Case CH 9 - Case from chapter 9 PDF

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Case from chapter 9...

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CASE STUDY CHAPTER 9

1. Why is Maersk’s business model complex? One of the main reasons why Maersk’s shipping business model called complicated is variety of different systems used. Model is also focused on stakeholders and policies which vary from one country to another. Talking about international shipping business has not developed an efficient program yet and many tasks are still being handled manually, depending on the country stuff is being shipped in. While working internationally, shipment process is challenging as it must deal with different governmental policies, handling processes, and logistics systems. With the integration of digital technology, Maersk has figured out a more efficient and smarter solution how to do business, but this solution model does not work in other countries yet. the 2. What role do IoT play in Maersk’s systems? With the use of internet, Maersk was able to build a digital shipping management system and optimize his business operations. By using IoT Maersk reduced costs as he saved money on fuel consumption, optimized space by rearranging containers, and increased efficiency by finding the alternative routes for shipments. Moving on, with the help of IoT Maersk was able to provide better service to its customers. In other words, without internet efficiency of shipping business would not exist. Connectivity and monitoring are the most important aspects that Maersk improved with the use of IoT. 3. Why is tracking empty containers so important to efficient operations? The reason why tracking of empty containers is so important to efficient operations is because they could have been used and by being tracked, they get filled faster; as the system

works in a smarter way which saves time and improves efficiency of use. By filing empty containers more goods are shipped and less resources are used. Efficiency and profits will decrease if company is not tracking empty containers as less products will be shipped with a less productive approach. 4. What is the data driven culture that Maersk is trying to strengthen? According to the case study Maersk is focused on collecting data, as it gives you a better insight of the efficiency of the shipping business. That’s why Maersk spends a lot of money on providing a lot of data to HR department. Gathered data makes it possible to analyze information and make calculations on how ship route could be improved or predict risks of arriving on time and so on. Data provides information that increases the productivity and efficiency in the shipping business as it’s being used in numerous ways. Shipping companies like Maersk are able to reduce expenses, save time and resources used, and increase profits by using a data in its business models. 5. Why does Maersk want to give customers access to their systems? By providing access to customers, Maersk does a lot of things at the same time. It gives customers a thought that they are more involved in a process. As customers are able to check their shipment status by themselves, company saves money on customer service as one of the most common questions is eliminated. Customers easily track their goods through the digital shipping systems and receive updates whenever package is about to come and when it is delivered. Customer satisfaction increases because of convenience and their involvement and as a result profits increase as well....