Global Retail Company (GRC) • Global Travel Retailer • Luxury Brands • Liquor, Tobacco, Fragrance • 400 Locations, 16 Countries Current IT Reality Long Tenure Proprietary Knowledge Custom Applications Stable Systems Weaknesses Strengths Complex Silos Expensive Slow SW OT Crisis-driven Urgency Fragmented Strategy Opportunities Threats Inertia Fear Alignment Current IT Model DFS CIO Corporate (50) Parent CIO Shared Services (30) Region VP IT Regions (170) Analysts Operations Operations Projects Help Desk Help Desk Finance Finance Finance Development Development Current IT Operations 10 Data Centers (within owned offices) San Francisco Hong Kong Los Angeles Taiwan Miami Hawaii Guam Singapore Australia New Zealand 20 – AS400s Current IT Server Topology San Francsco SFO2 - AS/400 SFO - AS/400 DFS DFS IDC Sephora US & Japan DFactS server Starboard MCS Global Data Distribution MCS Test Environments AP Repository Hong Kong Sephora E3 Data Repository Sephora US MCS Specialty MCS MCS Test Environment E3 Data Sephora POS Sephora HKGA - AS/400 IDC Common Common Specialty DFactS server Aldon Change Control E3 Code Base DFS HongKong MCS Korea MCS Classic Jewelers SFDEV - AS/400 SEPJPN - AS/400 HNL - AS/400 POS/CDS - AS/400 IDC DFS Global DFactS server Sephora DFS MCS test environment DFS DFS Sephora MCS MCS MCS Test Environments Common E3/Repos Test Environment Common POS CDS Aldon Change Control 2 IDC IDC DFactS server Los Angeles Hawaii HNL - AS/400 Miami LAX - AS/400 DFS HNL POS- -AS/400 AS/400 DFS MCS MCS Taiwan DFS DFS MCS POS CDS HNL - AS/400 POS/CDS - AS/400 TPE - AS/400 HNL - AS/400 POS/CDS - AS/400 DFS DFS DFS DFS DFS MCS MCS MCS POS CDS POS CDS IDC Singapore WRX server X 2 2 2 POS/CDS - AS/400 SIN2 - AS/400 IDC IDC IDC IDC DFactS server WRX server X 2 WRX server X 2 DFactS server WRX server X 2 DFS POS CDS DFS Singapore MCS Malasia MCS IDC GVA - AS/400 DFactS server DFS Trading Company MCS Development- AS/400 Guam Oceania DFS MCS Test "Region" Systems GUM - AS/400 SYD - AS/400 DFS Guam MCS Okinawa MCS DFS POS/CDS - AS/400 Australia MCS New Zealand MCS New Caledonia MCS DFS POS CDS HNL - AS/400 POS/CDS - AS/400 POS/CDS - AS/400 DFS DFS MCS POS CDS DFS IDC DFactS server POS CDS 2 IDC IDC DFactS server WRX server X 2 IDC DFactS server Current WAN/LAN Architecture FLORENCE GENEVA EXISTING NT DOMAIN TRUST ELUXURY External TYDOM POS_GUM DFSWEB POS_SPN TYDOM1 GROUPNT2 NT_COME TE MIDPAC (ADS) GROUPNT SEPCOM LVMHWEBWEB NT_AIRPORT OKINA WA GROUPDEV AUSTRALIA MIAMI NORTHAMERICA HAWAII BALTIMORE KOREA HONGKONG SINGAPORE TAIWAN DFS_NA MALAYSIA Created by : Cognizant Version:1.0 USEAST SEPHORA Date:28/06/02 * Unstable link Legend: 1 Way trust 2 Way trus t incomplete trust 21 Domains; 69 Trusts; 54 Controllers NT 4Domain Windows 2000Domain Current Merchant Application Model (MCS) 9 Merchandising Systems E3 System E3 Distribution SFO2 SFO SIN2 LAX1 GUM HI GVA SYD HK Current Merchant Application Model (MCS) 9 Merchandising Systems E3 System E3 Distribution SFO2 SFO SIN2 LAX1 GUM HI GVA SYD HK Current Item Management Application (MCS) Enter the SKU Root Information Press F4 to Accept Enter SKU Attributes Info. Press F4 to Accept Enter Comments Press F4 to Accept Authorize Divisions Enter S/U, Quantity and Selling Cost Press F4 to Accept Select Stores Press F4 to Accept Enter Entry Method Press F10 to view Zones Enter Unit Retail Enter F4 to Accept 8 ‘Green Screens’; 15 Steps Current BI Architecture (DFactS) Departmental Data Marts Merchandise Data Mart Global North America Hawaii Guam Hong Kong Taiwan New Zealand Australia Miami User Access DSS Applications DFactS Reports MCS Thick Client Current IT Operating Budget (excludes CapEx) Key Assumptions • Custom Software (7mm lines of code) • Store POS… 10% • Merchant Purchasing and Distribution (MCS)… 45% • HR (regions)… 10% • Reporting (DFactS)… 20% • “Projects”… 15% • Packaged Software • SAP Finance… 20% • Peoplesoft HR (corporate)… 15% • E3 Replenishment… 35% • WRx Warehouse Management…5% • Lotus Notes Messaging… 10% • MS Office Professional… 15% • Communications • Long distance (10 contracts)… 35% • Data (hardware and software)… 55% • Mobile (16 contracts)… 10% Assignment In the aftermath of 9/11, GRC sales dropped 40%. As a new member of the Executive Committee, you and your team have been asked to quickly define a strategy for realigning IT expenses with sales projections. You must prepare your plan and present it to the Executive Committee during the coming weeks. Your plan must be self-funding, thereby minimizing capital investments to achieve the desired outcomes. Milestone 1: Problem Statement Due Tuesday, September 13 (written report) Milestone 2: Proposal Due Tuesday, September 27 (written report) Milestone 3: Next Steps Due Tuesday, October 11 (written report and presentation) Milestone 1 – Due Tuesday, September 13 Problem Statement Problem Statement Business Drivers Desired State Definition Current State Assessment Gap Analysis Management Options (be creative and bold) Report Due 6:30pm Milestone 2 – Due Tuesday, September 27 Proposal Sourcing Proposal Organizational Preparedness Cost / Benefits Analysis Key Risks Analysis Project Plan (key milestones and checkpoints listed) Project Details "Sanity Check" – Does this proposal really make sense from economic, organizational, technical and business points of view • Report Due 6:30pm Milestone 3 – Due Tuesday, October 11 Next Steps Process for selecting partners / vendors / providers Transition Management Plan Change Management Plan Program Management Plan Key Service Levels Definition Management Options if it doesn't work Report Due 6:30pm; Present during class