Enterprise Value Awards Winners Guide 2004

Grand CIO Enterprise Value Award Winner

Chicago Police Department

Government

Chicago

www.cityofchicago.org

Revenue: NA

Employees: 16,600 sworn officers and civilian employees

Winning system: The Citizen Law Enforcement Analysis and Reporting (CLEAR) relational database contains 8.5 million arrest records. By querying CLEAR data, Chicago Police more effectively and efficiently solve, predict and prevent crime.

Winning strategy: Ensured user participation in development and testing; received consistent support from top management

System anatomy: Oracle 9i relational database; SQL query and Crystal reporting tools; Sun SunFire database and Internet application servers; Sun StorEdge Disk Array storage area network; removable MicroSlate notebooks for police cars

Business value: CLEAR has helped police increase Chicago’s crime-solving rate by 11 percent, created time savings (193 full-time equivalents annually) by automating core tasks, and enabled integrated crime fighting with 225 other law enforcement agencies.

Initial investment and maintenance: $40 million to date funded jointly by Chicago and partner Oracle; Oracle licensing fees of $550,000 for the first five years and $288,000 for subsequent years

IT executive: Ron Huberman, assistant deputy superintendent, information and strategic services

Business sponsors: Philip J. Cline, superintendent of police; Barbara McDonald, deputy superintendent of administrative services

Academic Management Services Corp.

Banking/brokerage

Swansea, Mass.

www.amsweb.com

Revenue: $1.4 billion loan portfolio

Employees: 500

Winning system: Integrated Counseling and Enrollment (ICE) is a Web portal that provides academic loan counselors with integrated access to several internal and external systems, helping them match the right loan products to a family’s financial needs. ICE gives counselors the ability to create and track their own accounts. The system also enabled AMS to enter the loan consolidation market.

Winning strategy: Executed in-house what AMS does best (programming); outsourced what it doesn’t do best (user interface design)

System anatomy: Hewlett-Packard eight-way N Class platform running Oracle’s relational DBMS, and Dell and Sun servers; XML; Java; Web services

Business value: In its first year of operation, ICE enabled AMS to grow its consolidated loan portfolio to a $175 million business and cut the the time to process loan applications from 50 days to five days.

Initial investment and maintenance: $311,500 for development; $124,600 for annual maintenance

IT executive: John Mariano, CIO

Business sponsors: Claudia Schutz, senior vice president of customer services (retired); Suzanne Reynolds, former manager of loan customer service

Ace Hardware Corp.

Retail/wholesale

Oak Brook, Ill.

www.acehardware.com

Sales: $3 billion wholesale; $13 billion retail

Employees: 5,000

Winning system: Ace’s enterprise data warehouse fueled expansion of its customer loyalty program from 1 million members to 5 million. Ace leverages this customer data to plan more effective marketing campaigns, improve category management and set prices to optimize profitability.

Winning strategy: Ran target marketing campaign to prove system’s value to the cooperative’s 5,000 independent retailers and gain their participation

System anatomy: NCR server; Teradata data warehouse; Teradata, MicroStrategy and Informatica database tools; PowerConnect data integration platform

Business value: Ace attributes a 55 percent increase in gross retail sales in 2001 to category management improvements and a 90 percent revenue increase in two product lines to revised pricing structures enabled by the system. Ace has also observed an 80 percent increase in gross sales for stores that participate in Ace’s Helpful Hardware Club loyalty program.

Initial investment and maintenance: $2.5 million for hardware, software and labor costs in 2001; $3.3 million for server rental, hardware maintenance, additional software and labor in 2002

IT executive: Mike Altendorf, vice president of IT

Business sponsor: John Venhuizen, marketing manager

Continental Airlines Inc.

Transportation

Houston

www.continental.com

Revenue: $8.4 billion

Employees: 48,000

Winning system: Continental’s enterprise data warehouse allows the airline to optimize revenue for each flight, target customer service improvements for its best customers and increase customer loyalty. The system also helps prevent fraud by identifying the same passenger booked on different flights and differentiating similar passenger profiles on the same flights.

Winning strategy: Put customers, particularly its most valuable customers, at the center of every business decision

System anatomy: Teradata database running on Unix OS; NCR servers; Hyperion business intelligence software; Teradata Warehouse Miner and SPSS Clementine for data mining

Business value: Continental experienced a $40 million increase in revenue in 2002 and had annual cost savings of $31 million. The system also prevented more than $15 million in fraud in 2001.

Initial investment and maintenance: $25 million over five years on hardware, software and development resources

IT executives: Janet Wejman, senior vice president and CIO; Alicia Acebo, data warehousing director

Business sponsor: Mike Gorman, senior director for customer relationship marketing

Dell Inc.

High-tech

Round Rock, Texas

www.dell.com

Revenue: $35.4 billion

Employees: 40,000

Winning system: The Integrated Dell Desktop (IDD) call center system presents a unified view of the customer, integrated from all available sales channels, and gives Dell sales agents access to updated product data. The IDD increases operational efficiency, improves the customer experience and facilitates Dell’s globalization efforts.

Winning strategy: Aligned systems and strategy with its corporate direct-sales business model

System anatomy: Web services; Dell PowerEdge servers; Microsoft Visual Studio for development

Business value: The average time per sales call has been cut by 10 percent, and the sales close rate has increased by 0.2 percent to 0.5 percent. Because IDD is easier to use, sales agents’ training time has been pared by 45 percent.

