Sysco is in the business of procuring and distributing food and related products and services to restaurants, healthcare and educational facilities, lodgings and a number of other organizations in the U.S. and Canada. Sysco started its operations in Houston in 1969.
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In simple terms, Sysco needs to set a link between the BI package and databases.
Why did Sysco decide initially to address only two questions with its new BI software rather than use it as a more general analysis tool? Why did Business Objects recommend this approach? What are the tradeoffs?
Initially, Sysco wanted to address only two questions, one being the selling of additional products to each of the customers and the second question was identification of such current customers that Sysco would lose in future. These two questions were predictive in nature. The first question the software could provide answer to was related to comparison of a client’s activity based on its size, type, geography and other factors. By generating different profiles and comparing them continuously with what was being ordered by the customers, the software could generate reports with potential business opportunities.
The second question the software could answer was monitoring customers’ ordering design over time, noticing a change in the volume of a regular customer’s order for all or a particular product type. Such information could be very crucial to Sysco so as not to lose its loyal customers and pay more attention to their requirements.
Business Objects also supported and recommended Sysco approach to use the software selectively after extensive analysis and interviewing, which was its pre-sale service support to provide business intelligence to its client Sysco.
For judging the effectiveness of the new systems, Sysco should calculate the cost of the software on individual companies. Systems’ effectiveness depends on the fast return back of the investment made on the purchase of the software. The estimated cost is in the range of $2.5 million to $3.5 million but actually, it depends on the software, its time of purchase and the consulting support needed to implement the software
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