We have chosen minicase Hertz goes Wireless from chapter seven which describes how information systems provided to employees facilities by wireless technology Which improves their performance and productivity. INTRODUCTION In a competitive world, Hertz is a company that rents cars. It is the world? s largest enterprise and competes against thousands of companies in hundreds of countries. Hertz is operating approximately in 8,100 in 145 countries worldwide. Its goal is to pay attention on customer acquisition and loyalty. Hertz is the first company that has incorporated information technologies in 1970.
Moreover, it is a pioneer in mobile commerce applications like, for example, quick rentals, instant returns, in-car cellular phones, NeverLost onboard, additional customer services, car locations and Wi-Fi connection. The year 2004 was the debut of Wi-Fi — wireless, high-speed Internet service. Available in more than 50 U. S. airport locations. Its vision is to be the first choice brand among customers for vehicle and equipment rental/ leasing as well as total mobility solutions. We evolve to present a concept of our minicase by answering questions below: QUESTIONS 1.Which of these applications are intrabusiness in nature? Wireless intrabusiness is a kind of application that is developed inside of the company.
It has been around since early 1900s in the non-Internet environment. Such applications include wireless networking used to pick items out of storage in warehouses via PCs, based on delivery status updates that enter on PCs inside collection of data. By now a vast number of Intrabusiness applications had been implemented inside enterprises. Since the early 1900s, Wireless intrabusiness application in the non-Internet environment has been around.For example: -wireless networking used to pick items out of storage in warehouses via PCs mounted on forklifts -delivery-status updates entered on PCs inside distribution trucks -collection of data such as competitor? s inventories in stores and customer orders using a handheld (but not networked) device, from which data were transferred to company headquarters each evening. The intrabusiness applications that Hertz uses are: Instant returns helps you to make your check-out in less than a minute via wireless system that is connected to a data-base. So, thanks to automatic technologies there is a reduction in time and costs.
The reduction in costs is caused by modern systems which makes the work of the organization easier when it uses automatic calculations. Car locations is a system that has its basis on Global Positioning Systems (GPS) that determines the precise location of the vehicle and can direct its automatic steering. Because of the rows GPS is very exact, so the company knows where their clients are staying every time.
Hertz benefits are: a total control of its cars, prevention of a possible crime committed by customers (for instance stealing a car or trying to use fake customer data). . Identify any finance- and marketing-oriented applications The finance-oriented applications are: -Quick rentals This is a finance application because you don? t have to do transactions that wouldn? t be necessary. It allows quick figuring and billing of customers on the moment of giving back the car that had been rented.
For example, this system is part of a national wireless network that can check credit cards, examine your rental history, determine which airline to credit your loyalty mileage to, and more.This application does everything for you because you only have to arrive at the airport and go to the slot where the car is waiting for you. It has services like greets attendance, confirmation of reservations and Wi-Fi which transmits your data to the renting booth. With the reduction of work connected with filling papers, this can be seen as an advantage for the company. Moreover, this system operated over a WLAN which is a type of local area network that uses high-frequency radio waves rather than wires to communicate between computers or devices.A WLAN typically extends an existing wired LAN and is built by attaching a wireless access point (AP) to the edge of the wired network. -Instant returns Because this application uses a handheld device that automatically calculates the costs of the rental and prints out a receipt for the renter. The information system that the company uses is data-base via wireless.
This is an example how the internet supports companies in financial areas. The marketing-oriented applications are: -NeverLost Onboard You can get information about the locations of the nearest hospitals, gas stations, restaurants, and tourist areas.This system was introduced for first time in 1995 in the USA and was exported to Europe ten years later. -Additional customer services The customer can receive city guides, all the locations guides, city maps and other tools. This can be an advantage for Hertz, because the company provides all additional features to the customers, which is the perfect way to attract and retain its recipient.
-Wi-Fi connection Wi-Fi is a technology that allows computers to share a network wirelessly without the need to connect to a commercial network.It usually consists of a router, which transmits the signal, and one or more adapters, which receive the signal and are attached to computers. This is a marketing application that became available in all major airports, hospitals, restaurants, tourist areas served by Hertz in the USA. Moreover, you can be connected across the entire world.
