Posted by: pen2bit | March 30, 2009

Is The CFO Ready for DSS?

A personal thought on an article from CFO.

Financial analysis and forecasts are always in demand by CEOs. They ask CFOs to have those papers ready for a very real timed basis, but do CEOs know how their CFOs spend their time during a day? How about CFOs, are they ready to use DSSs?

A survey done by the non-profit research firm APQC sponsored by “CFO Asia” and “IBM Global Business Services” provides some numbers about the the CFOs issues. It is good to know that the biggest time chunk of both CFOs in Asia and US is eaten up by transaction processing.

For me it was not reasonable! What I have been assuming for a CFO’s day was to spend most of his time for analysis and forecast at least in the United States. I wonder how technology is not ready for this task yet!

Excerpt from the article;

“On average, the 54 CFOs surveyed in Asia said their departments spend 50 percent of their time on transaction processing. The rest of the work day is spent on decision support (16 percent), control (19 percent), and management activities (15 percent).If it’s any comfort, CFOs in the United States are in the same boat. The 89 respondents polled there said their company’s finance function devotes 46 percent of its time to transaction processing, and 18 percent each on decision support, control, and management activities.”

And what I thought is already a normal process in the firms is still a dream for CFOs. The survey shows that both CFOs in Asia and US are expecting to spend less time on transaction processing by 2010 using shared services center and technology!!

An excerpt from article;

“By 2010, CFOs in Asia aim to reduce time spent on transaction processing to 38 percent (U.S. respondents: 35 percent), while increasing the time devoted to decision support and other activities to 62 percent (U.S. respondents: 65 percent).”

Finally I remind this quote from Jean de La FontaineA hungry stomach cannot hear”!!!

Let’s face it, by all the technology and tools provided for firms and companies especially here in the states when a chief officer is short in his vital tasks it is not wise to bother him thinking about decision support systems.

Hopefully after helping him with his vital task maybe!

APQC survey result

APQC survey result

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Posted by: pen2bit | March 16, 2009

Not Providing Information!

By Economist

By Economist

A personal Thought on an article by Economist!

One of the key information for investors for making their decision and to evaluate what they wanted to do by analyzing their options getting help from the numbers of Annual Earnings Estimates, these estimates are normally exposed every financial period. But global economy downturn made some big companies not reveal the information and the numbers hoping they can avoid panic investors decision making.

I think this is not going to help them to give the investors an optimistic bright view for their forecast on the company’s future! I believe when the decision makers are not allowed to access to the normally accessible information the result is worse than having them access to disappointing information.

An excerpt from Article Citing the chaos of the global downturn, a growing number of companies, including Unilever, an Anglo-Dutch consumer-goods firm, Costco, a big American retailer, and Union Pacific, one of America’s big railroads, have decided not to give annual earnings estimates for 2009.If ever there was a moment for firms to keep their crystal balls under wraps, this may appear to be it. But many companies are still issuing annual forecasts in spite of the uncertainty roiling their markets. On February 24th, for instance, Home Depot, another American retailer, estimated that its revenues and earnings per share from continuing operations would decline by about 9% and 7% respectively in its 2009 financial year. Earlier this month, Reckitt Benckiser, another European consumer-goods group that competes with Unilever, said it was confident it could increase its revenues by 4% this year.When the downturn situation is reached everywhere and almost entire world is struggling, we (if were in shoes of a DSS agent) would better respect decision maker’s understanding and provide all considered information even if the information does not contain good news. This way we have the decision makers on a place that gives them a chance to compare our options in a fair and well informed picture.


Posted by: pen2bit | March 8, 2009

Another Microsoft Vision-Video

This post is about two videos by Microsoft, you can find those videos and some others in here!

This post would be interesting for my classmates at DSS 6833 class who saw the movie on Bill Gates presentation, envisioning today’s office!

Recall what we watched in our class about Bill Gates vision for office future!

Now I ran (Not IRAN my home country, I mean I saw the link) to a Microsoft’s envision Video for 2019!

I like it!

See how flow of data and information helps the shopper at a retail store in the first video and closely look for new idea for a manufacturing firm in the second video! Interestingly in both futures, there, human is the one who makes the decisions!


Video: Future Vision Montage

Video: Retail Future Vision

Video: Manufacturing Future Vision

Posted by: pen2bit | March 1, 2009

Print a Dream! or Maybe Save a Dream!!!

