Mitchell Post
For our first unit's case study discussion board, we follow
Lee Lantz's journey as an exotic Toothfish supplier. Lantz
began this marketing adventure as a fish buyer traveling through
South America. During this time Lantz observed local fisherman
hauling a five foot long fish with teeth away from the docks.
Intrigued, Lantz bought a sample of the strange bass, and was
first turned away by its lack of any flavor. This was until Lantz
realized that this 'distasteful catch' could be a big hit for
consumers who disliked fish tasting products. Moving forward
with his business idea, Lantz's next step was naming his new
product. After bouncing ideas around, and even changing the
name he eventually settled on Chilean Bass; the exotic South
American toothed fish of the deep. After coining this name, our
fish sales entrepreneur sent samples of his stock to various
chefs; asking them to try his product in some of their high end
dishes. As a result of receiving semi-successful results, Lantz
then began supplying Chilean Bass to some wholesalers and
food distributers; specifically targeting the restaurant market.
This step of the process was paying the bills on time, but this
toothfish's real explosion in popularity came once its full
potential was realized by a fish stick company, and when
rewarded dish of the year.
To answer the first question, "Was Lantz just lucky? Or was
there good marketing along the way? If so, what was the good
marketing?" I will say that Lantz was lucky, but that it wasn't
entirely luck that got his product to where it is today. In my
opinion, Lantz was lucky for bumping into the local fisherman
carrying his fish, but after that point forward his success was a
direct result from his hard work and good marketing skills. In
this case study, I would agree that one of the best moves Lantz
made in marketing Chilean Bass was sending samples to chefs;
getting them interested or hooked on his product. This led to a
higher demand in his fish, which then resulted in wholesalers
buying and selling his product. Another good marketing move
was giving his fish a eye-catching name; one that sparks
interest.
In response to the second question, "The period of time
from Lantz’s first sale to Bon Appetit’s award was fourteen
years. How could he have used better marketing to accelerate
that process of unknown to popular?" I believe it could have
been entirely possible for Lantz to accelerate the growth of his
product through better marketing. One such way Lantz could've
accomplished this is by targeting a bigger market sooner. If you
remember, his fish was primarily sold in restaurants until a fish
stick company picked it up. If Lantz would've expanded his
target markets, and sent a sample to the fish stick company
easier; he may have made a break earlier.
Cheyenne Post
1. Was Lantz just lucky? Or was there good marketing along the
way? If so, what was the good marketing?
There was a pretty big combination of both luck and some good
marketing. His original Idea to call the fish something other
than "toothfish" was a good one, as well as to try and sell it to
upscale restaurants initially because of the lack of fish flavor.
He should however have stuck with the name cod instead of
bass. As the market he was aiming for was the cod market. He
got lucky in the fact that his fish ended up getting popularized
because of a distributor's choice and realization instead of his
own.
2. The period of time from Lantz’s first sale to Bon Appetit’s
award was fourteen years. How could he have used better
marketing to accelerate that process of unknown to popular?
First he could have focused on the entire market instead of just
aiming for the upscale ones once he realized that his original
plan was not working. He should have looked at where his
specific product fit into the market, and changed his
communication strategy to target those other areas. Perhaps
even being able to market it to upscale restaurants for the
specific purpose of being a fish without the fishy flavor,
promoting that it enhanced the sauces by not overpowering
them.
Secondly he should have looked for some publicity from any
source that he could have gotten, even a lesser known magazine
or the like could have gotten him noticed sooner, resulting in
moderate growth instead of having to wait on the explosive
growth that happened when his product was finally noticed by
Bon Appetit.
Lastly he could have traveled to the places where his fish was
selling to figure out what the restaurant owners and chef's did
like, and did not like about the product, so that he could figure
out how better to fix the problems or possibly how to market it
to other companies.
