outpaced the ability of existing technology. As sales, mar-
keting, and cash-collection methods evolved, new systems
were needed to support them. Additionally, BAT began to
consider the implications of Y2K issues for their IT sys-
tems. By the mid-1990s many Latin American markets
recognized the need to replace their existing SFA system
as a result of Y2K concerns and the rapid acceleration of
trade-marketing and distribution practices. Because these
were all direct-distribution markets with similar business
processes, a codevelopment strategy emerged.
As end markets discussed strategies for a Y2K-
compliant TM&D system, a new opportunity arose. BAT
global headquarters (Globe House) reasoned that global
economies of scale could produce a better system, at a
lower per-user cost. In particular, executives at Globe
House and several end markets saw the opportunity to
develop a flexible, re-usable IT system to support trade
marketing and distribution within direct distribution
markets.
Choosing the Right Approach for Developing MaxFli
Based on experience with a recent Globe House–led IT
initiative to develop a TM&D system for traditional distri-
bution markets, there was a widely held belief that the
primary design of the system should occur in the end mar-
kets, not in Globe House. Because TM&D includes many
of the value-added processes that support the retailer, it
was thought difficult for Globe House to understand or
appreciate the nuances and complexities of regional dif-
ferences. Hans Neidermann, global director of trade mar-
keting for BAT, observed, “There are so many differences
in terms of local processes relating to invoices, trading
terms, taxation, etc., that we did not want to get involved
in this in the first place.”
In light of the complexities involved in local trade-
marketing processes, Globe House decided on a distrib-
uted approach for the design and development of MaxFli.
Globe House would coordinate much of the development
effort in London with the help of Andersen Consulting
(now Accenture), but the design would occur in the end
markets of Latin America.
In February 1998, representatives from 15 markets
including Colombia, Honduras, Venezuela, Brazil, Mexico,
UK, USA, Belgium, and France began a 2-month feasibility
study to develop the business case for MaxFli. Two specific
goals for the feasibility study were to determine the “best
practices” of direct distribution markets to be embedded in the
software, and to determine if the direct distribution solution
could fit within the existing technological platform at BAT.
The business case from this feasibility study was presented to
the TMB, which granted final approval to begin development
in May 1998. The MaxFli steering committee planned for
648 Part IV • The Information Management System
three separate implementation rollouts before the end of
2000: Chile, Colombia, and Central America. (See Exhibit 1.)
Chiletabacos, BAT’s operating company in Chile,
was selected to take the lead in designing and implementing
MaxFli, for several reasons. Chiletabacos was one of the
leaders among the BAT markets in Latin America. They
were already a well-established company with a strong mar-
ket presence in Chile. With 98.5 percent market share,
Chiletabacos had demonstrated a consistent ability to devel-
op successful business strategies and generate revenue.
Additionally, Chiletabacos General Manager Roberto Friere
was highly respected throughout the BAT community.Designing and Building MaxFli
MaxFli was viewed as an important element in the contin-
ued maturation of the TM&D function in BAT direct distri-
bution markets. Designing a system to incorporate the best
practices from 15 end markets was a complex task. Much
attention was given to the design objectives and issues to
ensure the usefulness of the system.Design Objectives
Hans Neidermann captured the essence of the design objec-
tives for MaxFli by saying, “we needed a better integration
of the selling process and the trade-marketing process.” The
goal for the system focused on four key strategic elements:- Focusing on the in-store experience of the consumer
- Partnering with the retailer as the primary interface
with the consumer - Maximizing marketing costs by understanding
in-store promotional successes - Forecasting retail sales to maximize supply chain
efficiency
To accomplish these goals, MaxFli had to provide
accurate business information that would allow BAT to
cross-reference retail sales and consumer information,
which was the only way for BAT to continue succeeding in
markets where advertising was increasingly restrictive.
Finally, MaxFli needed to be integrated with accounting and
inventory management to avoid the duplication of effort and
accounting difficulties experienced with previous systems.
Design Issues
Because the system was to be used in markets of different
sizes and market conditions, the design of MaxFli required
agreement on several early decisions. According to Roberto
Palacios, the MaxFli project manager in Chile, the IT strate-
gic priorities that guided the development of MaxFli were:- A common, reusable, and scalable technology platform
- Shared data between sales, accounting and marketing
- Appropriate use of packaged software