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Chapter 5 - From Silo to System: An Integrated Approach to Transformation

Extreme customer centricity powered by the right technology is helping one global supermarket disrupt the competition. This exponential expansion was made possible in large part thanks to a customer based focus on delivering fresh, quality goods at an affordable price in combination with agile business operations.

Seeking to build a foundation for future growth, the retailer sought out a system that would facilitate alignment between customer needs, business strategy and internal IT operations. To drive the business goals of increasing customer satisfaction, average revenue per customer, growth in market share, and improved overall margins, the CIO recognized the need to gain control over the existing IT landscape. Not only was the legacy IT landscape costing more than it could deliver in value, it was also unfit to scale and was incapable of adapting to the continuously changing needs of the customer.

The Solution & Use Case

This supermarket chain invested in Mavim as a Business Operating System to align, visualize, and manage the people, processes, and systems necessary for their business transformation. In Mavim, they visualized the current state of the organization, including its customers, products, services, processes, organizational design, application landscape and IT infrastructure. By connecting this information in Mavim and mapping it on to the future (“to-be”) state, they created a roadmap for their transformation. This map or business blueprint served as the starting point for the implementation of Microsoft Dynamics AX and CRM, the replacement of legacy systems and the necessary interfaces with the remaining systems. Mavim enabled the retail chain to do a fit/gap analysis, allowing them to focus on usability and functionality of the new application landscape.

To gain situational awareness, they use Business Activity Monitoring, which is connected to individual processes in Mavim. Defining operational KPIs (tracked by the BAM system) gives real time insight into whether critical business systems are up and running. Not only does this create insight into what should be happening both inside and outside the stores, but what is currently happening.

To create flexibility and gain insight into the behavior of their customers, this retailer introduced machine learning into a selection of their stores. Through an analysis of customer purchases, they are learning more day by day about products that are frequently bought together, which allows them to service their clientele in the most customer-friendly way. The conclusions drawn by the machine learning tool are placed in Mavim in order to assess the business impact a new change would have on operations.

For example, based upon their close proximity to a school, one store decided to facilitate their school-aged audience by providing a vending machine with the items most often purchased together by that age group: energy drinks and sandwiches. Yet, through the combination of machine learning and Mavim, they noticed the same correlation at another store (not located near a school) and could assess the business value of implementing the same solution at another location.

To facilitate collaborative and fact-based decision making, the supermarket uses Mavim to communicate the progress of the transformation to the board of directors. Not only did this clarify matters around budgeting and planning, but it also helped the IT department get approval for requested changes. With the Mavim publishing and feedback functionalities, the CIO was able to ensure collaboration among the members of the team, which ultimately made the chosen projects easier to plan and govern.

The Methodology

The retailer utilized a number of different methodologies and frameworks (ASL, BISL, ITIL) to bridge the knowledge gap of the IT department. Foremost among these was the Business Transformation Framework, which is made dynamic in the Mavim software. They began by defining the current state of the organization, including customers, products, services processes, organizational design, application landscape and IT infrastructure. Then, based upon a combination of technical, legal, and market developments, they developed their desired “to-be” state. The business requirements of the to-be state were then translated into functional requirements. From there, KPIs were determined and connected to activities within processes. Risks were also defined, classified, and connected to processes. For the CIO, the risk management aspect was critical because change delivers risk. By having everything connected in one repository, the CIO can ensure that when things change, the information stream is always accurate.

The Business Results

The first concrete business result that Mavim delivered was the implementation of Dynamics AX in time and budget. According to the CIO, “With the Mavim platform, we gained insight into the connections between the strategy, architectures, projects, customers, products, services, processes, people, IT infrastructure, and applications. With that insight, we are able to make the right decision at the right time, and understand how our work is related to strategic goals.”

Additionally, through use of Mavim, the retailer was able to achieve their goal of making space for new and innovative technologies. By leveraging machine learning to better understand their customer, they are able to differentiate themselves from the competition. For the CIO, the bottom line is that a BOS allows an organization to adapt and differentiate, which contributes directly to business performance. In 2016, this retailer was awarded the prize for the best supermarket webshop.

Why Mavim

The CIO choose for Mavim for a number of reasons. First, Mavim provides an integrated solution, In one platform Mavim facilitates business process management, application portfolio management, project portfolio management, information security and risk management, as well as for the implementation of their business critical systems (Dynamics AX & CRM). The second reason they choose for Mavim is its flexibility and adaptability. They’ve used Mavim for their transformation in large part because it offers a level of flexibility that other tools of its type cannot. The final reason they chose the Mavim solution is because of the clear connection it creates between people and corporate strategy. In the CIO’s own words, “The why question was extremely important for the IT department. Knowing which business goals they’re supporting has driven an upswing in employee productivity and satisfaction.”

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