1. Global Travel Retailer Luxury Brands Liquor, Tobacco, Fragrance 400 Locations, 16 Countries Global Travel Retailer Luxury Brands Liquor, Tobacco, Fragrance 400 Locations, 16 Countries Global Retail Company (GRC)

2. Current IT Reality

3. Regions (170) Analysts Projects Finance Development Corporate (50) Shared Services (30) Operations Help Desk Finance Operations Help Desk Finance Development Current IT Model DFS CIO Parent CIO Region VP IT

4. Current IT Operations 20 – AS400s Los Angeles San Francisco Hawaii Singapore Miami Australia New Zealand Guam Hong Kong Taiwan 10 Data Centers (within owned offices)

5. Current IT Server Topology

6. Current WAN/LAN Architecture 21 Domains; 69 Trusts; 54 Controllers * Unstable link

7. E3 E3 Distribution System SYD SIN2 HK SFO2 GUM SFO HI LAX1 Current Merchant Application Model (MCS) 9 Merchandising Systems GVA

8. LAX1 SFO2 SYD SIN2 GVA HK GUM SFO HI 9 Merchandising Systems E3 E3 Distribution System Current Merchant Application Model (MCS)

9. Enter the SKU Root Information Press F4 to Accept Enter SKU Attributes Info. Press F4 to Accept Enter Comments Press F4 to Accept Authorize Divisions Enter S/U, Quantity and Selling Cost Press F4 to Accept Select Stores Press F4 to Accept Enter Entry Method Press F10 to view Zones Enter Unit Retail Enter F4 to Accept 8 ‘Green Screens’; 15 Steps Current Item Management Application (MCS)

10. Departmental Data Marts Merchandise Data Mart DSS Applications DFactS Reports MCS Thick Client User Access Global North America Hawaii Guam Hong Kong Taiwan New Zealand Australia Miami Current BI Architecture (DFactS)

11. Current IT Operating Budget (excludes CapEx)

12. Key Assumptions Custom Software (7mm lines of code) Store POS… 10% Merchant Purchasing and Distribution (MCS)… 45% HR (regions)… 10% Reporting (DFactS)… 20% “Projects”… 15% Packaged Software SAP Finance… 20% Peoplesoft HR (corporate)… 15% E3 Replenishment… 35% WRx Warehouse Management…5% Lotus Notes Messaging… 10% MS Office Professional… 15% Communications Long distance (10 contracts)… 35% Data (hardware and software)… 55% Mobile (16 contracts)… 10%

13. Assignment In the aftermath of 9/11, GRC sales dropped 40%. As a new member of the Executive Committee, you and your team have been asked to quickly define a strategy for realigning IT expenses with sales projections. You must prepare your plan and present it to the Executive Committee during the coming weeks. Your plan must be self-funding, thereby minimizing capital investments to achieve the desired outcomes. Milestone 1: Problem Statement Due Tuesday, September 13 (written report) Milestone 2: Proposal Due Tuesday, September 27 (written report) Milestone 3: Next Steps Due Tuesday, October 11 (written report and presentation)

14. Milestone 1 – Due Tuesday, September 13 Problem Statement Business Drivers Desired State Definition Current State Assessment Gap Analysis Management Options (be creative and bold) Report Due 6:30pm

15. Milestone 2 – Due Tuesday, September 27 Proposal Sourcing Proposal Organizational Preparedness Cost / Benefits Analysis Key Risks Analysis Project Plan (key milestones and checkpoints listed) Project Details "Sanity Check" – Does this proposal really make sense from economic, organizational, technical and business points of view Report Due 6:30pm

16. Milestone 3 – Due Tuesday, October 11 Next Steps Process for selecting partners / vendors / providers Transition Management Plan Change Management Plan Program Management Plan Key Service Levels Definition Management Options if it doesn't work Report Due 6:30pm; Present during class