9-308-049
OCTOBER 11, 2007
F. WARREN MCFARLAN MARK KEIL JOHN HUPP
The AtekPC Project Management Office
A rain had started in the early evening of March 3, 2007, and the streets of Metropolis were cold and grey where the AtekPC headquarters were located. As John Strider, CIO for AtekPC, packed up his briefcase at the end of the day, his thoughts returned to the new Project Management Office (PMO) that he had approved several months ago. During his tenure of over twenty years at AtekPC, Strider had never witnessed the kinds of pressures that were now facing the personal computer (PC) industry. Strider recognized that the industry was in transition and that his Information Technology (IT) organization would be involved in some critically
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There was little margin for mistakes at AtekPC in these changing times.
Industry Background
The PC industry was experiencing tremendous cost pressure and was undergoing a period of consolidation. As profit margins fell, PC makers were launching cost reduction strategies aimed at further improving the efficiency of their supply chains, while lowering the cost of distribution. According to a recent newspaper article: The latest financial results for PC makers show a slow down in both sales and profitability. Both corporations and consumers are holding on to their PCs for a longer period of time to avoid the cost and hassles associated with upgrading their equipment. As a result, purchases are being deferred and PC makers are looking at new markets for growth opportunities. The industry appears to be undergoing a wave of consolidation as cost control and scale become more important than ever before.1 In 2007, a major news magazine ran a cover article entitled “Whither the PC?” The threats reported in their analysis were worldwide and stemmed from a variety of factors including the growing popularity of mobile phones, PDAs and web-based application software. For most people, email is the most important application that they use. For a long period of time, sending and receiving email necessitated having a full-fledged PC. Nowadays, though, businesspeople and consumers want to
1) Performance: One has to ask themselves during a project if you have met the objectives of the project. Performance can be measured by evaluating the processes such as scope verification, quality planning, quality assurance, and quality control. The initial performance goals should be outlined in the initial Scope of Work.
Microsoft’s approach of creating competition also increases both the variety and the availability of their PCs. PCs can be found almost anywhere that sells other electronics. Each PC manufacturer produces their own configurations. Each retailer sells at least a few exclusive PCs. The end result is many different PC options for the consumer.
Computer technology is constantly advancing over software and hardware that is available at any one given time. These constant changes affect how long computer products can sell for a premium price but also can make it cheaper for those consumers that are not interested in the newest and latest components. Personal computers (PC), also known as desktop computers, are common place in jobs, schools and homes. The demand for personal computers is constant and revolving since components of computers gets better and more powerful with time. The target market then becomes anyone that uses a personal computer for home or work. HP uses the fact that computers are a common item in any office or home to their advantage and offers not only PC’s but other accessories pertaining to computers as well. While HP currently excels at providing a product for a decent price they are missing out on consumers that Equalus will focus
As Krames describes, even though the intent was not to revolutionize, the mass customization and the providing competitive price to customer by eliminating the middleman, changed the landscape of computer business. Consumers, for
Reston Station Phase 1 Garage is the first of many new building projects in Reston to usher in the arrival of the Metro Rail Silver Line Expansion in early 2014. The Wiehle Avenue stop on the new route running from downtown Washington D.C to Dulles International Airport lies adjacent to the new Reston Station project being built by Comstock Partners Limited and Fairfax County Virginia (a public-private partnership). The project consists of a 7 level, 1.3 million square foot underground garage that will one day be the foundation for 3 office buildings, a 700-unit apartment building, and a 20 story hotel.