Initial investment and maintenance: $2 million; $200,000 annual maintenance

IT executive: Randy Mott, senior vice president and CIO

Business sponsors: Michael George, vice president and chief marketing officer; Susan Sheskey, vice president of sales, marketing, services and Dell IT

The Guardian Life Insurance Company of America

Insurance

New York City

www.glic.com

Revenue: $7.2 billion

Employees: 5,500 employees; 2,700 field agents

Winning system: Transcend, a Web-enabled insurance and annuity policy administration system, enables real-time, automated annuity processing. The system helps Guardian build valuable relationships with powerful broker dealers, a distribution channel it could not leverage with its legacy application.

Winning strategy: Maintained tight business and IT alignment

System anatomy: Magic fourth-generation programming language links J2EE and .Net Web services; Web applications run on PCs that access IBM AIX server over a TCP/IP network in real-time; Oracle database

Business value: Transcend has reduced back-office operating expenses by 40 percent. The time to market for new products shrunk from more than six months to three or fewer.

Initial investment and maintenance: $13 million to date; $1 million annual maintenance

IT executive: Dennis Callahan, executive vice president and CIO

Business sponsor: Bruce Long, executive vice president of equity products

Korn/Ferry International

Professional services

Los Angeles

www.kornferry.com

Revenue: $394 million

Employees: 1,400

Winning system: The Management Assessment System streamlines the process of creating and evaluating job success profiles of executives. The system helped Korn/Ferry expand beyond recruiting into the management assessment business?the evaluation of individual and collective management performance.

Winning strategy: Used existing database of executive search candidates to establish statistically validated best-in-class job profiles

System anatomy: Three-tiered application; HTML Web front end hosted across multiserver Microsoft IIS Web farm; proprietary middle tier written in Visual Basic 6.0 and hosted within COM+; data stored in SQL tables and transferred to XML using technology developed in-house

Business value: Revenue from management assessment increased by more than 50 percent as of April 2003 compared with the previous year.

Initial investment and maintenance: $773,000 development; $134,000 annual maintenance

IT executive: Dan Demeter, senior vice president and CIO

Business sponsor: Gary Hourihan, president of Korn/Ferry’s strategic management assessment business

Pfizer Inc.

Health care

New York City

www.pfizer.com

Revenue: $32.4 billion (prior to Pharmacia acquisition)

Employees: 120,000

Winning system: Web-based Investigator Net automates the capture of, and provides real-time access to, clinical trial data from more than 2,000 clinical trial sites.

Winning strategy: Developed system with close collaboration among IT staff and clinical teams

System anatomy: J2EE application; BEA WebLogic application server cluster; Oracle database

Business value: Pfizer attributes to Investigator Net an average yearly return of $35.3 million from the reduced number of costly data queries, a 20 percent efficiency improvement due to less rework and the ability for Pfizer staff to return to other projects faster.

Initial investment and maintenance: $2.5 million; annual maintenance and support cost $11.3 million

IT executive: Walter Hauck, vice president of informatics for Pfizer Global Research & Development

Business sponsor: Adrian Otte, senior vice president of Pfizer Global Research & Development

The Procter & Gamble Co.

Manufacturing

Cincinnati

www.pg.com

Revenue: $43.4 billion

Employees: 98,000

Winning system: The Corporate Standards System is a single repository of technical standards data for each of the 55,000 products P&G makes. The system facilitates standards access and information-sharing by P&G researchers, purchasing managers and partners.

Winning strategy: Consolidated myriad databases into a single global repository for technical standards data

System anatomy: Matrix PLM back-end database with business logic and enhanced code developed in Java; HP application servers running HP-UX 11.0; BEA Systems’ WebLogic Web server; and Oracle

Business value: The system has contributed to an annual reduction in direct materials purchasing that totals in the hundreds of millions of dollars. Better access to technical standards has shortened cycles for new product discovery and formulation. For example, product spec approval time decreased by 70 percent.

Initial investment and maintenance: $14 million over three years for the first phase

IT executives: Steven David, CIO; Geoff A. Smith, director of IT in Global Applications division (retired); Nancy M. Demoret, associate director for IT in Global Applications R&D

Business sponsor: Dan R. Blair, director of worldwide technical standards

Worldspan LP

Travel

Atlanta

www.worldspan.com

Revenue: NA

Employees: 2,700

Winning system: LINK is an order management and provisioning system for customers of Worldspan’s travel industry technology products and services. LINK streamlines customer order processing by providing a single global view of customers. It facilitates legacy system and supply chain integration, as well as automated scheduling and order fulfillment.

Winning strategy: Reengineered business processes to achieve business and IT strategic alignment

System anatomy: Three-tiered architecture; Web-enabled environment; developed primarily with Microsoft Visual Studio

Business value: Operational and process improvements have saved Worldspan $5.5 million since the system was deployed in September 1999.

Initial investment and maintenance: $1 million; $151,100 average annual maintenance

IT executive: Sue Powers, CIO and senior vice president for Worldwide Product Solutions division

Business sponsors: Rakesh Gangwal, chairman, president and CEO; Paul J. Blackney, company director and special adviser (retired)

Runners-Up

Health Choice Network Inc.

Office of the Air Force Surgeon General, U.S. Air Force Medical Service

Walker Information Inc.

The WorldBank Group