Management Information

System Report

Submitted by:
Group-10
 Ankit Srivastav 19008
 Kattamuri v n s Jayarajyalakshmi 19025
 Shraddha Tiwari 19049
 Sowmyashree 19054
 Vachan prabhu 19058

Submitted to:
Prof. Malathi Sriram

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case Summary:.....................................................................................................................................2
Objectives:............................................................................................................................................3
Hardware and Software used:............................................................................................................3
Central Information System:..............................................................................................................3
Wireless Handheld Computer:...........................................................................................................3
Electronic voice generated by HighJump’s Software:.......................................................................3
Laser Scanners:..................................................................................................................................3
WLAN (Wireless Local Area Network):...........................................................................................3
Point of sale system:..........................................................................................................................4
Web-based System:...........................................................................................................................4
Bleeding Edge Technologies:............................................................................................................4
In-House software:............................................................................................................................4
Decision Hierarchy of the company:..................................................................................................4
Qualities of Information used in the company:.................................................................................5
Types of information used in the company:......................................................................................5
Key Technologies Used in the system:................................................................................................5
Questions:.............................................................................................................................................5

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case Summary:
 99 CENTS only stores IS America’s oldest chain of one-price stores. The chain
consists of 251 stores in California, Nevada Arizona and Texas.
 The business was started as a single store in Los Angeles in 1984 by David gold.
 Between 1996 and 2003, the company stock price climbed from $3.12 and $36.22
which is more than the competitors stock price. The company never had a year in
which it lost money.
 The U.S. retail market includes several other chains of fixed-price stores, and
competition is fierce. The chain does better than its competitors in every measure
important in the retail industry. The profit margin of 99 cents was 8.3% where the
competitors profit margin was 3.1%.
 Despite sales revenue of over 1.1 billion in the year ended March 31,2007, the amount
of spending on IT is relatively small, only $5 million in 2003.
 Robert Adams, Vice president of IS, selects IT projects carefully. Each store has a
wireless local area network(wlan) and connection to the internet. All district managers
carry cell phones, which they can also use as Walkie-talkies.
 Adams was afraid that he would not get the budget needed for the new systems
because the company is family-run, decisions are made quickly. He does not go
through formal meetings. The time between request and implementation is very short.
 The competitors have been slow to adopt state-of-the-art technology. 99 cents are fast
in adopting IT systems than the competitors.
 It is difficult for these chains to reorder the same items at the same lower price.99
cents succeed in reordering 60% of its inventory. The rest are one time only close
outs.
 Gold dislikes spending on IT if the information it produces is not used. However, was
impressed by Adams who is IT professional and thinks that he is the perfect choice
for the company.
 Until 2004, the company had a single distribution center in commerce city, California.
In 2004, management decided to expand to Texas and build another distribution
center there.
 HighJump’s software and Voxware computer technology was implemented.
HighJump ‘s software supports all the activities that occur from the time product
enters the warehouse to the moment they leave. A voxware computer receives the
picking profile from warehouse advantage and tells workers what to pick and where
to find it.
 After this software installed, the picking speed and accuracy was 90% at California
and 99% at Texas. Picking speed at Texas is 20 percent greater than at the California
center. The system works so well that Adams decided to implement it in California.
  The company’s most profitable store is located close to Beverly Hills and earns an
average of $10 million annually. The target audience is too different while other
stores target neighborhoods with low-medium incomes.
 Adams avoids implementing “cutting-edge” technologies. He says the company is too
small and traditional to sustain “bleeding edge” technologies.

Objectives:
• To develop the In-House software in which 99 cents requires systems that can accept
new items on the fly and Adam’s team ensures that the ISs are flexible and cost will
be reduced.
• High Jump’s software which is used for effective warehouse operations to increase
productivity supports all the activities that occur from the time product enters the
warehouse to the moment they leave.
 Effective inventory management is achieved through the Voxware computer
technologies which helps in receiving the picking profile from warehouse advantage
and tells workers what to pick and where to find it.
 Real time data update of logistics is achieved through web-based system to access
information about the status of incoming shipments. Management uses Advantage
Dashboard for a high-level view of facility and worker performance expressed as
metrics and graphs. Managers receive real-time inventory levels and order volumes of
various products.

Hardware and Software used:

Central Information System:
It helps in correlate multiple data points in order to strategize ways to improve operations.
EX-earbuds using in this case for an instruction of a row no, section number and bin number.
it gives ordered to pick cases based on that he picked up the boxes and places them on a
pallet and it also helps to send him to the new assignment.
Wireless Handheld Computer:
it is used to help in scan the bin to confirm which is the right bin.
Electronic voice generated by HighJump’s Software:
EX- There are around 15 pickers who are using the electronic voice which is generated by the
computers that runs the distribution canter’s warehouse management software. It instructs
them which items to pick for individual stores. It also calculates the most efficient routes
while ensuring that the carts don’t crash into each other. A Voxware computer receives the
picking profile from warehouse advantage and tells workers what to pick and where to find.
Laser Scanners:
EX- it helps to scan the box tags and routes the boxes to 20 different lanes and ensuring that
each box is on the proper path to a pallet waiting below for specific stores.
WLAN (Wireless Local Area Network): all stores have used a WLAN software. In the given
case, all district managers are using cell phones, which they can also use as walkie-talkies.
WLAN is a wireless computer network that links two or more devices using wireless
communication to form a local area network within a limited area.
Point of sale system:
The point of sale is the time and place where a retail transaction is completed. At the point of
sale, the merchant calculates the amount owed by the customer, indicates that amount, may
prepare an invoice for the customer, and indicates the options for the customer to complete
the payment.
Adams wrote entire code for the company point of sale systems. He and his team write code
whenever it is cheaper to purchase ready-made software and modify it than spend the
resources to develop the software from scratch in house.
Web-based System:
Employees can use this system to access information about the status of incoming shipments.
Bleeding Edge Technologies:
Bleeding Edge technologies released to the public even though it has not been thoroughly
tested and may be unreliable.
In-House software:
To develop the In-House software in which 99 cents requires systems that can accept new
items on the fly and Adam’s team ensures that the ISs are flexible and cost will be reduced.

