MGT322 – Spring 2013

The Perfect Bra Size: An Algorithm Away

Posted on by spr1333dperez

If you wear bras and are tired of never finding the right fitting cup, then True & Co promises the solution for you. True & Co aims to relieve the stress of having your saleslady come in go with a tape measurer and the wrong cup size. Sometimes the trip for a new bra becomes an intruding nightmare. This e-commerce company has devised an algorithm that matches the right fit for their customers and a truly intimate way.

 

True & Co asks customer’s a 15 question quiz which range from cup and band size to how your favorite bra feels and looks. The customer is then invited to choose three different style bras and with the information gathered, it uses an algorithm to choose two additional bras to be sent to you. Michelle Lam, the entrepreneur behind this,states that they have 2,000 algorithms that defines each body types.  Once customer receives the bras they have no obligation to purchase any of the five bras and the company claims that women buy more of the bras chosen by the algorithm than their own choice. But all matches are currently existing brands and none are their own designs. The prices are from $45- $62 and shipping is free.

 

This company seems to have a user based view upon entering this online bra market. They are concerned with how well the bra is fitted and so its quality is measured by the overall bra fit. The correct fit is determined in an individual matter and its quality is measure by customer’s individual taste. They offer to match the correct size and style to satisfy its customers in a quick easy matter.

 

So even though they do not manufacture custom bras, with such information obtained from the women taking their questionaires, naturally they can expand later in producing and designing their own bras and panties. Therefore, then expanding their level of serviceabililty, personal aesthetics, features,  and performance dimensions of quality.

 

There are some skeptics who question the algorithm and considered it a bit “ridiculous”, stating that a bra must touched and tried on before taking it home. Also, one of the issues Linda Becker, Linda the Bra Lady store and online seller, finds with online fittings is that there are some individuals who are extremely hard to fit and can be very difficult to help them out over the phone. But even so, Linda says that only 10 percent of LindaTheBraLady.com are returned.

 

In the history of commerce, shoes were once seen as product that was unsuitable for customers to buy since shoes are also one of those products that must be “tried on”.  But with the success of Zappos we know it can be done. Victoria’s Secret and HerRoom.com are some of the older sellers of online lingerie which proven selling bras can be successful online. Let’s see how well the True & Co algorithms reach success with this Amazon-like approach.

 

Sources:

http://www.nytimes.com/2013/02/24/business/bra-selling-web-site-uses-algorithm-to-determine-fit.html?ref=smallbusiness&_r=0

https://trueandco.com/

http://mashable.com/2012/05/30/true-and-co/

 

Questions to think about:

-What is your opinion on the business?

-What do you suggest about their future?

-Do you think it will measure up to the success of Amazon or Zappos?

-What are the chances you’ll choose True & Co versus going straight to the site?

NEXTflix Problem

Posted on by @nne322

Netflix is taking a bold move after spending over two years recovering their losses from their last big controversial pricing and programming change. The Netflix CEO Reed Hastings is doing everything possible to avoid another Qwikster disaster.

Since their lose of nearly 800,000 users and 75% of it’s value, Netflix has worked it’s way back to the top with over 29.1 million members, surpassing enterprises like HBO. [1] However, Netflix could not have done this without turning back the focus to their users wants and needs.

Netflix has done a great deal to reinvent their service, pricing and licensing deals. Recently, Netflix has utilized Facebook to create a Netflix Social , where users can link their facebook and Netflix account and view tabs of “what your friends are watching” or “friends favorite”. [2] Netflix also just made a deal with Dreamworks to begin producing another Children’s original animation series. [3]  Furthermore, Netflix’s production and release of 15 new episodes of the popular show Arrested Development  has also received a lot of praise by Netflix users..[4]

Despite their growth and efforts to reconstruct their service, Netflix has run into a new growing problem.

