Abercrombie & Fitch Centralizes and Expands Abercrombie & Fitch is an international clothing retailer that learned the importance of efficient data management when expanding internationally. Because of the lower promotional costs and higher profits, international expansion was attractive to A&F. After launching their international strategy in Canada and the U.K. in 2006 and 2007, respectively, A&F could see further international growth on the horizon. However, it knew its data management was not capable of handling the level of growth that was expected. A&F’s financial visibility of merchandising was dismal. A&F managers were using spreadsheets of data to plan future merchandise levels, making any conclusions as to whether they were over- or underbuying merchandise virtually inconceivable. Floor space layouts were designed based on merchandise allocations assigned by merchandising managers. If the merchandise allocation was inaccurate or became delayed, the floor space had to be redesigned because the merchandise that was planned to go on display was not at the store in time. Store managers began to overstock merchandise to prevent these occurrences. All merchandise was shipped to the A&F distribution base in Columbus, Ohio and stayed there until it was called upon by an individual store. This made it difficult to efficiently restock inventory in overseas locations. The previously stated flaws in A&F’s erchandising system and adjoining distribution system were too great to sustain the international growth they wanted to pursue. To support the data influx that comes with international growth like A&F experienced, they needed an open operating platform and integrated point-of-sale (POS) infrastructure in order to keep the closest eye on transactional data. For an international retail company, the data accessible today is used to make decisions that have impacts far into the future. Without the appropriate data at the appropriate time, the wrong decisions can easily be made and the company can suffer severe consequences. A&F chose to install the Oracle Retail Merchandising system in its headquarters in Columbus, Ohio. Transactional data from all store locations, domestic and international, is centrally managed there. A&F also implemented changes to the front lines. They used Oracle’s Retail Point-of- Sale Software System (ORPOS) to collect real-time data from their 1,100 store locations across the globe. Each store was connected to a regional database that manages up to 30 stores. With all data visible to headquarters in Ohio, A&F’s merchandising managers had all the information they needed to make educated decisions, in one location. Transactional data from all departments including supply chain, inventory management, and POS processing are now all visible on an international scale. Since installing the platform, inventory order accuracy has increased from 94 percent to 100 percent. Additionally, A&F’s internationa.

1. Abercrombie & Fitch Centralizes and Expands
Abercrombie & Fitch is an international clothing retailer that
learned the importance of efficient data
management when expanding internationally. Because of the
lower promotional costs and higher
profits, international expansion was attractive to A&F. After
launching their international strategy in
Canada and the U.K. in 2006 and 2007, respectively, A&F could
see further international growth on the
horizon. However, it knew its data management was not capable
of handling the level of growth that
was expected. A&F’s financial visibility of merchandising was
dismal. A&F managers were using
spreadsheets of data to plan future merchandise levels, making
any conclusions as to whether they
were over- or underbuying merchandise virtually inconceivable.
Floor space layouts were designed
based on merchandise allocations assigned by merchandising
managers. If the merchandise allocation
was inaccurate or became delayed, the floor space had to be
redesigned because the merchandise
that was planned to go on display was not at the store in time.
Store managers began to overstock
merchandise to prevent these occurrences. All merchandise was
shipped to the A&F distribution base
in Columbus, Ohio and stayed there until it was called upon by
an individual store. This made it difficult
to efficiently restock inventory in overseas locations. The
previously stated flaws in A&F’s erchandising
system and adjoining distribution system were too great to

