case study of thompson

Case Study #2 - Thompson Packaging - RBS Assignment (20\%) - July 22, 2022 by 11:59PM via Dropbox - iLearn Background Thompson Packaging is a family-run business based in Rhode Island. Thompson Packaging specializes in the production of customized packaging materials for manufacturers, in particular the jewelry industry. In addition to standard packaging materials such as boxes and tubes, Thompson Packaging produces unusual display packaging materials. Thompson Packaging originated in response to a niche market for the jewelry manufacturing sector that was once a very vital part of the Rhode Island economy. With the shrinking of the jewelry manufacturing sector in Rhode Island, Thompson Packaging made a concerted effort to expand their market to other manufacturing sectors, first in Rhode Island, and then in the broader southern New England region. The early efforts included increased advertising, a presence at more trade shows, and an increase in the sales force, with an emphasis on cold calls to potential customers. This strategy worked in the ' 80 s and into the mid-90s. Growth stagnated after the mid-90s. In 2009, the next generation of Thompsons joined the company with the addition of Julia Thompson as the vice president of Thompson Packaging. Julia Thompson, a graduate of the business school at the University of Rhode Island, is full of ideas for bringing Thompson Packaging into the 21s century and expanding the customer base to the national arena. She and her father, George Thompson, president of Thompson Packaging, have different ideas about the paths to follow to ensure the fiscal health of the company. Although both agree that the customer base needs expansion, they disagree on how large this expansion should be. Julia also wants to put an information system in place that can provide a seamless, efficient, and user-friendly environment for their business, with a Web-based component for customers to place and track orders. Up until now, the sales and office staff has been using a series of spreadsheets with macros for taking orders, generating order details for production, and generating billing. Recently the financial department has moved to a software package that handles accounts receivable and accounts payable, and has expansion capabilities. George understands and can work with spreadsheets, but anything beyond that demonstrated to him has received a negative response, because of his limited comfort level with technology. He also is concerned about the impact that an information system could have on his workforce, some of whom have been at the company longer than he has, and most of whom have limited knowledge of computers. The actual production of the product has been computerized, and George is hesitant to go much further with IT. He is in favor of adding additional salespeople, and expanding the market along the eastern seaboard. Julia wants to see Thompson Packaging moving toward an online presence and a national market. She is interested in exploring the possibility of reducing the traditional sales force and introducing a Web presence that provides information about products and allows potential customers to use online applets to try out virtual designs. John MeClean, the director of soles, as concemed about the direction that Jalia is interested in exploring. He has bect with the company since day conc, and sepports George Thompson's ideas for increasing sales by expanding the sales foece and the goographical target area. He does acknowledge that there is support from sales people fice the introductice of an infonnation system, and that his hesitancy is influenced lungely by his disconfort with technology. He al wo acknowledges that custensers have expeessed frustration with the time needed to get information for them, because quetes efien can tequire tarnaround timse of a dry of more. Anna MeNally, the director of finance, wousd like to see a more inscgriecef solvtion for following orders from quotes throvgh delivery and billing. 5he poinis eat that with the multiple solutions currently being used for the various oomponents of onlers, arrors can be introdoced at scveral points of the process, wheacver information moves from cac solution to another. Dennis Martin, the director of aperations, is happy with the actual conpeteriaed production grocess, evea though it was implemented several years ago and has not been updated. He is concetied with the fact that the link between the specadhbets med to gather the ceder data and the system that controls the actual production of the packaging allows errors to be introduced, because the link is not manomated. The tesuln of this has been seene poodaction nuns that have been incorrect due to haman erroc. Detnis does net want to see a change in the production process itself, but if the software they are aking so control the machinery can be updated to allow for automatic linking berween sales and groduction, he would be supportive. George and Julia have decided to bring in a systems analyst to evaluate their besiness situation and whether or not implementing an IT solution for some or all of their busineus aeeds make sense, Googge has decided that he will have Julia be the main coetact person for this, because he does not have the background he feels is necensary no make iaformed docisions in a timely faotion. They hired Robert Hanever, a systems analyst who docs a lot of work for small scale manufacturers. Jalia, Givorge, Mohn, Annia, Dennis, and Roberf sit down to discuss the besiness, and mogr notably the areas that Jalia foels would benefit moes foom an IT sysem. Julia: Robert, I think that the nost important issue for our company is coning solution for the fragnented nature of the process that follows orders through from placement to completion. We currently have different solutions is place for extimaning orbers, taking ofders, producing the packaging, tracking the packaging troogh the production and delivery process, and billing the cusconer. Each one of these abprocesses is separate and distinct, and much of the information fhat follows an colar ficm staft to finish has to be entered multiple timies along the way. We have so come ap with a solution that is mote efficicnt for both the company and the customer. fohn: Well, yoe know that I am not techenology-savvy, but I am hearing from my sales force that we need to be doing something. Sales reps are frusirated that cuntomens can't casily chock on orders, of get catimates, without working with the sales rep or somoone at the bome office. They are being fold that many other companies provide them with the capability to get estimates and check on orders themselves throegh some compotarbased system. Custoeners seem to be much more self-safficient, and in more of a harry aow than they used to be. Our rep-dependent system is poning us at a disadvantage 4 Pulse fohn: Well, yoa know that I arm not technology-savvy, but 1 art bearing from my sales force that we need to be doing something Sales reps are frastrated that cassomers an't easaly check on orders, of get estimates, withost working with the sales rep or someone at the bome office. They are being wold shat many other companies provide thern with the capability to get cstimates and check on orders themscives throught some computer-based systcm. Castomers seem to be moch more self-sufficicit, and in more of a bury now than they used to be. Our rep-dependent system is paiting as ail a disadvantage. Anna: I'm quite happy with ny ncw software that is handling accounts receivable and accounts payable. My concern right now is that billing still is being generned outside of this software, and moving bill info over to accoonts rwceivable requires several stegs to peepare and expedt the information. Each step has the potential to introdace arror becaase it is dependent on human intervention. Why can't we move this information over exing an automand process that temoves the baman element, and therefore the ernocs? Dennis. 1"th in the same boat as Aana. I'm quite happy with my production systent, and I don't want fo see that changed. My concern is the link betwoen production and salex, bocause of the potcutial for error to be introduced. 1 know that the vendor who sold as the production system has called a couple of times about apgrades, but we have never pursucd this. Pertuaps this might be the time to fiad cut more, within the costent of a ncw 1S? George: Yoa all know where 1 stand on this. We built this company with pood poogle. and I do not want to replace people with compsten. Is that whut would happen if we brought in one of these infomation systems? I wast this company to coetinee to take eare of its employees, even if that means that we grow a limlle less. 1 don't wane so see jobs od the chopping block. After the mecting. Julia wased Robert to put together in writing his mpresesens from the mecting. She is interested in formalizing the goals of the company, plan-ing oet how to mect these goals, and addressing some of the reservations that George and John have about intraducing an IS at Thompson Packaging. Pobert put logether a memo foe Jula detailing the need for sarategic plansing and describing the stages of pectiminary sysaems investigations. Assignment 1. Create a risk becakdown structure (RES) chart for the above scctario. Reforenoe the slides in Week 2, to remember what is in an RBS. Use the following beasings for your chart: Organizational; Technological; Security; Investment; Leaderhip; Commanications; Plans; Resoarces. (7.5 Marks) 2. Determine the risks (if any) in cach of the categories based on the scemario anf conversations in this case study, (75 Marks)