Their current problem is that over 10 million users are not paying for the streaming service Netflix’s CEO is trying to be very cautious about handling the shared user and password issue. Hastings does not want to lose or ban viewers, but instead he wants to keep people positive and excited about Netflix’s service.[5]

Analysts insist that Netflix’s profit would exponentially increase if Hasting’s cracked down on the issue. One analyst believes they could be making up to 5% more per subscriber if they fix their current pricing or offer different plans for users.[6]

Instead, Netflix’s CEO is celebrating the idea “that people love the service”. [7]

The new plan that will be unveiled will allow four streams for $11.99, while the current pricing of $7.99 for two streams per account will still be available. They expect less than 1% of customers to opt for the new plan, but they hope as their service becomes in bigger demand that users will begin to see the value.[8]

Other plans consist of adding a $3 increase for added users , adding extra fees for children programming or limiting the number of devices that can be attached to the account. [9]

Netflix users are vulnerable  since the last price and policy change, so Hastings needs to remain very sensitive to the issue in order to sustain their level of expansion and growth in the market. Therefore, Hastings is not interested in making any drastic changes, but slowly implementing different plans with added benefits.

 

Whether you are a current Netflix user or considering a subscription to Netflix, what plan or price increasewould drive you away? What added benefits or licensing deals would make you keep your subscription?

 

Follow LeanPath: Way to reduce food waste

Posted on by spr1333rmortha

Among 150 hotels, hospitals and universities, the University of Massachusetts Amherst is utilizing an innovative method to reduce food waste conjured by a company called LeanPath.

According to LeanPath, the issue of food waste is getting to be tremendously harmful for energy and water resources. Being the biggest source of waste in the United States, food waste accounts for $8 billion to $20 billion worth of waste annually. This is because about 4% to 10% of food bought is wasted rather than consumed.

What exactly is this waste? What LeanPath tracks is not exactly what we think of when we think of the term “food waste”. It is not the food our moms tell us to “finish because kids in Africa are starving”. The food waste that LeanPath targets is focused to tackle the root of the problem. It is the food that is wasted even before it reaches the plate. This can be anything from meat to vegetable trimmings. Imagine you are making mashed potatoes. How much of the potato are you really peeling? How much potato skin are you discarding? Leanpath can measure and put a dollar amount to all of these questions.

How does LeanPath help and what does it do exactly? Quite simply, LeanPath provides the means for establishments to track the food they are wasting. Employees can do this by weighing their waste on the scales provided by LeanPath.  The employees enter in the type of food, size of container, type of meal and the reason it is being discarded in to the LeanPath machines. The machine then calculates the waste into a dollar amount using their special software. All of this would cost the establishment about 5,000 dollars. Though the software doesn’t provide the employees with solutions to reduce food waste, it provides them with useful charts and graphs that help the employees make these decisions. The employees and their managers then meet up once a month and brainstorm best practices to reduce the waste they are calculating on the LeanPath scales.
How effective has this been? Specifically, the University of Massachusetts Amherst has saved $300,000 dollars after it has started using LeanPath’s methods. I think that this is a great start to saving a lot of waste in the food industry. I do think LeanPath would be more effective if they gave practical solutions to reuse food that is intended to waste rather than giving facts and charts. With LeanPath’s program now, it looks like only the institutions that are most dedicated to sustainability will benefit from LeanPath’s products. This is why more commercial institutions like restaurants and food courts are not using LeanPath. Anyone can weigh the food waste but there needs to be an active desire to come up with solutions to reduce food waste in order to make this program more effective.

Can LeanPath eventually reach more commercial industries? Do you think it needs to alter its program to do so? If so, how?

Links: http://www.businessweek.com/articles/2013-04-11/dont-throw-that-out-leanpath-harnesses-data-to-fight-food-waste

Be GREEN, or be SQUARE!

Posted on by suhanip301s12

More and more customers now are looking for companies to be transparent, but it’s kind of hard to be competitive and sustainable at the same time.  Companies are now using value chain processes to get the job done fast.  They are not only focusing on suppliers but also taking into account By-Product-Synergy, which is “taking waste from one part of the production process and using that waste in order to generate a new product.” But how can companies become more sustainable if only “80 percent of management uses just 20% of the available opportunities?!”  The remaining 80 percent is where management needs to focus the rest of their energy.

It’s crucial for management to set goals and assess their risks, thereafter they can easily seek out opportunities for future improvement.  The first step to become a transparent company is to implement a sustainability program, and of course to develop a strategy.  The next step is to identify the companies “main processes and map data throughout the value chain.”  By using life-cycle-assessment software, the companies will have a more clear idea of how to lower their costs.