Midsouth Chamber of Commerce, a nonprofit, member driven, business advocacy group is in the processes of upgrading their current information system. Midsouth has decided they need to upgrade their information system to a more currently system, in order to increase revenue producing opportunities. Their original IS system was built by an outside consultant (who is no longer in business) on a departmental need base, rather than a company wide need. The original system was put into place in 1987, with modifications done in 1993, and 1995. During this time all IS decision were made by outside
By grafting its system of custom direct sales onto the Internet infrastructure, Dell has transformed these activities, creating an innovative and efficient procurement, production, and distribution network. The innovative advance made by Dell in deploying Internet communication as the foundation of its production network, is a process innovation. Although to some extent, the Internet has enabled Dell to create a new product -- a PC custom-configured through Internet communication -- it is the process of organizing flows of materials and information within its network, from customer order to procurement, production and delivery, by means of Internet communication, that defines the innovation at the Firm. The case supports this notion by stating “While most other PCs were sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in system configuration at a deeply discounted price, due to the cost-savings associated with cutting out the retail middleman. Additionally, an important side-benefit of the Internet-based direct sales model was that it generated a wealth of market data the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer
With time, the PC continued to evolve and newer models offered better speed, color screens, more memory and larger hard drives. Further technical evolution continued to deliver higher speeds, larger storage capacity both internal and external. In addition to the hardware progression, the PC world continued to see progress with operating system solutions and advanced software catering to both large and small businesses as well as the home owner.
Proliferation of mobile phones, PDAs and web-based applications slowed PC popularity. Industry was undergoing a wave of Director Application Development consolidation as cost control and scale Richard Steinberg became more important.
National Computer Operations (NCO) was an internal, monopolizing computer support entity that was faced with a challenge which was presented by the new banks chainman. The change, which was to take effect in 2 years, was that NCO could now market externally and all the internal departments could buy computer services from outside firms (Spector, 2013, p. 73). How was the company leader, Gar Finnvold, going to overcome these changes? The following essay will discuss a step by step diagnosis for the organization, as well as, who and what tools will be utilized. Additionally, the essay will describe who and what tools will be utilized.
The current IT infrastructure is strong enough to meet the current operational needs of the organization, but is constructed with a combination of commercial-off-the-shelf hardware/software and home developed middleware with no comprehensive documentation available. Even though policy management, standardization and documented procedures needed a lot of work, there were some operational practices such as password management, business continuity, disaster recovery, and data backup and storage that seem to work. VTBC was able to continue processing orders if there was a failure in network conductivity. VTBC’s e-commerce applications were hosted outside of Vermont which gave them a position to capitalize on the nation’s internet infrastructure. There are seven veteran IT employees that possess a lot of the current working knowledge of the IT infrastructure and successful procedures but are limited in practical IT applications to make the infrastructure more efficient. With the implementation of various hardware and software applications, change control is not implemented or executed. Vermont Teddy Bear Company successfully operates three different product brands, using four different communication channels and but each of those channels is supported by different software. Vermont Teddy Bear Company utilized the “best of breed” approach for software acquisition. This method allowed the organization to
The large capital requirements to enter the computer industry combined with established brand identities of the current incumbents make barriers to entry high, not to mention the economies of scale and distribution channels that incumbents enjoy which make entry barriers even higher. The current PC incumbents enjoy demand-side benefit of scale in the business sector where PC buyers prefer to buy products from large trusted companies, raising the level of entry barriers.
In this paper, the author will introduce a failure case of K-Mart 's IT modernization system project. In 2001, K-mart took $1.4 billion dollars into this project with the purpose of competing with its rival Walmart. The dream is beautiful, but the real work is cruel. After 18 months, the project was failed because of lacking of cash. What happened in the detailed for this project? $1.4 billion dollar is huge numbers, why it was still not enough to pay and distribute for this project? How did its project manager do in this project? What are the project problems? How can we learn from the failure of this case? The paper includes the case background introduction, the project development process, the problems in the project, analysis and
AtekPC is a mid-sized U.S PC maker with sales of $ 1.9 billion and employed 2100 full time employees and additional 200 part time workers. This case discusses most of the obstacles to establishing a PMO (Project management Office) are beyond the CIO and PMO Manager's control. We see a lot of problems faced by the CIO in implementing a PMO in the enterprise. Regardless of the technical challenges during the implementation, the core of the problems seems to be that the PMO is lacking organization support, from the top to the bottom. There is not enough executive stakeholder support, there is no visibility of the program, there is a conflict of interests within departments
PC industry is characterized by fast declining ASP year over year. Together with the increasing component costs from 2009, both Dell and HP are facing squeezing profit margins (HP 2010; Dell 2010). In the first quarter of 2011, HP’s gross margin for its Personal System Group (PSG) is as low as 6.4% (Epstein 2011). Similarly, Dell’s gross margin of PCs is often 3 to 5% (Wang 2010). This indicates that if both