Case Analysis:
In June 2016 Joe Kwo, Fintech Chief Information Officer (CIO) and Executive Vice President (EVP), needed to choose a cloud services provider for a new service, which would deliver analytical data to Fintech's customers - alcohol wholesalers and retailers. In January, Kwo had discussed with fellow executives the idea of developing this cloud- based service. His colleagues encouraged him to move forward, and now it was time to select a provider for the company's first move into the cloud.
Fintech, a Tampa-based privately owned company, processed electronic payments and reported relevant data to U.S. wholesale distributors and retailers of alcoholic beverages. Its website (Exhibit 1) characterized the company as a pioneer in electronic payments; CEO Scott Riley proclaimed:
Cheers to everyone that navigated this company into the revolutionary alcohol solution it's become and to all who continue to carry the torch.
As EVP, Kwo saw the cloud as an opportunity to continue to exert technology leadership by offering a service that would make it easier for Fintech customers to derive valuable insights from their data. In turn, this would strengthen Fintech's relationship with its customers. As CIO, Kwo also saw challenges. He had previously considered other proposals to migrate systems to the cloud, but felt that the risks at the time outweighed potential benefits. In summer 2016 Kwo was still not ready to commit Fintech's entire set of transaction-processing systems to the cloud, but he did want to move carefully into the cloud with a controlled test of a new service.
Kwo and his team had narrowed the feasible options to three providers: Amazon Web Services (AWS), Google Cloud Platform, and Microsoft Azure. Once a provider was chosen, Kwo would also need to consider how to launch, run and manage the new service in a way that would strengthen Fintech's relationships with its customers and minimize cloud computing risks.
• Define the problem/challenge in this case.
• Analyze the case from course perspectives learned so far, such as trendspotting, technology strategy, Porter’s Five Forces Model.
• Explore applications of SWOT (Strengths, Weaknesses, Opportunities, and Threats) and OGTM (Objectives, Goals, Tactics, and Measures) in your analysis
• Provide recommendations that apply to the issues presented in the case. Assume that you are in the role of a management consultant hired to provide actionable recommendations.
• Your recommendation should also include developing strategies for the efficient and cost-effective management of information systems and address the critical elements from the case:
o Identify a technology’s strategic implication.
o Consider and develop viable technology strategies (including alternatives)
o Include a plan to effectively manage the organization’s IT resources that demonstrates an understanding of IT resources at the strategic, tactical, and operational levels.
o Leadership of Fintech recognizes that the cloud offers both opportunities and risk.
How would a move to the cloud make it easier and/or more profitable for Fintech to provide large volumes of selected data to its clients?
What technical challenges does Fintech face in offering the new service?
What business challenges does Fintech face in offering the new service?
Guide On Rating System
Vote
The problem/challenge in this case is for Joe Kwo, Fintech's CIO and EVP, to select a cloud services provider for a new service that would deliver analytical data to Fintech's customers, alcohol wholesalers and retailers. Fintech wants to leverage cloud technology to strengthen its relationship with customers and make it easier for them to derive valuable insights from their data. However, there are challenges and risks associated with migrating to the cloud, and Kwo needs to carefully consider which provider to choose and how to launch and manage the new service.
From the course perspectives learned so far, trendspotting can be applied to analyze the case. Cloud computing is a growing trend in the industry, and Fintech wants to leverage this technology to stay ahead of the competition and provide a valuable service to its customers. The technology strategy is also important in this case, as Kwo needs to align the selection of a cloud services provider with Fintech's overall business goals and objectives.
Porter's Five Forces Model can be used to analyze the competitive landscape and the impact of cloud services. The threat of new entrants is low in this case as Fintech is already an established player in electronic payments. The bargaining power of buyers is high, as Fintech's customers have multiple options when it comes to selecting a cloud services provider. The bargaining power of suppliers is low, as there are multiple cloud services providers to choose from. The threat of substitute products or services is low, as Fintech's customers require the analytical data provided by the new service. The intensity of competitive rivalry is high, as other companies in the industry may also offer similar cloud-based services.
