• Global Travel Retailer• Luxury Brands• Liquor, Tobacco, Fragrance• 400 Locations, 16 Countries

• Global Travel Retailer• Luxury Brands• Liquor, Tobacco, Fragrance• 400 Locations, 16 Countries

Global Retail Company (GRC)

Current IT Reality

Strengths

Threats

Weaknesses

Opportunities

SOT

W

Long Tenure

Proprietary Knowledge

Custom Applications

Stable Systems

Inertia

Fear

Alignment

Complex

Silos

Expensive

Slow

Crisis-driven Urgency

Fragmented Strategy

Regions (170)

Analysts

Projects

Finance

Development

Corporate (50) Shared Services (30)

Operations

Help Desk

Finance

Operations

Help Desk

Finance

Development

Current IT Model

DFS CIO Parent CIO

Region VP IT

Current IT Operations

20 – AS400s

Los Angeles

San Francisco

HawaiiSingapore

Miami

Australia

New Zealand

Guam

Hong Kong Taiwan

10 Data Centers (within owned offices)

HNL - AS/400DFS

MCS

2

Los AngelesHawaii

Guam

San Francsco

Miami

SFO - AS/400DFS

APRepository

E3 Data

SephoraRepository

E3 Data

CommonE3 Code Base

SFO2 - AS/400DFS

Starboard MCSGlobal Data DistributionMCS Test Environments

SephoraSephora US MCSSpecialty MCSMCS Test Environment

Sephora POS

CommonAldon Change Control

IDC

Sephora US & JapanDFactS server

IDC

SpecialtyDFactS server

IDC

DFS GlobalDFactS server

SEPJPN - AS/400Sephora

Sephora MCS

MCS Test Environments

CommonAldon Change Control

SFDEV - AS/400DFS

MCS test environment

CommonE3/Repos Test Environment

HNL - AS/400DFS

MCS

HNL - AS/400DFS

MCS

POS/CDS - AS/400 DFS

POSCDS

IDC

DFactS server

IDC

WRX server X 2

2

LAX - AS/400DFS

MCS

HNL - AS/400DFS

MCS

POS/CDS - AS/400 DFS

POSCDS

IDC

DFactS serverIDC

WRX server X 2

2

GUM - AS/400DFS

Guam MCSOkinawa MCS

POS/CDS - AS/400 DFS

POSCDS

IDC

DFactS server

IDC

WRX server X 2

HNL - AS/400DFS

MCS

2

Hong KongHKGA - AS/400

DFSHongKong MCSKorea MCSClassic Jewelers

POS/CDS - AS/400 DFS

POSCDS

IDC

DFactS server

IDC

WRX server X 2

TaiwanTPE - AS/400

DFSMCS

POS/CDS - AS/400 DFS

POSCDS

IDC

DFactS server

OceaniaSYD - AS/400

DFSAustralia MCSNew Zealand MCSNew Caledonia MCS

POS/CDS - AS/400 DFS

POSCDS

IDC

DFactS server

Singapore

SIN2 - AS/400DFS

Singapore MCSMalasia MCS

POS/CDS - AS/400 DFS

POSCDS

IDC

DFactS server

GVA - AS/400DFS

Trading Company MCS

Development- AS/400DFS

MCS Test"Region" Systems

IDC

WRX server X 2

HNL - AS/400DFS

MCS

POS - AS/400 DFS

POSCDS

Current IT Server Topology

DFSWEB

GROUPNT

GROUPNT2

LVMHWEBWEB

BALTIMORE

USEAST

HAWAII

HONGKONG

MIAMI

NORTHAMERICA

SEPCOM

SINGAPORE

TYDOM

TYDOM1

KOREA

ELUXURYExternal

TAIWAN

AUSTRALIA

MALAYSIA

MIDPAC(ADS)

OKINAWA

EXISTING NT DOMAIN TRUST

Created by : Cognizant

Version: 1.0 Date: 28/06/02

Legend:

1 Way trust

2 Way trust

incomplete trust

NT 4 Domain

Windows 2000 Domain

GROUPDEV

SEPHORA

FLORENCE GENEVA

NT_AIRPORT

POS_GUM

NT_COMETE

POS_SPN

DFS_NA

Current WAN/LAN Architecture

21 Domains; 69 Trusts; 54 Controllers

* Unstable link

E3E3 Distribution System

SYD

SIN2

HK

SFO2

GUM

SFO

HILAX1

Current Merchant Application Model (MCS)

9 Merchandising Systems

GVA

LAX1

SFO2

SYD

SIN2

GVA

HK

GUM

SFO

HI

9 Merchandising Systems

E3E3 Distribution System

Current Merchant Application Model (MCS)

Enter the SKU Root Information

Press F4 to Accept

Enter SKUAttributes 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 Item Management Application (MCS)

Departmental Data Marts

Merchandise Data Mart

DSS Applications

DFactS Reports

MCS

Thick Client

User AccessGlobal

North AmericaHawaii

GuamHong Kong

TaiwanNew Zealand

Australia Miami

Current BI Architecture (DFactS)

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