Casadellibro.com

The bookshop Casa del Libro was founded in 1923 and is currently the second bookseller in Spain after El Corte Inglés. Nowadays Casa Del libro has 22 bookshops all over Spain and 9 of them in Madrid. Since 1995 is selling books on the internet, at the beginning through a non-sofisticated web site and later in 1999 with a new technological plattform that turned out to be a fiasco because it couldn't be integrated by the consultants hired to develop a new business plan for casadellibro.com, due to mistakes during the design process.

In 2002 a meeting with Planeta, editorial owner of Casa Del libro, took place. in that meeting the board had to decide between two possibilities: To stick to the previously developed UNIX platform, or switch to a new Microsoft platform...In today's post i am going to shine a light on the following questions:

1. Would you stick to the previously developed UNIX platform, or switch to the new Microsoft one?

For the first question, I would have decided to shift for the new Microsoft platform. A hint of what should have been done can be found next 15th July when Libranda, the largest spanish platform for on-line books will be launched, containing (only) 2,000 books from the editorials Planeta, Random House Mondadori, Santillana, Roca Editorial, Grup62, SM, y Wolters Kluwer.

Libranda's web in its beta version describes (in spanish) its function:

"LIBRANDA es una plataforma que ofrece servicios auxiliares para la comercialización de contenidos digitales y para la promoción de los mismos. LIBRANDA actúa como un operador logístico que presta servicios de almacenaje y distribución digital a las editoriales y a las tiendas on-line. Su principal objetivo es poner a disposición de las tiendas on-line el contenido digital de las editoriales con las que trabaja. Paralelamente, y con el fin de aportar valor tanto a las editoriales como a las tiendas on-line con las que colabora, LIBRANDA ofrece herramientas de marketing digital para la promoción y la difusión de sus contenidos. El modelo de negocio de LIBRANDA permite respetar la cadena de valor del libro, promoviendo la labor cultural de los autores y agentes, de los editores y de los canales de venta del libro. En este sentido, LIBRANDA no vende directamente al público final. La labor de venta la desarrollan las tiendas on-line".

2. Which are the most relevant criteria for you to make the decision? Name each criterion and explain it very briefly.

My answer for the second question once I have decided that it would be more convenient to shift to the new Microsoft platform, based on the same ideas that LIBRANDA expect to accomplish in order to succeed (extracted from publishing perspectives and summarized the most important aspects below) in the on-line books market:

- Availability: Libranda's services are offered through 21 online stores and it is important to note that the ebooks will not be sold directly to end customers from this platform, Libranda is targeted at bookshops, who will in turn sell to consumers.

- Price settings open: All decisions about release timing and pricing, as well as negotiations with retailers on terms and discounting, are left up to individual publishers, which enables to each seller to develop a more competitive price strategy.

- Competitive advantage in prices: For me, the most important competitive advantage of having a new and strong platform is that the average e-book from Libranda will cost 20-30% below the print book price (about 6 euros for paperbacks and 11-14 euros for hardcovers).

- Growing number of e-books: Although the initial number of 2,000 e-books available at launch seems small, Libranda hopes to grow the number of titles to 8-10,000 by year’s end.

- Large number of downloads: The number of downloads is not limited to one file, but up to 12 devices: 6 desktop and 6 mobile files protected with Adobe ACS4 DRM that a. Individual publishers can put a lower limit on the number downloads if they choose. All files will reside in Libranda’s digital warehouse and will be sold exclusively through their online retail partners.

- Possible agreement with Tech Giants: In a future second phase the platform plans to negotiate agreements to offer their e-books through tech giants Apple, Amazon and Google (though publishers will have to kick in an extra 2% for this service), and will also contemplate different models including subscription, streaming and lending.

- Potential expansion to Latin America's market: Also in the cards for the immediate future is expansion of the platform into the rest of the Spanish-speaking world, planned for early 2011. Libranda is negotiating with publishers in Latin America and hopes to work with local online retailers and booksellers (some of which have a more mature market and established customer base than their counterparts in Spain).

- Possible VAT reduction to equalize with physical books:The VAT is stuck at 18% for any book without a physical component, though the Spanish government has promised the publishers it will fight in Brussels to convince EU regulators to reduce the rate for e-books to the same preferential 4% enjoyed in Spain by paper books.

- Space for smaller booksellers: Libranda will offer marketing tools like widgets and samples, though it’s up to publishers whether or how they will use these. The platform will also create white pages for booksellers who don’t have their own retail website set up.

- New Website — http://www.libranda.com — will allow readers to search for available titles but to purchase e-books they will have to go to one of the participating online stores. Publishers using the platform will be able to use the website to manage their catalog of titles, upload new books, and access sales figures.

