It Makes Sense

In: Computers and Technology

Submitted By TiffLR
Words 788
Pages 4
It Makes Cents
Introduction
This case is about the 99 Cent Only Store’s supply chain business model and how competitive advantage is executed within the context of its information systems (IS) strategies.
Founder David Gold’s model is to create a straight path between a low-priced item and a paying customer. Under the tutelage of Robert Adams, vice president of IS, notes “bleeding edge technology (Oz, 2009 p. 73) is unnecessary, rather integration of information technology (IT) with a high rate of return on investment (ROI), which achieves the goal of efficiency is implemented. The specific action of avoiding progressive technology provides a supply chain advantage system. Instead of relying on new and specifically made software, Adams utilizes ready made products, which can be tailored to 99 Cent’s needs, such as HighJump’s Warehouse Advantage. Adam who is a software developer by trade, supervises an IT team who ensures the ISs are accommodating and inexpensive for the organizations needs, the most prevalent is optimum efficiency. According to authors Effy Oz and J. Rae-Supree, 38 new 99 Cent stores opened in 2003, revenues amounted to over 1.1 billion (Oz, 2009 p. 72), but only $5 million dollars was spent in IT. Research from the companies 10-K form shows, that from 2009 through 2012, significant investment in various “infrastructure, data management, and process improvement projects…enabling the achievement of level one compliance with Payment Card Industry (PCI) standards” (99, 2012). The report details other changes such as upgrades to WiFi networks, hardware capacity within the warehouse contributing to improved availability and reliability. New software, which was not mentioned by Oz, is Lawson’s financial, Human Resource Suites on SQL, Epicor Software for polling of store systems and IBM UNIX based purchase order and inventory control software. By…...

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