2. sustain the international growth they wanted
to pursue. To support the data influx that comes with
international growth like A&F experienced, they
needed an open operating platform and integrated point-of-sale
(POS) infrastructure in order to keep
the closest eye on transactional data. For an international retail
company, the data accessible today is
used to make decisions that have impacts far into the future.
Without the appropriate data at the
appropriate time, the wrong decisions can easily be made and
the company can suffer severe
consequences. A&F chose to install the Oracle Retail
Merchandising system in its headquarters in
Columbus, Ohio. Transactional data from all store locations,
domestic and international, is centrally
managed there. A&F also implemented changes to the front
lines. They used Oracle’s Retail Point-of-
Sale Software System (ORPOS) to collect real-time data from
their 1,100 store locations across the
globe. Each store was connected to a regional database that
manages up to 30 stores. With all data
visible to headquarters in Ohio, A&F’s merchandising managers
had all the information they needed to
make educated decisions, in one location. Transactional data
from all departments including supply
chain, inventory management, and POS processing are now all
visible on an international scale. Since
installing the platform, inventory order accuracy has increased
from 94 percent to 100 percent.
Additionally, A&F’s international stores have brought in close
to $1 billion in sales. Air shipments have
decreased from 25 percent of all shipments to only 8 percent, a
huge expense savings. A&F’s software
gives them a real-time view of transactions occurring in stores
globally. The new POS software
provides benefits for many different departments of the

3. company including inventory management and
logistics, and store managers who need access to this
information can plan future merchandising
levels. If store managers have accurate merchandise levels, they
can design the most effective floor
layouts without worrying about having to change the layout at
the last minute. A&F saves money by not
overstocking and does not lose sales due to under-stocking. The
improved data management software
adds predictive value to A&F and also allows it to use data to
draw conclusions on purchasing patterns
that determine future merchandise levels.
Source: Amato-McCoy, D. (2012). Mobility 101. Chain Store
Age, 88(3), 24.
Thinking About the Case
1. Why is it important for a company that operates
internationally to have centrally located
information visible to multiple departments?
2. What are the challenges a global clothing retailer faces in
regards to maintaining proper
inventory levels?
3. How did efficient transactional data management lead to a
decrease in air shipment costs of
A&F?
Decisions to Support Health Care and Patients
Decision support systems can provide many benefits and

4. efficiencies for operational and tactical
decision making. From marketing to employees during open
enrollment for health insurance to the
delivery of quality patient care, decision support tools can add
value to health care. The cost of
delivering health care in the U.S. is a topic receiving a lot of
attention and national dialogue. This issue
is complex and widespread, both economically and personally.
It affects every individual, family, and
business in the U.S. and probably will require many solutions
and approaches to address the problem.
The effect of “consumerism” has influenced the debate
associated with the costs and delivery of health
care. In some industries such as education and health care, the
word “sales” has never been a term
used in operations and management, probably because the
connotation would not be appropriate to
identify with customers and their transfer of funds. However,
revenue into a business organization still
remains as a sale. In an increasingly competitive marketplace
for many industries, it is important to
attract and retain customers in a long-term, profitable
relationship. The integration of business process
management (BPM) methodologies and decision support
systems can provide the methods for
developing relationships with customers. When businesses offer
their employees the selection of
benefits alternatives during open enrollment, it is important that
health insurers promote a personalized
environment. Considering that the consumer has the power of
the purchase, communicating effective
choices to the prospective employee may heavily influence the
enrollment (or the sale) in the health
plan. BPM systems can collect crucial data on the consumer,
such as demographics and past claims,
to personalize the process. Using decision support systems and

5. predictive analytics, “the best sales
experience for the consumer, including portal designs, product
offerings and transactional navigation
tailored for the best fit.”(Hart, 2011) The system could compile
a low-cost product offering and highlight
gym memberships for a young adult employee. The
demographics and lower claims potential would
target their need for a reduced-benefit insurance plan. In a
similar manner to Amazon’s
recommendations, the personalization of product offerings
based on data and a structured decision-
making process can increase the leadto-close ratio and increase
sales. After the marketing and
enrollment is done, decision support systems can also gain
positive benefits also for the actual delivery
of health care while maintaining the quality of care and safety
of patients. The“first step”of the process
is to provide the appropriate and accurate data to the nurses and
doctors treating the patient in a timely
manner. Carle Foundation Hospital, in Urbana, IL, has
implemented a system to“put tools into
physicians’ and nurses’ hands to provide the right information
at the right time.”(Page, 2011) Carle
installed an inpatient, emergency department, and pharmacy
electronic medical record system. A
crucial component of the implementation related to how the
project was managed and approached.
Rather than branding the new initiative as an IT project, Carle
managed the project as a“clinical
transformation initiative.”Improving medical care was the
objective, rather than improving efficiency.
Tools were developed that focused on clinical decision support
methodologies and best practices
became the “core measures”of the new system. A series of data
points are analyzed by the decision
support tools to assess patients’ need for medical attention.

