Question

Simpson Corporation has been using the same database to keep track of customer orders for many years. With the increase in the number of customers and products and the increase in online sales the company knows they need to improve their data handling to better meet customer demands. Simpson Corporation has several offices across the country but they are only using localized databases and they are not connected to her head office. Management is having difficulty keeping track of the data at each location and they need better access to it so they can make quicker decisions. In addition, they cannot decide where to open new locations. You helped Simpson Corporation in the past and they are asking for your assistance again. Using the terms and concepts from your textbook explain what Simpson Corporation needs to do to fix their problems.

Answer 1

                        In the given case, it is said that the Simpson Corporation is using the same database of consumers which they are using for the determination of the production and sales. With the increase in the online sales mechanism, this is a major drawback which creates a huge deficit in their opportunity cost of sales. Apart from the above drawback, the corporation also lacks connectivity where it is said that although they have many offices, they are not rightly connected to the headquarters which makes the headquarters with less information of how to go with the production and the consumer needs in the process as they would have difficulty to manage the affairs due to less information of the earth data. The following methodologies could be adopted by the corporation so that they would have a better information availability and connectivity which could boost their profit making potential

· Better connectivity should be established with the headquarters by dividing the multiple establishments in to regional groupings with a local head and then connecting each local head to the main headquarters

· The server data should also be arranged in a similar way with the regional headquarters having a specific database and the database being linked to the main head so that a better summarised data would be available to the headquarters and they could take better decisions in a faster manner.

· The online sales should be promoted by establishing local online portals and applications which are consumer friendly so that the consumers would be able to choose the product at home and this process would result in increasing the consumer base of the corporation

· A resurvey of the consumer base has to be done initially so that the new consumer base is identified. This has to be done online to attract the new generation consumers and offline also in some specific regions so as to make sure that the existing consumer base is maintained

· While making the new database, the consumer has to be informed of the new opportunities and products of the organisation so that widening of the consumer base takes place at a faster pace.

All the above features may be used so that the corporation would result in a better profit structure and thus could improve the current difficulties they face in the consumer market.