H.A. Foods A Broader Vision

1. H.A. FoodsA Broader Vision Ryan Miller Chris Modec-Halverson Edie Plasch Kayla Pocquette-Rondeau Mgt 6530 Managerial Applications of Technology

2. History History • H.A. Foods established by Hans Rolo in 1954 • Chewbacca, Maine • Focus on organic foods and supplements • Local suppliers

3. Mission Statement Old • “To make the world a better place through healthy food.” New • “To offer value to each neighborhood we become a part of through providing healthy, organic, socially responsible products. ”

4. Current Strategy Mission driven, centered around several core “pillars”: • Sell the highest quality natural and organic products available; • Satisfy and delight our customers; • Support team member happiness and excellence; • Create wealth through profits and growth; • Care about our communities and our environment. • Current strategy supports mission: • Command & Control / High Involvement • Build and nurture alliances with local organic growers • Enter areasof similar demographic, affluence, and income.

5. Why Change? HA foods has described a disconnect between the community and the organization.

6. Recommended Strategies • Enter into new markets by re-envisioning the HA Foods brand • Build-out, remodel existing storefronts • Stock quality, HA branded foods and items popular within existing geographic areas • Colloquially relevant marketing and advertising • Do NOT reinvent the wheel • Create Alignments between Strategies • Direct information, organization, & business strategies towards sustainability, agility, and innovation.

7. Create Maximum Surface Area

8. Porter’s Generic Strategies

9. D’Aveni’sHypercompetition

10. Current Information Strategy Hardware/Software Centralized Computer System ERP Systems Sales/Inventory CRM Systems Marketing/Customer Initiatives Network/Data Users access the the mainframe via networking Data collected/stored centrally

11. Current Business Processes • Marketing • Produces and executes marketing plans • One marketing plan, many locations • No longer fits with HA's business strategy

12. Current Business Processes • HR • Effectively hires capable applicants • Data flows from the top down • No longer fits with HA's business strategy

13. Current Organization Strategy

14. RECOMMENDATIONS

15. Proposed Strategies Question 1: How can we align the Business Strategy with Organization and Information Strategies? Answer: Develop a mindset that is “Built to Change.” On-the-fly adjustments to strategic intent which optimize sustainability. - Breadth - Aggressiveness - Differentiation Capture momentary advantages Recognize IT as a Strategic Business Partner

16. Proposed Strategies Question 2: How can we align the Organization Strategy with Business and Information Strategies? Answer: Rally around capabilities, processes, and the culture. Communication  Collaboration  Consensus What do our employees need? What processes create value? What do we already do that support this? Reduce levels of hierarchy Push decision making down and across boundaries Recognize IT as a Strategic Business Partner

17. Proposed Strategies Question 3: How can we align Information Strategy with the Business and Organization strategies? Answer: Recognize IT as a Strategic Business Partner! “Information Transparency” - Visible to All - Understood and Accepted - Available and timely - Focus on critical control areas IT flattens organizations. IT functions are no longer taken for granted as ad-hoc services which either work or become obstacles for “work-arounds.”

18. Current Architecture

19. Proposed Architecture

20. Outsourcing • No plan to outsource • Improving company culture: fitting the store with the community • Service maintenance with CRM

21. Knowledge Assets • Improve CRM knowledge to learn more about customers • Neighborhood/geography knowledge • Improve supply chain management knowledge

22. Data Mining • Company and customer information needs to be protected • Competitors • Trends • Consumer profiles-keep in house

23. Data Mining • Data Protection Act • Only collect information for specific purpose • Keep it secure • Relevant and up to date • Only hold as much as the company needs • Allow the data to be seen upon request • http://ico.org.uk/for_organisations/sector_guides/business

24. Leadership Needs • Ensures there are effective strategies in place: • Resources • Communication • A leader who ensures the alignment of: • Business • Organizational • Technological Strategies

25. Governance Structure Decentralized

26. Projects

27. Project 1: Facilitate Decentralization Examples of business processes after decentralization • Purchase HR Services from Corporate • Purchase IT Services from Corporate

28. Project 2: Purchase CRM Uses: Examples of business processes using a CRM Part Marketing Part Sales Part Customer Relations

29. Project 2(cont): Purchase CRM Benefits Get the big picture Local customers Local markets Relevant Data Proposed Products SalesForce

30. Project 3: Supply Chain Management • Good relationship with local suppliers • Product forecasting • Tailoring products to the store location and consumers wants/needs, not corporate needs

31. Project 4: Change Management What needs to be done: Overcome resistance to change Disconfirm existing ideas; Create conditions in which employees feel empowered to help with the change process; Information transparency regarding scope; Achieve leadership buy-in; Communicate; Make it happen!

32. Evaluating the Projects

33. Project Costs • Funding • Capital budgeting

34. Project Costs

35. Weighted Return on Investment Project ROI AlignmentAccuracyWeighted ROI 1 – Decentralization 61 0.8 0.5 24.40 2 - CRM Module 610.9 0.843.92 3 - Supply Chain Module 61 0.8 0.7 34.16 4 - Management Culture 61 0.7 0.5 21.35

36. Project Risks • Technical • Financial • Organizational

37. Closing • The implementation of these four projects will allow H.A. Foods to create a stronger connection to the communities in which they operate. • Questions?

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