Personal thought on the article published by

I was shocked by what I read on this article! I think in near future this technology will bring a revolution to the field of DSS. Have you ever thought how hard it is to compose an expert’s vision on a decision environment (judgment) into a decision model!I believe this technology will be handy for that!

This summary will be more suitable for those of readers who are in short of time! Think about the ability that will be availble with digitizing what exist in a human being brain, and farther more the ability to process it by computer!

An excerpt from article:

“Researchers from Japan’s ATR Computational Neuroscience Laboratories have developed new brain analysis technology that can reconstruct the images inside a person’s mind and display them on a computer monitor, it was announced on December 11. According to the researchers, further development of the technology may soon make it possible to view other people’s dreams while they sleep.”

The research results appear in the December 11 issue of US science journal Neuron“.


Posted by: pen2bit | February 22, 2009

30 years of innovations!

innovate

innovate

A personal Thought;

IT’s Share in recent top 30 Tech Innovation in last 30 years

(By PBS)

An excerpt from PBS.ORG’s Article:

In celebration of our 30th year on television, Nightly Business Report partnered with Knowledge@Wharton to identify “The Top 30 Innovations of the Last 30 Years.” NBR viewers suggested the advances they admired during the 1979 to 2009 time frame. Professors at The Wharton School of the University of Pennsylvania selected and ranked the top thirty. The winners were announced on February 16, 2009.

What do you think?

Take your time, when you scroll down and read this post, try to guess some of those 30 tech innovations! Try to guess the fraction of IT related tech innovations! Any thought?

It is amazing to see how involved our lives are with these technologies.just imagine to live 30 years ago and want to live same as now!

As a personal experience, I remember, about 20 years ago, there were “pen pal“ things in hands of youngsters of that time(be honest I was a kid), where no email, no chatting nor “online social networks” were available!

Scroll down …….Did you guess any technology?Can estimate a percentage of IT related “tech innovations”?

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I think 19 out 30 innovations were IT related ones! Almost 63% of them!

Now check if you can find your guess in the list below. (Scroll down for a brief history)

30- Anti-Retroviral Treatment for AIDS

29-SRAM/Flash Memory

28-Stents

27-ATMs

26-Bar Codes and Scanners

25-Biofuels

24-Genetically Modified Plants 23-RFID and applications 22-Digital Photography/Videography
21-GUI 20-Social networking via internet 19-Large Scale Wind Turbines
18-Photovoltaic Solar Energy 17-Microfinance 16-Media File Compression

17-Online shopping/ecommerce/auctions

14-GPS

13-Liquid Crystal Displays (LCDs)

12-Light Emitting Diode products (LEDs) 11-Open Source Software and Services 10-Non-Invasive Laser/Robotic Surgery
9-Office Software 8-Fiber Optics 7-Microprocessors
6-Magnetic Resonance Imaging (MRI) 5-DNA Testing and Sequencing/Human Genome Mapping 4-E-Mail
3-Mobile phones 2-PC/laptop computers 1-Internet/broadband/WWW

If you did not find your suggested Tech, let us know about it in the comments!

******

Below brief history is from PBS (PBS.ORG)

#30
Anti-Retroviral Treatment for AIDS
AIDS became an epidemic in the 1980’s. In 1984, the retrovirus that caused the disease was isolated, and doctors turned to zidovudine — a 20 year old, rejected anti-cancer drug — for help. Renamed AZT, this drug attacked the virus and saved lives. In 1987, AZT became the first antiretroviral drug approved by the U.S. Food and Drug Administration. In the 1990’s, more antiretrovirals were developed.

# 29
S-RAM/Flash Memory
Static random access memory (SRAM) was invented in 1970, around the same time dynamic random access memory (DRAM) was invented. SRAM is simpler and faster than DRAM, which makes it better suited to handle cache memory functions in computers. Flash memory was invented in 1980, and the first USB Flash Drive went to market in 1996. The drive quickly revolutionized the storage and transfer of computer data.

# 28
Stents
The inspiration for the invention of the modern coronary or heart stent came from the failings of angioplasty. In some cases, an artery would close up again after the angioplasty balloon was removed. Doctors wanted a way to keep those arteries open permanently. The first stent was inserted in a human coronary artery in 1986, and the first stents were approved for use in the U.S. in 1994.

# 27
ATMs
Early versions of the automatic teller machine (ATM) appeared in the 1960’s, but they dispensed only predetermined amounts of money and were not networked to computers. Use of ATMs expanded in the 1970’s, after the magnetic stripe card was introduced and the machines were networked to computers. These days ATMs have become a part of daily life, and they allow many people to do their banking with little human contact.

