FINAL EXAM - CASE (NCR Warehouse Manager).doc

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Ryerson University
Information Technology Management
ITM 407
Candace Grant

th Wednesday December 5 2012 ITM 407 – Final Exam The Case – 12%  The NCR/s Warehouse Manager case – a case reviewed in the week 12 class. – Complete the decision analysis – Do you think that NCR’s liability should be limited to the purchase price of the software?  Facts: – NCR marketed a Warehouse Manager software  It was license from Burroughs and converted to run on it’s own ITX hardware system  The software sold to Hopper was a product that had been substantially revamped and recoded – Warehouse Manager was a complete failure  Not adequately tested, and caused tremendous problems  Long System response time  Inability for multiple users to access the central computer. Lock up  Wrong prices for products  Huge discrepancies in stock levels  Hopper continually lost revenue since the installation of the software – NCR stopped selling the product 9 months after its release – NCR was not forthcoming with Hopper about the documented problems of Warehouse Manager – NCR gave Hopper the impression that they were the only ones experiencing problems – NCR had hopper sign a “Universal Agreement” which limits payments to the original cost of the products and services required, minus depreciation for use of the equipment.  NCR Universal Agreement requires all disputes be arbitrated instead of litigated in courts  Stakeholders and Impact – Hopper: loss of revenue and its customers – NCR th Wednesday December 5 2012  Consequences: – Loss of revenue for Hopper and loss of customer base – Lawsuit against NCR – Reputation of Hopper, NCR  Backings (choose one to support argument) – Professional standard  Adequately tested the software before officially releasing it – Roles and Responsibilities  NCR sales person should have told Hopper of the well-documented problems about Warehouse Manager – Virtues Ethical Backing  Licensing the software from Burroughs and recoding it to resell is an ethical issue. Software may not be the same anymore but it’s using the ideas from Burroughs.  Alternatives (3) what could have been done differently? Can use a combo of alternatives for recommendation. – NCR can stay on track using the Universal Agreement as a shield to mitigate as much loss in capital & resources.  Pros:  Not as much loss in capital and resources.  Doesn’t consume a lot of resources as the matter will be settled in arbitration rather than legal litigation.  Liability will be limited to the purchase price of the software  Cons:  damaged reputation – NCR & Hopper can settle the matter outside arbitration and court. Also help Hopper program a new Warehouse Management system that will be reliable
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