3

What are the most important challenges (e.g., compatibility, security, affordability) of

Question

3. What are the most important challenges (e.g., compatibility, security, affordability) of

Falcon’s global ICT operations? (List at least three potential challenges and explain how to cope with these challenges.)

It’s case study I need answer for the third question

3. What are the most important challenges (e.g., compatibility, security, affordability) of Falcon’s global ICT operations? (List at least three potential challenges and explain how to cope with these challenges.)

The name of the book: The Essentials of Supply Chain Management: New Business Concepts and Applications.

ISBN: 9780134036441

Chapter 9 Number 336-339

enough to sustain its competitive advantag
Management Challenges
To deal with the aforementioned dilemmas, Wendy Mcdonald, Executive V.P. of
the Supply Chain Planning for Falcon, has assembled her management taskforce
group, including managers from the departments of sales and marketing, information
technology (IT), and logistics. One of the intriguing options brought up by these
managers is the outsourcing of its ICT solutions. Wendy grabs her pad of yellow sticky
notes and then starts jotting down the potential pros and cons of ICT outsourcing after
her taskforce group’s most recent brainstorming session before she pondering it further.
This is her list of discussion points:
Advantage of ICT Outsourcing
Disadvantages of ICT Outsourcing
Cost savings
Lack of control
Improved cash flow
Lack of flexibility
Quicker customer response
Potential loss of core competency
Immediate access to the latest technology
Difficulty in customizing services
Reduced risk of information technology
Instability and lengthier learning curve for
obsolescence
understanding customer needs
Because Wendy is unsure of the accuracy of this list and her managers continue to
argue about the prospect of ICT outsourcing, she still gets confused and is undecided
about Falcon’s future course of action.
338 Chapter 9: Logistics Intermediaries
Discussion Questions
1. Which decision criteria have to be considered before making an ICT investment
(in-housing) or outsourcing decision?
2. Which of the listed pros and cons of ICT outsourcing are inaccurate or
misleading, if any?
3.
What are the most important challenges (e.g., compatibility, security.
affordability) of Falcon’s global ICT operations? (List at least three potential
challenges and explain how to cope with these challenges.)
the right ICT s
Supply Chain Management