Essay About 2009Huge Expansion Of Product And Information Management Capabilities

Neu – Mism2301 – Session16 – Pepsi Americas
What drove PepsiAmericas to adopt a more aggressive attitude towards the utilization of transaction data to run the business?Declining U.S. market for carbonated soft drinksIncreasingly powerful retailors who were squeezing PAS profit marginsA recession hit the U.S. economy in 2009Huge expansion of product linesChains like Wal-Mart and CVS Drug stores preferred highly centralized procurement arrangements and national contractsWhat investments in information management capabilities were taken in this regard? Why were they obtained and how did they actually contribute?Information System InvestmentInformation Management NeedContribution of the System in OperationSCMBetter management of bottling and distributionIncrease effectiveness of warehousingProcurement management and cost controlReduce inventory management issuesIncrease productivityMore efficient shipping and deliveryReduce costsCRMCapture and retrieval of qualitative information of interactions with customersDocument past meetings and contract negotiationsImprove overall customer serviceFacilitate in customer information capturingCustomer profilingCustomer loyaltyERPAccounting, HR, and OperationManage and control business processesEnables collection and measurement of business process outcomesIntegrate core business processesFinancial reportingPoint of SaleSales TrendAutomated data captureTransactional informationMonitor actual retail site salesMake adjustments in production and delivery Demand forecastingDSSOperation optimizationBuild competitive knowledgeReady access to real-time data to fine tune business processes Promptly address performance issuesDrove decisions concerning the acquisition of both additional production capabilities and new product lines Continuous improvementEstablish for yourself a picture of PepsiAmericas before and after the decision to exploit the use of information to inform business processes across the enterprise. PepsiAmericas Before Its Investment in BIPepsiAmericas After Its Investment in BIOperations:Distribution was owned by local delivery personUncertainty of product mix and where products were goingHard to capture transactional informationOperations:Transactional data is captured automaticallyThree-tier distribution platformMore effective delivery and better understanding of product mixManagement and Control:Old regional contract systemUnclear core business processesScattered data and no streamline processManagement and Control:Centralized procurement arrangements and national contracts‘Customer Optimization to the 3rd power – Planning + Selling + Delivery’ programBetter inventory managementCost ControlPlanning, Corporate Learning, and Innovation:Less accuracy in product quantity and mix forecastingOnly the delivery person knew what to expect and could pretty much address customer needs on a day-to day basisDifficult to measure, compare and optimize business outcomesPlanning, Corporate Learning, and Innovation:Better and more accurate demand forecasting and market researchingDecision support system contribute to continuous optimizing and determine better practices Expand scope of offering