6. Sources: Hart, E. (2011). A new era promises better outcomes.
Health Management Technology,
32(11), 14–15; Page, D. (2011).‘Most Improved’Take Similar
Steps to Reach New Heights. Hospitals &
Health Networks, 85(1), 42–42, 44.
Thinking About the Case
1. Consider the various data elements that would be gathered for
prospective health insurance
customers. Think about other approaches that could be
developed to target customers and the
associated structured decisions.
2. Why did Carle Foundation Hospital’s approach of
implementing the new system create a
successful project? Why would the approach of “improving
efficiency” have altered the
implementation of this project?
3. Are there any risks of integrating DSS tools to help diagnose
patient health care? If so, how
could these risks be minimized?
4. Can DSS tools have a positive effect on the delivery of health
care? How?
Software Application
Although Yen initially thought the app would be used by buyers

7. at Guess retail locations, it was
discovered that some store locations did not have wireless
connectivity. While traveling, buyers were
using the iPad app more frequently before they arrived at the
store, at hotspots in hotels and
restaurants where they would brief themselves for their
upcoming meetings. They would surf the app
prior to arriving at store locations to get up-to-date information
on sales patterns and store management
history. The app was also widely used in the office, as it was
much easier to snag specific snippets of
information via the app than from a full-blown report. They did
run into many issues throughout the
designing and launching process. Once, they submitted over 50
enhancements and issues to
MicroStrategy to refine the software! The popularity and
increasing use of the app spurred an inquiry of
how Yen and management could access and use the BI app on
personal iPads. This raised security
risks for Yen and his team. To solve the issue, Yen turned to
third-party mobile device management
that can close off access to the app if the iPad is reported stolen
or lost, in addition to using traditional
security passcodes. The security system encourages app use on
personal iPads without jeopardizing
corporate assets. It was no surprise that this fashion leader
placed heavy focus on the design of the
app. Every pixel on every slide of every page was scrutinized.
The app provides users with so much
different information from so many different angles that it can
be used by a wide range of users, from
top-level executives to buyers in the field. Besides the fact that
the app runs on an already intuitive
device, the final result is an app that can be picked up and used
by almost anyone in the company.
Bruce Yen conducted informal test-runs with the software

8. simply by asking some of his design-savvy
colleagues to play with it for ten minutes. Yen even followed
buyers around as they visited Guess retail
locations to see if they had any visible performance or
connectivity problems. Most likely due to his
arduous research and first-hand testing, he has not received any
requests for formal training on how to
use the app. While content was a key focus throughout the app’s
development, aesthetics and visual
layout were a close second. Yen constructed a BI mobile app
that is intuitive, visually appealing, and
content efficient. Through collaboration, communication, and
extreme finepoint critiquing, the app
surpassed expectations and has successfully aided Guess in
maintaining its leadership in the fashion
industry, even in hard economic times. What started out as a
solution to existing problems turned into a
staple of Guess’s technological assets.
Source: Briggs, L. L. (2011, Fourth Quarter). BI Case Study:
Apparel Company App Melds Fashion,
Mobile BI. Business Intelligence Journal, 16, 39-41.
Thinking About the Case
1. Some app planners may use second-hand research to fuel
their system planning. List at
least three instances in which Yen used hands-on experience to
gain insight on how to alter the
product. Why is that first-hand experience so valuable? Explain
how a buyer’s access to
real-time sales patterns of a specific retail location can
influence their purchasing decisions.
2. To what other branches of Guess?, Inc. could the app be
useful besides top-level executives
and buyers?

