Answer:

1- Let's analyze the Brady Corporation using the Competitive Forces (Porter's Five Forces)
and the Value Chain models:

 Competitive Forces (Porter's Five Forces):

1- Threat of New Entrants:
 Brady Corporation has a strong position in the market, particularly in high-performance
labels, signs, and industrial safety products.
 The company's focus on niche products, such as ultra-thin identification labels and
specialized adhesive, creates a barrier for new entrants.
2- Bargaining Power of Buyers:
 Brady's diverse product range and global presence give it an advantage in negotiating with
buyers.
 The mention of major clients like W.W. Grainger and R.S. Hughes suggests that the
company caters to significant players, possibly reducing the bargaining power of individual
buyers.
3- Bargaining Power of Suppliers:
 Brady's size and global operations may provide it with negotiating power over suppliers.
 The text doesn't provide extensive information about the suppliers, so it's unclear to what
extent the company relies on a small number of key suppliers.
4- Threat of Substitute Products:
 The diverse range of products, including labels for electronic devices with specific features,
reduces the threat of substitution.
 However, continuous innovation and changing customer preferences in the technology
industry could pose a challenge.
5- Intensity of Competitive Rivalry:
 The acquisition strategy, including the purchase of smaller competitors and global
operations, indicates a competitive approach to the market.
 The mention of potential competition from small, nimble competitors using the Internet
suggests a dynamic competitive landscape.

 Value Chain:
1- Inbound Logistics:
 Brady's global presence and acquisitions contribute to efficient inbound logistics.
 The challenges with information systems and communication among units, as mentioned,
highlight potential inefficiencies in this stage.
2- Operations:
 The text emphasizes the need for a comprehensive overhaul of business processes to move
fully into the digital age.
 The implementation of the Eclipse project aims to standardize processes and improve
efficiency.
3- Outbound Logistics:
 The global distribution of labels in over 100 countries using E-Commerce showcases the
company's effective outbound logistics.
 Challenges in tracking orders and inconsistencies in pricing need to be addressed for further
improvement.
4- Marketing and Sales:
 The acquisition strategy and the introduction of E-Commerce platforms, like Web-to-
Workbench, indicate a focus on modern marketing and sales practices.

1
  Efforts to increase online orders and a goal of 50% of all orders coming through the Internet
by 2003 show an emphasis on digital sales channels.
5- Service:
 The implementation of Eclipse aims to provide better customer service by improving order
processing, reducing errors, and integrating business processes.

 Overall Analysis:
1- Strengths:
 Global presence and diverse product range.
 Successful acquisition strategy.
 Innovation in product features.
 Efforts to adapt to the digital age.
2- Weaknesses:
 Challenges with information systems and communication.
 Customer-related issues during the Eclipse project implementation.
3- Opportunities:
 Growing demand for electronic devices and industrial safety products.
 Continued expansion into emerging markets.
 Streamlining operations for further efficiency gains.
4- Threats:
 Intense competition, especially from nimble online competitors.
 Rapid technological changes impacting product preferences.

In summary, Brady Corporation is a leader in the production of high-performance labels, signs,

and related industrial products, it faced heavy competition from smaller, new competitors. These new,
more nimble competitors were using the Internet to cut costs. Also, Brady's customers needed
immediate and reliable sources of supply as they moved into Asian and Latin American markets. Brady
Corporation used information technology to enhance both its primary and support activities. As the
case points out, Brady connected its 44 business units and integrated its 1,400 business processes into
a single system.

2- Brady's E-Commerce Implementation and Challenges:

 How Well Brady's Systems Supported its E-Commerce Business Model:
1) Successes:
o The implementation of the Web-to-Workbench project in 1997 for the Seton Identification
Products division allowed customers to design and order signs online, reducing online order
processing costs by 88%.
o By December 2000, 20% of all orders were coming through the Internet.
o Efforts to increase online orders and a goal of 50% of all orders coming through the Internet
by 2003 indicate a commitment to E-Commerce.
2) Challenges:
o Despite successes, challenges emerged during the Eclipse project, which aimed to overhaul
business processes fully and enhance E-Commerce capabilities.
o Problems included SAP data errors, customer order issues, and difficulties for sales reps in
learning and adapting to new software.

