I've recently been evaluating new LCD projectors. Two models from Dell was recommended by a colleague: the 1100MP (1400 lumen) and 2300MP (2300 lumen). The former is about MOP6,xxx while the latter is about MOP9,xxx. Comparing the features and costs, the latter certainly looks like a good buy. An interesting bit of the story is that I was also recommended to buy a ceiling mount kit from Dell (MOP1,xxx) and use their installation service (MOP2,xxx). I was told if we use a non-standard mount kit, it "may obscure the buttons on the projector".
How hard is it to get a welding worker to make such a ceiling mount that doesn't obscure the buttons? How hard is it to get an electrical technician to wire the cables? I don't know; we're going to find out. What is interesting is the strategy of the vendor to charge people premium prices on these add-on accessories or services, based on our fear that 3rd party offerings won't work with their core product. This is a common plot played by vendors: Fear, Uncertainty and Doubt (FUD).
Another interesting thing is, certainly the 2300MP looks good and it is recommended by our colleague. We do trust our colleague, right? But my logical mind told me to look for alternatives anyway. Guess what I found? A 2600 lumen Acer projector costing only MOP6,xxx and a 2500 lumen InFocus projector costing only MOP7,xxx. The take home message is that we should never let our personal trust influence our purchase evaluation process. In particular, it should never prevent us from looking for facts and alternatives.
If you'd like to learn more about common traps in IT purchasing, contracting and outsourcing, you should take a look at the book "Smart way to buy information technology". It covers all the traps shown above (FUD, personal trust) and many more and how to avoid them by adopting an effective purchase process. This book is available for borrowing at CPTTM Cyber-Lab. Many other books for CIO/IT managers are also available. Please see http://www2.cpttm.org.mo/cyberlab/mslib.
According to industry researches, out of stock items cause a retail store to lose 3.4% of sales. By using RFID, Wal-Mart, the largest retailer in the world, has decreased its out of stock items by 16%. It means it can expect to increase its sales by 16%x3.4%=0.544%. If it sells $1000 of items annually, now it will become $1005.
How does it do that? To understand it, you need to understand why items are sometimes out of stock: A retail store has a back room to store its items. Whenever the shelf is empty, the employees will get items from the back room to replenish the shelf. When the items in the back room are running out, they will order items from a distribution center. The problem is that, usually retail stores rely on human to look for empty shelves. When they miss, items are out of stock. Another problem is, sometimes even if there are items in the back room but they miss. So they order more than they actually need.
To solve these problems,
Wal-Mart install an RFID reader at the entrance to the back
room and another reader in the transit from the back room to the
shelves. Whenever it receives items from a distribution
center, each case of items is already tagged with an RFID tag. When the
case is moved into the back room, the tag is read and the number of
items are recorded into the inventory program automatically. For
example, if such a case contains 20 bottles of Coke and two cases have
been read, then the inventory program knows that there are 40 bottles
of Coke in the back room. Suppose initially the shelf is
empty. So a case is moved to the shelf. That reader in the transit will
read the case and 20 bottles of Coke will be reduced
from the back room and added to the shelf (so each has 20).
Whenever a bottle is sold, the POS system will
reduce one bottle from the shelf (back room has 20; shelf has
19). When the items on the shelf are running out, the inventory program
will notify the employees to get more from the back room. When the
items in the back room are running out, it will also notify the
employees to get more from the distribution center.
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Any questions, ideas or experiences to share? Contact me at 781313 or kent at cpttm dot org dot mo.
Until next time,
Kent Tong