In terms of SWOT analysis, Fintech's strengths include its reputation as a pioneer in electronic payments and its existing customer base. Its weaknesses include the potential risks and challenges associated with migrating to the cloud. The opportunities in this case include the potential to strengthen customer relationships and provide valuable insights to customers. The threats include potential competition from other companies offering similar services and the risk of data breaches or security issues.
OGTM can be applied to develop recommendations. The objectives for Fintech could be to successfully launch the new cloud-based service, strengthen customer relationships, and mitigate the risks associated with cloud computing. The goals could include selecting a cloud services provider that meets Fintech's requirements, developing a strategy to effectively launch and manage the new service, and ensuring a smooth transition for customers. The tactics could include conducting thorough research and evaluation of the three feasible options, implementing a pilot test of the new service, and developing a comprehensive security plan. The measures could include customer satisfaction surveys, data analytics on usage and adoption of the new service, and monitoring of security incidents.
Based on the analysis, the following recommendations can be made:
1. Conduct a thorough evaluation of the three feasible options (AWS, Google Cloud Platform, and Microsoft Azure) based on factors such as cost, reliability, security, and scalability. Consider the specific needs and requirements of Fintech's customers.
2. Develop a pilot test of the new service to mitigate the risks associated with migrating to the cloud. This will allow Fintech to test the viability and functionality of the service before fully committing to it.
3. Develop a comprehensive security plan to address the potential technical and business challenges associated with offering the new service. This should include encryption of data, regular security assessments, and employee training on best practices for data protection.
4. Communicate with customers and stakeholders about the new service and its benefits. Provide training and support to ensure a smooth transition for customers.
5. Continuously monitor and evaluate the performance and adoption of the new service. Use customer feedback and data analytics to make improvements and enhancements.
In terms of efficient and cost-effective management of information systems, Fintech should consider:
- Developing a long-term IT strategy that aligns with the overall business goals and objectives. This should include a roadmap for future technology adoption and upgrades.
- Implementing IT governance processes to ensure that IT resources are effectively managed and allocated. This includes prioritizing projects, monitoring performance, and establishing accountability.
- Investing in training and development programs for IT staff to ensure they have the necessary skills and knowledge to effectively manage and support the new service.
- Regularly reviewing and assessing IT infrastructure and systems to identify areas for improvement and cost optimization.
- Considering partnerships or collaborations with other companies or service providers to leverage their expertise and resources in managing the new service.
- Continuously monitoring and evaluating the market and technological trends to identify opportunities for innovation and improvement.
A move to the cloud would make it easier and more profitable for Fintech to provide large volumes of selected data to its clients. The cloud offers scalability and flexibility, allowing Fintech to easily handle increasing data volumes and provide timely access to customers. It also reduces the need for on-premises infrastructure and maintenance, resulting in cost savings for Fintech.
The technical challenges faced by Fintech in offering the new service include ensuring data security and protection, integrating with existing systems and processes, and managing scalability and performance. Fintech needs to carefully select a cloud services provider that offers robust security measures and provides seamless integration options.
The business challenges faced by Fintech include competition from other companies offering similar services, ensuring customer adoption and satisfaction, and managing potential risks and liabilities associated with cloud computing. Fintech needs to differentiate itself from competitors by providing unique value-added services and actively engaging with customers to understand their needs and preferences. It also needs to have a comprehensive risk management plan in place to address potential issues such as data breaches and legal compliance.
Overall, Fintech should carefully evaluate the three feasible options and develop a comprehensive strategy and plan for the successful launch and management of the new cloud-based service. By addressing the technical and business challenges, Fintech can leverage the opportunities provided by the cloud to strengthen customer relationships and drive profitability.
Got a question with my answer?
Cheapmath.com is completely free!
Asking question is free.
Getting answers is free.
+99