Directions
View the video in chapter 2 titled, Did you Know? (Links to an
external site.)and provide a few brief comments with respect to
its relevancy to this unit’s marketing concepts. llustrate how a
company may develop different value propositions for different
target markets.
https://www.youtube.com/watch?v=YmwwrGV_aiE&feature=yo
utu.be&t=87
No required word limited
Mini Case
Delivering Business Value with
IT at Hefty Hardware2
“IT is a pain in the neck,” groused Cheryl
O’Shea, VP of retail marketing, as she
slipped into a seat at the table in the Hefty Hardware executive
dining room, next to
her colleagues. “It’s all technical mumbo-jumbo when they talk
to you and I still don’t
know if they have any idea about what we’re trying to
accomplish with our Savvy Store
program. I keep explaining that we have to improve the
customer experience and that
we need IT’s help to do this, but they keep talking about
infrastructure and bandwidth
and technical architecture, which is all their internal stuff and
doesn’t relate to what
we’re trying to do at all! They have so many processes and
reviews that I’m not sure
we’ll ever get this project off the ground unless we go outside
the company.”
“You’ve got that right,” agreed Glen Vogel, the
COO. “I really like my IT account
manager, Jenny Henderson. She sits in on all our strategy
meetings and seems to really
understand our business, but that’s about as far as it goes. By
the time we get a project
going, my staff are all complaining that the IT people don’t
even know some of our
basic business functions, like how our warehouses operate. It
takes so long to deliver
any sort of technology to the field, and when it doesn’t work the
way we want it to, they
just shrug and tell us to add it to the list for the next release!
Are we really getting value
for all of the millions that we pour into IT?”
“Well, I don’t think it’s as bad as you both seem to believe,”
added Michelle
Wright, the CFO. “My EA singsthe praises of
the help desk and the new ERP system
we put in last year. We can now close the books at month-end in
24 hours. Before that,
it took days. And I’ve seen the benchmarking reports on our
computer operations. We
are in the top quartile for reliability and cost-effectiveness for
all our hardware and
systems. I don’t think we could get IT any cheaper outside the
company.”
“You are talking ‘apples and oranges’ here,” said Glen. “On one
hand, you’re
saying that we’re getting good, cheap, reliable computer
operations and value for the
money we’re spending here. On the other hand, we don’t feel IT
is contributing to
creating new business value for Hefty. They’re really two
different things.”
“Yes, they are,” agreed Cheryl. “I’d even agree with you that
they do a pretty
good job of keeping our systems functioning and preventing
viruses and things. At
least we’ve never lost any data like some of our competitors.
But I don’t see how they’re
contributing to executing our business strategy. And surely in
this day and age with
increased competition, new technologies coming out all over the
place, and so many
changes in our economy, we should be able to get them to help
us be more flexible, not
less, and deliver new products and services to our customers
quickly!”
2 Smith, H. A., and J. D. McKeen. “Delivering
Business Value with IT at Hefty Hardware.”
#1-L10-1-001,
Queen’s School of Business, May 2010. Reproduced by
permission of Queen’s University, School of Business,
Kingston, Ontario, Canada.
98
M06_MCKE0260_03_GE_C06.indd 98 12/3/14 8:38 PM
Delivering Business Value with IT at Hefty
Hardware 99
The conversation moved on then, but Glen was thoughtful as he
walked back to
his office after lunch. Truthfully, he only ever thought about IT
when it affected him and
his area. Like his other colleagues, he found most of his
communication with the depart-
ment, Jenny excepted, to be unintelligible, so he delegated it to
his subordinates, unless
it absolutely couldn’t be avoided. But Cheryl was right. IT was
becoming increasingly
important to how the company did its business. Although
Hefty’s success was built on
its excellent supply chain logistics and the assortment of
products in its stores, IT played
a huge role in this. And to implement Hefty’s new Savvy Store
strategy, IT would be
critical for ensuring that the products were there when a
customer wanted them and
that every store associate had the proper information to answer
customers’ questions.
In Europe, he knew from his travels, IT
was front and center in most cutting-
edge retail stores. It provided extensive self-service to improve
checkout; multichannel
access to information inside stores to enable customers to
browse an extended product
base and better support sales associates assisting customers; and
multimedia to engage
customers with extended product knowledge. Part of Hefty’s
new Savvy Store business
strategy was to copy some of these initiatives, hoping to become
the first retailer in
North America to completely integrate multimedia and digital
information into each of
its 1,000 stores. They’d spent months at the executive
committee meetings working out
this new strategic thrust—using information and multimedia to
improve the customer
experience in a variety of ways and to make it consistent in
each of their stores. Now,
they had to figure out exactly how to execute it, and IT was a
key player. The question
in Glen’s mind now was how could the business and IT work
together to deliver on this
vision, when IT was essentially operating in its own technical
world, which bore very
little relationship to the world of business?
