Group 3

Strategic Information System For Competitive Advance

Nguyen Thanh TungLe Huu VuPham Luong Khanh

Case Study

Seven Eleven

Overview Seven eleven Seven eleven is once of biggest convenience companywith 24.000 stores. 1974 Ito-Yokado bought the franchise right

so 7-11 opened in Japan in may, 1997. 7-11 parent company (southland) have

bankruptcy. So they must be sell assets. In1990, Ito-Yokado purchased 70% of southland

Seven eleven

Why 7-11 (southland)was filling the bankruptcywhile 7-11(Japan) made over 40% profit ? The answer is: Consumer – focused orientation

based on information system

Problems

What is competitive advance when Seven eleven applying

information system ? 1990 7-11 Japan created a $200

million to build their information system

Challenges

How to meets the customer’s need effetely and fast? How to Monitor inventories How to transmit electronically orders

between distribution center and manufacture

As you know the quantityis very importance with Japanese. So how to managequantity products effetely?. How changes to display product mix in

stores at least twice a day?All of request about ordered 7-eleven had

to built the information system which supported for their work

Solution

7-Eleven Japan know the importance of information system. So they built their information system with $200 million

7-Eleven Information system’s objective

Discovering to know whoare their customers and what is their customer’s need Create a sophisticated product-tracking

system Transmitting the electronically orders

between distribution center and vendors

Determine which products to keep in eachstore Determine how much shelf space to

allocate to each product Track employee performance (for

rewarding high performance)

Moreover, quality of product is very importance.The quality products mustbe collect and analysis by computerizeddecision support system. After that, thebrand is not meets strict quality are intermediate discontinued Especially with fresh hot meals are sold at convenience

stores.

Many results

7-Elevent has extensiveKnowledge of its market. Maximizes sales in limited space and optimizes its inventory

level. Also knowing exactly the customers

want helps the company to negotiate good prices and quality with its vendors

7-Eleven Japan has also created a time-distribution system that changes the product mix on display in its stores at least twice a

day, based on careful and continual tracking of customers’ needs. The company knows that consumers’ needs in the morning are completely different from those in the evening. So the system allows them to display the most appropriate items at different hours of the day

In late 1997, 7-Eleven was the first convenience store chain to introduce Internet access terminals in their Seattle area stores. These terminals allow customers who do not have computers to

access the Internet by paying a user fee to 7-Eleven. In 1998 it introduced a computerized system to track inventory and forecast sales in the United States. In 1999 it introduced multimedia-based Internet kiosks in its Japanese stores for ordering from the stores’ site, with capabilities to pay for the goods in the stores. The stores are also used as a receiving station for the merchandise ordered.

Thank for your attention