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Resource and Support Processes

Resource and Support Processes - Information Systems Guitar...

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Information Systems Guitar Center has invested a significant amount of money in information technology systems that provide real-time information on their stores. These systems have been designed to integrate all major aspects of the business, including sales, gross margins, inventory levels, purchase order management, automated replenishment and merchandise planning. The system capabilities include inter-store transactions, vendor analysis, serial number tracking, inventory analysis and commission sales reporting. In 2006, they developed and implemented a data warehouse that enables them to improve their marketing techniques and inventory planning. Also, in 2006, they began operation in their new data center, which augmented the previous operations center by providing increased capacity, improved service levels and improved recovery flexibility. The new data center infrastructure also improves Guitar Center’s ability to support anticipated business growth and new technology initiatives. They are in the process of developing and implementing a new point-of-sale system to replace the current sales processing solution which is built on an aging infrastructure and is difficult to enhance for future business requirements. The point-of-sale system is presently scheduled to begin a pilot program in 2008 and will provide them with enhanced customer sales information and more intuitive training modules. Their direct response business maintains an extensive multi-channel retail transaction processing system, as well as systems supporting e-commerce operations, catalog operations, marketing analysis and internal support information. These systems provide the direct response business with marketing, merchandising and operational information and provide call center and customer service staff with current inventory and customer account information. They are in the process of developing and implementing a new multi-channel retail transaction processing solution that when implemented will function as the core retail platform, supporting merchandising, inventory management, order management, order entry, distribution center operations and various other major multi-channel direct response business functions. This system is presently scheduled to begin operation in late 2007 or early 2008 and will provide a more flexible and efficient retail platform supporting continued growth objectives, possible international expansion and various other direct response enhancements. The operations of their direct response business are highly dependent on its information technology systems. The direct response business does not have redundant Internet or operating systems and currently would be vulnerable to catastrophic events. In the event of a disaster, our direct response business would most likely experience delays in processing and shipping orders until we executed our failure recovery plans.
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