Managing Information Technology

652 Part IV • The Information Management System

Custom Development

Package Configuration

Package = Cost/Risk Effective

Custom = Unique Business Value-Add

Cycle Planning

Siebel Configuration,

BusinessObjects Universe Definition

Siebel, BusinessObjects, ...

Microsoft, ORACLE, ...

M A X F L I

Off-The-Shelf-Packages

EXHIBIT 4 Combining Custom and Off-the-Shelf Packages

MaxFli. Palacios believed that ongoing support was just as
critical as initial training. He argued that,

[a]lthough thorough system testing and adequate

training are essential before implementation, with

any highly complex system, support plays a key role.

The set-up of a local support team should be antici-

pated and ideally it should be in place before final

implementation.

The support team had to be prepared to answer both
technical questions (e.g., “How do I print an invoice?”) and
business questions (e.g., “Can I make a credit decision for
this customer, or do I have to check with someone else?”).
By focusing on training and support, Palacios
wanted to preempt some of the personnel issues that often
plague large IT implementations. As stated by GM Friere:
“[T]here are personnel issues involved in any project this
size. Treat [your people] well, but expect a lot.”

Technology

Previous systems at Chiletabacos were designed to control
and support basic sales rep activities, but did not provide
valuable sales and marketing information. One of the pri-
mary objectives of MaxFli was to increase the information
available to management, so that they could quickly identify
market trends and competitor activity and make effective
trade-marketing and distribution decisions. Before, MaxFli
marketing managers had to rely mostly on instinct to select
which marketing promotions to run in each outlet. MaxFli
allowed managers to cross-index sales with promotional
activities in individual outlets to better understand the effec-
tiveness of marketing promotions in each category of outlet.
This required a combination of technologies. (See Exhibit 4.)

When MaxFli was first proposed in 1997 there were

no integrated, off-the-shelf systems that tied a handheld

SFA system to a CRM system. The challenge faced by the

MaxFli steering committee and project managers was to

integrate off-the-shelf and custom components while main-

taining low costs, maximum flexibility, and reliability.

Go Live in Chile

MaxFli went live in Chile in November 1999 on schedule

and 2 percent over budget. Despite being over budget, the

MaxFli implementation in Chile was viewed as a success:

it provided valuable information to management about

market trends and enabled efficient trade-marketing deci-

sions. Chiletabacos GM Friere elaborated:

The best thing about MaxFli is that I, or any of my

managers, can sit at my desk and see exactly what

happened yesterday throughout the country, region,

city, or even a single outlet. That is incredibly power-

ful for making decisions about brands, promotions,

and marketing.

By the spring of 2001 the success of MaxFli in Chile

was secure: Managers at every level in the organization

were using it. However, its biggest test would be its intro-

duction to other end markets in Latin America and around

the world.

MaxFli in Colombia

The next site for MaxFli was BAT Colombia. BAT Colombia

planned to implement MaxFli in May 2000, 6 months after

Chiletabacos completed implementation. BAT Colombia

was a relatively young firm, founded by Chiletabacos in

1993. Beginning as a marketing operation, it had expanded