Reference no: EM131816677

Bill Gates and Microsoft were exceedingly generous in the allocation of stock options to Microsoft employees, especially during Microsoft's first 20 years. Because of that generosity, Microsoft created 4 billionaires and an estimated 12,000 millionaires as Microsoft succeeded and the value of employee stock options soared.

Not all of those millionaires stayed in the Seattle/Redmond/ Bellevue, Washington, area, but thousands did. These thousands of millionaires were joined by a lesser number who made their millions at Amazon.com and, to a lesser extent, at RealNetworks, Visio (acquired by Microsoft), and Aldus (acquired by Adobe). Today, some Google employees who work at Google's Seattle office are joining these ranks.

The influx of this wealth had a strong impact on Seattle and the surrounding communities. One result has been the creation of a thriving industry in high-end, very expensive homes. These Microsoft and other millionaires are college educated; many were exposed to fine arts at the university.

They have created homes that are not just large and situated on exceedingly valuable property, but that also are appointed with the highest quality components. Today, if you drive through a small area just south of central Seattle, you will find a half dozen vendors of premium granite, marble, limestone, soapstone, quartzite, and other types of stone slabs within a few blocks of each other.

These materials cover counters, bathrooms, and other surfaces in the new and remodeled homes of this millionaire class. The stone is quarried in Brazil, India, Italy, Turkey, and other countries and either cut at its origin or sent to Italy for cutting. Huge cut slabs, 6 feet by 10 feet, arrive at the stone vendors in south Seattle, who stock them in their warehouses. The stone slabs vary not only in material, but also in color, veining pattern, and overall beauty.

Choosing these slabs is like selecting fine art . Typically, the client (homeowner) hires an architect who either draws plans for the kitchen, bath, or other stone area as part of the overall house design or who hires a specialized kitchen architect who draws those plans. Most of these clients also hire interior decorators who help them select colors, fabrics, furniture, art, and other home furnishings. Because selecting a stone slab is like selecting a work of art, clients usually visit the stone vendors' warehouses personally. They walk through the warehouses, often accompanied by their interior designer, and maybe also their kitchen architect, carrying little boxes into which stone vendor employees place chips of slabs in which the client expresses interest.

Usually, the team selects several stone slabs for consideration, and those are set aside for that client. The name of the client or the decorator is written in indelible ink on the side of the stone to reserve it. When the client or design team makes a final selection, the name is crossed out on the stone slabs they do not purchase.

The purchased slabs are set aside for shipping. During the construction process, the contractor will have selected a stone fabricator, who will cut the stone slab to fit the client's counters. The fabricator will also treat the stone's edges, possibly repolish the stone, and cut holes for sinks and faucets. Fabricators move the slabs from the stone vendor to their workshops, prepare the slab, and eventually install it in the client's home.

Questions

1. Identify the key actors in this scenario. Name their employer (if appropriate), and describe the role that they play. Include as a key player the operations personnel who move stones in the warehouse as well as who load stones on the fabricators' trucks.

2. Using an example, diagram the stone-selection process. Classify this process as a personal, a workgroup, an enterprise, or an interenterprise process.

3. The current system is not a paper-based system; it is a stone-based system. Explain why this is so.

4. Create an enterprise system that uses a shared database. Change the diagram you created in your answer to question 2 to include this database. (Assume every slab of stone and every location in the warehouse have a unique identifier.) Does the shared database system solve the problems of the stone-based system? Why or why not?

5. Do you think the customers, designers, and fabricators would prefer the stone-based system or the database system? Explain.

6. Suppose you manage the stone vendor company. If you implement the system in your answer to question 4, what problems can you expect? If you do not implement that system, what problems can you expect? What course of action would you take and why?

7. Explain how a knowledge of enterprise systems can help you become a stone slab client rather than a stone chipper.