The Cambridge Container Company: managing customer-centric information integration

• Published in: International journal of accounting information systems 2003-12, Vol.4 (4), p.309-330
• Main Authors: Ray, Amy W., Robbert, Mary Ann, Brocious, Jason
• Format: Article
• Language: English
• Subjects: Customer-centric; Information integration; Management
• ISSN: 1467-0895; 1873-4723
• DOI: 10.1016/j.accinf.2003.05.003

This case illustrates the efforts of the Cambridge Container Company, a fictitious manufacturer of plastic containers, as they consider methods for moving organizational decision-making toward a more customer-centric focus. Cambridge has four independent manufacturing units, each of which currently bases all operational decisions on internally generated cost and profitability information. 1 1 While the Cambridge Container Company is fictitious, the issues addressed in this case are representative of problems and concerns of real companies encountered by the authors during various consulting engagements. In 2000, Cambridge established a special enterprise level division to consider best practices for collecting qualitative product and service feedback from customers and to subsequently consider how to best integrate such nontraditional, nonfinancial information into their own operational decision models. This realistic scenario gives students an opportunity to consider the financial and managerial implications of moving to customer-centric operational decision-making. Business articles on the advantages of customer centricity abound, but few sources consider the financial and managerial consequences beyond increased customer loyalty and satisfaction. In actuality, this current business trend requires significant reengineering of information systems and management practices. Consequently, accounting methods must be re-evaluated for accuracy and fit with new systems and management practices. At the heart of this case is an opportunity for students to consider the appropriate balance of traditional financial and customer-driven nonfinancial information in management decision models for optimal profitability of the company and its individual units. In addition, the instructor can delve into a number of internal control and political issues related to information sharing. There is also opportunity for students to consider at a high level the complexities of balancing open information sharing and information security. Several alternative questions and suggested solutions are provided for the instructor at the end of the case. We suggest that instructors select only three or four of the questions so students can spend more time on each selected issue. This case is adaptable for use in managerial accounting, accounting systems or management systems courses at the undergraduate or graduate levels.