Course: Management Information System (18.616.03)

Prepared By: Hunaid Sulemanji

Instructor: Carolyn M. Johnson

Date: February 26, 1999

1. Three different kinds of standards and the role each plays in Nokia’s International Logistic Project:
 

• Standardized interfaces - loosely coupled modules with standardized interfaces allowed global connectivity and modularization promoted flexibility. Common hardware platforms and modular common operating systems around Nokia core processes were essential for maintaining flexibility and low operating costs.
• Message switching - information processing in the form of structured messages between NTC and IT system. These systems would provide a cross-reference between the customers and the internal view on products.
• Modular interfaces - standardized in the event business changed, the system change could be contained within specific modules. Sales unit can mix and match the modules as needs arise and change.

2. The role of information systems in Nokia’s global operations provided much-needed common support tools to enable the NTC-wide integrated solutions delivery and after sales customer service and support. The system will provide support tools to configure and sell integrated solutions consisting of products from different product divisions with flexibility and responsiveness while understanding complex customer needs and environments.

3. Nokia used a full time project manager from an outside consulting firm in the International Logistic Project. The consultant was provided with an integrated database of existing components, products, services, and new products. The consultant would configure a sales data for the customer and place order to appropriate factories globally, followed by delivery and invoicing. The system would assist the consultant in purchasing, materials and inventory management, systems integration, and after-sales customer support. The consultant reported to the steering committee composed of managers from three different product divisions. The positive effect are minimal costs and temporary assignment of consultant rather than hiring of the full-time staff to perform these duties. In the event, the project backfired the consultant would be easy to dismiss rather than a full-time employee. The negative effects are hiring and training the staff to perform these responsibilities to run the system previously managed by the consultants.

4. In this highly competitive global market, with shrinking margin, an accurate and up-to-date information system can help Nokia avoid making costly mistakes such as pricing errors that can have a major consequence on a unit’s bottom line (especially in comparison with Nokia’s competitors).

5. The biggest challenge appears to be in simultaneous implementation of the new sales structure and the support systems so that it meets everyone’s needs. The challenge appears in putting an infrastructure together for information dissemination globally. If handle improperly customer satisfaction will decline and IT cost will increase in growing market.