 Factors Responsible for Problems:

1) Management Factors:
o Lack of Integration: Brady faced issues due to its sprawling and fragmented structure, with
19 separate databases and units using different product identification numbers for the same
items. This lack of integration led to confusion and errors.
2
 o Inefficient Processes: Management identified that the company's growth was hampered by
an infrastructure that had become too extensive. Manual handling of tasks and inefficient
processes contributed to duplicated work and errors.
2) Organization Factors:
o Resistance to Change: The text mentions challenges in convincing division managers to
allocate their best employees to the Eclipse project. Resistance to change can slow down
the adoption of new technologies and processes.
o Communication Issues: Inefficiencies were identified in the communication and
coordination among units. Each unit had its own sales tracking system, resulting in
confusion for both employees and customers.
3) Technology Factors:
o Outdated Information Systems: Brady's reliance on outdated information systems that
couldn't communicate with each other led to difficulties in tracking orders, analyzing sales
trends, and running financial reports.
o Software Customization: The decision not to use SAP software in product design and
customer relationship management (CRM) and instead rewrite some of its own systems in
the SAP software development language may have contributed to integration challenges.

 Overall Assessment:
o Management Response: Recognizing the issues, management initiated the Eclipse project,
emphasizing the need for a complete overhaul of business processes. However, challenges in
execution emerged, including resistance to change and difficulties in employee training.
o Organizational Challenges: The organization's structure and communication issues, including
the lack of a unified system and standardized processes, contributed to the problems. Divisional
autonomy led to inconsistencies in pricing, product identification, and customer experience.
o Technology Limitations: Reliance on outdated information systems and the decision to
customize software for certain functions created interoperability challenges, hindering the
smooth transition to a more integrated and efficient system.

 Learned and Future Considerations:

o The successful implementation of the Web-to-Workbench project demonstrated the potential
of E-Commerce in improving customer experience and reducing costs.
o Addressing organizational and communication challenges, along with a careful consideration
of software choices, is crucial for a successful digital transformation.
o Continuous training and support for employees adapting to new technologies are essential to
minimize disruptions during system implementations.
o Regular updates and improvements to information systems are necessary to keep pace with
industry changes and customer expectations.

In conclusion, Brady's systems did not support its business model. As the case points out,
employees were making errors; the systems were antiquated and could not communicate; customers
were not promptly paying their invoices; work was duplicated; the business processes had too many
steps, and the company was sprawling and fragmented. There were 19 separate databases each with its
own file servers and transaction software; there were incompatible platforms; each unit had its own
sales tracking system; plants used different product identification numbers for the same items; there
was not a way of identifying total business for a specific customer, and management needed more
information about its customers.

3
 3- Analyze the Internet as a source of problems and opportunities for Brady.
 Internet as a Source of Problems for Brady:
1) Competitive Threats from Nimble Competitors:
 Problem: Brady faced challenges from smaller, nimble competitors leveraging the internet
to reduce costs.
 Impact: This threat necessitated Brady to adapt and utilize the internet for its operations,
leading to the Web-to-Workbench project and the broader Eclipse initiative.
2) Infrastructure and System Issues:
 Problem: Brady identified its sprawling and fragmented infrastructure as a hindrance to
growth, particularly in the mid-1990s.

 Impact: Outdated information systems and the lack of integration among various units and
databases created inefficiencies. The internet exposed these issues, making it difficult to
keep up with customer demands and maintain competitiveness.
3) Customer-Focused Challenges:
 Problem: The lack of customer focus was acknowledged, with difficulties in obtaining
comprehensive information about customers and variations in pricing and discounts based
on order placement.
 Impact: The internet heightened customer expectations for quick responses and consistent
experiences. The existing challenges affected customer satisfaction and potentially led to
lost opportunities.
4) E-Commerce Implementation Issues:
 Problem: The Eclipse project faced challenges during the E-Commerce transition,
including SAP data errors, customer order problems, and resistance from employees to
learn new software.
 Impact: These issues affected the efficiency and reliability of the online ordering process,
potentially leading to customer dissatisfaction and increased operational costs.

