North Pole Confidential: Seeking the Mother of All ERP Systems

As our exclusive look at Santa's RFP reveals, St. Nick's legendary customer service and logistical needs are pushing vendors to the brink as they bid to replace his centuries-old systems. But who can say "no deal" to Santa?

Thu, December 20, 2007CIO You think you have enterprise software headaches? Trying being Santa Claus.

CIO recently obtained a copy of an RFP (request for proposal) that Claus and his elfin management team distributed to the world's top enterprise application vendors in 2007. The RFP contains never-before-seen information that details the scope of Claus's worldwide operations and his IT needs. (To read about Santa Claus's supply chain implementation near-disaster, see "Supply Chain Management: Q&A With Santa's CIO.")

The proposal process was supposed to be completed by the end of last February and the system implementation started in April, which would have provided enough time to get everything ready for this Christmas season.

But bad news, kids: So far, leading enterprise application vendors have been overwhelmed by the enormity of Claus's needs, and the process has dragged on without resolution. (For more on enterprise software, see the Enterprise Software Unplugged blog.)

"Every requirement, every price consideration with [Claus] is just unheard of," says an executive at one of the ERPvendors, who requested anonymity due to the sensitivity of the ongoing negotiations and the fact that he didn't want to get coal in his stocking. "We're having to rewrite our SLAs [service-level agreements] over and over. This is out of control!"

Analysts say that Claus's operations are still using paper-based manual processes for inventory control, CRM, procurement, distribution, payroll and forecasting. "He doesn't even have a fax number," reports one exasperated vendor rep, who also requested anonymity. (Calls to Claus's media relations department weren't returned.)

What Santa Wants, When He Wants It

Mr. Claus seeks a fully integrated enterprise suite of applications, including ERP, CRM and SCM modules, for The North Pole operations team and its suppliers and retailing partners. The logistical and technological requirements are straight out of a CIO's nightmare. Just a few of Claus's extreme system requirements taken from the RFP:

Does the system have demand planning capability that receives and automatically processes all customer requests (Christmas wish lists via postal mail, e-mail, online forms, text messages and Facebook FunWall posts) of the 667 million children eligible to receive Christmas gifts?

Does the proposed software track with 100 percent accuracy the location-based customer information (street address, city/town, state, ZIP code) and automatically update any address, age and/or clothing-size-based changes to each customer's record?

Does the proposed system connect to a searchable data warehouse that stores the 10+ gift requests that those 667 million children make each year?

Indicate whether the proposed software can track children's temperaments (naughty vs. nice) on a 24/7/365 basis and link that back into the demand management application?

Does the proposed system seamlessly enable back-end communications (receiving, fulfillment, shipping, invoicing, returns) with the enterprise systems of the more than 1,000 toy, clothing and consumer electronics manufacturers, every single retailing business (from retail chains to mom-and-pop stores) that stocks and sells Christmas presents? How about the major coal-mining companies?

Does the proposed system have supply chain functionality to determine the optimal routes for delivering packages to approximately 156 million destinations, covering 111 million miles, and with a reindeer-powered transportation vehicle that carries 156,000 tons of cargo (roughly twice the weight of the Queen Mary) taking up 31 million cubic feet of cargo space (roughly 1,500 homes)?


Loading...
Applications MarketSpace
Practical Approaches for Securing Web Applications
Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle. Learn more »
An Executive's Guide to Web Application Security
Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business. Learn more »
Web Application Vulnerabilities
Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal. Learn more »
Using ERP To Gain Competitive Advantage in a Tough Economy
For midsize enterprises, now is the perfect time to invest in a significant IT expansion - despite the economic climate. Learn more »
Why BI is Ripe For Businesses of Any Size
Oracle's range of offerings to mid-size and emerging companies reflects its vision that BI and EPM solutions can be embraced by companies of all sizes. Learn more »
Oracle Accelerate
Ovum has been following Oracle's Accelerate program over the last couple of years because they thought it is a smart strategy for penetrating the upper mid-market. Learn more »
The New Age of ERP
Not only can small and mid-sized companies reap the renowned ERP benefits of greater agility, increased business visibility and measurable ROI. Learn more »
 
SPONSORED LINKS
 

CRM Built for IT: The Executive Guide to Selecting CRM that Meets IT Needs

ROI of Application Delivery Controllers

White Paper: 4 Customer Service Myths

White Paper: Improve Agility with Operational Responsiveness

Removing the Barriers to IT Governance: How On-Demand Software Changes the Game

Cloud Computing--Latest Buzzword or a Glimpse of the Future?

A Balanced Approach to an Application Development Platform

Adobe® LiveCycle®solutions for intuitive user experience

10 Ways Excel Drives More Value from Your SAP Investment

What's New in SOA Suite 11g?

Unleash the Power of Java with Oracle JRockit Real Time

SOA Best Practices and Design Patterns

Application Grid: Ideal Platform for IT Consolidation

Ready to virtualize tier one applications? Check your virtualization maturity.

Learn how to provide complete Business Service Management.

Increase ROI of Your Application Portfolio

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

See how AT&T can help protect your network.

Streamline IT Costs. Boost Performance with WAN Optimization.

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

What's Next for Enterprise Resource Planning?

Gartner Magic Quadrant, Application Delivery Controllers 2009

White Paper: Managed Security for a Not-So-Secure World

SharePoint - Unchecked growth of content is unsustainable.

Focus Under Pressure: Why IT Governance Becomes Mission-Critical in a Down Economy

Should Your Email Live In The Cloud? A Comparative Cost Analysis

Adobe® LiveCycle® solutions for business process automation

Architecting Business Intelligence Applications for Change: The Open Solution

Increase UPS efficiency without sacrificing protection.

Unlocking the Mainframe: Modernizing Legacy System to SOA

State of the Data Integration Market

Enhance Customer Loyalty through Higher Responsiveness

Achieving Business Agility with Application Grid

Seven Ways ITIL Can Help You in an Economic Downturn

Four steps to populate your CMDB.

"Enterprise-Proven" is the Prerequisite for Enterprise SaaS Portal Solutions

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Top Five CIO Challenges

Read the RSA report: Security for Business Innovation

64-page prescriptive guide to security, compliance, and IT operations.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

 
 
RESOURCE CENTER