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Power Tools 1993 November - Disc 1
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Power Tools Plus (Disc 1 of 2)(November 1993)(HP).iso
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50914679
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50914679.txt
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1993-07-30
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Macleod-Stedman Success Story
An HP Professional Services solution for Macleod-Stedman
[Figures (if any) appear in document image only]
Solving business needs with HP's education and consulting services
For Macleod-Stedman Inc., a Canadian hardware and variety store chain,
mainframe downsizing resulted in $1 million in annual savings and a new
lease on life. Emerging from bankruptcy in early 1992, the new
streamlined company, called Cotter Canada Hardware and Variety
Cooperative Inc., is today a 300-store, retailer-owned wholesale
cooperative. Based in Winnipeg, Manitoba, Cotter Canada distributes
$100 million annually in hardware, variety, and related items
throughout Canada. A key factor in the company's successful
reorganization was the move to distributed information systems--systems
linked in a communications network. Together with HP and HP's business
partners, Macleod-Stedman successfully retooled its entire operation
in just 6 months, enabling the company to secure needed outside
investment.
Three years ago, Macleod-Stedman began consolidating operations to
increase its competitiveness and better leverage resources. Previously
operating Macleod and Stedman as two separate companies, the parent
company hoped that by combining corporate, wholesale, and retail
systems, it could reduce its operating costs. Consolidation, however,
proved harder than anticipated. Taking twice as long as expected, the
wholesaler continually hit technology roadblocks because of
incompatibility between Macleod's IBM mainframe-based system and
Stedman's Honeywell-Bull mainframe-based system.
"One of the first things I noticed in my initial meetings with HP
consultants was that they seemed to be more concerned about helping me
find the best solutions and less concerned with trying to make me buy
something."
Norm Moore
MIS Director
Eliminating obsolescence
Says Norm Moore, director of management information systems, "Our
problem was that we were relying on technologically obsolete
information systems. They were expensive to purchase and maintain and
left us unable to take advantage of software development advances. Our
software had been designed almost 2 decades ago to handle old business
problems, leaving us unable to respond quickly enough to market
changes. It no longer made sense to incur excessive costs to operate
systems that did not meet our current needs and were incapable of being
changed to meet future needs."
Extending resources
Moore and his team of two analysts worked with company executives to
translate 3-year operational objectives into functional requirements
for a new information system. From the functional requirements, they
compiled a resource requirements plan spelling out long-term
information requirements. Moore knew he couldn't afford 2 years to
develop the internal expertise for implementing a new information
system. Balancing the company's need to reduce costs and increase its
attractiveness for outside investment, Moore looked to outside
resources to help. Says Moore, "By contracting with outside expertise,
we found we could get the project done faster and far more
economically."
HP's problem-solving approach
Contacting leading computer companies, Moore was most impressed by HP's
customer orientation and problem-solving approach. Says Moore, "One of
the first things I noticed in my initial meetings with Hewlett-Packard
consultants was that they seemed to be more concerned about helping me
find the best solution and less concerned with trying to make me buy
something." This approach, coupled with HP's implementation experience
in distributed systems, HP's strong working relationship with the
company's chosen software vendor, and extensive customized training and
support programs, led Moore to choose HP as the company's
implementation partner.
HP's added value
A critical component of the project was education. HP's professional
trainers worked with Moore's staff to educate them about the technology
and give them a clear sense of the technology's benefits. Through a
combination of on-site and off-site training, Moore's staff quickly
become productive in the new computing environment. Says Moore,
"Considering that we were an IBM mainframe shop with long-time, career
IBM people, HP's training and consulting services were invaluable. When
we began this conversion, we didn't really know where to start. HP
provided the guidance we needed to put together a plan that tracked our
progress and incorporated a broad package of services as we needed
them."
Leveraging expertise
Education also helped encourage user involvement in the project from
the start. HP consultants interacted in steering committee meetings and
departmental task forces, helping to assess the project's status and
set priorities. As implementation milestones were reached, HP
consultants guided Moore's staff in avoiding pitfalls, which saved the
team time and effort. Continues Moore, "HP consultants helped us set up
and learn new products and implement system upgrades, which for us,
having never done anything like this before, was of great value."
Leveraging HP's expertise enabled the company to avoid hiring
additional people.
Relying heavily on HP and HP's business partners, the team replaced
the company's information system and application portfolio with a
flexible, open system that supports centralized and distributed
processing. Key administrative functions--accounts payable, general
ledger, and accounts receivable--today are centralized in the corporate
data center, while order processing and merchandising information
systems are distributed among regional data centers. The system can
easily accommodate multiple business units and distribution centers as
business grows. It also dramatically improves the amount and quality of
financial and operating information available to managers--a critical
objective for management.
Cost-effective systems
Migrating to distributed information systems reduced Cotter Canada's
information system costs by $1 million annually. More importantly, the
new system dramatically enhances the company's responsiveness to
changing market and organizational dynamics. Supporting Macleod-Stedman
from bankruptcy through its reemergence as Cotter Canada has validated
the new system's ability to accommodate changing business demands.
Today, revitalized and poised for growth, Cotter Canada is finding new
ways to use information technology to its competitive advantage. To
find out how HP's education and consulting services can help you
implement cost-effective information systems, contact your nearest HP
representative today.
Technical information in this document is subject to change without
notice.
(c) Hewlett-Packard Co. 1992
Printed with soy-based ink.
Printed in USA 07/92
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