Saks’ management was the main problem. The old management did not understand nor use the information system available to them, instead theyheld on to old ways to improve sales. Just as the book says, a business is only as good as the people who work there and run it. The management should have known how to implement and use informationsystem through the use of technology. The management should have formulated an action plan that included information technology, which means they should have used the output that their employees whereinputting daily as transactions.
What information does Saks need to solve this problem? What other pieces of data does Saks need in addition to those in its nine-box grid?
Saks needs to firstidentify its problem, which seems to be the lack of knoledge of the customers base. Then it will need to consider different solutions, from implementing new hardwar/software to keep up with thecustomers’ datas, to training new employees. It will have to choose the best solution, which was selectiong a new CEO. Last, it should have a “trial period” to make sure the plan is working properly. The biggestproblem with Saks seems to be the imformation system, which means that different components that collected informations to support decision making were not working properly. What Saks could do is tocollect data from previous customers purchases, or have customers fill out some type of short questionaire asking age group, city of residence and maybe what is their favorite section in the store.With this collected data the CEO will be able to cusomise each Saks to its clientele.
Where can Saks acquire this information?
Well, the customers could either fill out the questionaire at thetime of purchase, or even better fill it at home. The cashier should ask for an e-mail address, and tell the customer that they will send a questionaire, and if it is filled out he/she will receive...