A similar approach was taken by ThyssenKrupp (FWB: TKA), a German elevator company.  Since ThyssenKrupp uses a considerable amount of steel in the manufacturing process, they thought the operational aspect had the greatest environmental impact. To their surprise,  the “company’s elevators themselves left a greater carbon footprint then their manufacture or any of the company’s other operations.”

As a result, ThyssenKrupp dramatically changed their product line after implementing a sustainability program.  They made the following changes to their products and services:

  • Elevators use LED lights which reduce energy consumption by 80%, and automatic fan and light shutoff which reduces CO2 emissions by 193,000 tons per year.
  • Getting rid of harmful chemicals used to manufacture the elevator.
  • Using petroleum based biodegradable fluid, with a vegetable-based option called “enviromax.”
  • Elevators are equipped with regenerative technology, meaning that the energy generated from the braking system is put back into the building.

In a way the article gives motivation to other companies who are taking their first steps towards becoming a transparent company.  It gives them few ideas and pointers on “unlocking supply-chain opportunities.” It’s important for different industries to decipher various ways to be more environmental friendly.  After all, there is more to being sustainable than just showing off your environmental initiatives.

Do you think ThyssenKrupp can take additional measures to make their company more sustainable?  Or better yet, are there any companies that you want to see become transparent in the near future? How would they need to change there operations?

Links:

http://www.thyssenkruppelevator.com/Sustainability/products-services

http://www.greenbiz.com/blog/2013/04/26/whirlpool-thyssenkrupp-supply-chain-transparency?page=0%2C1

https://opsmgt.edublogs.org/2012/06/28/transforming-waste-into-profit/

 

Want a “bidding war” for your First Class Seat?

Posted on by spr1333jroe

A new trend being seen in airlines overseas resembles that of eBay for first class or business-class seats. As we all know, the price of airline tickets are not cheap and therefore, it is normal for many customers to automatically choose a coach ticket when flying. Airlines realized this was not giving them their most potential profits and looked for a way to fix it. As learned in class, in order to succeed, you have to continually look at the systems you are working with, and learn how to improve and be the best that you can. Airlines overseas, such as Air New Zealand, Virgin Atlantic, Brussels Airlines and CopaAirlines, realized this airline eBay and saw it as a potential to improve their company.

A company in New York has developed a system that essentially gives customers the opportunity to have “bidding wars” with one another in order to upgrade their seats. Once you purchase a coach seat, the airline will then allow you the opportunity to bid on an available upgraded seat. You will be given a minimum amount that you can offer in your bid, and then you decide the amount you would be willing to pay. If customers choose to participate in this auction process and end up with the highest bidding amount, the airline contacts them 48 hours before their flight and notifies them they had the winning amount and will receive the upgrade.

The decision to implement this newly developed system is turning out to be very profitable for the airlines. This eBay style system is not only saving customers hundreds to thousands of dollars due to not having to pay full price for first class seats, but it is also generating a good amount of revenue for the airlines. It has given them an opportunity to receive money for seats that weren’t originally selling at all.

While this system has seen many positive outcomes, there are a few worries airlines are having with it. Airlines are seeing that their loyal and frequent flyers, that are normally offered these available upgraded seats, are complaining they will no longer receive this. Airlines, therefore, have to come up with a solution that balances opportunities for frequent flyers and opportunities for flyers using the bidding process. Airlines do not want to implement a system that benefits half of their customers, but enrages the other half.

Do you think airlines will be able to come up with a balance between frequent flyers and flyers using the bidding process? Do you think this airline eBay will be something that continues to grow? Is it something that only overseas airlines will grab onto, or do you see this system succeeding in the U.S. as well?

Sources:

Video – http://live.wsj.com/video/airline-ebay-for-first-class/56E98E77-CDB9-4742-862A-E7751DDCDAC6.html?mod=WSJ_article_outbrain&obref=obnetwork#!56E98E77-CDB9-4742-862A-E7751DDCDAC6

Picture: Etihad Airways – http://society.ezinemark.com/best-first-class-airline-seats-worldwide-77365a7d46da.html

UPS: The Industry Leader in Quality?

