Valero Energy,Elkay manufacturing, J&J, Overstocks.com: The move toward Fact-based Decision Making

Knowledge management

A business intelligence dashboard is a data visualization tool that displays the current status of metrics and key performance indicators (KPIs) for an enterprise. Dashboards consolidate and arrange numbers, metrics and sometimes performance scorecards on a single screen. They may be tailored for a specific role and display metrics targeted for a single point of view or department. The essential features of a dashboard product include a customizable interface and the ability to pull real-time data from multiple sources.

Valero Energy Corporation is a Fortune 500 international manufacturer

and a marketer of transportation fuels, other petrochemical products, and power. It is based in San Antonio, Texas, United States. The company owns and operates 16 refineries throughout the United States, Canada, United Kingdom, and the Caribbean with a combined throughput capacity of approximately 3 million barrels (480,000 m3) per day, 10 ethanol plants with a combined production capacity of 1.2 billion US gallons (4,500,000 m3) per year, and a 50 megawatt wind farm. Valero is also one of the United States' largest retail operators with approximately 6,800 retail and branded wholesale outlets in the United States, Canada, United Kingdom, and the Caribbean under the Valero, Diamond Shamrock, Ultramar, Beacon, and Texaco brands.

It was created on January 1, 1980, as a spinoff of Coastal States Gas Corporation

Company Profile

Valero Energy

Johnson & Johnson

Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500.

Johnson & Johnson is headquartered in New Brunswick, New Jersey with the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries and products sold in over 175 countries. Johnson & Johnson had worldwide sales of $65 billion for the calendar year of 2011.

On December 31, 2012, the Food and Drug Administration approved Sirturo, a Johnson & Johnson tuberculos is drug that is the first new medicine to fight the infection in more than forty years.

ELKAY Manufacturing

It is a multi-family building located at 638-642 Kelton Avenue, in the Westwood neighborhood of Los Angeles, California. Designed in 1948 in the international or modernistic style of architecture by noted Los Angeles architect Richard Neutra, it was completed in 1948 for noted violist Louis Kievman. The name Elkay is derived from his initials. The building is owned today by his daughter Karen Bruderlin, Jasper, Lance, Zack and Leo live there which is significant because they all have 3d printed things. It is next door to the Kelton Apartments designed by Neutra in 1941 for himself. Despite objections from the owners of the Elkay Apartments, on June 21, 1988, the City of Los Angeles designated the building a Los Angeles Historic-Cultural Monument.

Overstock.com

Overstock.com, Inc. is an American online retailer headquartered in Cottonwood Heights, Utah, near Salt Lake City. CEO Patrick

M. Byrne launched the company in May 1999. Overstock.com initially sold surplus and returned

merchandise on an online e-commerce marketplace, liquidating the inventories of at least 18 failed dot-com companies at below-wholesale prices. In recent years it has expanded to sell new merchandise as well.

The business started rebranding in early 2011 .

Summary

On the meeting chief operating officer of Valero energy discuss with 16 major refineries throughout the US and Canada and they discussed about of plant performing according to their plan with the help of Dashboard. The dashboard refresh the data every five minutes. If dashboard show the green to red might signal million of dollar in stake. sometimes they face problem due to unsuitable decision according to their problem. When they take decision for company the large no of obstacles on the way. company commitment to make excellence program dashboard for improving the performance. they compared it into real time program .real time compared against daily and monthly target,but dash board refresh the data every five minutes. the company tapped directly into “process historian” system which is manufactured by SAP. Now company focus on Reducing energy consumption.so the company make another separate dash board that show the statistics on power consumption by unit and plant”based on the data”.

Continues…..

The difference between “score Card” and “Dashboard” is scorecard is tracking against the defined matrics,and most scorecard are attached to a methodology. Large no of company use Dashboard style interface the simply monitor the health of business.these are not attached to grand methodology. Then Elkay ‘s stated strategy is grow profitably ,so its sales related scorecard and

dashboard include profit metrics metrics so salespeople don’t just drive at the expense of bottom line.It tapped host analytics software as-a-service financial performance management system ,which it uses for budgeting,planning,reporting and end-of-quarter financial consolidation.then they chose software analyses base of cost.,delivering product, cost of sustaining customer for decision support

Continues…..

multiple enterprise if the companies do for decision making just like Johnson & Johnson.it is an iterative process of assessing opportunities, developing goals, implementing improvements and then monitoring their success with the aid of decision support.

