ARSI UNIVERSITY

College of Business and Economics

Department of Logistics and supply chain mgt
Post Graduate program
Course:- CHAIN MANAGEMENT INFROMATION TECHNOLOGY
Name of students ID.No
1.Girma Getachew --------------------------------------GS/Ex/0177/15
2.Dejene Agune ------------------------------------------GS/Ex/0172/15
3.Jemal Hassen-------------------------------------------GS/Ex/0170/15
4.Getu Shimela--------------------------------------------- GS/Ex/0189/15
5. Abuna Abdella ---------------------------------------GS/Ex/0180/15

Assignment Submitted to Mr. Bekele Reta (Assistant Professor) department of Logistic and
Supply Chain Management, Arsi University

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Contents
ACKNOWLEDGEMENT..............................................................................................................II
Summary......................................................................................................................................III
1. How do information technologies contribute to the business success?.................................4
2. Bryan Cave (Law firm).............................................................................................................7
3. Other Actions that could be taked by Cablecom with customer prediction information...9
Refrence:.......................................................................................................................................10

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ACKNOWLEDGEMENT
First of all, our thanks go to Arsi University’s College of Business & Economics Department of
LSCM, for giving me such an educational opportunity. Secondly, we would like to express my
heartfelt gratitude to my Instructor, Mr.Bekele Reta(Assistant Professor) for their helpful class
presentation and facilitation on this term paper development.

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Summary

The case study focuses on three companies - eCourier, Cablecom, and Bryan Cave - and their
successful utilization of information technologies, particularly Business Intelligence (BI), to
enhance operational efficiency, customer satisfaction, and decision-making processes.
eCourier implemented operational BI tools and real-time tracking technologies to monitor
customer satisfaction levels, track courier locations, and analyze customer behavior patterns
instantly. This proactive approach led to personalized services, prompts issue resolution, and
improved customer loyalty.
Cablecom developed a prediction model to identify customers at risk of switching to
competitors, enabling proactive engagement, targeted retention strategies, and prevention of
customer churn. This approach resulted in improved customer retention rates and enhanced
loyalty.
Bryan Cave leveraged BI tools for pricing and staffing modeling, historical analysis, and
diversity tracking to customize pricing, optimize staffing, and enhance diversity reporting for its
legal services. This led to improved profitability, efficient resource allocation, and enhanced
client satisfaction.
The case highlights the importance of leveraging information technologies, such as BI tools, to
drive business success by improving operational efficiency, customer satisfaction, and decision-
making processes across various industries. By adopting innovative technologies and data-driven
strategies, companies can gain valuable insights, enhance customer experiences, and achieve
sustainable growth in competitive markets.

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Visitors to the eCourier Web site are greeted with the words “How happy are you? Take the
eCourier happy test today!” Those words and the playful purple Web site represent the
company’s customer satisfaction focus. And the company achieves that happiness through its
focus on operational business intelligence. Business intelligence is moving out of the ivory tower
of specialized analysts and is being brought to the front lines. In the case of eCourier, whose
couriers carry 2,000 packages around London each day, operational business intelligence allows
the company to keep real-time tabs on customer satisfaction. “This is a crucial differentiator in
London’s competitive same-day courier market, where clients are far more likely to take their
business elsewhere than they are to report a problem to their current courier,” says the
company’s chief technology officer and cofounder Jay Bregman. Just one online directory,
London Online, shows about 350 listings for courier services. Before implementing operational
business intelligence, eCourier sought to define IT as a crucial differentiator.
Cofounders Tom Allason, eCourier’s CEO, and Bregman ditched the idea of phone dispatchers
and instead gave their couriers GPS-enabled handhelds so that couriers can be tracked and orders
can be communicated electronically. They also focused on making online booking easy and
rewarding, and much was invested in user-friendly applications: Customers can track online
exactly where their courier is, eliminating the package delivery guesswork. Today, 95 percent of
deliveries are booked online; this means that eCourier needs a much smaller staff for monitoring,
tracking, and placing orders, which in turn makes the company more scalable. Bregman says this
is notable in a market where many courier companies use telephone dispatchers and guesswork
about package whereabouts.
Booking and tracking automation—although innovative—did not complete the customer
happiness puzzle. Without leadingedge business intelligence, account managers could miss the
same issues that plagued other courier services—late deliveries, surly couriers, or even an
unnoticed ramp-up in deliveries. “We’re only one delivery away from someone deciding to use a
different delivery firm,” says Bregman. So eCourier started to use software from a company
called SeeWhy to try to generate customer data more quickly. “What’s unique about SeeWhy,”
says Bregman, “is its ability to report what’s happening with customers instantly.” When a new
booking enters eCourier’s database, the information is duplicated and saved into a repository
within SeeWhy. The software then interprets the data by comparing it with previous information
and trends, and if it notices an anomaly, it takes action. If a customer typically places an eCourier
order every Thursday morning between 9:30 and 10:00 and there’s been no contact during that
time, eCourier’s CRM team will receive an alert shortly after 10:00 that includes the client’s
history and the number of bookings it typically places in a day. Bregman says there’s a fair
amount of fine-tuning to get the metrics right. For example, the company had to tweak the
system to recognize expected shifts in activity so that it doesn’t send a slew of alerts once the
after-Christmas drop in business occurs. Getting that perfect balance of when to send alerts and
how best to optimize the system is an ongoing process, he says.