3. What are the benefits to Hertz of knowing exactly where each of its cars are? As a renter, how do you feel about this capability? In our opinion there is a number of reasons that Hertz Company benefits of knowing exactly where each car is. Firstly it is very useful to have GPS system that the philosophy of Hertz is mainly working on. Thanks to this system, the company can find a car in case of an offense by a customer. So the client can? t take advantage and steal the rented car. It proves that by having the knowledge where each of its cars are, Hertz can detect the vehicle immediately. ?Secondly, it is important to know where each car is exactly, because when something wrong happens to the driver or vehicle, any accident no matter how serious it is, the company can for example send an ambulance to the place of the incident immediately.
Or it can provide another vehicle, what builds a feeling of loyalty among customers and helps to avoid stress or time wasted. ?Thirdly, thanks to this kind of knowledge the firm cares about its own business. That’s because in some contracts while renting a vehicle there are kilometers limit, and after transgression of it the company possesses information about the location of the client in that moment, in case of trying not to pay for over limit. Also in some countries there is a law that doesn’t allow leaving it while renting a car. ?Besides, this system can prevent crimes.We mean that in case when the customer brings illegal stuff in a car rented from Hertz, the company can hand in information to the police about the suspected car and customer. As a renter, for us there are two sides for this phenomenon.
On the one hand we would feel safe, and not worried wherever we go, because the GPS system would not allow us to get lost, it’s always satellite- controlled steering. Moreover, thanks to the fact that Hertz is monitoring the vehicle it helps us to avoid stress in case of an accident. This technology would alert employees of the company or the emergencies immediately.In addition, we think that when rental company possesses a piece of information about our speed may be profitable, because we stay in touch with people working on this system who can help us how to avoid any commitment for speed limit or conflict with law.
On the other hand, we have also ethical issues in our minds which are strictly related to standards of right and wrong. This has the power to damage the image of the organization and its moral as well. It is obvious that what is considered ethical by one person may seem the opposite to another. This advantage of the localization of the company’s cars are an invasion of our privacy.We are a bit hesitant to have our movements tracked every day, even if it’s for our good, and even if we have nothing to hide.
We are not convinced enough that with a full consciousness of being observed we would drive a rented car with pleasure and convenience. 4. What competitive edge can Hertz get from the system? Michael E. Porter said that competitive advantage to value a company is able to create an advantage for their customers in the form of lower prices than competitors for equivalent benefits or the provision of differentiated products whose revenues exceed costs.
For Porter, the value is the amount hat buyers are willing to pay for what the company provides. A firm is profitable if the value that you get from your buyers exceeds the costs required to create the product. Creating products for buyers whose values exceeds the costs is the goal of any business strategy. To analyze the value a company is able to create for its buyers, Porter uses what he calls the value chain or succession of business where value arises. Hertz has developed a business performance management to get a competitive edge. This performance has four steps: 1.
Decide on desired performance levels.What the company wants to achieve is to be the major enterprise in the “rent a car” market. 2.
Determine how to attain the performance levels. The company has to do different levels in the performance, a specific short-, medium-, and long-term plans. 3. Periodically assess where the organization stands whit respect to its goals, objectives, and measures. 4. Adjust performance and/or goals.
In this market, Hertz can get a competitive edge by improving its services. When a company introduces something new in the market like Hertz, it can get a competitive edge until other companies make the same.In this case, Hertz is a “first mover” to information technologies and this makes the company different from the others.
Now, whit something new, Hertz can get a competitive edge. SUMMARISE To sum up we think that Hertz has advantages which makes them one of the popular rental companies because they give their best services to each costumer. It bases its function on new technologies and uses them to achieve their productivity. The company possesses a lot of values, which are mainly connected with integrity, transparency, continuous improvement that is related to diversity of services and products.It has passion that involves commitment and there are very important values in the company, as teamwork that has a lot in common with accountability. Hertz mission in majority contains all the points focused on customer rights, cost efficient vehicles and its service to capture every market they’re occupied. They want to strengthen their worldwide position to a very large culture of employee and partnership.
But there is more! It provides Frequent Traveler Credit and has a huge number of partners from airports, hotels, travel agencies, consumer loyalty to service partners.Hertz offers global opportunities to join its franchise network. The company leads Business to Business transactions, whereas both the sellers and the buyers are business organization. Business-to-business has about 85 percent of EC dollar volume. Thanks to this the company can cover applications that enable an enterprise to form electronic relationships with operators. For instance, some of the models for B2B application are sell-side marketplaces, buy-side marketplaces, and electronic exchanges.