# 26
Bar Codes and Scanners
The first bar code (with reader) was invented in the 1950’s, but bar code wasn’t used commerically until the 1960’s. Its use expanded in the 1970’s once a bar code standard (UPC) was developed and the first supermarket — Marsh’s in Troy, Ohio — installed a UPC scanner. Bar codes are now a standard in the retail industry and also have important manufacturing and military applications.

# 25
Biofuels
The early history of biofuels is tied to the history of Rudolf Diesel, whose first engines ran on biofuels like peanut oil. In 1908, Henry Ford built a Model T that ran on ethanol. Of course, both Diesel and Ford soon found petroleum to be a more efficient fuel source. In the 1970’s, energy crises and the adoption of the U.S. Clean Air Act boosted interest in biofuels. Today’s biofuel market continues to grow in response to energy and environment issues.

# 24
Genetically Modified Plants
The development of genetically modified plants was a natural evolution of the work of Gregor Mendel in the 1800’s and the discovery of DNA structure in 1953. In 1994, the first genetically modified plant — a crop of California tomatoes — went to market. Today, commercial growers modify crops to make them resistant to diseases and to make them better able to tolerate pesticides.

#23
RFID and applications
Long before Nike+ used radio frequency device to tell you how fast you’re running, the technology was being used in World War II radar systems. In the ’80s it was put to use in automated toll payment systems, enabling speedsters everywhere the ability to fly through the tolls.

# 22
Digital Photography/Videography
The earliest forays into digital imaging were rooted in video. The first solid-state video camera was protyped in 1970, and the Mavica still camera Sony built in 1981 actually worked more like a video camera. In the late 1980’s, the development of the mega pixel sensor and improved storage mediums made digital photography and videography commercially viable. And, it only took time for the digital market to outstrip the film market.

#21
GUI
The first graphical user interface was invented by Douglas Englebart in 1968, and in the late ’70s and early ’80s GUI design advanced, largely thanks to Apple. Because of these pioneers, we can take it for granted that we interact with our computer using a mouse and have easy-to-understand icons and other graphical controls instead of having to remember a bunch of computer commands.

#20
Social networking via internet
Internet-based social networks really are very new. SixDegrees.com (1997) is the earliest social network site, according to PBS, but it wasn’t until MySpace, which launched in 2003, that social networks began to appeal to the masses. Now, of course, there’s Facebook, which gives you endless opportunities to have worlds collide, and Twitter, which empowers you to become your own paparazzi by dropping life tidbits, wisdom, and your comings and goings to your anxious followers.

# 19
Large Scale Wind Turbines
Wind power has an ancient history, with the first windmills appearing in 200 B.C. The modern wind energy movement started as a response to the oil embargo and energy crises of the 1970’s. Today, many nations have wind power plants — or wind farms — in operation. The U.S. leads the world in total wind power generation, while Denmark leads the world in the percentage of wind power as part of total energy output.

# 18
Photovoltaic Solar Energy
Scientists first discovered the photovoltaic effect in the 1800’s, and a handful of industrial revolution-era factories used solar power to produce steam. The modern solar energy movement started as a response to the oil embargo and energy crises of the 1970’s. Today, there are a number of commercial solar power plants, and some individuals are using solar panels to heat pools, water, and even return energy to the electric grid.

# 17
Microfinance
The concept behind microfinance — bringing financial services to poor or low-income individuals — has existed for centuries, but it became a movement in the 1980’s. That’s when economist Muhammad Yunus founded his Grameen Bank and started making very small loans to the poor in Bangladesh. The goal of such loans is to give people the means to lift themselves out of poverty. Yunus and Grameen were awarded the Nobel Peace Prize in 2006.

# 16
Media File Compression
Media file compression is a natural extension of the data compression computer scientists developed to store text files in the 1970’s. In the 1980’s, committees of experts created the popular compression standards we know as JPEG and MPEG. Without compression, we would not be able to transmit images, audio, and video via the Internet.

#15
Online shopping/ecommerce/auctions
Where would we be without Amazon, eBay and other online stores? Stuck in traffic on the way to the mall, that’s where. Thanks to the Internet being opened up to commercial use, the ability for companies to capitalize on electronic transactions took off. As did our hunger for a more peaceful shopping experience.

# 14
GPS
The U.S. Department of Defense brought the Global Positioning System (GPS) — a network of more than 24 satellites that can be used to pinpoint locations on earth — online in 1993. Though conceived for miliatry applications, the GPS quickly became a civilian navigation aid and spawned its own idustry. Today, there are GPS devices in cars, mobile phones, watches, and other products.

