Information Technology and Strategy Management: Woolworths Analysis

This report analyzes the IT and strategy management decisions of Woolworths, focusing on recent strategic moves and challenges. It examines the big decisions made by Woolworths, such as the implementation of new IT models and workforce reductions, and the factors that drove these decisions. The report also assesses Woolworths' situation using Porter's Five Forces model, evaluating the balance of power and its impact on IT/IS strategy. It explores the short-term and long-term pros and cons of these decisions, the importance of IT, and the new management's approach. Furthermore, the report provides recommendations for the CIO, identifies essential information systems, and analyzes the impact of project cutbacks. It concludes by outlining stakeholders and functional requirements for identified IT systems, offering a comprehensive view of Woolworths' IT strategy and its implications.

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INFORMATION TECHNOLOGY AND STRATEGY MANAGEMENT
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1. In the context of IT/IS strategy, what big decisions Woolworths has taken recently?
In Woolworths Brand Banducci the new chief executive officer introduces the new IT models
that can cut down million within its assets. Almost 500 workers supporting the revolution of,
Woolworths and supply chain are to be provided by the organization (Bainey 2004). The
review result as announced by Balducci’s instigated that the operation model by the February
he will be appointed as the CEO of the organization.
2. What factors led Woolworths to take such strategic decisions?
The major challenge in Woolworths was that the agencies they used to supply faced issues
regarding the performance of the replenishment and the inventory system that made it
difficult within the relationships of the suppliers.
3. What major challenges Woolworths has been facing recently?
The former CEO Grant O’Brien’s kicked off $1 billion projects Mercury in the year 2014.
Woolworths made its 50% investment in the data farm Quantum and EziBby business for
gaining skills in data analysis and hence promote transformation of the direct selling of the
supply chain (Al-Khalili 2003).
4. Use Porter’s five forces model to assess the situation of Woolworths. Where do you see
the balance of power? How does this impact IT/IS strategy?
Porter’s five forces model provides the details about Woolworths cutting down five hundred
workers such that the company may have less workers headache as well as less effectiveness
in cost. But online marketing makes it had due to its competitiveness.
The former CEO decided to cut down 500 workers such that to make the assets worth
$40million, writing down in the total costing. Woolworths bare an amount of $80 million to

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the impairment of unspecified IT platform, and also decides to not pursue the other "strategic
initiatives."
5. What are the pros and cons of those big IT/IS strategic decisions for Woolworths in (a)
Short term, (b) Long term?
(a) Short term: The CEO cut off 500 workers in short term. That gets easy to manage the
other workers as they will have enough capital money. Thus, it will help for a big profit as the
company that has already had invested $1 billion, which will help in recovery of other
business investment in short terms.
(b) Long term: Focusing on the recent situation, to establish a company, it is important to
manage people thousands mile away and the total cost effectiveness of the company, and thus
the company’s outsource will profit a lot.
6. In your opinion, how important is the role of IT in Woolworths? Does the new
management underestimate this role?
The company mainly specializes in selling grocery, DVD magazine and stationary ranks
Second largest company in Australia by revenue. The new management systems were trying
to implement new software and performance in material improvement which will spread the
scope in online marketing (Sheehan 2010).
7. Do you agree with the decision of new management in writing down millions of dollars
in IT investment? Explain with reasons and recent examples from industry.
Yes, I think writing down millions dollar IT investment, investing 50% in data firm quantum
and splitting out online business EziBuy such that to gain skills in transforming direct selling
of its supply chain and data analysis would help for future improvement of the organization.

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8. What would you do, if you had been the CIO of Woolworths? Please explain your
reasons and ensure that they have solid footings.
Being a CEO, I major responsibility would be to fix the relationship of the supplier that is a
big issue as presented during last quarter, to bring the new software kept under processing
and also have to look at the material improvement for customer satisfaction (Johnson and
Gustafsson 2000).
9. Identify major Information Systems which you think that Woolworths should have? Give
justification for each system that you identify.
Information system like implementation of new hardware, along with Big Data
technology such that to make data storage much reliable and secure. There should be also
providing several numbers of suppliers for better business implementation (Johnson and
Gustafsson, 2000).
10. Identify the impact of slashed down projects on IT/IS in Woolworths. Will Woolworths
be able to deal with it? How and Why?
On slashed down project on IT/IS in Woolworths the department deals it with SWOT
analysis that is Strength, Weakness, Opportunity and Threats. Dealing with the positive and
negative are of strength and weakness, Opportunities in the market from where the business
can gain profit and the threats of the market potential competitors.
11. Enlist stakeholders (individual, teams, departments or organizations) for every IT
system that you identify.
The stakeholder that involves the IT in Woolworths are:
 CEO

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 IT team
 Suppliers
12. Compile high-level and most important functional requirements for the IT systems that
you identify (at least three requirements for every system).
For the requirement of IT system the most important functional requirements are:
 The Database: This helps to keep and store data according to the requirements
 The Services: The services should be of high quality and fast enough such that there
must not be any kind of complain from the customers
 The Security system: The security is the most important part in any IT service. More
the security more the level of loyalty amongst customers. This part may include
Biometry and RFID technology.
References
Al-Khalili, J. (2003). Quantum. London: Weidenfeld & Nicolson.
Bainey, K. (2004). Integrated IT project management. Norwood, MA: Artech House.
Johnson, M. and Gustafsson, A. (2000). Improving customer satisfaction, loyalty, and profit.
San Francisco: Jossey-Bass.
Sheehan, B. (2010). Online marketing. Lausanne: AVA Academia