Entering his office, with its panoramic view of
the downtowncore, Glen had an
idea. “Hefty’s stores operate in a different world than we do at
our head office. Wouldn’t
it be great to take some of our best IT folks out on the road so
they could see what it’s
really like in the field? What seems like a good idea here at
corporate doesn’t always
work out there, and we need to balance our corporate needs with
those of our store
operations.” He remembered going to one of Hefty’s smaller
stores in Moose River and
seeing how its managers had circumvented the company’s
stringent security protocols
by writing their passwords on Post-it notes stuck to the store’s
only computer terminal.
So, on his next trip to the field he decided he would take Jenny,
along with Cheryl
and the Marketing IT Relationship Manager, Paul Gutierez, and
maybe even invite the
CIO, Farzad Mohammed, and a couple of the IT architects. “It
would be good for them
to see what’s actually happening in the stores,” he reasoned.
“Maybe once they do, it
will help them understand what we’re trying to accomplish.”
A few days later, Glen’s e-mailed invitation had Farzad in a
quandary. “He wants
to take me and some of my top people—including you—on the
road two weeks from
now,” he complained to his chief architect, Sergei Grozny.
“Maybe I could spare Jenny
to go, since she’s Glen’s main contact, but we’re up to our
wazoos in alligators trying to
put together our strategic IT architecture so we can support
their Savvy Stores initiative
and half a dozen more ‘top priority’ projects. We’re supposed to
present our IT strategy
to the steering committee in three weeks!”
“And I need Paul to work with the architecture team over the
next couple of
weeks to review our plans and then to work with the master data
team to help them
outline their information strategy,” said Sergei. “If we don’t
have the infrastructure and
M06_MCKE0260_03_GE_C06.indd 99 12/3/14 8:38 PM
100 Section I • Delivering Value with IT
integrated information in place there aren’t going to be any
‘Savvy Stores’! You can’t
send Paul and my core architects off on some boondoggle for a
whole week! They’ve all
seen a Hefty store. It’s not like they’re going to see anything
different.”
“You’re right,” agreed Farzad. “Glen’s just going to have to
understand that I can’t
send five of our top people into the field right now. Maybe in
six months after we’ve
finished this planning and budget cycle. We’ve got too much
work to do now. I’ll send
Jenny and maybe that new intern, Joyce Li, who we’re thinking
of hiring. She could use
some exposure to the business, and she’s not working on
anything critical. I’ll e-mail
Jenny and get her to set it up with Glen. She’s so great with
these business guys. I don’t
know how she does it, but she seems to really get them onside.”
Three hours later, Jenny Henderson arrived back from a
refreshing noontime
workout to find Farzad’s request in her priority
in-box. “Oh #*!#*@!” she swore. She
had a more finely nuanced understanding of the politics
involved in this situation, and
she was standing on a land mine for sure. Her business contacts
had all known about
the invitation, and she knew it was more than a simple request.
However, Farzad, hav-
ing been with the company for only eighteen months, might not
recognize the olive
branch that it represented, nor the problems that it would cause
if he turned down the
trip or if he sent a very junior staff member in his place. “I have
to speak with him about
this before I do anything,” she concluded, reaching for her
jacket.
But just as she swiveled around to go see Farzad, Paul Gutierez
appeared in her
doorway, looking furious. “Got a moment?” he asked and, not
waiting for her answer,
plunked himself down in her visitor’s chair. Jenny could almost
see the steam coming
out of his ears, and his face was beet red. Paul was a great
colleague, so mentally put-
ting the “pause” button on her own problems, Jenny replied,
“Sure, what’s up?”
“Well, I just got back from the new technology meeting between
marketing and
our R&Dguys, and it was just terrible!” he
moaned. I’ve been trying to get Cheryl and
her group to consider doing some experimentation with cell
phone promotions—you
know, using that new Japanese bar coding system. There are a
million things you can
do with mobile these days. So, she asked me to set up a
demonstration of the technol-
ogy and to have the R&Dguys explain what it might
do. At first, everyone was really
excited. They’d read about these things in magazines and
wanted to know more. But
our guys kept droning on about 3G and 4G technology and
different types of connec-
tivity and security and how the data move around and how we
have to model and
architect everything so it all fits together. They had the business
guys so confused we
never actually got talking about how the technology might be
used for marketing and
whether it was a good business idea. After about half an hour,
everyone just tuned out.
I tried to bring it back to the applications we could develop if
we just invested a little
in the mobile connectivity infrastructure, but by then we were
dead in the water. They
wouldn’t fund the project because they couldn’t see why
customers would want to use
mobile in our stores when we had perfectly good cash registers
and in-store kiosks!”
“I despair!” he said dramatically. “And you know what’s going
to happen don’t
you? In a year or so, when everyone else has got mobile apps,
they’re going to want
us to do something for them yesterday, and we’re going to have
to throw some sort of
stopgap technology in place to deal with it, and everyone’s
going to be complaining
that IT isn’t helping the business with what it needs!”
Jenny was sympathetic. “Been there, done that, and got the T-
shirt,” she laughed
wryly. “These tech guys are so brilliant, but they can’t ever
seem to connect what they
M06_MCKE0260_03_GE_C06.indd 100 12/3/14 8:38 PM
Delivering Business Value with IT at Hefty
Hardware 101
know to what the business thinks it needs. Sometimes, they’re
too farsighted and need
to just paint the next couple of steps of what could be done, not
the ‘flying around in
jetpacks vision.’ And sometimes I think they truly don’t
understand why the business
can’t see how these bits and bytes they’re talking about
translate into something that it
can use to make money.” She looked at her watch, and Paul got
the hint. He stood up.
“Thanks for letting me vent,” he said. “You’re a good listener.”
“I hope Farzad is,” she thought grimly as she headed down the
hall. “Or he’s
going to be out of here by Thanksgiving.” It was a sad truth that
CIOs seemed to turn
over every two years or so at Hefty. It
was almost predictable. A new CEO would
come
in, and the next thing you knew the CIO would be history. Or
the user satisfaction rate
would plummet, or there would be a major application crash, or
the executives would
complain about how much IT cost, or there would be an
expensive new system failure.
Whatever it was, IT would always get blamed, and the CIO
would be gone. “We have
some world-class people in IT,” she thought, “but everywhere
we go in the business, we
get a bad rap. And it’s not always our fault.”
She remembered the recent CIM project to produce a single
customer database for
all of Hefty’s divisions: hardware, clothing, sporting goods, and
credit. It had seemed
to be a straightforward project with lots of ROI, but the
infighting between the client
divisions had dragged the project (and the costs) out. No one
could agree about whose
version of the truth they should use, and the divisions had
assigned their most junior
people to it and insisted on numerous exceptions, workarounds,
and enhancements, all
of which had rendered the original business case useless. On top
of that, the company
had undergone a major restructuring in the middle of it, and a
lot of the major play-
ers had changed. “It would be a lot easier for us in IT if the
business would get its act
together about what it wants from IT,” she thought. But just as
quickly, she recognized
that this was probably an unrealistic goal. A more practical one
would be to find ways
for business and IT to work collaboratively at all levels. “We
each hold pieces of the
future picture of the business,” she mused. “We need to figure
out a better way to put
them together than simply trying to force them to fit.”
Knocking on Farzad’s door, she peeked into the window beside
it. He seemed
lost in thought but smiled when he saw her. “Jenny!” he
exclaimed. “I was just think-
ing about you and the e-mail I sent you. Have you done
anything about it yet?” When
she shook her head, he gave a sigh of relief. “I was just
rethinking my decision about
this trip, and I’d like your advice.” Jenny gave her own mental
sigh and stepped into
the office. “I think we have a problem with the business and we
need to fix it—fast,”
she said. “I’ve got some ideas, and what to do about the trip is
just part of them. Can
we talk?” Farzad nodded encouragingly and invited her to sit
down. “I agree with you,
and I’d like to hear what you have to say. We need to do things
differently around here,
and I think with your help we can. What did you have in mind?”
Discussion Questions
1. Overall, how effective is the partnership between IT and the
business at Hefty
Hardware? Identify the shortcomings of both IT and the
business.
2. Create a plan for how IT and the business can work
collaboratively to deliver the
Savvy Store program successfully.
M06_MCKE0260_03_GE_C06.indd 101 12/3/14 8:38 PM

Mitchell Post       For our first units case study discussion b.docx

  • 1.
    Mitchell Post For ourfirst unit's case study discussion board, we follow Lee Lantz's journey as an exotic Toothfish supplier. Lantz began this marketing adventure as a fish buyer traveling through South America. During this time Lantz observed local fisherman hauling a five foot long fish with teeth away from the docks. Intrigued, Lantz bought a sample of the strange bass, and was first turned away by its lack of any flavor. This was until Lantz realized that this 'distasteful catch' could be a big hit for consumers who disliked fish tasting products. Moving forward with his business idea, Lantz's next step was naming his new product. After bouncing ideas around, and even changing the name he eventually settled on Chilean Bass; the exotic South American toothed fish of the deep. After coining this name, our fish sales entrepreneur sent samples of his stock to various chefs; asking them to try his product in some of their high end dishes. As a result of receiving semi-successful results, Lantz then began supplying Chilean Bass to some wholesalers and food distributers; specifically targeting the restaurant market. This step of the process was paying the bills on time, but this toothfish's real explosion in popularity came once its full potential was realized by a fish stick company, and when rewarded dish of the year. To answer the first question, "Was Lantz just lucky? Or was there good marketing along the way? If so, what was the good marketing?" I will say that Lantz was lucky, but that it wasn't entirely luck that got his product to where it is today. In my opinion, Lantz was lucky for bumping into the local fisherman carrying his fish, but after that point forward his success was a direct result from his hard work and good marketing skills. In this case study, I would agree that one of the best moves Lantz made in marketing Chilean Bass was sending samples to chefs; getting them interested or hooked on his product. This led to a higher demand in his fish, which then resulted in wholesalers
  • 2.
    buying and sellinghis product. Another good marketing move was giving his fish a eye-catching name; one that sparks interest. In response to the second question, "The period of time from Lantz’s first sale to Bon Appetit’s award was fourteen years. How could he have used better marketing to accelerate that process of unknown to popular?" I believe it could have been entirely possible for Lantz to accelerate the growth of his product through better marketing. One such way Lantz could've accomplished this is by targeting a bigger market sooner. If you remember, his fish was primarily sold in restaurants until a fish stick company picked it up. If Lantz would've expanded his target markets, and sent a sample to the fish stick company easier; he may have made a break earlier. Cheyenne Post 1. Was Lantz just lucky? Or was there good marketing along the way? If so, what was the good marketing? There was a pretty big combination of both luck and some good marketing. His original Idea to call the fish something other than "toothfish" was a good one, as well as to try and sell it to upscale restaurants initially because of the lack of fish flavor. He should however have stuck with the name cod instead of bass. As the market he was aiming for was the cod market. He got lucky in the fact that his fish ended up getting popularized because of a distributor's choice and realization instead of his own. 2. The period of time from Lantz’s first sale to Bon Appetit’s award was fourteen years. How could he have used better marketing to accelerate that process of unknown to popular? First he could have focused on the entire market instead of just aiming for the upscale ones once he realized that his original plan was not working. He should have looked at where his specific product fit into the market, and changed his communication strategy to target those other areas. Perhaps even being able to market it to upscale restaurants for the specific purpose of being a fish without the fishy flavor,
  • 3.
    promoting that itenhanced the sauces by not overpowering them. Secondly he should have looked for some publicity from any source that he could have gotten, even a lesser known magazine or the like could have gotten him noticed sooner, resulting in moderate growth instead of having to wait on the explosive growth that happened when his product was finally noticed by Bon Appetit. Lastly he could have traveled to the places where his fish was selling to figure out what the restaurant owners and chef's did like, and did not like about the product, so that he could figure out how better to fix the problems or possibly how to market it to other companies. Directions View the video in chapter 2 titled, Did you Know? (Links to an external site.)and provide a few brief comments with respect to its relevancy to this unit’s marketing concepts. llustrate how a company may develop different value propositions for different target markets. https://www.youtube.com/watch?v=YmwwrGV_aiE&feature=yo utu.be&t=87 No required word limited Mini Case Delivering Business Value with IT at Hefty Hardware2 “IT is a pain in the neck,” groused Cheryl O’Shea, VP of retail marketing, as she slipped into a seat at the table in the Hefty Hardware executive
  • 4.
    dining room, nextto her colleagues. “It’s all technical mumbo-jumbo when they talk to you and I still don’t know if they have any idea about what we’re trying to accomplish with our Savvy Store program. I keep explaining that we have to improve the customer experience and that we need IT’s help to do this, but they keep talking about infrastructure and bandwidth and technical architecture, which is all their internal stuff and doesn’t relate to what we’re trying to do at all! They have so many processes and reviews that I’m not sure we’ll ever get this project off the ground unless we go outside the company.” “You’ve got that right,” agreed Glen Vogel, the COO. “I really like my IT account manager, Jenny Henderson. She sits in on all our strategy meetings and seems to really understand our business, but that’s about as far as it goes. By the time we get a project going, my staff are all complaining that the IT people don’t even know some of our basic business functions, like how our warehouses operate. It takes so long to deliver any sort of technology to the field, and when it doesn’t work the way we want it to, they just shrug and tell us to add it to the list for the next release! Are we really getting value for all of the millions that we pour into IT?” “Well, I don’t think it’s as bad as you both seem to believe,” added Michelle Wright, the CFO. “My EA singsthe praises of the help desk and the new ERP system
  • 5.
    we put inlast year. We can now close the books at month-end in 24 hours. Before that, it took days. And I’ve seen the benchmarking reports on our computer operations. We are in the top quartile for reliability and cost-effectiveness for all our hardware and systems. I don’t think we could get IT any cheaper outside the company.” “You are talking ‘apples and oranges’ here,” said Glen. “On one hand, you’re saying that we’re getting good, cheap, reliable computer operations and value for the money we’re spending here. On the other hand, we don’t feel IT is contributing to creating new business value for Hefty. They’re really two different things.” “Yes, they are,” agreed Cheryl. “I’d even agree with you that they do a pretty good job of keeping our systems functioning and preventing viruses and things. At least we’ve never lost any data like some of our competitors. But I don’t see how they’re contributing to executing our business strategy. And surely in this day and age with increased competition, new technologies coming out all over the place, and so many changes in our economy, we should be able to get them to help us be more flexible, not less, and deliver new products and services to our customers quickly!” 2 Smith, H. A., and J. D. McKeen. “Delivering Business Value with IT at Hefty Hardware.” #1-L10-1-001,
  • 6.
    Queen’s School ofBusiness, May 2010. Reproduced by permission of Queen’s University, School of Business, Kingston, Ontario, Canada. 98 M06_MCKE0260_03_GE_C06.indd 98 12/3/14 8:38 PM Delivering Business Value with IT at Hefty Hardware 99 The conversation moved on then, but Glen was thoughtful as he walked back to his office after lunch. Truthfully, he only ever thought about IT when it affected him and his area. Like his other colleagues, he found most of his communication with the depart- ment, Jenny excepted, to be unintelligible, so he delegated it to his subordinates, unless it absolutely couldn’t be avoided. But Cheryl was right. IT was becoming increasingly important to how the company did its business. Although Hefty’s success was built on its excellent supply chain logistics and the assortment of products in its stores, IT played a huge role in this. And to implement Hefty’s new Savvy Store strategy, IT would be critical for ensuring that the products were there when a customer wanted them and that every store associate had the proper information to answer customers’ questions. In Europe, he knew from his travels, IT was front and center in most cutting-
  • 7.