# 13
Liquid Crystal Displays (LCDs)
Liquid crystals were first discovered in the late 1800’s, but scientists didn’t figure out how to use electricity to create intricate patterns with the crystals until the 1960’s. The first liquid crystal displays (LCDs) began to appear in the 1970’s. Today, LCDs are found in clocks, computers, televisions, automobiles, and many other products.

# 12
Light Emitting Diode products (LEDs)
Light emitting diodes (LEDs) are tiny, cool-running light sources. Scientists have been experimenting with them since the early 1900’s, but the technology wasn’t practical until the 1960’s. The calculator was one of the first products to incorporate LEDs, and many products — particularly appliances and automobiles — followed suit in the 1970’s and 1980’s.

# 11
Open Source Software and Services
Frustrated by copyrights companies added to software in the 1970’s Richard Stallman — a former MIT programmer — launched the GNU Project in 1984. His goal was to create an operating system with no restrictions on accessing source code. Along the way, he published the first free software license. This GNU General Public License has since been used to release Linux, OpenOffice.org, Mozilla Firefox, WikiPedia, and other open source software and services.

# 10
Non-Invasive Laser/Robotic Surgery
The 1980’s bred major developments in surgery. The first minimally invasive — or laproscopic — surgery was performed in 1987. Robots were first used to perform biopsies in 1985. And, in the early 1980’s, scientists discovered that lasers could be used to cut organic tissue. All of these developments helped make surgery more precise, which in turn, made surgery safer and reduced the recovery time for patients.

# 9
Office Software
Office software, including word processing and spreadsheet programs, has shaped the way we do business, improving efficiency and giving analytical power to more members of the workforce. This software evolved during the 1960’s and 1970’s. Visicalc — the first spreadsheet program — was distributed in 1979. WordStar, which also debuted in 1979, became the most popular word processing program of the early 1980’s.

# 8
Fiber Optics
The science behind fiber optics has been studied since the 1800’s, but it wasn’t until the 1970’s that the quality of optical fibers improved enough to allow their use in communication applications. Fiber optics quickly became the preferred medium for telecommunication and networking because the cables can span long distances with few repeaters and can carry signals at rates over 100 gigabytes per second, though speeds that fast aren’t widely used.

# 7
Microprocessors
A microprocessor is a single integrated circuit that holds a central processing unit (CPU). The first microprocessors were developed in the 1970’s for calculators. By the end of the 1970’s, the microprocessor had led to the development of the microcomputer or personal computer. Ever since, the size of microprocessors has been shrinking while their processing capacity has been growing, and the world has been changing as a result.

# 6
Magnetic Resonance Imaging (MRI)
In the 1970’s, scientists figured out how to use nuclear magnetic resonance to produce images, and they began using those images to detect diseases in tissue samples. In 1977, a prototype of a magnetic resonance imaging (MRI) machine conducted the first full body scan. However, it wasn’t until the late 1990’s that MRI technology became truly portable and, as a result, widely available in hospitals and doctor’s

# 5
DNA Testing and Sequencing/Human Genome Mapping
The structure of DNA was first discovered by Watson and Crick in 1953, but it wasn’t until the late 1970’s that scientists began to sequence some DNA molecules. Then, in 1990, the U.S. government organized the effort to map the human genome. This effort to identify all the 20,000 to 25,000 genes in human DNA was completed 13 years later, in 2003. The achievement has led to great advancements in the research of and treatment of genetic diseases.

# 4
E-Mail
Historians believe e-mail (electronic mail) evolved from messages sent by programmers using a time-sharing computing system at Massachusetts Insitute of Technology in the 1960’s. But, e-mail didn’t really become accessible to the public until the late 1980’s, and its use became more widespread in the 1990’s. Today, e-mail is a staple of business and personal communication.

#3
Mobile phones
Take a look at your tiny little cell phone and be thankful. The first mobile phones, which Motorola unleashed on the market in 1983, were confined to the car (until a few years later when they became more mobile) and were the size of a briefcase.

#2
PC/laptop computers
1981 was a big year for computers: IBM launched the 5150 model (which it called a “personal computer”) and the Osborne 1 became the first portable computer. Weighing in at 24 pounds, it challenges our current notion of laptop.

