Analyze and discuss the strategic implications since related to management information systems (MIS) that you just derived from this case. In the Zipcar case study, there was clearly no particular strategic inference related to management of information system that could be based on because IT was perfectly accustomed to maximize Zipcar’s business edge that helped bring advantages to both clients and the provider’s bottom-line profits. By wisely use of technology, Zipcar could provide convenient and trusted access to on demand transportation, producing mobility while top priority.
With the use of Internet and the technological infrastructure, Zipcar was able to build, operate, preserve, and range a viable service to its buyers. Since technology may fail sometimes, and so obviously there is no restoration plan described throughout the circumstance. How do the company profiled in this case leveraging information technology (IT) to it is strategic benefit (or disadvantage)? Strategic Advantages
Zipcar has leveraged THAT to it is strategic benefit by making every single car transaction count and convenient for customers over the Internet.
Customer applied for a Zipcard that allow them conduct online business with the business. Such on the net activities while reservation for the car in some hours intheir local city for a pickup truck at selected time and site, and open their car once the car was indexed within walking distance (Pearlson & Saunders, 2010). With RFID-enabled Zipcard, all orders are done on the net from billing, rental pricing, rental documents retrieval, printing receipts, and credit card payment.
Customers also know which in turn car they may choose, what color and size of the auto they direct, when and where it becomes available into their vicinity. The car was likewise equipped with GPS-enabled wireless gadget that allowed customers to reserve and discover a closest vehicle utilizing their own cell and androids (pg. 75). With copyrighted wireless technology, information about the car and consumers are immediately transmitted forward and backward to the firm, and this will tremendously support Zipcar to protect its physical assets as they know exactly where, when, just how and whom dares of stealing or break into their cars.
Zipcar even offers the ability to screen car secureness, fulfill concerns, maintain distance information, and record per hour usage through its wi-fi technology. Additionally , with the transmittal of important technical information such as the gas level as well as the battery volt quality back to the organization, Zipcar can take preventive measures to alert or bring awareness to their customers, especially if the electric batteries were exhausted because the consumers forgot to show off headlamps. Zipcar actually went even more once they launched a new social networking site called Zipters to create an online community of Zipcar members.
By simply maximizing the skills and popularity in the social networking solutions to their proper advantage, Zipcar brings customers’ experience about their product and brand name to a higher and different level by pushing them to talk about their own experiences about their trips called Ziptrips. Through these cheap and almost available technologies, Zipcar was able to make all their brand regarded, understand the needs of customers quickly so they can marketplace the right goods to their term or graphic is extremely important and it is not always simple to create such a strong and reputable brand that can quickly capture the customers’ pursuits and devotion to the item.
Through social media, Zipcar made their manufacturer known to more youthful generations. Manufacturer image, conversation, and technology play important role in Zipcar’s total business technique. Zipcar is using and spent heavily in technology mainly because they find out this is necessary to their company success and profits. Zipcar also altered the traditional car rentalindustry’s guideline by incorporating/adopting the new Web 2 . 0. 0 mind-set to focus on consumer empowerment, visibility, automation, and community.
With Zipcar, buyers now have full freedom to pick what car they want, in which and when they want to pick up the car as everything was as part of the price and so they do not need to worry about insurance, gas or perhaps fill out documents at selected business several hours. Strategic Drawbacks
While elements contributing to THAT strategic advantages were very easily captured in the case study, drawback aspects had been hard to find. Certainly, Zipcar would not have a backup prepare in place in the event the system was down. Because during these shut-down moments, Zipcar would not have the ability to track the customers’ actions online and obviously know the current physical condition and location in the vehicle. Technology are good for humans once they work well simply and there were no way to ensure its 100% operational supply without a appropriate backup program in place.
Zipcar should think about ways to restore the system back-up, how to safeguard their customers and vehicles over these shut-downs, who come for the customers’ recovery as well as other logistic things such as fees, gas, etc¦ Zipcar ought to know that technology would never operate to their positive aspects at all times. The enemies of growth are easy and ease and comfort. Therefore , Zipcar should not get to sleep and enjoy their current success without significantly taking in considerations of the new backup or restoration plan.
This kind of strategic benefits could become Zipcar’s advantage once their engineers work out a system that allow the computerized backup or fail back plans hitting in as soon as the system was down to conserve the vehicle’s operations, at least it could send out an immediate aware of both the buyers and industry’s headquarters when the dangers or perhaps failures had been detected. Competitive challenges gives Zipcar in order to develop new functionalities, rise, and eventually be a dominant in a vehicle rental industry (Shaheen & Cohen, 2013). Highlight virtually any particular lessons learned that can be valuable intended for an MIS manager.
By simply footing all their shoes in customers’ and understanding well the customers’ struggles and frustration the moment standing in long line, Zipcar was able to make a superb automobile and on the web services to serve consumers well. Zipcar knew well how to leveraging accessibility and make this convenience for his or her customers coming from anywhere and at any time, which has created areal threat for their business alternative in the classic car rental sector. Supported by RFID technology, Zipcar’s vehicles started to be readily available to customers, and this gave consumers flexibility.
Automatic online booking system has saved Zipcar tremendously about costs to get both their very own operational and human resources expenditures. With Zipters community, Zipcar has achieved their company recognition. With everything automatic, Zipcar could reduce anxiety for customers when improving their very own bottom-line income. Zipcar has turned their customers realize that owning a car on their own are too expensive when compared with using Zipcar’s vehicle in which costs intended for gas mileage, taxes, insurance and maintenance were included (Kohda & Masuda, 2013).
It was the reason why customers’ membership on Zipters community has grown for unexpected charge of more than 200, 1000 (pg. 75). These paying members held increasing due to Zipcar’s capability to maintain support and scientific leadership. Undisruptive business model has turned Zipcar an industry leader. In customers ‘view and experiences, Zipcar has done many superb things to them than just only meet their particular aggressive needs on mobility, accessibility and availability.
Zipcar was able to build its strong image as a pioneered and market innovator by having the technologies to back them up by using a lot of very technical endeavours and sensible solutions. They may have successfully applied technology because their business groundwork, and only through this sense, Zipcar could make an effort and be effective in many even more years to come. Realization
Zipcar has established a successful business structure where It had been the main reason to get the company’s achievement and presence. Through IT-enabled capabilities, Zipcar was able to shell out their total focus and attentions upon customers, and always found progressive ways to improve customers’ experiences about their product or service. It was the case that Zipcar was more about setting up a village of loyal consumers where the sense of togetherness and community was the crucial, and less upon transactions or operating costs (Kennedy, 2003).
With customer-focus model, Zipcar quickly became the only player in the car leasing industry in which everything was automated, and from there that they expanded all their business internationally. Zipcar has given consumers a new significant concept of how a modern living or life style would be like when every thing was conducted online.
Kennedy, R. (2003, October 10). Taking the cooperative mode out for a spin: Fresh car rental idea depends on
courtesy of other people. New York Times. Retrieved by http://www.umuc.edu/libraryKohda, Y., & Masuda, K. (2013). How do posting service providers generate value? Knowledge Science Diary, 8, thirty-two. Japan Advanced Institute of Science and Technology. Pearlson, K. Electronic., & Saunders, C. S i9000. (2010). Handling and using information systems: A strategic procedure (4th impotence. ). Hoboken, NJ: Wiley. Shaheen, T., & Cohen, A. (2013). Innovative flexibility carsharing outlook. The Travel Sustainability Study Journal, 2(34), 3-5. College or university of Cal, Berkeley- Project.
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