Decision Hierarchy of the company:

 Web-based system employees can use this system to access information about the
status of incoming shipments and Prioritizing the decisions are unstructured decision
taken by the Strategic level people in the organization.
 Inventory management at the warehouse and the company in which A voxware
computer receives the picking profile from warehouse advantage and tells workers
what to pick and where to find it is Semi structured decision taken by Tactical level
people in the organization.
 Real time data update of logistics is achieved through web-based system to access
information about the status of incoming shipments. Management uses Advantage
Dashboard for a high-level view of facility and worker performance expressed as
metrics and graphs. Managers receive real-time inventory levels and order volumes of
various products is also a semi-structured decision taken by Tactical level people in
organization.
 Warehouse management which is Central Information System. It helps in correlate
multiple data points in order to strategize ways to improve operations. Earbuds using
in this case for an instruction of a row no, section number and bin number. it gives
ordered to pick cases based on that he picked up the boxes and places them on a pallet
and it also helps to send him to the new assignment. is Structured decision taken by
operational level people in the organization.
Qualities of Information used in the company:
• Accuracy: After this software installed, the picking speed and accuracy was 90% at
California and 99% at Texas.
• Clarity: Wireless handheld computer is used to help in scan the bin to confirm which
is the right bin.
• Frequency: 99 cents succeed in reordering 60% of its inventory.
• Order: earbuds using in this case for an instruction of a row no, section number and
bin number. it gives ordered to pick cases based on that he picked up the boxes and
places them on a pallet.
• Completeness: All the above operations are done then voice now sends him to the
new assignment.

Types of information used in the company:

• Central information system which gives a data base for warehouse management i.e.,
row number, section number and from which bin it should be selected and approved.
• As they have central information data base, they can use ERP because already they
have available structure data which is specially implemented for the inventory
management.
• As they are using an earbud that stream instructions for central information system,
they can use chat bots for the inventory control or management.

Key Technologies Used in the system:

• Electronic Voice Commands- Instruction given by chatbot the female voice gives an
instruction of a row no, section number and bin number. it gives ordered to pick cases
based on that he picked up the boxes and places them on a pallet. They confirm the
pick into a microphone.
• Image Processing – Wireless Handheld Computers is used to help in scan the bin to
confirm which is the right bin & Laser Scanners helps to scan the box tags and routes
the boxes to 20 different lanes and ensuring that each box is on the proper path to a
pallet waiting below for specific stores.
• Web based systems are Real time tracker which employees can use this system to
access information about the status of incoming shipments.

Questions:
1. Is 99 cents only on the leading edge of it? Is it on the bleeding edge?
 The company is on the leading edge of IT because the company is too small and
traditional to sustain bleeding edge technologies.
 The strategic advantage that 99 cents has in the business intelligence with which the
company integrates proven technologies into operations.
 The company uses certain technologies which will gain efficiency. When it is obvious
a certain technology will gain the company efficiency, they implement it.
2. What characteristics of the dollar store industry make it so important to increase
efficiency?
 Because the company is family-run, decisions are made quickly. Therefore, the time
between request and implementation is very short.
 The target audience is different for the 99cents where the other stores target
neighborhoods with low-to-medium incomes.
 The picking speed and accuracy was 90% at California and 99% at Texas. That is
when Adams decided to implement the technology in California as well.
3. The company has performed better than its competitors. In terms of the eight initiatives
discusses in this chapter, which initiative or initiatives has gained in the competitive
advantage?
 Reduce costs –
 They reduce costs by carefully evaluating new technologies before
implementation.
 Developing in-house applications instead of purchasing from software
companies which will save the company’s money.
 60% of inventory is re-ordered from suppliers, they are able to pay reduced
price for buying in the bulk.
 Enhance products and services – Having an IS of our own gives us a competitive
advantage over other competitors. Using computer voice commands in the business
transaction.
 Raise barriers to market entrants – Company can gain advantage if it deters potential
entrants into the market, with less competition and more market potential.
 Differentiate products or services – They target new segments by opening stores in
high income earning areas.
4. 99 Cents Only must modify its information systems frequently. Why?
• Since IT keeps changing as new technologies occupy the market, 99 cents should
frequently modify its IS too.
• To keep up with the competitors in the market, modifying IS is very essential for 99
Cents.
• In order to retain its loyal customers, they should frequently modify IS.
5. Often, CIOs are frustrated with the time it takes senior management to support their
strategic initiatives and with the difficulty of earmarking funds of such initiatives. How is 99
cents only different in this respect?
• 99 Cents Only is a family run business, hence no formal meetings are necessary to
implement any decisions.
• The store avoids buying new technologies and often save money by waiting until
systems are cheaper before implementing them into their business.