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