    edge retail stores.It provided extensive self-service to improve checkout; multichannel access to information inside stores to enable customers to browse an extended product base and better support sales associates assisting customers; and multimedia to engage customers with extended product knowledge. Part of Hefty’s new Savvy Store business strategy was to copy some of these initiatives, hoping to become the first retailer in North America to completely integrate multimedia and digital information into each of its 1,000 stores. They’d spent months at the executive committee meetings working out this new strategic thrust—using information and multimedia to improve the customer experience in a variety of ways and to make it consistent in each of their stores. Now, they had to figure out exactly how to execute it, and IT was a key player. The question in Glen’s mind now was how could the business and IT work together to deliver on this vision, when IT was essentially operating in its own technical world, which bore very little relationship to the world of business? Entering his office, with its panoramic view of the downtowncore, Glen had an idea. “Hefty’s stores operate in a different world than we do at our head office. Wouldn’t it be great to take some of our best IT folks out on the road so they could see what it’s really like in the field? What seems like a good idea here at corporate doesn’t always work out there, and we need to balance our corporate needs with those of our store
  • 8.
    operations.” He rememberedgoing to one of Hefty’s smaller stores in Moose River and seeing how its managers had circumvented the company’s stringent security protocols by writing their passwords on Post-it notes stuck to the store’s only computer terminal. So, on his next trip to the field he decided he would take Jenny, along with Cheryl and the Marketing IT Relationship Manager, Paul Gutierez, and maybe even invite the CIO, Farzad Mohammed, and a couple of the IT architects. “It would be good for them to see what’s actually happening in the stores,” he reasoned. “Maybe once they do, it will help them understand what we’re trying to accomplish.” A few days later, Glen’s e-mailed invitation had Farzad in a quandary. “He wants to take me and some of my top people—including you—on the road two weeks from now,” he complained to his chief architect, Sergei Grozny. “Maybe I could spare Jenny to go, since she’s Glen’s main contact, but we’re up to our wazoos in alligators trying to put together our strategic IT architecture so we can support their Savvy Stores initiative and half a dozen more ‘top priority’ projects. We’re supposed to present our IT strategy to the steering committee in three weeks!” “And I need Paul to work with the architecture team over the next couple of weeks to review our plans and then to work with the master data team to help them outline their information strategy,” said Sergei. “If we don’t
  • 9.
    have the infrastructureand M06_MCKE0260_03_GE_C06.indd 99 12/3/14 8:38 PM 100 Section I • Delivering Value with IT integrated information in place there aren’t going to be any ‘Savvy Stores’! You can’t send Paul and my core architects off on some boondoggle for a whole week! They’ve all seen a Hefty store. It’s not like they’re going to see anything different.” “You’re right,” agreed Farzad. “Glen’s just going to have to understand that I can’t send five of our top people into the field right now. Maybe in six months after we’ve finished this planning and budget cycle. We’ve got too much work to do now. I’ll send Jenny and maybe that new intern, Joyce Li, who we’re thinking of hiring. She could use some exposure to the business, and she’s not working on anything critical. I’ll e-mail Jenny and get her to set it up with Glen. She’s so great with these business guys. I don’t know how she does it, but she seems to really get them onside.” Three hours later, Jenny Henderson arrived back from a refreshing noontime workout to find Farzad’s request in her priority in-box. “Oh #*!#*@!” she swore. She had a more finely nuanced understanding of the politics involved in this situation, and she was standing on a land mine for sure. Her business contacts
  • 10.
    had all knownabout the invitation, and she knew it was more than a simple request. However, Farzad, hav- ing been with the company for only eighteen months, might not recognize the olive branch that it represented, nor the problems that it would cause if he turned down the trip or if he sent a very junior staff member in his place. “I have to speak with him about this before I do anything,” she concluded, reaching for her jacket. But just as she swiveled around to go see Farzad, Paul Gutierez appeared in her doorway, looking furious. “Got a moment?” he asked and, not waiting for her answer, plunked himself down in her visitor’s chair. Jenny could almost see the steam coming out of his ears, and his face was beet red. Paul was a great colleague, so mentally put- ting the “pause” button on her own problems, Jenny replied, “Sure, what’s up?” “Well, I just got back from the new technology meeting between marketing and our R&Dguys, and it was just terrible!” he moaned. I’ve been trying to get Cheryl and her group to consider doing some experimentation with cell phone promotions—you know, using that new Japanese bar coding system. There are a million things you can do with mobile these days. So, she asked me to set up a demonstration of the technol- ogy and to have the R&Dguys explain what it might do. At first, everyone was really excited. They’d read about these things in magazines and
  • 11.