 Internet as a Source of Opportunities for Brady:

1) E-Commerce Expansion:
 Opportunity: The internet presented an opportunity for Brady to expand its E-Commerce
presence.
 Action Taken: The Web-to-Workbench project allowed customers to design and order
signs online, and the broader Eclipse project aimed to increase online orders and reduce
operating expenses through E-Commerce.
2) Global Reach:
 Opportunity: The internet enabled Brady to extend its operations globally, reaching
customers in over 100 countries.
 Action Taken: Brady leveraged E-Commerce to distribute its labels worldwide, adapting
to the changing dynamics of global markets and increasing its workforce from 1,500 in
1994 to 4,000 in recent years.
3) Efficiency Improvements:
 Opportunity: E-Commerce presented an opportunity for Brady to improve operational
efficiency.
 Action Taken: The Eclipse project aimed at overhauling business processes and integrating
systems to streamline operations, reduce costs, and enhance the overall efficiency of the
company.
4) Customer Experience Enhancement:
 Opportunity: The internet provided a platform to enhance the customer experience.
 Action Taken: The Web-to-Workbench project allowed customers to design and order their
own signs online, contributing to a more customer-centric approach. The broader goals of
the Eclipse project included providing faster and more reliable services to customers.
4
 Learned and Future Considerations:
 Brady's experience emphasizes the need for businesses to view the internet not only as a source
of opportunities but also as a platform that exposes and amplifies existing challenges.
 Proactive adaptation to E-Commerce and a customer-centric approach are essential for
maintaining competitiveness in a rapidly evolving digital landscape.
 Investments in technology and infrastructure should align with the company's long-term
strategic goals, considering the potential impact of internet-driven changes on business
processes and customer expectations.

In conclusion, The Internet allowed the competition to come from anywhere and undercut
Brady. Competitors were able to use the Internet to shave costs on low-profit margins. Brady's Web-
to-Workbench allows customers to design and order their own signs online. Once the order is placed,
the order is forwarded to the appropriate production facility. The new digital system reduced online
ordering costs and resulted in new customers placing two-thirds of its orders. As the case suggests, the
Web-to-Workbench resulted in some benefits but did not solve all of Brady's problems.

4- The success of Brady Corporation's systems projects using E-Commerce can be evaluated
based on several factors.
 Success Factors:
1) Web-to-Workbench Project:
Success: The Web-to-Workbench project, launched in 1997, enabled customers to design and
order signs online, resulting in an 88% reduction in online order processing costs. This project's
success demonstrated the capability of E-Commerce to streamline processes and reduce
operational expenses.
2) Eclipse Project:
Mixed Success: The Eclipse project, initiated to overhaul business processes fully and enhance
E-Commerce capabilities, faced challenges during implementation. While it brought about
positive changes, including integration of business processes and global unified price lists,
there were issues such as SAP data errors, customer order problems, and challenges in
employee adaptation to new software.
3) Global Expansion and Distribution:
Success: Brady's operations expanded into 22 countries, and its labels were distributed in over
100 countries using E-Commerce channels. This indicates successful utilization of E-
Commerce for global reach and distribution.
4) E-Commerce Growth Goals:
Partial Success: Brady set ambitious goals for E-Commerce, aiming for 50% of all orders to
come through the Internet by 2003. While the company made progress with 20% of orders
coming through the Internet by December 2000, it fell short of the 50% target.
5) Cost Reduction and Efficiency Gains:
Partial Success: The Eclipse project aimed at reducing operating expenses by 2% or $10
million annually. Although it faced challenges, the successful implementation at Worldwide-
Varitronics resulted in a significant reduction in the cost of processing an order from $16 to $2.

 Overall Assessment:
o Positive Achievements: Brady Corporation achieved success with specific E-Commerce
projects, such as the Web-to-Workbench initiative, which demonstrated cost savings and
efficiency gains.
o Implementation Challenges: The Eclipse project faced challenges during the initial
implementation, including data errors, customer order issues, and difficulties in employee

5
 adaptation. However, lessons learned from the pilot at Worldwide-Varitronics contributed to
improvements.
o Strategic Importance of E-Commerce: Despite challenges, the company recognized the
strategic importance of E-Commerce for global expansion, customer engagement, and
operational efficiency.

 Learned and Future Considerations:

o Continuous improvement and refinement of systems are crucial for adapting to changing
technological landscapes.
o Addressing challenges in employee training and adaptation is essential for the successful
implementation of E-Commerce projects.
o Establishing clear goals and aligning them with realistic timelines can contribute to more
achievable outcomes.
o Regular assessments and adjustments to strategies are necessary to meet evolving market
demands and customer expectations.

In conclusion, while Brady Corporation encountered challenges in certain E-Commerce

initiatives, it also achieved successes, demonstrating the strategic importance of leveraging online
channels for global expansion and operational efficiency. The company's ability to learn from
challenges and refine its approach will play a vital role in future E-Commerce endeavors.