Question 3:

Below is a summarized version of a real-world case study given in chapter one, read the case below and answer the following questions.

Case study: Sew What? Inc.: The Role of Information Technology in Small Business Success

Founded in 1992 by Australian-born Megan Duckett, Sew What? has grown from a tiny kitchen-and-garage operation to a multimillion-dollar enterprise, thanks to Ducketts never-say-no approach to customer satisfaction. When I see a problem, I just dont back down. I find a way to overcome it and I use everybody I know to help me, she says. What made it possible for a one-woman business that started in a kitchen to evolve and grow into a multimillion dollar company with 35 employees? Megan Duckett attributes her success to hard work, quality workmanship, and especially information technology. Sew What? has enjoyed explosive growth in recent years, reaching $4 million per year in sales by the end of 2006. Company president Duckett credits much of her firms rapid growth to its ability to leverage information technology and the Internet to drive sales. Before we put up our Web site, sewwhatinc.com, our business was almost all local, says Duckett. But after launching the Web site three years ago, we now have clients all over the world. In fact, last year our revenue grew 45 percent on the previous years sales, and this year we are on target to enjoy a 65 percent increase on 2005 sales. And nearly all that growth came from Web-driven sales. Although the companys Web site may take center stage, managing all the business the site brings in requires a lot of effort behind the scenes. In particular, Duckett relies on a solid IT infrastructure to help keep the company running smoothly. We are a customer-centric company, notes Duckett. Its critical that we have excellent back-office information technology to manage the business and deliver outstanding service to our customers. Sew What? runs most of its business The important role technology plays in running a successful small business hit home when she lost a big contract. The potential client said that without a Web site, her company lacked credibility. Before losing that contract, I thought, I run a sewing business, a cottage craft. I dont need a Web site, she says. Duckett admits she was rather cocky, mainly because she had grown her business quite well by word of mouth alone. I quickly learned the error of that thought process. You cant have that attitude and stick around, she acknowledges.

Source: O'Brien, J. and Marakas, G. (2009). Management information systems. Boston: McGraw-Hill Irwin.

Case study questions ( 5 Marks )

1. How has Information Technology contributed to the business success of Sew What? (1.5 Marks)
2. If you were a management consultant to Sew What? Inc., what would you advise Megan Duckett to do at this point to be even more successful in her business? (1.5 Marks)
3. Between CRM, SCM, ERP, KM, PRM Which application would you recommend to Megan Duckett and why? (2 Marks)