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SYSCO's Business Intelligence Software Strategy

1) SYSCO is a large food service distributor in the US with many decentralized divisions. The company is considering implementing new business intelligence (BI) software across the entire organization to better analyze data and understand customers. 2) There are two options for purchasing the BI software - buy only what is needed now, or buy more upfront for discounts and future needs. Implementation challenges include integrating the software with existing data sources and gaining acceptance from operating divisions. 3) Success will be difficult to measure as factors like increased sales could be from many causes, though software usage, support satisfaction, and operating division participation can provide indicators. While BI may provide advantages, competitors could implement similar solutions.

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Pedro Barros
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1K views12 pages

SYSCO's Business Intelligence Software Strategy

1) SYSCO is a large food service distributor in the US with many decentralized divisions. The company is considering implementing new business intelligence (BI) software across the entire organization to better analyze data and understand customers. 2) There are two options for purchasing the BI software - buy only what is needed now, or buy more upfront for discounts and future needs. Implementation challenges include integrating the software with existing data sources and gaining acceptance from operating divisions. 3) Success will be difficult to measure as factors like increased sales could be from many causes, though software usage, support satisfaction, and operating division participation can provide indicators. While BI may provide advantages, competitors could implement similar solutions.

Uploaded by

Pedro Barros
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Intelligence

Software at SYSCO

1
Case Overview
z SYSCO is a large food service company in the
US
z Distribute food and related supplies to restaurants,
schools,
z Highly decentralized company with many
operating divisions
z Company has BI software in divisions already
z Case centers on the process related to a new BI
software for the entire company, how much to
buy, and the implementation of the new software

2
Case Objectives
z What is BI software? What are the business
benefits of BI software?
z What are the two alternatives for buying BI
software at SYSCO?
z What are some implementation pitfalls of BI
software at SYSCO?
z How should SYSCO judge the success of its
BI software implementation?
z Is BI likely to provide SYSCO with a
competitive advantage? Sustained
competitive advantage?

3
What is BI Software?

z What is BI software?
z Statistical analysis
z Data mining
z Ad hoc queries
z Other features

z Why did SYSCO need/want it?


z Make better use of available information
z Understand their customers better
z Possible competitive advantage?

4
What is BI Software? (cont.)

z What kind of companies benefit from BI


software?
z In general, large and small
z Don’t have to buy everything

z Appropriate IT infrastructure is crucial,


however

5
BI Alternatives at SYSCO

z Buy minimum to address specific,


current business needs?
z Buy more than the minimum up front to
take advantage of price discounts?
z Which approach do you recommend?

6
Analysis of Alternatives

z Advantages and disadvantages – buy all now


z Save money by buying everything now
z Most likely will need modules in the long run
z Integration could be easier sooner than later
z Business need not identified
z Time frames unclear
z Greater risk due to the operating companies’
resistance and having to pay for something
unknown and unneeded as of now
z Other things?????

7
Analysis of Alternatives (cont.)

z Other advantages and disadvantages


z Identification of two questions up front
presents a clear business case
z Dealing with these questions satisfactorily
will demonstrate SW capabilities to users
z Users may naturally ask for “what else can
BI software do?”

8
Implementation Issues

z Whatare the main challenges to


implementation?
z Necessary interfaces to corporate data
sources
z Operating companies may resist cost
assessments
z Operating companies already have some BI
software already

9
Implementation Issues (cont.)

z Could SYSCO have made it optional for


operating companies to participate?
z Is Business Objects’ approach to support a
positive? If so, could it be used to mitigate
possible negative feelings from among the
operating companies?
z Does SYSCO seem to have the appropriate
infrastructure in place?
z From the operating companies’ perspective?

10
Judge Success with BI Software
z Parts of judging success somewhat easy, some not
z Number of sites with BI installed
z Number of training sessions completed
z Subjective assessments, e.g., satisfaction, attitude
z Nature of participation in design process
z Type and amount of use of BI software
z If sales and customer retention rates go up, is this because of BI,
another development within SYSCO, or something else?
z 10 patents for Business Objects as of April 2007
z Nature of support provided by Business Objects
z Use of support by operating companies

11
BI and Competitive Advantage

z Can IT provide a competitive advantage?


z Can BI provide a competitive
advantage?
z Can BI provide a sustained competitive
advantage?
z Can SYSCO’s competition do the same
thing?

12

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