Posted on by frankr301s12

            The United Parcel Service (UPS) has been recognized as an industry leader when it comes to quality for quite some time. In fact, in 2010 they were recognized in the third spot of 10 for top companies for quality only behind Disney and Intel. [1] They have always been concerned with being the best in the industry of their product, which is actually a service that is delivering packaged goods across the globe. UPS delivers 16.3 packages daily only losing less than 1% of those packages yearly.[2] UPS was one of the first companies to have tracking on their packages and more recently with the ever-growing use of smartphones was the first to have an app that allows senders and receivers to track their packages through their app, a first for the industry. With its excellent track record overall especially for on time deliveries one would think UPS has quality under control. Recently, however; the Federal Aviation Administration (FAA) fined UPS $4 Million for failing to make required repairs on their aircraft, maintaining proper records, and flying unsafe aircraft (due to the failed repairs.)

One would think a company that has such a great track record for delivering goods on time and in good condition would have every aspect of their business including the quality and condition of their fleet on trucks, cars, and aircraft. Clearly the FAA does not think UPS is doing such a great job in that department. In thinking about the reasons why they may not be maintaining their aircraft, a few ideas come to mind. First, aircraft repairs take time and money. With profits of 5.8 billion dollars last year, it is safe to assume cost was not the issue.[3] Time is the single biggest thing UPS has to deal with. When providing their service, shipping, they are guaranteeing that package will arrive its destination at a particular time. If an aircraft is being repaired, it cannot fly. If it is not flying, packages are not being delivered. Packages, those are not delivered or not delivered on time is simply bad for business. It is easy to see the domino effect that ensues thereafter. Perhaps there has been a cutback in mechanics and/or inspectors and so there were many oversights. It is also possible that they did make repairs but failed to keep adequate records, which is also alleged by the FAA. Finally, maybe this is all a big misunderstanding.

A spokesperson for UPS states they will defend themselves for this “unreasonable and unwarranted fine.” He says, “UPS has a long history of operating a safe, compliant airline, there was never a safety issue.” Apparently, this fine is stemming from only 9 repairs out of the thousands of repairs they make. Overall UPS has a pretty good safety record. According to the Safety and Fitness Electronic Records System (SAFER), for the last 24 months UPS has had 0 air accidents and 0 fatalities. [4] Maybe this is just a big misunderstanding and poor reporting. I find it hard to believe that UPS would not properly maintain the very things that drive their business. Aircraft are the very thing that delivers the packages. Without them, UPS has no business. It will be interesting to see how UPS defends themselves. What do you guys think? Can you see a company overlooking the quality of their fleet in order to save time? Do you know of any other companies that actually do this?  Let’s hear them in the comments!

Source of Main Article. 

[1]http://money.cnn.com/galleries/2010/fortune/1002/gallery.mostadmired_product_quality.fortune/3.html

[2] http://www.pressroom.ups.com/Fact+Sheets/UPS+Fact+Sheet

[3] http://www.investors.ups.com/phoenix.zhtml?c=62900&p=irol-newsearnings&nyo=0

[4]http://safer.fmcsa.dot.gov/query.asp?searchtype=ANY&query_type=queryCarrierSnapshot&query_param=USDOT&original_query_param=NAME&query_string=1111792&original_query_string=UPS%20AIR%20CARGO%20INC
*Logo used for Educational Purposes, www.ups.com*

If Time Heals Wounds, Why Do We Still Use a 93-Year Old Band-aid?

Posted on by spr1332gfleytlikh

Band-Aids; we have all used them, from minor scrapes to cuts and even bug bites. We see them at the doctor’s office, the hospital, and the pharmacy. Generally, Band-Aids are the same: a piece of gauze surrounded by an adhesive strip. Though they do come in all shapes and sizes, we usually see and experience them looking like this:

That’s right! They were invented in 1920, which in turn makes the Band-Aid 93 years-old. They were created by Earle Dickinson and manufactured by Johnson & Johnson. What is interesting to look at is the innovation of the Band-Aid over its long life span. We have Band-Aids that are for large wounds, ones that wrap around, others with built in antiseptic on the gauze pad, and even little circle ones for small cuts. The product itself has undergone changes, but understandably, the process remains the same, attaching a gauze pad to a piece of tape (later a vinyl adhesive) and covering it in crinoline to keep it sterile. This process is done regardless of shape and size, and for the antiseptic ones, there is one extra step in the manufacturing process to add the disinfectant.

