Pepsiamericas-Building a Techsavy Company
In Caribbean, which grew significantly by 2009. Its revenue too grew despite the economic challenges. They were in a good position technologically and financially. However, reaching there was not easy. Starting from 2001, Pessimistic started a process of significant IT enabled change initiatives in the organization at the same time building strong IT Business relationship.
These changes led to the evolution of Pessimistic from a owe tech regional business that shipped Just drinks to customers, to an Information savvy enterprise that delivered hundreds of Ski’s as required by the retailers. IT related business changes brought about by Pessimistic eventually helped them respond to the market changes quickly without disrupting their supply chain management and improve their services altogether. SOOT Analysis Strengths: Pessimistic merger with Whitman Corporation, Spread demographically, reliable products (Pepsi, Mountain Dew), growth in their product line.
Weakness: Truck drivers operating as a salesperson (conventional route sales), organization’s regional structure and strong entrepreneurial culture, resistance to change the line of authority, less importance/lower value given to the IT unit, unfamiliarity with IT. Opportunities: Growth of Information Technology (IT), Global market availability Threat: Changing market demands, strong beverage competitors like Cola, powerful national retailers, and environmental concerns of consumers, coping up with the growth in IT. From SOOT Analysis we see that, Pessimistic had ore weakness and threats than strengths and opportunities.
Nonetheless, they boldly targeted their weakness one by one in phases and built a strong IT business infrastructure that helped them prosper. Bulging a Path towards a Tetchiest Company (IT and non IT steps) Overcoming the barrier of Conventional route sales (Next Gene’): As the company size grew, so did their product line. It was now impossible for the truck drivers to work as a salesperson. The firm saw the need for to segregate duties and introduced a sales representative and a merchandiser to work with the truck drivers (propels).
Introduction of Common Technology Platform (next Gene’): A common technology platform(let initiative) was introduced for synchronizing the work in the propels team. The truck drivers and the salespeople were provided with handheld devices. New processes were implemented, roles redesigned and a call center was built to serve customers. Refining the Regional structure of the organization (Customer Alignment and extremely important initiative for the IT unit. With Next Gene they saw how deviations in local processes limited gains and meeting customer needs.
Thus, they saw a dire need to change the organization structure from being ‘regionally aligned to ‘customer aligned’. They also saw giving IT more power, proper structure and the financial strength would benefit them. A Project Management Organization (PM) was formed and a Business sponsor was assigned to each project. Thus, Pessimistic made a huge leap in terms of reorganizing their company and improving their IT Business relationship. Building and Utilizing IT for Business Agility (competitive Edge’): With available IT Systems and business capabilities, there was a need for better-centralized data.
The data inconsistencies made consolidation look unattainable. However, having understood the IT capabilities by now, Pessimistic came up with a strong IT infrastructure (Customer Data Repository and Data Warehouse) which stored all the customer information, reduced the chances of redundancy and gave a degree business view. Data Standardization and Change Management (competitive Edge’): With Customer Alignment the organization structure had changed but the corresponding information did not match with the changes, thus data standardization was essential.
Building a Mobile Platform (competitive Edge’): They saw a need to build a mobile platform where they could plug in devices to capture and access operating data. Driving Business Values from Business Capabilities: With the infrastructure provided by IT in ‘Competitive Edge’, Pessimistic focused on improving performance across functional processes linking sales and supply chain. Thus they came up with three components: Demand Planning, Power Propels and Perfect Pallet. With these they were able to avoid over and under production, forecast demands better.
Challenges, Decisions, Benefits Unavailability of handheld devices in ‘Next Gene’ led to the decision of building the devices in-house which again was a huge challenge. The local process deviations limited efficiency gains and ability to meeting customer demands. They shifted to a customer alignment structure. Thus, the firm’s structure was more organized, and benefiting financially too. Customer Service in the form of call centers were started. IT was under the shadow of regional divisions. A PM was formed and Business sponsors was assigned to each project.
This was a major advancement in the change process of Pessimistic as it strengthened the IT Business relationship. With Customer Alignment, of data inconsistencies were exposed. They started working on data standardization and came up with an IT infrastructure for Data Management. This also helped them develop their commerce capability. During Mobile Platform, handheld devices were unavailable in the market. They decided to evolve it in-house and reuse the technology thus reducing development and maintenance cost.
IT managers helped eliminated the possibility of additional staff by implementing Voiced in ‘Perfect Pallet’ as they required many Quality Assurance Best Practices Formatting the data as per Pessimistic enterprise specific needs(in Customer Data Repository) to become vendor independent. Business leaders rotating people in the council to oversee data standardization, so that many people will experience decision making with the data. Looking at the recesses that created and maintained data.
With this understanding they were able to find out many errors with pricing wholesale data. Adding Design phase between plan and build in Software Development Life Cycle Forming PM and assigning Business sponsors In 8 years, Pessimistic faced many challenges and had painful experiences but they were successful in many ways. They now have a better/organized Information Architecture, growing revenue, acquiring more companies, strong performing of stocks. Above all, they are equipped to tackle the future market if they use IT efficiently