#1
Internet/broadband/WWW
Coming in at #1 is the Internet. Our slavery to Google, our addiction to Twitter, our ability to keep up-to-date on any given news topic, our ability to send and receive far too many e-mails…The Internet enabled so many other phenomenon that it’s startling to realize the Internet as we know it only arrived in the ’90s. But it didn’t take long to change our lives forever.

Posted by: pen2bit | February 15, 2009

DASHBOARD!

A personal thought on an article published by b-logo.

Dashboards – luxury DSS available for midsized and small companies.

You are to reach a goal on a map, driving your car, you keep your eyes on instrument panel behind the wheel. Each sign gives you information to decide whether to stop for gas, accelerate or decelerate and simply inform you of your car running fine. A CEO who drives a company needs to have that instrument panel or what we call a dashboard to run the company and touch the milestones and keep the company on track. Although it had been too expensive (the expense could run into the millions of dollars- the Article) for midsized and small businesses to have that fancy tool, but it has fallen in to a more affordable area in last decade.

s_dashboard-mix

An excerpt for Article:

“Since the advent of the mainframe in the 1950s, companies have dreamed of using computers to manage their businesses. But early efforts came up short, with technology that was too costly or too clunky. Now, thanks to the Net and dashboards, those dreams are starting to come true. Forrester Research Inc. (FORR ) analyst Keith Gile estimates that 40% of the 2,000 largest companies use the technology. Some of the most prominent chief executives in the world are believers, from Steven A. Ballmer at Microsoft (MSFT ) and Ivan G. Seidenberg at Verizon Communications (VZ ) to Robert L. Nardelli at Home Depot (HD ). “The dashboard puts me and more and more of our executives in real-time touch with the business,” says Seidenberg. “The more eyes that see the results we’re obtaining every day, the higher the quality of the decisions we can make.”

The dashboard is the CEO’s killer app, making the gritty details of a business that are often buried deep within a large organization accessible at a glance to senior executives. So powerful are the programs that they’re beginning to change the nature of management, from an intuitive art into more of a science. Managers can see key changes in their businesses almost instantaneously — when salespeople falter or quality slides — and take quick, corrective action. At Verizon, Seidenberg and other executives can choose from among 300 metrics to put on their dashboards, from broadband sales to wireless subscriber defections. At General Electric Co. (GE ), James P. Campbell, chief of the Consumer & Industrial division, which makes appliances and lighting products, tracks the number of orders coming in from each customer every day and compares that with targets. “I look at the digital dashboard the first thing in the morning so I have a quick global view of sales and service levels across the organization,” says Campbell. “It’s a key operational tool in our business.””

With the cost of $1,000 to $2,000 a year per user, almost most of the businesses can apply a dashboard into their tools. Some pioneer companies to provide such really cheap quality dashboards are NETSUITE, Salesforce.com, Hyperion Solutions.

Like all human made technologies there are two side for the dashboard benefits and damages, but I am agree with the author of the article which says: But that’s a question of how to use the technology, not whether to implement it. Some of the discomforts with the dashboards are; Privacy concerns, firm level personification of BIG BROTHER, triggering some behavioral issues (like to spread a negative feedback on a salesperson’s performance).

Posted by: pen2bit | February 8, 2009

Another assignment!

I just finished the “technology assignment”and my webpage is ready to go!

By this amount of webstuff we need to prepair for school, I am sure I will be Ok with blogs (Hope so)!

UMSL WeB pAge

UMSL WeB pAge

Posted by: pen2bit | February 8, 2009

A personal thought on an article published by Businessweek !

As a manager how do like to form your team for next assignment?

 

As an employee how far do like your company’s managers access your personal information? What would you

 

like to be saved out of your personal information on the human resources department’s computer hard drives 

 

and be accessible?

 

Do you think privacy is more important than efficiency?

 

IBM, a pioneer leader in modeling, right after World War II started to convert real world business problems  by

 

using a new science called Operations Research. It constructed a mathematical model of the company’s industrial supply chain. This modeling is go to hit some new

 

area in business world, Human resources management. “NumerAti” is the title that was given to such new data modeling. In the Numerati all personnel will have numbers attached to their Identification Code, those number shows the skills, time available, social network(s) he belongs, un official organization membership, way he drives, team work abilities and all other information that a sound clever mind can think of.

An excerpt from the article  to help you picture it:

“…Picture an IBM manager who gets an assignment to send a team of five to set up a call center in Manila. She sits down at the computer and fills out a form. It’s almost like booking a vacation online. She puts in the dates and clicks on menus to describe the job and the skills needed. Perhaps she stipulates the ideal budget range. The results come back, recommending a particular team. All the skills are represented. Maybe three of the five people have a history of working together smoothly. They all have passports and live near airports with direct flights to Manila. One of them even speaks Tagalog.