Enter Tsai Cheng-Yu and Hsu Hao-Ming. They have created the new Band-Aid, the AmoeBand. It claims to be more comfortable thanks to it being adjustable with perforated edges as well as a pH sensitive gauze pad which will tell the consumer whether or not the wound is infected. This design is a drastic change from the original that is mass produced. How could a company compete with this product, if it’s popular with consumers, if they have to change their whole process design of manufacturing?

AmoeBAND

Think of how much money would have to be spent either creating new manufacturing facilities or altering current ones. Even further, this process would have to be planned, designed, tested, and eventually perfected. The AmoeBAND adds the necessity to purchase pH sensitive gauze and add a manufacturing step to ensure the perforations. It is easy to understand from labs in class that a process is never perfect and differs. While each AmoeBand manufacturer may believe they have the fastest process, another may have a cheaper process. There are a lot of factors that will go into actual implementation of this product, if it were to become popular amongst consumers.

However, before all that, there will be the need to convince upper management of companies that this is the product of the future, a product that will reap larger reward, and could be easier to manufacture. That will take research, development, and sturdy planning. Band-Aids have not changed much since the 1920’s, so this could revolutionize the industry and push forward innovation.

Do you think a product like this could be produced by companies to net a positive gain? Would the AmoeBand even catch on with consumers?

 

Sources:

Mary Bellis: http://inventors.about.com/od/bstartinventions/a/bandaid.htm

Article:

Cristina Lindblad: http://www.businessweek.com/articles/2013-03-14/reinventions-band-aid

Can Self-Management Improve Quality?

Posted on by spr1332khendricks

As management students start to think about their career paths, especially for those graduating soon, one of the things on their minds is how they will differentiate themselves in the job market. Better yet, the opportunists’ who will be brave enough to tackle competitive markets, what kind of unfair advantages could these entrepreneurs come up with in their businesses? Well, one suggestion is how you actually structure the company through your business model and management style. This will determine how successful you will become in the long run, because the people you hire will indeed be the backbone of the company.

Morning Star’s founder, Chris Rufer has built a tomato processing empire that is like no other business model many have never heard of until now. He calls it a “bossless” model, which consists of no managers, no titles, so no one to report to, making everyone have mutual accountability of their work. They set their own goals and meet them, creating an extreme level of achievement.

When everyone having a high degree of accountability, the company strives; therefore you can focus in on the company’s core competency, in this case, the tomato process. In the video, Morning Star demonstrates their process from start to finish, and we can see the dedication from their employees; they take pride in their work every time. It shows how workers evaluate every single tomato for quality, before going on to the next process.  Innovation is also encouraged within the organization through everyone’s perspective of how to be more efficient in the process.

Consequently, when you have that amount of freedom in the workplace you can perfect a higher level of quality in your products and services, resulting in a greater profit margin or penetrating a larger market in the end. Why? There is no pressure of doing the job in just an autocratic way, unlike with the red bead Deming’s experiment; where there was no other approach  besides the way the boss wanted it to be done, which is impractical in today’s advanced technological age.

Rufer says that this model of doing business is “Quite good, high-performing people love it here, and they flourish,” and it is their competitive advantage in the market. So why don’t more companies follow this model? With traditional models becoming obsolete, our generation needs to figure out other ways to conduct business, in order to distinguish ourselves from the rest. This method of organizational structure is not fit for all businesses, but it is certainly a new and inventive system of increasing productivity, quality and overall well-being in the organization.

There is a saying that people don’t necessarily quit their jobs, but actually quit on their bosses. So, what if you worked at a company where there was no boss to quit on, do you think you would be happier? And therefore, be more productive, and result in products and services having better quality that could be beneficial to everyone?


http://www.inc.com/audacious-companies/leigh-buchanan/morning-star.html

http://morningstarco.com/index.cgi?Page=Self-Management

Video http://www.smithsonianmag.com/multimedia/videos/A-Tomato-Trail.html

 

 

 

 

Google- Future and Change

Posted on by spr1332khsieh

Over the past year Google has been on a shaky path.  Google’s mobile sector did horribly compared to Apple.  Major competitors were constantly outperforming Google’s productivity and sales.  Despite the threats Google has faced, the company is not worried about their competitors.  According to the article, Google’s shares rose 26% over the past year while their major competitor’s (Apple) shares fell 36% from the previous year.  Google is very optimistic about the future.