9. Change for the Sake of Change?
The word change does not usually evoke comfortable feelings or
create a warm impression. When
change is mentioned in business organizations, it often creates
anxiety or, in its worst case, resentment
or opposition. Change can be implemented in many ways:
through imposition or edict; consensually or
democratically; gradually or precipitously. The approach or
tone of the execution of change is as
important as the basis for change itself. Consider the example of
Chesterfield County, Virginia and
employee timecard entry. The County, consisting of 3,000
employees and 600 supervisors, embarked
on the implementation of a new online system for employees to
enter their timecard data. The timecard
entry process involved approximately 60 timekeepers. The
County replaced several legacy systems
with the new online system. The new system combined two

10. systems: an internally developed time and
attendance system and an“ off the shelf ”payroll and human
resources system. The challenges of the
new information technology system extended beyond its
technology components: Employees would
have to learn a new process of entering their hours into the
system and being paid. System developers
often forget to assess how familiar the system’s stakeholders are
with the computer and other skills
they would need to use the new system, but County
administrators knew they needed a sensible and
reasonable approach to manage the change. A well developed
information system without an
appropriately planned implementation with its stakeholders can
often fail. The County created a team to
manage the change to the new system and develop a change
management strategy. The team used
several methodologies to ensure that stakeholders were involved
throughout the implementation,
communicating with key department personnel to “build on
existing processes, drawing up
communication plans and creating a well thought-out training
plan. ”The team was comprised of
several managers from the various financial, operational, and
payroll functional departments as
well as their local educational institution, Chesterfield
University. From this team, they established a
communication process to connect with customer departments.
This network was responsible for
determining training needs, analyzing a security procedure,
coordinating training, and gaining valuable
input from the various stakeholders. Ultimately, the goal of this
process was to maintain the lines of
communication among the employees and other stakeholders.
The process involved not simply words,
but also actions. In addition, since quality training was an

11. important component of the system rollout,
the Information Systems department worked closely with
Chesterfield University to develop and
conduct training sessions as well as to provide technical
assistance to support employees through the
installation. An essential component of change management is
to gain acceptance by the system’s
stakeholders. The County understood that appropriate
communication would help gain acceptance and
reduce employee anxiety. The final version of the
communication plan changed “substantially” from
the initial version. As input was received and evaluated, so did
the methods and approach to how
and what they communicated. Constant and interactive
communication through newsletters,
emails, surveys, meetings and an intranet site provided timely
and constant information flow. Over 300
issues were reported and tracked during the first parallel test
run of the new system. A total of four
system changes were approved to be implemented, resolving
285 issues, with only seven issues
unresolved before the second parallel test. At the final
implementation, the employees successfully
used the new timecard system with only six payroll checks
processed in error for the first payroll period.
Sources: Brown, P. J. (2013). Change Management Makes the
Difference in Chesterfield County.
Government Finance Review, 29(1), 60–62.
Thinking About the Case
1. Consider the statement“A well-developed information system
without an appropriately
planned implementation with its stakeholders can often
fail.”Why? Provide examples and
details.

12. 2. The County’s initial approach to assembling their plan for
change was a critical factor to the
success of the implementation. Taking the role of a County
employee, discuss how the
County’s approach would reduce anxiety as well as create an
environment for success with the
new information system.
3. Communication is a critical factor to any new initiative and
to change management. Does too
much communication adversely affect an initiative? Why or why
not?
4. Considering the 300 issues that arose during the parallel
pilot, did the change management
system work effectively? Should the number of issues have been
less? Discuss your position.