 

Everything looks fine, except for one line that’s highlighted in red. The budget. It’s $40,000 over! The manager sees that the computer architect on the team is a veritable luminary, a guy who gets written up in the trade press. Sure, he’s a 98.7% fit for the job, but he costs $1,000 an hour. It’s as if she shopped for a weekend getaway in Paris and wound up with a penthouse suite at the Ritz.

Do the math

Hmmm. The manager asks the system for a cheaper architect. New options come back. One is a new 29-year-old consultant based in India who costs only $85 per hour. That would certainly patch the hole in the budget. Unfortunately, he’s only a 69% fit for the job. Still, he can handle it, according to the computer, if he gets two weeks of training. Can the job be delayed?

 

This is management in a world run by Numerati. As IBM sees it, the company has little choice. The workforce is too big, the world too vast and complicated for managers to get a grip on their workers the old-fashioned way—by talking to people who know people who know people. Word of mouth is too foggy and slow for the global economy. Personal connections are too constricted. “

 

It is a big step toward new more efficient management and a step to expose more private data!

Posted by: pen2bit | February 2, 2009

First of All!

Thanks God!

Due to an assignment at school for a course(IS 6833), I have to start a Blog!

So, it would be better to have a real one with real mE!

Let’s Start!

Let's Start

Posted by: pen2bit | February 2, 2009

Retailers Use Customer’s Data as Club Bouncers!

 How do you feel when you want to return an electronic device and you are to pay a restocking fee, meanwhile same product in the same retailer , by one of your friends, was returned with no such charge? You may say “unfair”. Or consider another incident, you have heard about a sale event in a store and you try to get the advantage and buy some goods. You have reached the place, first of all, you never see a sign of any sale event, secondly, in the store, when you ask about the event there you found about “Silver medal” customers who are invited. As a result you cannot attend the event. Would you say “Unfair” again? You were not allowed to attend an electronic held nightclub party (sale event) and you were stopped by a typical digital club bouncer – cashier. But how they clustered you customers? Simply you were sifted through your previous shopping data and shopping patterns!

 The above samples that you may or may not have experienced are parts of “customer-profitability analysis”. This process of customer categorizing has been around for a while, but the brand new recession brought it up and put it in one of the very first priority for recession –struggling strategy for CFOs.

Bouncer- picture from Gettyimages

Bouncer- picture from Gettyimages

 My question here is “ will this process be a fair one to help a firm to survive?”

I think the process is not a fair process because of two main reasons, first; it gives producers a dominant position to consumers.  Second reason is the unfairly-informed customers who never could be clearly informed about the process and the rules of getting the “Silver class” member cards or higher.

Producers will be able to ignore big portion of consumers. We all know returning rate is a well known criterion to measure a product’s quality and success. And the more limited financially people the pickier they are! Strained consumer should always be aware of a fine to return, consider the point that not all of consumers are “sliver medal” to exempt from that charge. The consumer cannot be a free arbitrator of what he is experiencing about quality and characteristics of product versus what was advertised or seen on the boxes. He also is living in this society and is dealing with recession and has its own concern for his personal recession –struggling strategy.  This way, producers who supply Best buy for example were freed from judgment of more than one million “unprofitable” customers mentioned in CFO’s article*.

Picture from Gettyimage

Picture from Gettyimage

The process of “customer-profitability analysis” is a complicated process which in its fastest run will take six months. It applies cost data records of individual transactions and customer demographics*. Customers buying patterns and behaviors build up the customer segmentation. I feel even financially capable customers are not fed with ample amount information on how to gain honor of being a silver member. Unfortunately many people cannot afford to be one.

 

 As a result in a short run the solution works and  we can see Best buy survives the recession but Circuit City has filed

for bankruptcy protection and also Tweeter a retailer of about 100 stores is shutting down*. But in long run what will happen to consumers and quality? Based on what Byrnes said for most of the companies 30 percent of customers are not profitable *so that means help them not to be customer any more in other words “you can’t fire me, I quit” attitude. I think finally there should be a monitoring source to help that chunk to be treated fairly and help them to be accounted as a customer regardless of their share from profit, and this process of winnowing is just a way to ignore some people due to their financial situation and is not fair.

 *http://www.cfo.com/printable/article.cfm/12835154

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