casadellibro.com

This is likely to be the final Information Systems related entry into this blog. I sincerely hope that I can continue updating this blog as frequently now that the Info Systems course is coming to an end......Anyway , Casa Del Libro awaits...

casadellibro.com is an online book retailing division of the Spainsh group, Planeta. The case is set in 2002. Basically, the company has invested a large amount on a Unix based online platform on the basis of optimistic growth projections. However, the platform is very complex and cannot be integrated to support operations under it's current design. In addition to this, the dot com bubble has just burst and projections have decreased dramatically. Now the question we face as incoming CEOs is: "Would you stick to the previously developed UNIX platform, or switch to a new, cheaper but less scalable Microsoft Solution?"

I would stick to the scalable Unix offering and initiate the required redesign of the platform. The criteria for my decision are:

• Long Term profitability. While the Microsoft solution would save costs in the short term, the platform would need to be redesigned to enable large scale growth in the long term. Hence, I think it would be better to implement a complete solution that would not be a barrier to growth once the market picks up.

• The recession is temporary. All recessions are temporary. Once the recession begins to fade, we need to be in the best position to take full advantage of resurging consumer demand. Our best chance of doing so is by having a platform that will be a catalyst for exponential growth, not a platform that could be hinderance to exponential growth.

• Demand is limited during the recession and investors expect company performance to decrease. The unix platform needs to be re-designed and the best time to initiate this re-deisgn is during a recession as the demand for online services will be limited. In addition to this, while the re-design of the unix server is an expensive exercise, I think it is best to swallow this bitter pill early on. Rather than wait for growth to return to re-design the Microsoft server, I think it is best to re-design the Unix server early in anticipation of growth once the recession is past.

So, till next time - adios.