 

Google C.E.O., Mr. Page, still holds his head up and says “As C.E.O., it’s also super important to keep focused on the future,” Mr. Page said. “Companies can tend to get comfortable doing what they’ve always done, with a few minor tweaks. It’s only natural to want to work on things you know. But incremental improvement is guaranteed to make you obsolete over time, especially in tech.” (New York Times)

 

I definitely think this is the right attitude to have.  Many companies think of great ideas but then after time they lose the innovation that drives customers wanting more.  Especially since technology is constantly changing, it is so important to keep pivoting ideas.  Google is currently focusing on different strategies and future technology products to help Google gain the creative edge against competitors.  Major projects that Google is thinking about launching are cars that drive themselves and glasses that connect to the internet also known as Google Glass. (Talk about a major headache).  But these ideas are what keep people talking and coming back to see what is going on.  Companies need to keep changing their ideas in order to be successful.

Also the C.E.O. of Google knows that introducing new products  and sales are very important to the business, but that is not the only thing to focus on.  He is a firm believer in control.  He states that the “its core business is being run more efficiently”.  Controlling staff, spending, quality will all impact the company as a whole.  By focusing on efficiency, that will improve the overall quality of the company like we discussed in class during the red bean experiment.

According to the article it seems that the C.E.O. of Google is very proactive which is a good management and leadership skill to have.  He knows that the main focus is quality, which is an important aspect to a company.  He consistently works very hard at improving quality and puts an emphasis on change.  Whenever Google faces a problem or a potential threat, Google responds actively in order to fix the problems.  They focus on the issues head on in order to reduce the possibility of any future threats towards the company.

 

Hopefully Google will really follow through with their future products and have a better year than last year.  I cannot wait to have a car that drives itself!

 

Source:  http://www.nytimes.com/2013/04/19/technology/googles-earnings-beat-expections-but-revenue-does-not.html?ref=technology

Are Consumers Ready To Start “Wearing” Technology?

Posted on by spr1332mhanson

Google’s latest project, Google Glass, attempts to revolutionize the way we use our smart phones. But will it be successful in getting us to completely change our habits and behaviors in regards to using them? Google Glass is essentially a pair of sunglasses that functions as a regular smart phone. If you want to make a call, take video, surf the Internet; you can. The device is said to be unbreakable, flexible, and gesture controlled. Basically, it’s a wearable cell phone. While it may initially seem like an amazing idea, this article takes a deeper look at if consumers are really going to be open to the idea of give up the standard cell phone that we’ve become accustomed to using.

The author of this article seems to think that Google is going to be unsuccessful in being able to change the behavior of cell phone users within a year, and he may be right, but this is an ever-changing world. I’m sure nobody imagined we would have portable telephones in the 70’s and I’m sure nobody imagined we’d have the Internet in the 80’s.  I’m positive that nobody thought we would have portable telephones that allowed us to use the Internet today. I thought this was an interesting article, especially after the activity we did in class the other day. If there wasn’t a Navy seal persistent and innovative enough to try and change the process, we would still be shooting rockets with 3% accuracy. Another thing that got me thinking about the connections between this article and class was the airplane activity when nobody asked the customer what they wanted. Google is about to unleash a technology that is one of the most innovative we’ve seen in a long time… but do we really want or need it? Google is a great company, so there must be customers that have given them the indication there is a need for this technology.

Personally, I would not wear these. I am totally fine with my iPhone in my pocket. Pulling my phone out and holding it to my ear really doesn’t inconvenience me enough to wear a pair of glasses every time I need to make a call, but there is probably a market for this. Of course, the article brought up Apple as a potential competition to the Google Glass, and that also got me thinking. Apple has been relatively quiet as of late, so there is a good chance that they are planning something. Apple, to me, is in the business of improving, rather than creating. They took the MP3 player and made it stylish and easier to use. Then they made a cell phone with features that early 2000’s cell phone users couldn’t have ever dreamed of. What’s next? Do you guys think Apple is going to pounce on this right after it hits the market? Before? What other potential problems do you see with Google creating this device? Would you even wear something like this?

Google Glass: what you need to know

http://www.forbes.com/sites/haydnshaughnessy/2013/04/20/google-glass-has-one-year-to-change-your-behavior-or-fail/