Praxis Paper 1

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SUPERVALU Grocery Company’s IT current state

1.1 Company Profile

SUPERVALU is known to be among the United States largest chains of supermarkets. The number of stores, which they own is 2349. There are many brand names, by which the company operates such as Cubs Foods, Acme, Lucky, and Bristol, among others. Most of its competition is from Safeway and Kroger. Currently, the store is found in almost all states in America, such as Southern California, Boston, Chicago and Philadelphia. There are two segments by, which the company operates. They include Supply Chain Services and Retail Food.

1.2 Introduction

Many business environments are appreciating the importance of technology at the work place. Before, processes were manual, but today automated systems have been integrated in almost every business unit. In turn, practices, which are conducted by business, have improved. This is the reason why SUPERVALU has come up with an information system, which is comprehensive. Evolution of information systems greatly improves processes. In order to obtain competitive advantage, information systems should be planned for strategically. Before new systems are purchased, managers must first make decisions based on the capability of the system (Laudon & Laudon, 2009).

1.3 Profile of the people interviewed at SUPERVALU

The people, who were interviewed for this research, work at SUPERVALU in managerial capacities. Greg Harness is in charge of the Information technology Department. He assumes the title of the Project Manager of IT. Harness is well educated and his experience is vast. He has experience in information technology having worked in this field for twenty years. The other person interviewed is Susan Morris, who is in charge of customer experience at SUPERVALU. She is well informed about matters, which concern the company. Her experience in management is vast and is aware about the functions of the IT department.

1.4 Competitive advantage achieved from using and Implementing Information Systems

Customer satisfaction is the reason why they had to improve their systems. In order to achieve efficiency and accuracy at the company, it makes use of Radio Frequency systems. In turn, it is able to monitor profitability and customer satisfaction. According to Morris (2011), the operative movements at the store are accountable, due to the effectiveness of the system. The system also ensures that optimum efficiency is achieved as evaluation and monitoring of information occurs (Friedman & Hoffman, 2001). The stocks, which are at the stores, are known through a process known as ambient area. The latter is achieved as a result of the existing system (Laudon & Laudon, 2009). This means that problems do not arise when delivery by suppliers is late. Also, there is premium product availability, due to the existing system. She believes that this system has improved the process as the store and in turn, customers are extremely satisfied.

According to Harness (2011), the teams at the various stores are happy about the introduction of the new systems. Their work environment has improved greatly, and everyone feels that work has become more accommodating. The terminals, which have been out in place, are extremely user friendly. One does not have to be an expert in computers to use the terminals. Since the system is reliable, the teams working at the stores are loyal to the company. Expansion has been made easier by the system, as customers in their Northern Ireland, stores are served well. In turn, many customers have praised and commented about the service being offered (Britt, 2010). They have witnessed an improvement in various aspects at the stores. Other competitive advantages, which have occurred, are availability of products, and delivery has become extremely accurate.

Job enhancement has occurred, due to Information systems implementation. Tasks are now prioritized and time saving takes place. The system handles matters concerning information and data handling. The latter was previously done by employees, thus wastage of time occurred often. Processing time is reduced drastically, thus in turn; costs are saved by the company. Differentiation is another competitive advantage obtained from having an information system. This means that SUPERVALU has become strategically different from its competitors. There are certain products, which are found at SUPERVALU, and cannot be found in other stores such as Wal-Mart and even Kroger. Customer base has been expanded, due to the implementation of the differentiation strategy according to Harness (2011).

Lastly, the Information systems have brought about distribution and supply coordination. At SUPERVALU, inventory has in turn been tracked and monitored effectively. Managers are always ensuring that the management process of supply chain is well maintained. Problems are pinpointed easily, and thus another competitive advantage is obtained. According to Morris, Research is being done to find out if there are better systems in the market.

1.5 The Management Information System Strategy

Harness has been given the go ahead to work with other department heads, in order to come with a strategy for MIS. This is because all the companies functions as well as operations are managed by an MIS. Cost implications occur when the strategy is not implemented accordingly. Also, problems such as profit making can be prevented if there is no presence of an MIS strategy. At SUPERVALU, the MIS strategy seeks to ensure that their vision based on technology is realized. At the Corporate setting at SUPERVALU, IT plays a vital role in implementing the strategy. IT provides the needed guidelines to be followed, in the area that the MIS is concentrating on (Harness, 2011).

The MIS strategy also focuses on the changing the structure of change in management. SUPERVALU is designing a system, which will affect all the employees and customers positively. Nowadays, SUPERVALU is making use of social networking, to increase its sales as well as market it. For example, it has embraced Linked a social site that focuses on professionalism. Linked has greatly improved the relations SUPERVALU has with some of its customers, as well as people who want to work for the company. The company has come up with minimum standards, which all the employees must meet (Levine, 2001). The MIS focuses on the components of central infrastructure. This later on brings about proper deliverables as well as there being a direction, which is common to everyone. SUPERVALU is making sure that it forms strategic alliances with technological suppliers (Morris, 2011). In turn, it will benefit by acquiring financial incentives and have a lot of control over ownership and cost issues. Through having the MIS, initiatives for development are taking place as well as important aspects of the company being recognized.

1.6 Conclusion

In conclusion, SUPERVALU is indeed using effective strategies, which are helping it to obtain a competitive edge. Information systems used have improved business and in turn, there are more customers making purchases at the various stores. The MIS strategy is being implemented in order to achieve SUPERVALU’s success in the IS sector.

References

G. Harness, Personal Communication, October 1, 2011.

S. Morris, Personal Communication, October 1, 2011.

Laudon, Jane & Laudon, Ken. (2009).Management Information Systems 11th Ed. New York: Prentice Hall.

Britt, D. (2010). Impact of Globalization in Creating Sustainable Competitive Advantage. Retrieved from HYPERLINK “http://www.sdcexec.com/web/online/In-Depth/” http://www.sdcexec.com/web/online/In-Depth/

Levine, L. (2001).Integrating Knowledge and Processes in Learning Organization. Information systems Management, 18, 1, 21-33.

Friedman, D. & Hoffman, P. (2001). The Politics of Information. Change, 33, 3, 50-57.