One of Sainsbury ‘s biggest problem IT problem areas is the four automated depots , the implementation effort has failed to deliver the anticipated increase in productivity while IT costs continue to eat up more and more of the company's overall budget in proportion to sales. The following are the faults in the failed project which led to a tremendous loss: • The decision to outsource IT to Accenture was an expensive mistake
(Accenture is responsible for the supermarket chain's IT transformation program, including some of the supply chain systems, the automated depots were never part of its contract with Sainsbury.)
• CIO failed to understand the drivers that affect a business, or were unable to communicate how the IT resources could help organizations manage these factors more effectively, then the credibility and esteem
of the IT function would remain low.
A business should never set out on a critical project without giving clear accountability to the key functions
• Failing supply chain left its shelves empty and its loyal shoppers frustrated
• Introducing sophisticated technology too quickly Lack of strategy (Teething problems are almost impossible for a business to implement a supply chain program in just 3 years) • The change process has led to a significant reduction in morale at a time when we staffs are needed to be more motivated • Inability to maintain a clear enough lead on quality and innovation • Underplayed the problems and overplayed the success of its change
Transformation programme • The supply chain overhaul failed to impress suppliers • Staff turnover (problems with the system meant it fail to deliver, leading to low morale among staff)