Question: CASE : Forondo Artist Management Excellence Inc. - - - - - - - - - - - - - - - - - -

CASE : Forondo Artist Management Excellence Inc.
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PART 1
FAME (Forondo Artist Management Excellence) Inc. is an artist management company that represents
classical music artists (only soloists) both nationally and internationally. FAME has more than 500 artists
under its management, and wants to replace its spreadsheet-based system with a new state-of-the-art
computerized information system.
Their core business idea is simple: FAME finds paid performance opportunities for the artists whom it
represents and receives a 1030 percent royalty for all the fees the artists earn (the royalties vary by
artist and are based on a contract between FAME and each artist). To accomplish this objective, FAME
needs technology support for several tasks. For example, it needs to keep track of prospective artists.
FAME receives information regarding possible new artists both from promising young artists themselves
and as recommendations from current artists and a network of music critics. FAME employees collect
information regarding promising prospects and maintain that information in the system. When FAME
management decides to propose a contract to a prospect, it first sends the artist a tentative contract, and
if the response is positive, a final contract is mailed to the prospect. New contracts are issued annually to
all artists.
FAME markets its artists to opera houses and concert halls (customers); in this process, a customer
normally requests a specific artist for a specific date. FAME maintains the artists calendars and responds
back based on the requested artists availability. After the performance, FAME sends an invoice to the
customer, who sends a payment to FAME (please note that FAME requires a security deposit, but you do
not need to capture that aspect in your system). Finally, FAME pays the artist after deducting its own fee.
Currently, FAME has no IT staff. Its technology infrastructure consists of a variety of desktops, printers,
laptops, tablets, and smartphones all connected with a simple wired and wire- less network. A local
company manages this infrastructure and provides the required support.
E-mail from Martin Forondo, Owner Martin
Forondo, the owner of FAME, has commissioned your team to design and develop a database
application. In his e-mail soliciting your help he provides the following information:
My name is Martin Forondo, and I am the owner and founder of FAME. I have built this business over the
past thirty years together with my wonderful staff and I am very proud of my company. We are in the
business of creating bridges between the finest classical musicians and the best concert venues and opera
houses of the world and finding the best possible opportunities for the musicians we represent. It is very
important for us to provide the best possible service to the artists we represent.
It used to be possible to run our business without any technology, particularly when the number of the
artists we rep- resented was much smaller than it currently is. The situation is, however, changing, and
we seem to have a need to get some technical help for us. At this moment we have about 500 different
artists and every one of them is very special for us. We have about 20 artist managers who are
responsible for different numbers of artists; some of them have only 10, but some manage as many as 30
artists. The artist managers really keep this business going, and each of them has the ultimate
responsibility for the artists for whom they work. Every manager has an administrative assistant to help
him or her with daily routine workthe managers are focusing on relationship building and finding new
talent for our company. The managers report to me but they are very independent in their work, and I am
very pleased that I only very seldom have to deal with
operational issues related to the managers work. By the way, I also have my own artists (only a few but,
of course, the very best within the company, if I may say so).
As I said, we find performance opportunities for the artists and, in practice, we organize their entire
professional livesof course, in agreement with them. Our main source of revenue consists of the
royalties we get when we are successful in finding a performance opportunity for an artist: We get up to
30 percent of the fee paid to an artist (this is agreed separately with every artist and is a central part of
our contract with the artist). Of course, we get the money only after the artist has successfully completed
the performance; thus, if an artist has to cancel the performance, for example, because of illness, we will
not get anything. Within the company the policy is very clear: A man- ager gets 50 percent of the royalties
we earn based on the work of the artists he or she manages, and the remaining 50 percent will be used to
cover adminis

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