Business Intelligence Software at
September 19, 2006
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Case Overview
• Company Overview: Sysco • Business Intelligence Software • Partner Overview: Business Objects
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Issue Identification
• How should Sysco structure their BI Deployment?
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Project Goals and desired outcomes
• Managing an implementation across several independently operating business units (centralization vs dispersion) • Twila’s group needs to provide technical support, training and consulting around BI. • Focus implementation
– What additional products could we be selling to each of our customers – Which of our current customers are we likely to lose?
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What challenges will Twila Face as she rolls out BI software?
• Need to work at several levels (steering team, project team, BUs to implement) • High expectations from senior team based on Demo • How much BI software should Sysco purchase? Is it wise to buy them at the start or as business needs become clear?
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Evaluation of Options
• ―Bare Bones‖ • ―Middle of the Road‖ • ―Volume Discount‖
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Option 1: “Bare Bones”
Overview • Performance Dashboards for 10 people at each of 83 BUs • Query/Analysis for 3 people at each of 83 BUs; 5 people from corporate • 1000 Basic Licenses
Advantages • Lower cost • Price per license could drop over time • Ensure implementation before making additional expenses • Not locked into learning everything—steep learning curve Disadvantages • Not meet Director Council’s expectations set by demo— diminished executive sponsorship • Several extra months to roll out • Need to buy more licenses within 6 months • No supply chain access • Puts future purchase in hands of partner—who may not be dependable in the future • You have lost bargaining power after initial purpose • Doesn’t provide a business process for customer 7 intelligence
Option 2: “Middle of the Road”
Overview • Performance Dashboards for 15 people at each of 83 BUs • License customer intelligence analytical module • 1300 Basic Licenses Advantages • Moderate cost • Purchasing the module that answers the two questions they set out to answer • Focuses our efforts on 1 initial rollout—doesn’t confuse with other issues • Makes it easier to access, analyze and share data by providing more licenses Disadvantages • Need to buy more licenses within 12 months • No supply chain module • Increase in maintenance costs
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Option 3: “Volume Discount”
Overview • Performance Dashboards for 20 people at each of 83 BUs • License customer intelligence analytical module • Supply Chain Module • 2000 Basic Licenses
Advantages • Company-wide access to tools and key data • Drive uniformity across business units with a common system • 435 Licenses for supply chain module • 2 years of software licenses—no renegotiation
Disadvantages • Too many people with access to business data- could create security issues or inaccurate data • Spend more time training people who don’t need access • Dilute efforts on rolling out out-of-scope business processes • Higher Cost
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Recommendation
Option 2 • Purchasing the module that answers the two questions they set out to answer • Focuses our efforts on 1 initial rollout— doesn’t confuse with other issues • 1 year of licenses allows you to see if you’ve met company needs, but doesn’t sink you into a long-term partnership • Makes it easier to access, analyze and share data by providing more licenses • Moderate cost
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Anticipated Results
• ?
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Results
• More consistent operations across business units • Provides up-to-date data to drive decisions and understand changing customer needs in a highly competitive industry
Resulted in….
• X% in gross revenues may be driven by increased focus on retaining customers and driving new products to existing customers
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