: managing the digital firm (12th ed). Upper Saddle River, NJ: Pearson Prentice Hall.
Thomas/Reuters. (2011, May 5). MoneyNews. Retrieved from SEC's Schapiro: We Can't Prevent 'Flash Crash' Repeat: http://www.moneynews.com/FinanceNews/SEC-Schapiro-Prevent-Flash/2011/05/05/id/395298
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