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BUS 391 Information Systems

BUS 391 Information Systems. Decision Support Systems Components of a Decision Support System. Sensitivity Analysis. CRM: BigState Bank’s Call Center Off-Shoring Decision. Decision: to maintain call center in the U.S. or send it offshore to Bangalore, India BigState Expected Benefits:

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BUS 391 Information Systems

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  1. BUS 391 Information Systems
  2. Decision Support Systems Components of a Decision Support System SensitivityAnalysis
  3. CRM: BigState Bank’s Call Center Off-Shoring Decision Decision: to maintain call center in the U.S. or send it offshore to Bangalore, India BigState Expected Benefits: Lower wage rate/higher quality of work Re-deploy assets (real estate & call center supervisors) Re-focus on its core business – banking Free up cash from infrastructure costs (telecommunication, computing, etc.)
  4. CRM: BigState Bank’s Call Center Off-Shoring Decision If BigState decides to send its call center to India: Hire Indian technical consulting: Bangalore information systems (BI) contracted to run BigState Bank’s Call Center; Retain an Indian law firm & a PR firm; Travel for executive-to-executive contact; Must send 2 U.S. liaisons to India and 2 Indian liaisons to the U.S.; Must consider the U.S. dollar-to-rupee exchange rate; Must consider background checks & training costs for employees (Indian vs. U.S.).
  5. CRM: BigState Bank’s Call Center Off-Shoring Decision BigState asks you to develop a DSS to help make this decision assumng BI’s contract will last 5 years Use: NPV – Net Present Value function to analyze multi-period investments. NPV(discount rate, (benefits-cost) over investment period) Assume the CIO will be financially justified in moving the call center to India if the potential investment shows a positive dollar NPV at 25% discount rate (“hurdle rate” – minimum acceptable rate of earnings on a potential investment)
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