Alvalade XXI Harvard Case Solution & Analysis

Question no. 1

            Jose Eduardo Sampaio, CEO of CASA, assigned the project of implementing a new payment system in the bars which was based on making sales without the use of cash. This system was supposed to give Casa XXI image of innovation and using modern technology. But the system failed during the inauguration and gave birth to various problems regarding the operations and technology. Jose blamed the supplier for the failure whereas, the supplier of the system blamed Jose for improper organizational operations. Moreover, there was an issue being faced by Jose for proper implementation of the system and proper selection of the supplier.

Internal Dependencies

Although the system was a great approach, but it faced many challenges and issues while its implementation. The project was having many internal dependencies. The efficiency of the new payment system known as Cartao 21 depended on many factors. It mainly depended on salespeople who were present at the bar and other Point of Sales Terminals and also the walking salespeople. There was a front office that supported sales and interaction with the clients and the back office that supported the food and beverage operations.

Moreover, the system was mainly dependent on the software which was a standard application which helped in connecting the POS to the local servers with software running on it. The project was mainly dependent on the system being used for the payment through pre-paid cards. The system worked in a way that when the customers presented their cards to the salespeople at the point of sales, the salespeople were supposed to swipe the card and give them the printed receipt to the customers via which they could get the desired product. The dependence on the system was a weakness as upon failure of the system the sales people were unable to make transactions.

Moreover, the walking sellers had the handheld wireless terminals so that they could record the sales and accepting Cartao 21 payments. They were also the main source of generating revenues in the stadium terraces, and were a great part of the system. The weakness of the handheld devices was that they were dependent on the wireless terminal storage and antennas. On failure of terminal storage there was a failure of walking sellers. The project was useless without the customers. It was designed to facilitate the customers in real time and saving the time for serving the customers. The system was a failure due to the weaknesses it possessed. Like the salespeople had many products being shown on their monitors so it was hard to select the item and it lacked in entering the order. Pre-paid cards were the major elements of the project and there was weakness in the cards that they were needed to be activated at the point of sale at the bar and it was a real headache at the time of rush.

            The requirement of the project was to set up an image of innovation and modernization in CASA XXI. This was to make sure that more customers were attracted to the brand image. The project was designed to ensure that the use of cash could be avoided and reduce the time taken for payment transactions. Moreover, increasing the productivity of salespeople at bar, quick turnaround and high sales without the need of maintaining the registers as a record were some of the functions of the project. The system was developed by Meag which had limited experience in implementing the large IS system. After the development of the system, Jose and Meag were unable to test the system as the construction of the stadium was delayed. Thus, it was directly deployed without testing. It was deployed on the day of the inauguration of the stadium and Casa XXI, but the system was a failure due to many issues and weaknesses.

External Factors

            For the perfect system and meeting the result, the project was dependent on the technical supplier for designing and implementing the system. The proper design and implementation was necessary, keeping in mind the avalanche of customers and the main idea of implementing the system. There was a weakness in the supplier as it had limited experience regarding the implementation of large systems. Moreover, the project was also dependent on the media coverage..............................

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