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Ryan Miller Chris Modec-Halverson Edie Plasch Kayla Pocquette-Rondeau Mgt 6530 Managerial Applications of Technology

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History H.A. Foods established by Hans Rolo in 1954 Chewbacca, Maine Focus on organic foods and supplements Local suppliers

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Mission Statement Old To make the world a better place through healthy food. New To offer value to each neighborhood we become a part of through providing healthy, organic, socially responsible products.

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Current Strategy Mission driven, centered around several core pillars: Sell the highest quality natural and organic products available; Satisfy and delight our customers; Support team member happiness and excellence; Create wealth through profits and growth; Care about our communities and our environment. Current strategy supports mission: - Command & Control / High Involvement - Build and nurture alliances with local organic growers - Enter areas of similar demographic, affluence, and income.

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Why Change? HA foods has described a disconnect between the community and the organization.

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Recommended Strategies Enter into new markets by re-envisioning the HA Foods brand Build-out, remodel existing storefronts Stock quality, HA branded foods and items popular within existing geographic areas Colloquially relevant marketing and advertising Do NOT reinvent the wheel Create Alignments between Strategies Direct information, organization, & business strategies towards sustainability, agility, and innovation.

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Create Maximum Surface Area

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Porters Generic Strategies

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DAvenis Hypercompetition

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Current Information Strategy Hardware/Software Centralized Computer System ERP Systems Sales/Inventory CRM Systems Marketing/Customer Initiatives Network/Data Users access the the mainframe via networking Data collected/stored centrally

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Current Business Processes Marketing o Produces and executes marketing plans o One marketing plan, many locations No longer fits with HA's business strategy

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Current Business Processes HR o Effectively hires capable applicants o Data flows from the top down No longer fits with HA's business strategy

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Current Organization Strategy

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Proposed Strategies Question 1: How can we align the Business Strategy with Organization and Information Strategies? Answer: Develop a mindset that is Built to Change. On-the-fly adjustments to strategic intent which optimize sustainability. - Breadth - Aggressiveness - Differentiation Capture momentary advantages Recognize IT as a Strategic Business Partner

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Proposed Strategies Question 2: How can we align the Organization Strategy with Business and Information Strategies? Answer: Rally around capabilities, processes, and the culture. Communication Collaboration Consensus What do our employees need? What processes create value? What do we already do that support this? Reduce levels of hierarchy Push decision making down and across boundaries Recognize IT as a Strategic Business Partner

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Proposed Strategies Question 3: How can we align Information Strategy with the Business and Organization strategies? Answer: Recognize IT as a Strategic Business Partner! Information Transparency - Visible to All - Understood and Accepted - Available and timely - Focus on critical control areas IT flattens organizations. IT functions are no longer taken for granted as ad-hoc services which either work or become obstacles for work-arounds.

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Current Architecture

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Proposed Architecture

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Outsourcing No plan to outsource Improving company culture: fitting the store with the community Service maintenance with CRM

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Knowledge Assets Improve CRM knowledge to learn more about customers Neighborhood/geography knowledge Improve supply chain management knowledge

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Data Mining Company and customer information needs to be protected Competitors Trends Consumer profiles-keep in house

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Data Mining Data Protection Act Only collect information for specific purpose Keep it secure Relevant and up to date Only hold as much as the company needs Allow the data to be seen upon request http://ico.org.uk/for_organisations/sector_guides/bus iness http://ico.org.uk/for_organisations/sector_guides/bus iness

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Leadership Needs Ensures there are effective strategies in place: Resources Communication A leader who ensures the alignment of: Business Organizational Technological Strategies

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Governance Structure Decentralized

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Project 1: Facilitate Decentralization Examples of business processes after decentralization Purchase HR Services from Corporate Purchase IT Services from Corporate

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Project 2: Purchase CRM Uses: Examples of business processes using a CRM Part Marketing Part Sales Part Customer Relations

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Project 2(cont): Purchase CRM Benefits Get the big picture o Local customers o Local markets o Relevant Data Proposed Products SalesForce

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Project 3: Supply Chain Management Good relationship with local suppliers Product forecasting Tailoring products to the store location and consumers wants/needs, not corporate needs

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Project 4: Change Management What needs to be done: Overcome resistance to change Disconfirm existing ideas; Create conditions in which employees feel empowered to help with the change process; Information transparency regarding scope; Achieve leadership buy-in; Communicate; Make it happen!

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Project Costs Funding o Capital budgeting

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Project Costs Year 1 Year 2 Year 3 Implementation Costs: New Offices - Lease 500,000 Servers 50,000 - - Thin Clients 50,000 - - Project Management 50,000 10,000 Total 650,000 510,000 Operating Costs: Personnel 100,000 75,000 Client Licenses: CRM 25,000 Supply Chain Management 25,000 Total 50,000 Annual Benefits: Increased Sales 5% 750,000 950,000 1,150,000 Return on Investment Implementation Costs 650,000 510,000 Operating Costs (5 years) 50,000 Total Costs 700,000 560,000 ROI: Total Benefits - Total Costs / Total Costs7%70%105%

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Weighted Return on Investment Project ROI Alignment Accuracy Weighted ROI 1 Decentralization 61 0.8 0.5 24.40 2 - CRM Module61 0.9 0.8 43.92 3 - Supply Chain Module 61 0.8 0.7 34.16 4 - Management Culture 61 0.7 0.5 21.35

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Project Risks Technical Financial Organizational

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Closing The implementation of these four projects will allow H.A. Foods to create a stronger connection to the communities in which they operate. Questions?

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