The SeeWhy software is designed to establish a “normal” client booking pattern from the first
use, which is deepened with each subsequent booking. A sharp drop-off in bookings, an increase
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in bookings, or a change in dormant account activity generates an alert that is sent to that client’s
account manager; the manager uses the opportunity to problem-solve or, in the case of increased
activity, upsell to overnight or international services. “These capabilities have provided a big
payoff,” says Bregman. He also believes the system saves his company the expense of having to
hire people to monitor “who’s happy and who’s not—we’re able to do a lot more on our
customer team with a lot less.” Other approaches to judging customer dissatisfaction exist.
Cablecom, a Swiss telecom company, used SPSS’s statistical software to mine customer data,
primarily from trouble tickets—such as the average duration of a ticket, or how many tickets had
been opened for a customer over a specific time period—to build a model that could flag when a
customer was at a high risk of leaving. “But the model proved to be only about 70 percent
accurate,” says Federico Cesconi, director of customer insight and retention. So Cesconi used
SPSS’s Dimensions survey research software to create an online customer survey, and from that
he was able to determine that customer dissatisfaction usually begins around the ninth month of
service, with the bulk of the customer losses occurring between months 12 and 14. Cesconi then
created another survey that he now offers to customers in the seventh month of service, which
includes an area where they can type in specific complaints and problems. “Cablecom calls
customers within 24 hours of completing the survey,” says Cesconi. “The two approaches
together provide the best view of customers ready to bolt, and the best chance at retaining them.”
In 2002, global law firm Bryan Cave faced the milliondollar question: How do you make the
most money with your resources while simultaneously delivering the highest customer value?
The problem was pressing. Clients of the firm, which now has 800 lawyers in 15 offices
worldwide, were demanding alternatives to the traditional hourly fee structure. They wanted new
models, such as fixed pricing and pricing that was adjusted during a project. But making money
from these new billing strategies required the complicated balance of staffing and pricing.
Projects weighted too heavily with a law partner’s time would be expensive (for the law firm)
and not optimized for profit. Devoting too little of a partner’s time would leave clients feeling
undervalued. Optimizing profit and perceived value had to be achieved by spreading partners’
time throughout a number of cases and balancing the remaining resources needed for a case with
the less-expensive fees of associates and paralegals. “Clients are most likely to stay with you if
you deliver just the right mix,” says Bryan Cave’s CIO John Alber. The law firm’s traditional
method of analyzing collected fees and profit used a spreadsheet that was complicated and took
too long. “Spreadsheets provide a level of detail that can be valuable for analysts,” says Alber,
“but the information in a spreadsheet can be confusing and difficult to work with.” Alber says he
decided it was better to build an easy-to-understand interface using business intelligence tools.
Although the company will not release specific figures, both profitability and hours leveraged—
the hours worked by equity partners and all other fee earners at the firm—have increased
substantially since the company implemented its first BI tool in 2004, according to Alber. The
tools also allow lawyers to track budgets in real time so that they can make adjustments quickly.
The BI tools even provide a diversity dashboard, which tracks the hourly mix of women and
minorities working on the firm’s cases, a feature the company will license to Redwood Analytics
for sale to other law firms. The firm developed this diversity tool to bring transparency to the
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diversity reporting process required by many clients. In other words, the tools provide Bryan
Cave with a method of customizing its fees and helping clients better understand what they get
for their money.
As an illustration, Alber points to the customized pricing one lawyer gave to his real estate client.
“Developers think in terms of square feet,” says Alber, “and this client couldn’t understand why
legal fees for a 400,000-square-foot building might be the same as for a 4,000-square-foot
building, though it required the same amount of the lawyer’s time.” So the lawyer used the
pricing and staffing modeling tools and historical analysis tools to determine whether it made
sense for the law firm to charge clients based on the size of their projects. He found that while
there was risk of underpricing large buildings, the deal volume in small buildings offset that risk
for the law firm. The result made per-square-foot pricing possible. “It may be possible that
someone with enough willpower or manpower could do that using traditional analysis,” says
Alber, “but this lawyer had the information right at his fingertips.” Business intelligence enables
“us to be in touch with clients and shift things around in response to what customers are asking,”
says Alber. Adopting new and improved project management, pricing, and customer service
capabilities required planning, appropriate pacing, and user buy-in. “In today’s environment, you
can’t do value innovation without being in touch with the economics of your business, without
really understanding where you make money and where you don’t, and that’s what business
intelligence tools do,” says Alber. “Our goal,” he says, “is to build the best longterm
relationships in the world.”

