With nearly one percent of the kanban cards lost per day, the net result is that the inventory runs dry and the overall production efforts suffer or get delayed. Considering the fact that Danaher has acquired a number of small companies, the application of the information technology can really go a long way in helping the firm under consideration in enhancing its efficacy, so far as the objective of reducing its inventory levels is concerned.
The application of information technology can help Danaher to purchase supplies from the overseas vendors by making the purchasing process more streamlined. The usage of electronic kanban system can do away with the fragilities and flaws of the manual approach. This will also allow the key employees in the procurement system to focus on the core tasks like discovering new sources and developing supplier relationships. E-kanban system will also improve and fasten the communication between Danaher and its suppliers. The introduction of bar codes and electronic scanners will do away with the old and cumbersome processes that were prone to grave errors and thus delays. This will also delegate the responsibility of verifying the order notifications to the suppliers. Thus the key staff will be left with ample time to concentrate on the supplier procurement goals. The application of the information systems has already reduced the non-productive time at Gurnee by 57 percent. This has also enabled Danaher in sourcing smaller suppliers to take an advantage of better services at lower costs. However, the introduction of information systems makes it imperative for Danaher to effectively deal with the unprecedented challenges like technical glitches and employee resistance. Overall, the information systems are sure to help Danaher run leaner.
Q2. Can Blockbuster stand up to Netfix
Ans 2. When Blockbuster ventured into the video rental business in 1985, it primarily relied on its traditional mom-and-pop style stores that were simple enough to blend with the underdeveloped digital technology and humble consumer expectations of those days. The biggest blunder that Blockbuster made was to fail to keep a keen eye on the latest developments in the digital technology and information systems, despite having an obvious competitive advantage in the market, to the extent of being a virtual monopoly. With the advent of DVDs, the consumer were left with the option of buying their own movie DVDs at competitive prices without having any need to rent movies from any outside provider. In the meantime, Netfix, which happened to be a new player in the market took ample advantage of the recent developments in the digital technology and e-commerce and engineered its strategy accordingly. Thus Netfix succeeded in establishing a cost conscious virtual vending system, thereby relieving customers of the botheration of venturing out of their home s to seek entertainment. Obviously, Netfix enjoyed a booming growth and success.
For Blockbuster, the onerous task of responding to the new competition was a complicated matter, in which it miserably failed. It failed to discern that Netfix's strategy was obviously being backed by astute e-commerce specialists, which was very streamlined and lean. In response, Blockbuster came out with its own internet