100%(6)6 out of 6 people found this document helpful
This preview shows page 1 - 3 out of 3 pages.
effective on December 31, 2006. The previous CIO John Baxter Burns had a plan formulizing but he left the company before a decision was made. As Nelson entered the company in July 2006, an issue he faces is the pressure of the Board of Directors requesting to know his plans for dealing with the IT platform change. Lastly, the company has been accustomed with using IDEAS/3000 on the HP 3000 platform since 1986. Providing training for a new system would be costly; time and dollars. There would also be a significant loss in productivity while employees learn to use the new system. The platform has been built around the company as it grew to over 3,000 associates that use it. A new system would basically be a headache for the company.SOLUTIONS A first option to the solution of these issues would be to do nothing. Doing nothing would allow the company to make the current system last for a year or two. However, by taking no action the growth plan would have to stop at about 100 stores. So would this really be hurting them or helping them?The second option would be to choose between two possible vendors that have been narrowed down after two years of juggling proposals: Delphi and Sentra. By using Delphi, Greggs would be adopting its defined business processes for running retail enterprises, and move its data into this application. The cost for using Delphi implementations would be between $15 and $20
million and would take 18-24 months to complete. If Sentra were to be chosen it would be a lower implementation cost of between $10 and 12 million and take 18 to 24 months as well. Using Sentra, Gregg would license technology and begin learning how to use it and pay additional fees as locations are added to the system.