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1. How do information technologies contribute to the business success?
eCourier, a UK-based courier company, faced challenges in managing its exponential growth. As
the company expanded its operations, it became crucial to optimize delivery routes, manage
customer inquiries, and track courier performance.
To address these challenges, eCourier implemented a business intelligence solution provided by
Cablecom, a communications service provider. This solution included real-time dashboards, data
analytics, and reporting tools. The system integrated data from various sources such as GPS
trackers, call center logs, and customer feedback.
By using business intelligence, eCourier was able to optimize its operations and improve
customer satisfaction. Real-time dashboards enabled managers to monitor courier locations and
performance, allowing for quick adjustments in routes and schedules. Data analytics provided
insights into customer preferences and trends, allowing the company to personalize services and
target marketing campaigns effectively.
Customer inquiries were efficiently managed through the integration of call center data, enabling
prompt responses and higher customer satisfaction. The analysis of customer feedback helped
identify and resolve potential issues proactively.
The benefits of implementing business intelligence were not just limited to operational
efficiencies but extended to financial gains as well. By optimizing routes, eCourier was able to

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reduce fuel consumption and lower transportation costs. The company also leveraged data
analytics to identify revenue opportunities and optimize pricing strategies.
To ensure the success of the business intelligence solution, eCourier partnered with Bryan Cave,
a global law firm specializing in business technology. Bryan Cave provided legal advice on data
privacy, security, and compliance, ensuring that eCourier's business intelligence solution adhered
to regulatory requirements.
In conclusion, eCourier's focus on operational business intelligence, enabled by Cablecom's
solution and supported by Bryan Cave's expertise, proved to be a game-changer for the company.
The integration of real-time data, analytics, and reporting tools allowed for optimization, cost
reduction, and improved customer satisfaction. By embracing business intelligence, eCourier
successfully delivered value to its customers and achieved its goal of ensuring happiness for all.
The company then turned to a business intelligence solution provided by eCourier, which uses
predictive analytics to identify potential customer churn. This solution proved to be much more
accurate, with a success rate of around 90 percent.
By harnessing the power of business intelligence, Cablecom was able to proactively address
customer dissatisfaction and reduce the risk of customer churn. The company was able to
identify patterns and trends in customer behavior, allowing them to intervene and address issues
before they escalated. This proactive approach not only improved customer satisfaction but also
saved the company the cost of acquiring new customers.
The success of this business intelligence solution showcased the importance of leveraging data
and analytics to gain valuable insights into customer behavior. By understanding customer needs
and preferences, companies can tailor their offerings and provide a more personalized
experience, thereby increasing customer loyalty and retention.
Overall, the case study highlights how operational business intelligence can be a game-changer
for companies in the service industry. By using real-time data, analytics, and predictive
modeling, businesses can optimize operations, improve customer satisfaction, and achieve
significant cost savings.
Could manually calculate and analyze data to determine pricing based on square footage, but
using business intelligence tools makes the process much more efficient and accurate. The tools
provide the ability to gather, analyze, and visualize data quickly, allowing for easy comparison
and identification of patterns and trends.

