The dilemma of dairy farm group between redesigning of business processes and rebuilding of management information systems

Authors:
Eugenia M. W. Ng;Ali F. Farhoomand;Probir Banerjee
Affiliations:
Hong Kong Institute of Education, Hong Kong;University of Hong Kong, Hong Kong;City University of Hong Kong, Hong Kong
Venue:
Annals of cases on information technology
Year:
2002

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Abstract

The Dairy Farm Group of Companies (DFG), is a leading food and drugstore retailer in the Asia-Pacific Region. DFG and its associates operated supermarkets, hypermarkets, convenience stores and drugstores in nine territories and had sales of US$6.9 billion in 1997. However, the profit margin of DFG was low compared to its competitors in Hong Kong and China and other retailers in Europe and the U.S. Consequently, a new chief executive officer was hired in June that year. The new management team hired the services of two consulting firms to independently carry out a preliminary investigation of existing systems at DFG and to recommend solutions. Firm A stressed primarily the development of a management information system and use of emerging trends in technology and firm B focused on the re-engineering of crucial business processes with supporting technology. If you are the management team, which firm will be awarded the contract?