MDBS Case 8
MDBS Case 8
MDBS Case 8
Mehta had more than 15 years of experience successfully building and managing a
number of IT projects. Projects were more challenging to execute than normal IT projects and
required organization wide commitment and support. These activities were coordinated by a
store manager and executed by sales assistants and other employees.
Mehta and his team developed a strategy to fulfill the strategic needs of the organization. While
the team believed that the best way to meet those requirements was a data warehouse, several
questions lingered in their minds. What were the possible pitfalls in the integration of a
warehouse system with existing IT? What were the structural decisions to be made when
meeting all the empirical requirements? How do they go about estimating the hardware
resources they use to make decisions? Which were the design alternatives available and which
choice would better fit their needs? What Change Management Initiatives and Communication
Planning will be needed at an organizational level for effective implementation? The company
built a network of regional warehouses to cater to the individual store requirements in the
region. The primary warehouse activities included storage management and distribution,
inventory management, liaising with raw material suppliers and manufacturers for item
procurement, and liaising with transporters for proper and on-time delivery of shipments.
As part of its distribution activities, each warehouse shipped items to a set of stores within its
region. While basic sales data was available, there was no way to get an integrated view of sales
across multiple stores, slice and dice data, conduct multi-dimensional data analysis or build data
mining models to identify the right customer targets. Information Technology Systems at Acme
Inc. Historically, the company had grown through acquisitions.
A data warehouse organized and stored data in a way that was best suited to perform analytical
queries. As per Gartner analyst estimates, the overall market for data warehouse systems alone
was estimated to be about US$ 9 billion in 2013 and expected to grow at a CAGR of 7%.3 The
size of the market, its continued growth and industry success stories clearly demonstrated the
value that organizations could derive from such infrastructural IT investments. Warehouse users
wanted to know the time taken to move a product from the warehouse to the store. Mehta
carefully contemplated the above questions. He knew the answers would be critical in arranging
a pilot study, preparing a detailed implementation plan and presenting the findings to Barley
and other key stakeholders.
Problem Statement
The Acme Warehouse Company received a consignment of 20' lengths of 3" diameter stainless
steel pipes. Acme had never handled pipe as part of their warehousing operation. The forklift
truck operator assigned to this job used the truck's forks as a ram to load, handle, and unload the
pipe. Inspection of the pipe by the owners revealed that the forks were bending and damaging
the pipe. The dilemma is now how ACME can eliminate the problem of pipe damage. From a
cost and ease in application standpoint.
Recommendations
Having understood what a data warehouse is and what should go along with data
warehousing, the company needs to adhere to some of the best practices of data warehousing.
Some of these practices include: