[MIT Sloan]

15.566:
INFORMATION TECHNOLOGY AS AN INTEGRATING FORCE IN MANUFACTURING

SPRING 1998

Case Study Questions: H.E. Butt Grocery Company:
A Leader in ECR Implementation

 

Please prepare the H.E. Butt Grocery Company (HEB) Case, following the suggested guidelines at the end of the syllabus. You must turn in at the beginning of class a written case assignment addressing the following six questions. Your write-up should be approximately 1100-1300 words (or 3 pages of 1.5 spaced 12pt font text). You should provide a separate answer to each question. Please be concise and to the point. Do not repeat facts or arguments relevant to more than one answer; instead refer the reader to the answer they appear. You may write up your answers in "bullet" format, if you so prefer.

  1. Describe HEB's competitive strategy in its industry. What are their "critical success factors," i.e., the 3-4 areas in which they must perform well to carry out their strategy successfully?
  2. As of the writing of this case, how is Information Technology used to support the HEB's competitive strategy? Have these IT applications paid off? Identify all relevant systems mentioned in the case, but be brief and to the point.
  3. As of this writing, what is the role of IT in HEB's organizational structure? Specifically describe how IT does or will affect reporting relationships and communication within the company, the collection and distribution of information, and the allocation of decision-making authority.
  4. One rule of organizational design in information-intensive organizations is to (a) co-locate information and decisions by moving the information to the decision-maker or by empowering with the decision the employee that has the information, and, (b) design a compensation scheme that rewards good decision-making. Does HEB follow this rule? Explain.
  5. What are the main benefits from electronic integration between HEB warehouses and manufacturers such as P&G? Are scanner data crucial for the operation of such a system?
  6. What are the 1-2 most critical technology challenges faced by HEB management in the near future? What advice would you give them?