InformationWeek: The Business Value of Technology

InformationWeek: The Business Value of Technology
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Request For Proposal
InformationWeek and Toromont Industries invited makers of Web-based customer-service solutions to submit proposals. Of those vendors who submitted proposals, four were chosen for their technical merits and vision: Iona, Infosys, Intershop Communications, and Microsoft. To view summaries of their proposals, click here.

Finalists will have the opportunity to demonstrate their solutions before an audience of several hundred senior IT executives at the 2000 InformationWeek Spring Conference in March, as well as to continue their discussions with Toromont--leading to a possible business relationship with the company.


Toromont
  • Company: Toromont Industries Ltd.
  • Headquarters: Toronto
  • Employees: 1,900
  • Revenue: U.S. $444 million (1998)
  • CIO: Mike Cuddy
  • Profile: Founded in 1961, Toromont Industries is a Canadian holding company made up of six business units grouped into two divisions. The Toromont Equipment Group consists of Toromont CAT, one of the largest authorized Caterpillar dealerships in North America, and Battlefield Equipment Rentals, which rents heavy construction machinery. The Toromont Refrigeration Group consists of Cimco Refrigeration, which manufacturers large refrigeration units for both industrial and recreational use; Toromont Process Systems, which designs gas compression and refrigeration systems for the oil industry; and Aero Tech Manufacturing, which develops sheet metals. A sixth unit, Toromont Energy, was recently formed to pursue opportunities in Ontario's deregulating power markets.

    Toromont's Equipment Group accounts for 70% of the parent company's annual revenues. While the construction business is booming in North America, increasing competition and lower profit margins on equipment sales are prompting Toromont to position its CAT dealership as a service--instead of a sales--operation. Toromont believes its customers are willing to pay more for services such as on-site maintenance, routine diagnostics, preventative maintenance, and round-the-clock customer service for the life of their equipment. In line with this goal, Toromont increased its heavy-equipment service contracts by tenfold last year. Implementing a Web system to offer clients the ultimate in online customer service is key to the success of Toromont's business goals for 2000.

  • Business Opportunity:
    Toromont would like to enhance and improve the way it does business with its CAT dealership customers. The goals are to provide customers with better access to sales and service information and to give customers the ability to update information and place orders over the Internet. Not only will such a Web-based customer-services system help Toromont differentiate itself from its competitors, but it will help keep customers for the long term. Toromont has a legacy back-end order-entry system (fully integrated with inventory, financials, etc.) that is based on AS/400 and serves as the main transaction processor. Today, customers order parts by calling the company's parts department. Customers also must call to check part prices and availability, as well as the status of a machine that's in the shop for service. Toromont's goal is to provide these and other capabilities in a Web environment. Another priority is to let customers check their invoices in real time and find out which are outstanding. CIO Mike Cuddy envisions using portals to personalize the customer experience.


    Requirements:
    Toromont would like to avoid rewriting the order-entry functions that exist on its AS/400 system. To that end, Toromont requires an architecture that allows for selecting AS/400 functions (see listing below) singly or as a group and bundling them with Windows NT application server functions written as part of the new Web capabilities. The idea is to combine functions as needed to provide a single, rich interface for the customer.

    The design must permit real-time interaction with the AS/400 and the AS/400 data, executing edits within the current AS/400 code and handling error conditions in real time. To ensure referential data integrity, the Web-based server functions must not access data directly from the AS/400 databases. Rather, all data entered into the AS/400 system must flow through the online update programs that exist today. Toromont does not want to rewrite this code, nor can it afford the risk of bypassing the code and writing directly to the order-entry system's databases. Similarly, inquiry functions should use the existing SQL queries as they retrieve information from multiple tables, perform calculations, and return dynamically created data sets. Some of the desired Web functions include:

  • Part pricing and availability (time to delivery, location, expediting options)
  • Parts ordering
  • Promotion of specials during parts ordering process
  • Recommendation of related parts and cross-product recommendation during parts order process
  • Recommendation of case lot sizes and other quantities during parts ordering process
  • Access to invoices/work orders/packing-slip information
  • Update of customer information (including machine fleet information)
  • Maintenance service scheduling
  • Equipment sales support
  • Equipment configuration
  • Equipment pricing
  • Equipment inventory/availability
  • Machine specification comparison information accessible during configuration function (similar to CarPoint)
  • Security and access control functionality

    Architecture: Toromont CAT's order-entry and billing system is a Cobol system that runs on an AS/400 model 720 computer with data housed in a DB2 database. It is a fully integrated system supporting order entry for both parts and machine sales, service work order processing, warranty, and inventory with a fully integrated financial subsystem from Baan. The company runs an IP network connecting approximately 700 users to both local and wide area networks. Frame relay is used to connect 18 locations to Toromont CAT's headquarters near Toronto. SNA is used for connectivity between the AS/400 and a Windows NT network, which runs IIS, SQL Server, and other Microsoft BackOffice products. The company develops and maintains numerous intranet systems and also develops and hosts seven public web sites on its own NT servers, running behind a Cisco PIX firewall.

    Request For Information: toromontRFP@cmp.com
    Guidelines: Vendors interested in responding to Toromont's RFP should do so by Feb. 15. (Please view the vendor criteria) Choices will be narrowed to a few vendors, who will be invited to present their solutions live at InformationWeek's Spring Conference on Tuesday, March 7, in Amelia Island, Fla. Vendors should not submit proprietary documents, as the results will be published in InformationWeek and posted on InformationWeek Online. At the conference, the selected vendors will present their solutions to the audience. Immediately afterward, InformationWeek, Toromont, and Doculabs, an independent testing lab in Chicago, will discuss and evaluate the vendors' proposals. Following the conference, Toromont will review vendors' solutions independently before proceeding to a full-scale request For proposal.

    Toromont has requested that all proposals be sent directly to InformationWeek for initial screening. Proposals should be submitted electronically and should be no longer than six printed pages. Proposals exceeding the page limit will not be considered. Please include a one-page executive summary of your proposal describing overall architectural vision and approximate cost and completion time for solution.

    Initial proposals and questions about the project should be E-mailed to InformationWeek at toromontRFP@cmp.com. We invite you to participate!

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