There are Dashboard use in some case and scorecard use another basis like product mix, financial metrics ,I nternal process and employment metrics. Overstocks can roll up its profit and loss statement every two hours .The financial result except basis of an advertising whether company is an e-commerce power house or not or digital marketing channel like E-mail , Social Media,and online advertising network are increasing important.Thus top Executive always watching forward looking,upstream measure such as website performance .

But now IT sector are growing internet-based marketing so he date driven decision making forward easily.

Knowledge management initiatives

The operating officer of the Valero energy on discussion they decide about the use of Dashboard Or by using of dashboard how to solve the problem and think about the how use it into the power consumption.

Elkay company use it on planning, budgeting, reporting. Johnson &Johnson company use it assessing opportunities,

developing goals, implementing improvements and then monitoring their success with the aid of decision support tools

overstock.com use it on the daily schedule. They use it on e-commerce and financial work

Challenges of Knowledge management

They focus how use dashboard and scorecard in proper way.

After identified the problem some times make problem on take decision

Use single dashboard to control for the different type of action.

Use the old technology dashboard

Overcoming From challenges

They analysis of activity based costing and customer segmentation come and take better decision.

Install dashboard individually according to the function.

Use it on multiple proupose.

SWOT analysis

Strength They use Dashboard so the problem solved easily. They focus on digital marketing. They have Innovative idea about the new technology. By use of technology they take operational

decision.eg-by use of dashboard they consumption the power.

Weakness

Large no of obstacles come in the decision support. Sometimes take the unsuitable decision. They have ill advised goals to antiquated budgeting

approach and technophobic.

Opportunity

Good opportunity in IT sector& research sector.

They threat to their competitor.

Threat

QUESTION & ANSWER

1.What is the difference between ‘’dashboard’’ and a ‘’scorecard? why is it important that managers know the difference between the two? What can they learn from each?

Difference between ‘’dashboard’’ and a ‘’scorecard

Dashboard Scorecard

Is used for… Performance measurement / monitoring

performance management

As a measurement tool is…

metric KPI (Metric + Target)

Measure is linked to business objectives…

doesn’t link link

It measures… performance progress (the current value versus the target value)

It focuses on… operational (short-term) goals

strategic (long-term) goals

Its helps… visualize the performance to understand the current state

align KPI, objectives, and actions to see the connection between them

Manager know the important between to because it’s property is different from each other at the decision making process it takes different time.

It’s use for in different purpose.

QUESTION

2.In what ways have the companies mentioned in the case benefited from their adoption of “fact-based ”decision making? Provide several examples from the case to illustrate your answer.

Valero energy applied this technology on the increase in efficiency and use it for power consumption. And also focus for the developed this technology for take right decision in future.

Elkay company use it for performance analyzer for activity based costing ;analyses that

Reveal the true cost of delivering product(including manufacture, distribution, sales and marketing and warrant claims)as well as the true cost of sustaining customer (including products, purchased, discount applied, and ongoing service and support costs).For decision support,oracle business intelligence Enterprise edition pulls information from multipleenterprise system to deliver multilevel scoreboard and dashboard.

Johnson &Johnson company uses it assessing opportunities, developing goals, implementing improvements and then monitoring their success with the aid of decision support tools.

They use separate dashboard in some cases within the pharmaceutical, consumer, and medical device and diagnostics product division as well as the dozens of companies in each of the groups mix financial metrics(revenue, net income, cash flow) ;customer metrics(satisfaction, locality, market share);and employee metrics(engagement, satisfaction)

overstock.com use it on the daily schedule. They use it on e-commerce and financial work

they use it also for advertisement.

QUESTION

3.Information quality is central to the approach toward decision making taken by these organizations. What other elements must be present for this approach to be successful(technology, people, culture, and so forth)?

Technology-apply the new technology for organization.Before they use the real time data now use dashboard.They should use separate dashboard.

People-Apply this technology for satisfaction, locality, market share and motivate to use new technology.

Culture-Create Dynamic technological environment culture& give training to the employee how they use it.