Knowledge isn’t power until it is applied
– Dale Carnegie
As the leading food procurer and distributer in the world, SYSCO has a highly decentralized structure. However, information inconsistencies were accumulated from their decentralized IT system. To tackle this, SYSCO has already adopted an ERP system and a data warehouse, and is deciding to invest in a Business Intelligence (BI) system. Issues & Problems
1. Utilization: Massive amount of data in the data warehouse are stored, but cannot be analyzed. a. Information cannot be efficiently extracted. Reports take weeks to generate. b. Most employees lack the expertise to retrieve the relevant information. 2. Decision Making: Upper management cannot make strategic decisions due to lack of information. c. Difficulty in monitoring and comparing performances across the different units. d. Important events cannot be predicted from the historical data. 3. Coordination: The decentralized structure undermines strategic coordination among the units. e. Each unit has a limited perspective of the market and the industry. f. Some overlapping operations across units may incur additions costs g. Some units have their own business intelligence system. Decisions
1. Whether to invest in the minimum licensing of the business intelligence, which includes query/analysis, performance management, reporting, info infrastructure or, 2. Allow broader access to the business intelligence, and includes analytical module licenses in addition to the first decision or, 3. Allow even broader access, and includes supply chain analytical module in addition to the Decision 2. External Analysis
1. Porter’s Forces
a. Medium threat to new entry: the high profits attract new comers, but the distribution networks’ economies of scales create entry barrier. SYSCO should utilize their massive...