    wanted to knowmore. But our guys kept droning on about 3G and 4G technology and different types of connec- tivity and security and how the data move around and how we have to model and architect everything so it all fits together. They had the business guys so confused we never actually got talking about how the technology might be used for marketing and whether it was a good business idea. After about half an hour, everyone just tuned out. I tried to bring it back to the applications we could develop if we just invested a little in the mobile connectivity infrastructure, but by then we were dead in the water. They wouldn’t fund the project because they couldn’t see why customers would want to use mobile in our stores when we had perfectly good cash registers and in-store kiosks!” “I despair!” he said dramatically. “And you know what’s going to happen don’t you? In a year or so, when everyone else has got mobile apps, they’re going to want us to do something for them yesterday, and we’re going to have to throw some sort of stopgap technology in place to deal with it, and everyone’s going to be complaining that IT isn’t helping the business with what it needs!” Jenny was sympathetic. “Been there, done that, and got the T- shirt,” she laughed wryly. “These tech guys are so brilliant, but they can’t ever seem to connect what they M06_MCKE0260_03_GE_C06.indd 100 12/3/14 8:38 PM
  • 12.
    Delivering Business Valuewith IT at Hefty Hardware 101 know to what the business thinks it needs. Sometimes, they’re too farsighted and need to just paint the next couple of steps of what could be done, not the ‘flying around in jetpacks vision.’ And sometimes I think they truly don’t understand why the business can’t see how these bits and bytes they’re talking about translate into something that it can use to make money.” She looked at her watch, and Paul got the hint. He stood up. “Thanks for letting me vent,” he said. “You’re a good listener.” “I hope Farzad is,” she thought grimly as she headed down the hall. “Or he’s going to be out of here by Thanksgiving.” It was a sad truth that CIOs seemed to turn over every two years or so at Hefty. It was almost predictable. A new CEO would come in, and the next thing you knew the CIO would be history. Or the user satisfaction rate would plummet, or there would be a major application crash, or the executives would complain about how much IT cost, or there would be an expensive new system failure. Whatever it was, IT would always get blamed, and the CIO would be gone. “We have some world-class people in IT,” she thought, “but everywhere we go in the business, we get a bad rap. And it’s not always our fault.”
  • 13.
    She remembered therecent CIM project to produce a single customer database for all of Hefty’s divisions: hardware, clothing, sporting goods, and credit. It had seemed to be a straightforward project with lots of ROI, but the infighting between the client divisions had dragged the project (and the costs) out. No one could agree about whose version of the truth they should use, and the divisions had assigned their most junior people to it and insisted on numerous exceptions, workarounds, and enhancements, all of which had rendered the original business case useless. On top of that, the company had undergone a major restructuring in the middle of it, and a lot of the major play- ers had changed. “It would be a lot easier for us in IT if the business would get its act together about what it wants from IT,” she thought. But just as quickly, she recognized that this was probably an unrealistic goal. A more practical one would be to find ways for business and IT to work collaboratively at all levels. “We each hold pieces of the future picture of the business,” she mused. “We need to figure out a better way to put them together than simply trying to force them to fit.” Knocking on Farzad’s door, she peeked into the window beside it. He seemed lost in thought but smiled when he saw her. “Jenny!” he exclaimed. “I was just think- ing about you and the e-mail I sent you. Have you done anything about it yet?” When she shook her head, he gave a sigh of relief. “I was just
  • 14.
    rethinking my decisionabout this trip, and I’d like your advice.” Jenny gave her own mental sigh and stepped into the office. “I think we have a problem with the business and we need to fix it—fast,” she said. “I’ve got some ideas, and what to do about the trip is just part of them. Can we talk?” Farzad nodded encouragingly and invited her to sit down. “I agree with you, and I’d like to hear what you have to say. We need to do things differently around here, and I think with your help we can. What did you have in mind?” Discussion Questions 1. Overall, how effective is the partnership between IT and the business at Hefty Hardware? Identify the shortcomings of both IT and the business. 2. Create a plan for how IT and the business can work collaboratively to deliver the Savvy Store program successfully. M06_MCKE0260_03_GE_C06.indd 101 12/3/14 8:38 PM