Case Study
Introduction:
Excellence - the luxury clothing retailer invested millions of dollars on IT project for its new $US 40 million futuristic “exicenter” flagship store opened in New York. With such huge investment company needs to generate $US 75million sales by 2017, roughly three times the sales of old store at the same site, to reach at breakeven point. Romy Woolhas, the architect of high - tech IT project although delivered state of the art technology for radically new shopping experience, but the subtle infrastructure failed to deliver value to the customers. Problems associated with the store are; Fickle fitting rooms – shoppers often gets confused by doors that turn from clear to opaque and fail to open on cue, Failed RFID – customers unable to use touch screen RFID ‘closets’ as they often just go blank when items are placed on them, Pointless PDAs – sales staff is not making proper use of PDAs provided to them to check inventory, Neglected network – disintegration between sales and inventory systems making wireless network useless.
Company used its 25% of store budget into IT incluiding RFD tags and real time Oracle Inventory database management system. inspite of lavish spending in IT infrastrcture and experienced staff most of IT functions are being ignored, e.g. PDAs provided to staff are not being used, automated dressing room doors are not functioning proprely, RFID-aware racks are not integrated properly with the system. customers also facing difficulty to get acquitenet with this flashy technology. As a result company's debt increased to $US 1 billion by late 2011 and plans of next San Francisco 'exicenter' store is cuttently on hold. Though Tokyo store is currently doing well and acclaimed by the management.
This paper will throw light on problems experienced by exicentre project, its causes and appropriate solution for presisting problems. Main body of this report will discuss about causes of problems and its solution, which further will be
Excellence - the luxury clothing retailer invested millions of dollars on IT project for its new $US 40 million futuristic “exicenter” flagship store opened in New York. With such huge investment company needs to generate $US 75million sales by 2017, roughly three times the sales of old store at the same site, to reach at breakeven point. Romy Woolhas, the architect of high - tech IT project although delivered state of the art technology for radically new shopping experience, but the subtle infrastructure failed to deliver value to the customers. Problems associated with the store are; Fickle fitting rooms – shoppers often gets confused by doors that turn from clear to opaque and fail to open on cue, Failed RFID – customers unable to use touch screen RFID ‘closets’ as they often just go blank when items are placed on them, Pointless PDAs – sales staff is not making proper use of PDAs provided to them to check inventory, Neglected network – disintegration between sales and inventory systems making wireless network useless.
Company used its 25% of store budget into IT incluiding RFD tags and real time Oracle Inventory database management system. inspite of lavish spending in IT infrastrcture and experienced staff most of IT functions are being ignored, e.g. PDAs provided to staff are not being used, automated dressing room doors are not functioning proprely, RFID-aware racks are not integrated properly with the system. customers also facing difficulty to get acquitenet with this flashy technology. As a result company's debt increased to $US 1 billion by late 2011 and plans of next San Francisco 'exicenter' store is cuttently on hold. Though Tokyo store is currently doing well and acclaimed by the management.
This paper will throw light on problems experienced by exicentre project, its causes and appropriate solution for presisting problems. Main body of this report will discuss about causes of problems and its solution, which further will be