- Break even in about 5 years: 2 million euros have been raised to set up the platform and request exclusive digital distribution rights from all participating publishers, though with some flexibility. Planeta’s Badenes admitted that the platform expects to lose money in the beginning and likely won’t turn a profit for the first five years.

All the above presents a favorable scenario and could have been applicable to the case in 2002, and probably without the pessimistic expectations that surrounds every new venture nowadays in Spain.

Brit sound for today's songs! "Michael Caine" by Madness has been my favorite song of the band, and "Something for the weekend" by Super Furry Animals is one of the songs that kept my attention for brit pop music in 1995 when this style was in his highest peak. Enjoy them!

TESCO to what extent do they enjoy an IT generated advantage? Where does it come from?

TESCO, this is getting complicated...(as a blog writer as well as for you dear readers) I promise that once the Information System sessions are over I will go back to a more day-to-day topics in this blog!

However, today's topic is: TESCO: to what extent do they enjoy an IT generated advantage? Where does it come from?

First of all: What is TESCO? TESCO is the largest supermarket chain in UK, and the second largest company in the food and drugs stories' industry in the world after Carrefour. it was founded in 1919 and is now present in 14 countries with 2,329 stores outside UK, and 2,329 stores only in UK.

TESCO has been characterized by being a value-for-money retailer since their commencements, which has been translated into different formulas to engage the customer and gain its loyalty: From the Green-shield stamps (every purchase you get a stamp and after several stamps you get cash or a gift) to the Club Card, with which the customers could accumulate points, convertible into vouchers, for every £5 that the customer expend for purchases exceeding £10. The importance of the Club Card as a way to collect data about TESCO's customers is crucial for the success of the company and created a trend among the mayor supermarkets and retailers worldwide, and it helps to understand my conclusions for the question at the end of this post.

Since March 2006, TESCO is undertaking a IT standardisation in order to prepare the path for a global expansion. Business processes and systems used for in-store planning in the UK have been chosen by Tesco executives as part of the global standardisation programme.

Tesco-in-a-box

TESCO has developed an operational model - a set of processes and technologies that is going to be used in its business around the world. For IT this involves four main areas: planning and architecture, development of systems, deploying systems, and operation and support of IT, as the Tesco group IT director Colin Cobain said, "Technology is an important part of the international growth strategy. What we want to do is create a common suite of processes and systems that we can use in all of our countries." This common suite of processes are integrated in what has been defined as "Tesco in a Box" . Philip A Greenwood, Head of IT Development and Support at Tesco defines it the following way: "We are now in the process of implementing a set of applications that include retail ERP (Retek), Teradata Data Warehousing Solution, reporting tools from Business Objects, a human resource solution from PeopleSoft and a finance package from Oracle Financials. We want to integrate these new systems and maintain a common database at a central location in the UK. The integration exercise will be known as ‘Tesco in a box’.

What TESCO is now doing is a good exemple of a necessary ERP, in first place, and a reasonable implementation in order to gain efficience by using the same processes throughout the thousands stores that TESCO has.

But, can we say that the expansion and success of TESCO is due to a policy of high investment in IT when the retail sector has been historically not a big spender on technology?

My conclusion for this post is that TESCO has a track record of using IT to perform better and with the time this has resulted in a competitive advantage: A case that illustrates this was when the company rolled out technology to improve its "one in front" initiative, consisting in installing cameras that use sophisticated thermal imaging technology to measure and predict customers' arrival at checkouts, enabling managers to react in real-time to ensure the right number of tills are open to deliver the best possible service to customers.

To analyze where does this advantage come from, in my opinion, TESCO, since the time they lauunched the Club Card, has understood the importance of the data that is collected from its clients when there is a purchase and the club Card is used. they have been able to understand customers' trends, analize the kind of buyers that benefit from the discounts or promotions and create a very detailed segmentation of its customers, which is clearly a competitive advantage of the use of IT in this sector.

What can be better for any retailer than knowing who, when and how its customers are purchasing their products? Hence, based on the experience of TESCO, it is fair to admit that a huge investment in IT is widely justified and has brought to the company a outstanding market position and revenues.

Today's song was posted in my FB profile some time ago, but here it goes again...This is the last dance

should companies be adapted to ERP or the other way round?

Today the crucial question is: Should companies be adapted to ERP or the other way round?

Maybe some of you don't know what an ERP is, but i am sure most of you have heard about SAP, or even dealt with it at your companies...

Let me, in first place, define what is an ERP: According to Wikipedia, "Enterprise resource planning (ERP) is an Integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders". Although this description gives more light about it:

What can ERP do for me?

