Case Study 1-6
This issue for case study 1-6 is brought to us by Steve Nelson and the company of the Gregg’s Appliances, Inc. The HH Gregg Company was founded on April 15, 1955 in Indianapolis by Henry Harold Gregg and his wife. The initial store was an 800 square feet appliance showroom and office. Since then the company has expanded and with that expansion the company needed more and more information technology in order to harness the power of the information they had acquired. But in 2006 the current CIO, Steve Nelson, was facing a deadline. The deadline was the HP, which was Gregg’s principal information technology vendor, has chosen to discontinue support for its line ...view middle of the document...
5. Receive and install hardware.
6. Build system controls for security.
7. Execute the migration methodology.
8. Exercise testing and quality control of the new infrastructure.
9. Complete training of Gregg’s personnel on the new systems.
10. Create post-project implementation review
By 2006 the company was using the IDEAS/300 system, which had been enhanced significantly over the years to deal with changes in business process and enterprise growth. By 2006, the system had grown to over 60 databases and 3600 programs. At the time of Burns’ departure in April 2006, the application evaluation team was focusing on two possible vendors: Delphi, processing their retail application suite, and a new retail application development tool offered by Sentra. The Sentra solution included a new point-of-sale application.
Gregg’s ended up having to choose between four different products; Delphi, Sentra, UNIX conversion (Texas Firm), and UNIX conversion (ex-ADI). All the products had their positives and negatives, such as cost and timing. Delphi and Sentra are the two most expensive solutions, ranging from $10-$20 million with an annual maintenance cost of $1-$2 million. They are more expensive because they will move the company forward to industry standard software platforms but cause many changes in the business process. And Nelson had heard about all the horror stories with the changing business processes that some SAP implementations have generated. The other two choices were UNIX platforms. The first one was being offered from a Texas firm with the cost of $4-$5 million with an initial investment price of $100,000. The process would be to migrate applications to an HP UNIX platform. The bonuses to this choice would be lower costs compared to Delphi and Sentra, Gregg’s could maintain current business processes and there is limited training required. But the Texas Firm UNIX platform does not move Gregg’s to an industry standard and it requires significant development staff time. The other UNIX choice was from Ex-ADI costing $4-$5 million. The process for this change would be to hire programmers and re-write into a UNIX platform internally. The biggest benefit to this selection was that it allows for phase-in implementation, which means no business will be stopped. It is also much cheaper than Delphi and Sentra options. The software will also be high adaptable and...