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In the case of Bryan Cave, the use of business intelligence tools enabled the lawyer to determine
the feasibility and profitability of implementing per-square-foot pricing for their clients. By
leveraging historical data and using modeling tools, they were able to assess the potential risks
and rewards associated with this pricing model.
Without the use of business intelligence tools, this analysis would have been time-consuming
and prone to human error. The tools automate the data analysis process, providing reliable and
actionable insights that can inform decision-making and pricing strategies.
Overall, the case study demonstrates how business intelligence tools can empower professionals
to make informed and data-driven decisions, leading to more efficient pricing models and
improved client satisfaction.

 In the case of eCourier,

Technology Implemented:The implementation of information technologies, such as GPS-

enabled handhelds and online booking systems, contributed to the company's business success.
These technologies improved performance by enhancing operational efficiency and customer
satisfaction. For example, the GPS-enabled handhelds allowed eCourier to track courier
locations in real-time, enabling quick adjustments in routes and schedules. This optimized the
delivery process and reduced the chances of late deliveries or lost packages, leading to improved
customer satisfaction. Additionally, the online booking system made it easier for customers to
book and tracks their deliveries, eliminating guesswork and providing transparency, further
enhancing customer experience and loyalty.
 In the case of Cablecom,

The implementation of business intelligence software, specifically SeeWhy, played a crucial role
in the company's success. SeeWhy enabled Cablecom to quickly generate customer data and
identify potential issues in real-time. This technology allowed the company to proactively
address customer dissatisfaction and reduce the risk of customer churn. By analyzing customer
behavior and trends, Cablecom could intervene and resolve issues before they escalated, leading
to improved customer satisfaction and retention. This technology also provided Cablecom with
valuable insights into customer preferences and allowed them to personalize services and target
marketing campaigns effectively, further enhancing business performance.
 In the case of Bryan Cave,

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The implementation of business intelligence tools revolutionized their billing strategies and
client value delivery. By leveraging these tools, the company could analyze collected fees and
profit data easily, enabling a more optimized pricing structure and staffing allocation. This
technology allowed Bryan Cave to create customized pricing models for clients, addressing their
specific needs and delivering perceived value accurately. For instance, the use of business
intelligence tools helped one lawyer determine the feasibility of charging clients based on the
size of their projects, resulting in per-square-foot pricing. This innovative approach satisfied
client demands for pricing transparency and optimized profitability for the law firm.

Overall, the implementation of information technologies in these companies led to improved

performance by enhancing operational efficiency, customer satisfaction, and pricing strategies.
These technologies enabled them to leverage data and analytics for better decision-making,
ultimately contributing to their business success.

2. Bryan Cave (Law firm)

Two other professions that could benefit from the use of business intelligence (BI) technology
are healthcare and retail.
1. Healthcare:
Healthcare providers can utilize BI tools to analyze patient data, treatment outcomes, and
resource utilization to optimize patient care. By identifying patterns in patient health records,
healthcare professionals can personalize treatment plans, predict potential health risks, and
improve overall patient outcomes. BI can also help in streamlining administrative processes,
managing healthcare resources efficiently, and enhancing patient satisfaction through
personalized care.
BI technology can greatly benefit the healthcare industry by providing insights into patient data,
improving operational efficiency, and enhancing patient care. Two possibilities for its use in
healthcare include:
a) Patient Care Analytics: BI technology can analyze patient data, such as medical records and
treatment plans, to identify patterns and trends. This can help healthcare professionals make
more informed decisions regarding patient care, such as personalized treatment plans, preventive

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measures, and early detection of diseases. For example, BI tools can analyze patient data to
identify individuals at higher risk for chronic conditions and provide targeted interventions to
manage their health more effectively.
b) Resource Optimization: Healthcare providers can use BI technology to optimize resource
allocation, such as staff scheduling and equipment inventory management. By analyzing data on
patient volume, wait times, and staff performance, BI tools can identify bottlenecks and areas for
improvement, allowing healthcare organizations to allocate their resources more efficiently. This
can help reduce wait times, enhance patient satisfaction, and optimize healthcare delivery.
2. Retail: BI technology can revolutionize the retail industry by providing valuable insights into
customer behavior, optimizing inventory management, and driving sales and marketing
strategies. Two possibilities for its use in retail include:
a) Customer Analytics: BI tools can analyze customer data, including purchase history,
preferences, and demographics, to identify customer segments and purchasing patterns. This
information can then be used to personalize marketing campaigns, improve inventory
management, and enhance customer loyalty programs. For instance, retailers can use BI to
identify patterns in customer purchases and offer targeted promotions or product
recommendations in real-time.
b) Supply Chain Management: BI technology can optimize supply chain operations by
analyzing data on product demand, inventory levels, and transportation logistics. This enables
retailers to forecast demand accurately, ensure optimal stock levels, and streamline the supply
chain process. For example, BI tools can analyze historical sales data and external factors like
weather patterns or seasonal trends to optimize inventory levels and prevent stockouts or excess
inventory.
In the healthcare and retail industries, the implementation of BI technology can provide valuable
insights for decision-making, improve overall operational efficiency, enhance customer
satisfaction, and ultimately drive business success.

3. Other Actions that could be taked by Cablecom with customer prediction information
Cablecom developed a prediction model to better identify those customers at risk of switching to
other company in the near future. In addition to those noted in the case, what other actions could

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be taken if that information were available? Give some examples of these. Would you consider
letting some customers leave anyway? Why?
If Cablecom had information on customers who were at risk of switching to another company,
they could take several actions to mitigate the risk and retain those customers. Here are some
examples:
a. Personalized Retention Offers: Cablecom could offer personalized retention offers to
customers who are at high risk of switching. These offers could include discounted rates,
upgraded services, or additional incentives to encourage customers to stay with Cablecom.
b. Proactive Customer Service: Cablecom could assign dedicated account managers or
customer service representatives to at-risk customers. These representatives could reach out to
customers, address their concerns, and provide personalized assistance to resolve any issues they
may be facing. This proactive approach can help build a stronger relationship with the customer
and increase their loyalty.
Cablecom can proactively reach out to at-risk customers to address their concerns, gather
feedback, and resolve any issues they may be facing. By engaging with customers directly,
Cablecom can demonstrate its commitment to customer satisfaction and potentially prevent them
from switching to a competitor.
c. Service Improvement Initiatives: Cablecom could use the information to identify common
reasons for customer dissatisfaction and take specific actions to address those issues. For
example, if customers are frequently experiencing service outages or slow internet speeds,
Cablecom could invest in infrastructure upgrades or implement measures to improve service
reliability.
Using the feedback and insights gathered from at-risk customers, Cablecom can identify areas
for service improvement and implement changes to enhance the overall customer experience. By
addressing underlying issues that may be causing customer dissatisfaction, Cablecom can
improve customer retention rates and loyalty.

4. Targeted Communication Strategies: Cablecom could develop targeted communication

campaigns to educate at-risk customers about the company's unique value proposition, the
benefits of staying with Cablecom, and any recent improvements or new services. By effectively

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communicating the value they provide, Cablecom can reinforce customer loyalty and convince
them to stay.

Refrence:

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Adapted from Diann Daniel, “Delivering Customer Happiness Through Operational Business
Intelligence,” CIO Magazine, December 6, 2007; Diann Daniel, “How a Global Law Firm Used
Business Intelligence to Fix Customer Billing Woes,” CIO Magazine, January 8, 2008; and
Mary Weier, “Dear Customer: Please Don’t Leave,” InformationWeek, June 18, 2007.)

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