Aligning with Business

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CourseSenarioCMGT583.pdf

Course Senario

Read the following scenario and refer to it when you complete the weekly assignments:

• Week 1: Business vs. IT Strategy Presentation

• Week 2: System Recommendation

• Week 3: Measurable Values

• Week 4: Strategic Sourcing Plan

• Week 5: SWOT Analysis

• Week 6: ROI Calculation and Business Case

Phoenix Fine Electronics (PFE) is a medium or mid-sized company but growing rapidly each year selling

technology products to retail consumers. They have an annual revenue of $15 million in sales. PFE

started with one store but has grown to 25 stores and has expanded into a second state.

PFE has one store in a town with a population of 100,000, and three stores in towns with populations

exceeding 200,000. The goal of the company is to continue expansion into an additional 3 neighboring

states within the next 5 years. PFE wants to utilize the same population numbers to determine the

number of stores it should open. It would also like a marketing firm to do an analysis of each town that

meets the population criteria to determine the best cites in which to open new stores.

Each store employs a store manager and an IT manager who both directly report to the Chief Executive

Officer (CEO).

The current IT plan for each store is to utilize technology to support the store; increase sales; track

inventory; secure store customer data; perform payroll; and report all sales, inventory, and payroll data

to the main office. The IT manager is responsible for managing the IT systems, making decisions on what

technology and software are needed, and implementing the systems while ensuring accurate reporting

to the main office. The store manager is responsible for all staffing, inventory, and sales functions within

the store.

With expansion and the acquisition of smaller independent stores, the CEO is worried about how

department and customer data can be aggregated to allow the company to make better, timely business

decisions. Even with such a wide footprint the company must ensure unique, outstanding customer

service and provide value to the consumer base. The CEO lacks IT experience and has been hesitant to

adopt the suggestions of the store and IT managers, which is to give the company an online presence

and advance the company into national competition with other consumer electronics stores.

The CEO hired a Chief Financial Officer (CFO) and Chief Information Officer/Chief Technology Officer

(CIO/CTO). The CFO will oversee the company finances for the expansion. The CIO/CTO will oversee the

consolidation of the disparate systems and technologies that exist between the stores, streamline the

information gathering and reporting to the main office, and develop an online presence that will

catapult the company into a competitive position on a national level.

Your job is to help the new CIO/CTO move PFE toward the future.