Case Study: Retail Accounting Application Rationalization
The client is a large multi-billion-dollar national retail grocery store engaged with more than 270,000 employees. The client has a Shared Service Group (IT, HR, Finance/Accounting).
MSS Business Transformation Advisory (MSSBTA) was engaged by the client to propose an applications rationalization project for their Retail Accounting Group during a major merger and acquisition (M&A). This project was focused on three primary areas:
Develop a Retail Accounting Applications Catalog inclusive of their ERP system, Retail Accounting focused operational systems, other third-party products and disconnected spreadsheets and Access databases.
Evaluate the functional effectiveness of their applications and assess the technical currency of their systems.
Develop a 1- to 2-year application roadmap with recommendations
The client’s Retail Accounting Group’s initiatives were put on-hold during their M&A assimilation. When the integration process was completed, Retail Accounting had plans to move forward with their IT initiatives that were previously on hold. With limited resources, budget, and pending technology obsolescence, it was critical to develop a roadmap to reflect the work that needed to be completed. Retail Accounting was very complex with several third-party vendor systems, greater than 190 shadow systems and an aging application with limited support.
Using our proprietary tools and templates, MSSBTA initiated the process to build the Retail Accounting Applications Catalog. In addition to the inventory of applications, the systems were categorized based upon functional effectiveness and technology support. This criterion was used for prioritization with verification made within the Retail Accounting organization.
MSSBTA used the Catalog Analysis to identify initiatives that would deliver the greatest business value for the organization with a focus on efficiency, reduced cost, and technology currency.
An executive presentation provided application rationalization roadmap recommendations and supporting details. The financial management team agreed with the recommendations, deciding to invest in a new ERP system that would reduce technology cost and improve operational efficiency for the Retail Accounting Organization.
Retail Accounting Applications Roadmap
Development of an IT Applications Catalog to measure effectiveness of the application