R.L. Polk Case Study
The author of this report is to review the case study article relating to the R.L. Polk mainframe upgrade. The theoretical perspective of this report is that the company the author of this report works for is considering a similar upgrade. The author of this report will use the points, facts and other details of the study as a starting point. It will be discussed what points are agreed with from the article, which points are not agreed with and whether such an upgrade was worth the trouble. While spending nearly ten percent of a company's annual revenue would seem like a cost-prohibitive endeavor, having programming code and/or other technology that is more than a generation old in the modern information systems sphere is just something that cannot be allowed to stand if it can be avoided, and it can.
Analysis
While ten percent of a company's annual revenue may seem like a lot of money to spend on one project, it was something that R.L. Polk needed to do, without question. Indeed, the current information systems climate of the United States and broader world is one of information. Information is power and getting information quicker than the "next guy" makes one even more powerful. The Lucas text drives the point home when it points out that half of all capital investment in the United States is dedicated to information technology (Lucas, 2006). While R.L. Polk was in a lucrative position even with its dated code and other technology, taking nearly a month to compile data that others rely on heavily is just begging to be replaced and hopped over by the next big thing or next big company. Indeed, a current giant (let alone a currently non-existent one) like Google or Amazon stepping in and saying they can do the data better and quicker would make R.L. Polk's iteration of the technology obsolete quite quickly. Indeed, Chesbrough points out that "technology (is) becoming increasingly widespread, distributed across companies both large and small, in many parts of the world" (Chesbrough, 2005). As such, the company that the author of this report is working for should absolutely invest the money provided that the money is there and the improvements that can be gleaned are as advertised (Baselinemag, 2015).
Indeed, R.L. Polk did their investment after realizing that the sheer amount of "touches" and manual keystroke was seismic. To be sure, when upgrading one's technology to a new platform can allow for the elimination of nearly half of one's information systems staff, this is an upgrade that is begging to happen. One huge reason is that more manual keystrokes means more chance of errors. Further, Chesbrough makes a statement that dovetails with this idea when he says that such lack of forethought is a "huge waste of human talent" (Chesbrough, 2005). This is not to say that an unwieldy information system can lead to problems in the wrong hands. Indeed, if the system is not programmed correctly, it will be a big mess. However, if it is done right and by the right people, it will be so much better than a considerable amount of manual intervention on petabytes of data. While the system may be workable for Polk, there has to be an upgrade at some point and it has to happen very soon. Eventually, the dealers and other people who crave the data will want the data sooner no matter who provides it and the generally lower cost of computer and software technology as compared to what was the case in the past will just make it inevitable that someone else will step in if Polk does not step up.
Further, any investment that will reduce costs by a half and increase efficiency by a half should at least be considered. Sometimes, the money is just not there. However, when one can invest not even ten person of ONE year's revenue and make it worthwhile for more than a generation (thirty years, according to the article), that is a no-brainer and then some. The less likelihood of errors, the decreased need for staff, the lesser need for manual keystrokes and manual intervention, a setup that is future-proof for thirty years rather than being a generation old and so forth are all reasons, on their own, to do the upgrade.
Another reason to do the upgrade is another reason that Polk did the upgrade. When it comes to processing and delivering...
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