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- Macleod-Stedman Success Story
- An HP Professional Services solution for Macleod-Stedman
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- [Figures (if any) appear in document image only]
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- 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.
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- "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."
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- Norm Moore
- MIS Director
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- 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."
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- 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."
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- 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.
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- 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."
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- 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.
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- 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.
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- Technical information in this document is subject to change without
- notice.
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- (c) Hewlett-Packard Co. 1992
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- Printed with soy-based ink.
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- Printed in USA 07/92
- Support
- 5091-4679E
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