ERP streamlines processes within your organization and helps you meet business needs more efficiently and quickly. To take a simple example, if you are a manufacturing concern, your ERP system comes into action from the point your sales representatives in different parts of the country or world, book orders, and feed them into the system. The system helps you track what inventory you have of raw material and finished goods, how much more you need, and how much time it will take you to deliver. Your customer service department can then use this to tell the customer when to expect his order. Your manufacturing department uses the same information to set its production schedules, hire temporary staff, and so on. Your finance department uses it to arrange for money, collect money from previous customers, or pay suppliers. As the goods are produced, the packaging and logistics department can gear up for shipping. Customers can track the shipping status online.

As per my personal experience, I have worked in two companies with ERP systems...and in both cases the experience was painful because I had the chance to work by the time the ERP was renewed and updated or implemented for the first time...so i am biased when i am asked if the company should adapt to the ERP or vice verse: I truly think the ERP should be adapted to the company needs, but I am also aware that the fact that an organization has been working for decades (in my case, FCC Construcción) without any of these tools doesn't mean that there is nothing to improve in the organization of the company!

However, and specially for big corporations, my opinion is that an ERP must be adapted to the needs of the company in order to be fully efficient. If we take into consideration that a ERP has been designed by a limited group of people and for very different types of companies...how can we rely on this tool to manage a giant like, for instance, FCC (more than 60,000 employees).

The cost of a non-effective implementation or just a substantial delay in reaching a cruise speed in the use of the ERP is definitely much higher than an initial rethinking of the tool in order to adapt it to the reality of the Firm.

In order to provide a more detailed answer and to summarize this post, these are the steps that should be follow can be found in the image attached:

Diagnosis

Detection of points if existing processes to be improved

Development of new processes

Development of ERP Information System

Incorporation of Logistics

Training of users

Pilot application

Improvements

Delivery of ERP in full operation



Today's song is because we are not angels...

What Dell should do? Me in Dell's shoes for the "Dell Hell' case.

Hmmm...in my last post i should have debated what would I do as Dell in the case of Jeff Jarvis, but actually i did it the other way round, putting myself in the shoes of Jeff, now I am DELL and this is what i would do:

(If you dear readers haven't got a clue about what i am talking about, read my last post or just the following lines where i explain the case of Jeff Jarvis and his war against Dell)

In 2005, a blogger called Jeff Jarvis posted in his blog Buzzmachine the purchase of a Dell laptop along with the most complete guarantee available for the item purchased. Right after receiving his laptop, it turned out to be a lemon: it didn't work, so he called to get the assistance he paid for, but they were unable to fix the problem at home and they had to take the laptop with them...this was just the beginning of the story: Dell service resulted to be completely incompetent to fix the problem, which was extended for months...and Jeff Jarvis started blogging about that: dozens, and then hundreds of comments in his blog transcended the blog sphere, and magazines like the Business Week started highlighting the case, the issue became so popular and powerful to the point that the stock price of Dell went significantly down when the news were spread in the magazines...

But, let's suppose for a second that I am a decision maker in Dell and i have to decide how to go about this guy that all of a sudden has mobilized the whole media against my company: what to do?

First of all, it is interesting to know what is actually Dell doing right now: did they learn from the experience? It seems they did: In a presentation by Lionel Menchaca, Chief Blogger at Dell in 2007, 2 years after the Dell Hell Case, the sensitivity towards the customers was definitely a core issue, as per the following conclusions (Taken from Customer Think and its blogger Mei Lin Fung) i have selected the most relevant for the case:

• Customers are in control. Work with them and learn from them.
• Address any form of dissatisfaction head on.
• Be aware that any conversation can become global at any time.
• Size doesn't matter—relevance does. Just as one journalist can trigger a newscycle, one blogger can do the same.
• Don't be afraid to apologize.
• Develop direct links to customer community (IdeaStorm for Dell), listen for how we can improve.
• One customer is part of many communities.
• Teamwork, transparency and frequent consistent communication are key in this new world.
• No shortcuts are possible. Implementing business change requires much effort across departments.
• Which leads to the new impetus at Dell to ... Engage our people to make it work
  
• Tools are important but people drive processes.
• Feedback digital media tools for email and chat, inside and outside of Dell, are becoming as vital as call data and traditional online support.
• Working globally means anticipating difficulties and always requires coordination with regional team members to adapt central core solutions to the local situation.

Well, reading all the above, i can affirm that that I would have chosen those as a proper way to go about the problem.

But what is not written above is the nature of these good intentions in what regards to Dell's customers: is Dell just reacting to save face or there is a true intention to offer a good customer service and avoid problems like that?

As I am the decision maker in Dell (CEO for a day...!) I would try to implement the above with a "customer service within a customer service". Means that a regular survey should be followed to include comments, failures, suggestions, improvings...proposed by Dell Customer Service's staff. What do I get with this? A service that takes himself seriously and believes in their nature: provide solutions for customers who believed in Dell as the right choice for their needs.

