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Businesspundit: Pick Yer Bucket
I was at an event on Thursday, hosted by Oracle, where the primary topic was “Enterprise Architecture and its importance to business” - this post piqued my interest on a couple of counts following that. Firstly is the significance of EA to a business such as Walmart - which live and die by IT systems - foremost being customer databases and supply chain management. Without properly designed and aligned systems then such ventures will struggle.
The mention of Tesco is interesting as not only do they have an excellent track record in this area, but the main guest speaker at the event I mentioned was Mike Yorweth, their chief architect. BusinessPundit mentions their “Borg-like” track record and this is in no small part to the successful use of IT. A good point of comparison here is the previous supply chain management problem of Sainsbury’s, which required a huge, refocus of recruitment to solve short term stocking problems in stores caused by failing systems. This demonstrates how important
The main thrust of the article however is that of customer knowledge, allowing targeted marketing and better stock and price management. Having an awareness of who your customers are, what they buy, when plus their price sensitivity can be a huge advantage - hence the use of “loyalty” cards by the supermarkets (and increasingly other retailers). When combined with the intimate financial details available when a customer makes use of a store card or, more likely in the modern world, the raw financial services offered by these organisations (loans, credit cards, insurance are all offered by Tesco) the ability to profile individuals and the groups they belong to becomes an immensely powerful tool.
It’s been said that Tesco knows more about (holds more data about) the UK population that the Government itself and the requirement for properly designed and secured information systems is paramount - there’s a lot of concern about the Government’s plans for identity cards and associated databases (including from myself), but less concern about the data that is held about us by private enterprises. One element of this is that private enterprises generally tend to get IT development right (and suffer the consequences / learn the lessons if things go wrong) whereas the Government tends to make a mess of things, then repeats the mistakes in the next project. I’d like to think that it’s not just because the supermarkets give a money-off voucher back every month that we surrender so much privacy to them
I think the lesson for any organisations dealing in data (which is pretty much everyone now) is the importance of proper architecture and governance. It’s been said before that “IT doesn’t matter” and there’s an element of truth to this in that the technology itself is much less important than having well designed process and systems, properly aligned to business needs. That’s where the real competitive advantage is.






























