1. Vince Rubiera Lithonia analysis - CIS 621 Evaluate the design and architecture of the Light*Link system. What impact has the system had on the process by which Lithonia sells lighting fixtures? In 1979 Light*Link was designed to tie together systems along Lithonia Lightings value chain to improve the flow of information between agents, distributors, warehouses, contractors, sales teams and Lithonia. Each of these points had a separate system that was used to track transactions. Light*Link created links between these systems. Designed as the hub of the network, ACE+ (Agency Communication Environment) was the system used by the agents to track and initiate orders.6 Light*Link was designed around the agent, since the agent was intimately involved with all the players in the construction industry. The agents in this industry had strong buyer power,5 since they controlled most of the sales. Light*Link was not only an investment in emerging core technologies;1 it also provided the framework to create new applications which would integrate into the network. The downside of this architecture was that each department had a separate system, which was not built upon a common database as suggested by the Technology Transformation Window.1 Transactions had to be circulated throughout the systems.6 As Ken Honeycutt, a future CEO of Lithonia stated, we had a multi-faceted business attempting to operate with eight or ten different systems, none of which would communicate reliably to another.2 The upside of this architecture was that it created an automated path of information that used to require manual resources to manage. Light*Link spanned along the entire value chain at Lithonia, and subsequently improved the way they sold lighting fixtures. Lithonia used Light*Link to create several applications in addition to ACE+ to improve value chain activities:3 SPEC-L assisted specifiers and agents in determining lighting configurations for certain jobs (marketing and sales). SOS Managed inventory and ordering in the field warehouses (outbound logistics). DIAL-L Gave distributors access to transaction information from the warehouses and agents (outbound logistics). SELL was equipped with several tools to assist the sales team (sales). OLA was a common information sharing platform which would host: o COPS and ROLL: order processing (outbound logistics). o MILL: manufacturing information (operations). o BILL: billing information (operations).6 With the establishment of Light*Link, Lithonia was able to differentiate itself from its competitors.5 It gave agents more control over the ordering process, and gave them quicker access to information. It also dropped internal and external transaction costs. This not only caused shifts to the right and up on the information intensity matrix,3 it also shifted the cost boundary over by transferring many of these transactional functions to the agents.1 Another benefit of Light*Link was the foundation it set for possibly creating a Value Web.4 Lithonia could have extended its network to include ordering and querying support to other manufacturers selling complimentary products. This would create relationships that would increase Lithonias competitive power, since it reduces ordering complexity further for the agents. In the 1980s Lithonia contributed some of their remarkable sales growth to their investments in Light*Link.6 They had been able to grow their business by making it easier for their agents to order lighting equipment. Their competitors, on the other hand primarily relied on acquisitions for growth. By increasing the information flow, Lithonia changed the way the entire industry sells lighting.6 Lithonia realized that the strong internal information systems it had built, which its competition lacked, could be shared with the agents.7 The Five Forces model makes it evident that Light*Link was used to help establish differentiation, innovation, Growth and alliance strategies for Lithonia. They accomplished this by: lowering agents costs, creating a competitive advantage, enabling brand loyalty, creating innovative applications, enhancing sales growth and strengthening relationships with distributers and agents. Light*Link had moved Lithonia to the right of the value equivalency line8 by providing additional benefit to its customers at a lower cost. 1. The Technology Window (Class Slides), 2008, R. Plant 2. Demand-Side Q&A, 2006, Tech Links (http://www.techlinks.net/Editorial/DemandSideQA/tabid/220/ctl/Detail/mid/734/xmid/29640/xmfid/8/Default.aspx) 3. How Information Gives You Competitive Advantage, 1985, HBR 4. 1996, McKinsey Quarterly, No 1 5. How Competitive Forces Shape Strategy, 1979, HBR 6. Lithonia Lighting, 1992, HBR 7. An illuminating CEO-CIO alliance, 1990, Datamation 8. Setting Value, Not Price, 1997, McKinsey Quarterly, No 1