Chapter 7 - Minicase 1

Dollar General Uses Integrated Software

In preparation for answering the questions, review the Dollar General web site.

1. Explain why the old, non-integrated functional system created problems for the company. Be specific.

   Due to the rapid expansion, Dollar General found that it needed to monitor many new topics like state and local taxes and personnel. The increasing number of purchase orders, invoices, and receiving reports required onerous manual matching. Dollar General also needed to generate a diverse number of reports to support management decisions. The existing systems were non-integrated, and were legacy systems that could not interact with each other.

2. The new system cost several million dollars. Why, in your opinion, was it necessary to install it?

   The new system allowed for integration of various applications, fulfilling many of Dollar General's functionality needs over time.

   The Financials suite from Lawson allowed a staggered rollout through a phased conversion approach. This approach minimized disruption to operations.

   The new system is scalable, so it can Dollar General's expansion in the future.

3. Does it make sense to add a CRM module, or to keep CRM applications in a separate system?

   Full integration would allow the company to achieve the benefits of an enterprise-wide ERP.

   Limited or no integration results in customer order and payment history becoming out of step with reality.

4. Lawson Software Smart Notification Software (lawson.com) is being considered by Dollar General. Find information about the software and write an opinion for adoption or rejection.

   In answering this question, consider the major selection criteria areas of functionality, cost, vendor stability and technology.

5. Another new product of Lawson is Services Automation. Would you recommend it to Dollar General? Why or why not.

   Delivering services is outside the core competency of the staff of Dollar General who are more skilled at merchandizing.