Technological Developments
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Running head: Technological Developments
Technological Developments
MBA 501-Forces Influencing Business in the 21st Century
Instructer: Khalid Abdalla
University of Phoenix
Technological Developments
How can current technological trends be used to facilitate advanced business strategies and therefore cause organizations to realize forward advancement and increased value? In a world that increasingly seems to be shrinking due to globalization and the application of progressive technological communications this question dwells permanently at the forefront of cutting edge business planning. Stated simply, the implementation of advanced tools of technology will help modern businesses realize overall greater profits by attracting consumers initial and repetitive business. To take advantage of the opportunities at hand modern organizations must keep up with the most updated technological advances and determine how to apply these current technological trends. That is, businesses must seek out opportunities to leverage advanced technology, study the best practices for implementation, and follow up with focused application of the technologies within their own industry. This alone will ensure the exploitation of technology to the ends of increased profitability and added value in todays globalized and high speed business world.
Opportunities to Leverage Technology Advancements
The technological revolution has changed the world significantly. This revolution has helped to rise a new generation of individuals that believe they can have any good, service, or information they want at anytime, anywhere, and any way. This new society is defined by the belief that almost anything is possible. The access this generation has come to expect will continue to drive todays global economy. That even greater access will be demanded regardless of time or place.
As stated by Frederick W. Smith, Chairman, President and Chief Executive Officer of
FedEx, “FedEx is in a great position to meet these expectations, creating opportunities across all business lines” (Smith, 2005). In order to create the expectations of Mr. Smith, FedEx will need to leverage technological opportunities, more efficiently than their competitors do. For FedEx, advanced technology must improve customer access to critical information that is important to its customers. Customers will want faster, more accurate information about where their shipments are and when they will arrive at their destination. In addition, FedEx InSight, provides critical information about inbound shipments for their customers to help manage their businesses more efficiently. FedEx wireless tracking information via wireless devices, and FedEx – Kinkos recent rollout of T-Mobile Wi-Fi access should expand into the new technology that enables voice recognition transactions (Smith 2006).
Companies already provide such service on a limited basis but are usually limited to basic commands such as yes/no answers and one word recognition. However, the rapid improvements in the voice recognition software means that services such as reservations, and purchasing of services will soon be able to be provided by computer programs that are now performed by people. Transactional voice solutions are expected to grow in the next 5 years with investment in this technology increasing from $79.2 million in 2004 to $380 million by 2008 (Eastwood, 2006).
FedEx can also leverage other realms of technology by increasing their usage of hybrid engine technology in its delivery trucks. In 2006, “FedEx Express launched its first hybrid-engine delivery vehicle, which will decrease particulate emissions by 90 percent and travel 50 percent farther on a gallon of fuel.” (Smith, 2005)
Generic Benchmarking Best Practices
Four companies were generic benchmarked for best practices. The four companies are Boots, Averitt Express, HomeDirectUSA, and Eckerds. Boots is the United Kingdoms leading health and beauty retailer, employing around 70,000 people (Boots, 2006). Boots is a global company conducting business in 130 countries with annual sales of $9.6 billion. Their largest stores carry 26,000 different inventory lines. Averitt Express is a less than truckload freight transportation service with 30 years of experience. They employ over 55,000 people and operate a fleet of 11,250 trailers, 4,000 tractors servicing 77 centers in 17 states plus Puerto Rico and Canada (Averitt Express, 2005). HomeDirectUSA is a home delivery provider for Neiman-Marcus, BestBuy.com, QVC, Staples, Wal-Mart, Costco, and numerous other merchants (HDUSA, 2005). They have 67 distribution centers, more that 1,300 vehicles, 4 cross-dock facilities, and an independent agent network. HomeDirectUSA is currently growing at 30% annually. Eckerds is a 100-year-old drug chain with 2,800 stores nationwide. They employ 27,000 associates in 20 states and operate approximately 750 one-hour photo labs (Eckerd, 2005).
Boots wanted to reduce costs and errors associated with managing their inventory. Their current system is an eyestrain with paper reports having product descriptions that are difficult to read and look similar from product to product. This time-consuming process indirectly costs in the form of reduced customer face time. Boots feels by tracking inventories more effectively they can reduce stock room levels and ensure appropriate availability of all products. They would like to eliminate counting and stock picking mistakes at the same time. Boots wants to correct these issues allowing their sales colleagues more time on the sales floor.
Boots searched for a shelf management system that would provide a reliable and stable solution to meet volume and size demands of their big stores. To maximize efficiency they wanted a way to manage infrastructure from a central location (Boots, 2006). Their decision was to purchase hand held mobile computers with a built in scanner. With these mobile computers staff can correct stock files, perform price and stock checks, develop picking list, and print labels from portable printers. This has decreased their stock management cost and increased by 10% stock file accuracy. Boots employees can now provide customers real-time, accurate information more rapidly.
Averitt Express was using voice radio to communicate back and forth with their drivers. As drivers