To conclude for the case of Jeff Jarvis, the actions to be taken would have been the following:

1) Detection of the unsatisfactory outcome of JJ's laptop by a survey team who is constantly tracking the web.
2) Analysis of the reports sent about the state of JJ laptop's fixing.
3) Once concluded the iterative failure of the laptop, immediate substitution or reimbursement to JJ.
4) Letter to apologize for the inconveniences.
5) Extended and free-of-charge guarantee for the new product in case JJ decides to accept the new Dell laptop.
6) Wrap up the story for further study in training new employees of the Customer service.

A few sentences that I have found that make so much sense to end the post:

In business you get what you want by giving other people what they want.
ALICE MACDOUGALL

Customers don’t expect you to be perfect.
They do expect you to fix things when they go wrong.
DONALD PORTER

Customer service is not a department, it's an attitude!
UNKNOWN

22 years before this mess, REM appeared for the first time on TV presenting "murmur", its first album. There was a time where Michael Stipes wasn't bold / shaved...

What would I do if i was Jeff Jarvis? "Dell Hell" case

In first place, let me brief you about the subject of this post:

In 2005, a blogger called Jeff Jarvis posted in his blog Buzzmachine the purchase of a Dell laptop along with the most complete guarantee available for the item purchased. Right after receiving his laptop, it turned out to be a lemon: it didn't work, so he called to get the assistance he paid for, but they were unable to fix the problem at home and they had to take the laptop with them...this was just the beginning of the story: Dell service resulted to be completely incompetent to fix the problem, which was extended for months...and Jeff Jarvis started blogging about that: dozens, and then hundreds of comments in his blog transcended the blog sphere, and magazines like the Business Week started highlighting the case, the issue became so popular and powerful to the point that the stock price of Dell went significantly down when the news were spread in the magazines...

But the question to be answered here is what would i do if i had the same problem?

In first place, and knowing what happened to Jeff Jarvis, what I would have clear is that...I don't want a Hell's Dell!! So as soon as I started realizing things are not going better, I would definitely try to get my money back and buy the new Ipad!! (Yeah, I've just disclose my next purchase...)

But let's suppose that I have gone through Jeff's nightmare and I have to decide what to do Well, I am not a prominent blogger and the repercussion of this blog is almost zero, so I think i would start a bunch of initiatives to make my case known:

1) Create a Facebook group to gather attention of those who sympathize with my problem or those who has already suffered it (with a little bit of luck Mr. Jeff Jarvis will also join the group!).

2) If the group becomes popular I can probably create a page and maybe make some money enough to purchase my desired Ipad and give away my Dell!

3) Forward the case to the Spanish consumer's association OCU and be patient...

4 and not very probable...) This is Spain, what really makes people or news popular is the social repercussion in certain TV programs like El Diario when people -generally with low class and even lower education- expose their problems: maybe i had a chance, but i really have to be desperate to do it!

Anyhow, I have one notebook and one laptop, both HP, It's not like they are perfect, but i am relatively satisfied with them, and if something happens I'm afraid that the guarantees are already expired...

Again, although there are some posts where the subject is actually requested by our professor of Information Systems, Enrique Dans , this intends to be a personal blog, and what i promised at least is to upload a song which i may, for one reason or another, be identified with...

The sweetest song ever by My Bloody Valentine, and then a Carlos Berlanga song from "Indicios" from 1994. Have a good day!

Facebook 2012 . We know who you are!

How I see Facebook in 2012...It's probably naïve not to expect big changes in social networks nowadays, but i think that the biggest thing in Facebook for the coming 2 years rather than any technological upgrade will be the number of users: i think there will be a drastic increase in the existent 400 millions, and having an active facebook profile will be common among the new generations.

The debate about the privacy in Facebook will still be on the table by 2012, but i believe that in a more relaxed way. The coming years will be fundamental to resolve the lawsuits that are now arising...but the sign of the battle, for me, is clear: privacy, or the way we understand it, will change, and it is a matter of time only. I think it is very significant that the current privacy policy of facebook includes a sinister sentence such us: "We reserve the right to change our Privacy Policy and our Terms of Use at any time."

But, all the above mentioned can be more or less what many people would say about FB in two years, what can we expect beyond this? Maybe the most reliable source to know what's going to happen in the coming years is through Facebook prototypes where a number of new applications are shown...to be frank, none of them seem to be able to change the world, but improve existent applications...The business of the adds is also mentioned as a potential change in Facebook...

The facebook application for cell phones is probably the tool that will receive more attention in the coming years, every thing becomes mobile, and Facebook -as well as google- knows that nowadays being present in our iPhone or Blackberry is being present in our lives. In this regard, i truly hope that the application becomes more efficient for 2012 than it is now. At least for me, as a user, and not really worried about the privacy issues, that would be enough advance for the coming 2 years...

Before i finish for today, here's a funny video about the social network wars...

Today's song: