Of the residential telecommunications services listed in Figure 6.7 find out which are available where you live and how much they cost. You might find several DSL and cable services, and perhaps also satellite and BPL services. Calculate the ratio of maximum bit rate per dollar (downstream) to monthly fee for each service. Which service provides the “biggest bang for the buck,” that is, the greatest speed per dollar of monthly fee?
Out of the 10 telecommunications services listed in Figure 6.7, I chose the Cable services because aside from it is widespread used, it also available everywhere TV cable service is offered. It offers a speed of 0.5 to 3 Mbps with a monthly fee of $30-50. Though it is slower than DSL and although they have the same monthly fee, this is better because the DSL is more limited than cable and its speed is also dependent on the distance form one’s residence to a telco office. Aside from this, when a resident will acquire the Cable service, it’s like hitting two birds with one stone because one service cable is split into two – one connects to the television and the other connects to the computer via the modem. Since the cable is always turned, the computer is always connected to the internet. The television transmission and data are transmitted in a single line only. Though the rest of the services offered higher speed, this is still on my number list because the availability of those is limited and it is also very costly. (p197, Management Information System 5e, Oz, eBook)
Case Study: When Customers Attack…
1.) Pure-play companies – companies that do not sell only via the web, such as Overstock.com – have a certain advantage over other retailers in terms of data collection. How so?
It is an advantage for Overstock.com that sells via the web since all sales transactions are saved in a large database. Through this, it is easier for them to keep track of those items which are saleable to the customers and which are not. In this case, they can determine what items they will have to advertise more and to put up for sale.
2.) Overstock.com used a transactional database for their monitoring analysis. What were the results? Why is this unadvisable?
Monitoring real-time sales from the use of transactional databases are useful for Overstock.com but when customers’ activity grows, it already causes too much strain on the system; thus; leaving the management with no other choice but to shutdown the application. Since this is the only source of data for executives, the level security of the sales transactions becomes low.
3.) What can executives do now that they could not do in 2004 in terms of data analysis?
The executives can now monitor sales in real-time fashion 24/7 because the IT personnel transferred its web server at a facility owned by another organization. Aside from that, Overstock.com can now better understand customer motivations and the impact of pricing policies because IT personnel contacted a company to analyze customer information which comes from the company’s data warehouse.
4.) What information can proper analysis of the warehoused data teach executives?
The data warehouse enables Overstock.com to better understand motivations and the impact of pricing policies. This is also helpful in data analysis to avoid losing its best customers. Any company could not afford to loose their customer that’s why they always have to look for ways on how to serve their customers better and answer all their needs.
No Author. (2006.) Management Information System 5e, Oz