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Supervalu Essay

773 words - 4 pages

2. Discuss the specific advantages of decentralized and centralized approaches of an IT
architecture at Supervalu

Advantage of decentralized:
Decentralization gives individual store directors autonomy over their own resources without any major considerations over other directors unless it is essential to the overall organization policy. One of SUPERVALU’s turnaround strategies is moving from centralized to store­centric decision making, such as empowering store directors with greater autonomy. After SUPERVALU acquired West Coast grocery chain Albertsons, the company’s revenue model was changed. In 2006, about 77% of the company’s total revenue came from retail ...view middle of the document...

For example, since managerial system change from independent point­of­sale (POS) system to POS system with centralized system, the most significant result is showing on transparency. The company wants to use common tools that met the needs of all the banners. By this tool, it will be much easier for supervision department to use POS data to measure movement of produce items, and determine how much to hold in stock and how much space to allocate. It would reduce spoilage and lower costs, and thus provide a source for process reductions as well. Secondly, SUPERVALUE recommends Yammer to the entire term. The management wants to create a culture of sharing to increase the collaboration across banners. Everybody is connected together to build a term to focus on the same thing; one team winning. Yammer allows teams and every director to communicate, share ideas, and get advice from others. Additionally, Yammer can also help to shift the culture from one of difference and competition to one of sharing and openness.

Although there are many advantages of decentralized and centralized approaches of an IT architecture at SUPERVALU, they cannot stand alone. Without centralized, the information between the banners

may not be shared, and the company cannot achieve “One Company “strategy. Therefore, decentralization combined with centralization is necessary to success at SUPERVALU.

3. Discuss the types of data that Supervalu could have, as well as, what they could use the data for.

Data that Supervalu...

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