Sept. 11, 2000

Printer ready

Success Based On Leveraging IT

Focusing on leverage and simplification lets Staples give all of its business units equal solutions

By Brian Light

oday's pace of change seems to surprise most people--but not IT professionals. We are, after all, at the center of the technological evolution, either in applying new technologies or in addressing new business opportunities, such as channels, markets, or acquisitions. IT is revolutionizing business.

Staples operates multiple sales channels in several countries in North America and Europe. Our marketplace is extremely competitive and growing. To equip our IT function to address our growth, the competitive landscape, and the complexities associated with multiple channels in multiple geographies, we focus on two guiding principles: simplification and leverage.

These principles are the foundation of what we call IS Centers of Excellence. Like many IT organizations, we partner with each business unit in the company, identify opportunities, and manage implementation of solutions by focusing on the business benefits. We differ from many IT organizations in that our goal is to use solutions across multiple business units.

For example, one of our Centers of Excellence manages in-store systems. It receives input from IT representatives in each country and delivers new capabilities worldwide. Our objective is to provide each business unit with solutions that are equal to the best we have, and to deliver those capabilities worldwide virtually simultaneously.

Another example of our Centers of Excellence is the opening of our Internet store in Canada this spring. The same team that developed Staples.com in the United States used identical technology and code to help create our English-and French-language sites in Canada. By sharing the knowledge and expertise acquired by our E-commerce Center of Excellence across business units and borders, our Canadian E-commerce site debuted with the look and utility of a more seasoned site and is more easily upgraded.

This philosophy of standardizing IT accomplishes three goals. It saves money, makes the business more nimble, and lets the leaders of various business units focus on what they do best: serving customers and driving profitable sales.

Some people believe using a variety of hardware and software systems creates a market driven by competitive bidding. Instead, we aim to simplify the environment in which we do business and reduce spending by pooling our global demand and negotiating fewer, yet bigger, arrangements. For example, our voice and data communications Center of Excellence meets Staples' needs and, at the same time, is able to negotiate lower per-unit voice and data prices.

However, saving money isn't the only driver of this philosophy, nor is it the most important. Adopting a single-solution approach will let your company respond quickly and efficiently to changes in technology and in business.

In 1998, realizing the flow of data between our stores and the corporate center would grow dramatically, we installed frame relay in every retail location. Two years later that decision let us not only reduce costs, but also deliver in our stores the expanded product and service offerings available via Staples.com--while also providing our sales associates with multiple applications over the Web.

Finally, by taking many of the IT issues off the plate of the business-unit leaders, we give them more time to focus on business. Of course, the challenge is to identify what's unique to each channel and location, and to ensure customized solutions are delivered where appropriate. This is facilitated by using IT analysts who understand the nuances of each channel and each country in which we do business.

Our IT associates have quickly accepted the Centers of Excellence concept and have found their jobs more rewarding. Jobs have more impact as we invest less time in re-creating what has already been done elsewhere.

There's no doubt that diversity of thought is part of what makes a company thrive. But when it comes to IT solutions in a global and multichannel environment, a single common system or process will not only save your company money, it will position it to meet the challenges of changing technology and business models.

Brian Light is CIO of Staples Inc.

Back to This Week's Issue
Send Us Your Feedback
Top of the Page

---