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Question 7: COMPANY BACKGROUND Corporate Information and Physical Locations Woodgrove Bank is anational financial services institution that operates in over 30 cities across the United States. The
company offers investment banking services, has over 140,000 employees, and has five departments.
EXISTING ENVIRONMENT Existing Business Processes Woodgrove Bank has the strategic goal of
eliminating 25 percent of its current list of 40,000 suppliers. The bank has begun eliminating suppliers
based on their prices, redundant product or service offerings, and past supplier performance. The
company's Enterprise Supplier Management (ESM) group manages the supplier elimination process. The
group also directly manages the bank's largest suppliers and provides training material and workshops on
supplier management to the company departments. The Woodgrove Bank ESM group has the following
business processes: The ESM group collects supplier performance data for the 2,000 largest suppliers.
The ESM group's Supplier Managers use supplier performance data to directly manage the 40 largest
suppliers. The department managers directly manage all other suppliers. The ESM group provides
performance data on other suppliers to the department managers by request. Raw performance data is
organized in spreadsheets that are sent via e-mail. The ESM group's Business Analysts collect and store
supplier performance data in multiple spreadsheets. The spreadsheets are stored on the Analysts' local
computers and contain many different types of supplier performance metrics. Each quarter, the ESM
group surverys the department managers to discover the level of satisfaction they have for each of their
suppliers. Business Analysts distribute the surveys via e-mail then manually consolidate the survey
results. Existing Technology Infrastructure Woodgrove Bank has the following software deployed on all
desktop computers: Microsoft Office 2003 Professional Windows XP Professional Woodgrove Bank has
the following software deployed on all network servers: Windows Server 2008 Windows SharePoint
Services 3.0 Microsoft SQL Server 2008 Microsoft Office Project Server The Woodgrove Bank ESM
group has the following technology infrastructure: A single IT Specialist who has minimal database
application development experience. Additional servers available for the deployment of new technology
solutions. Labor Costs The following table illustrates labor costs for salaried stall. BUSINESS
REQUIREMENTS Problem Statements Woodgrove Bank has identified the following business problems:
The process of manually entering data for suppliers in spreadsheets is time-consuming for the business
analysts. Supplier data is stored in multiple files, formats, and locations. There is very little sharing of
valuable supplier performance data outside of the ESM group. The ESM group has a fixed number of
employees and very limited budget. Business Goals Bank executives formed the ESM group to promote
best practices in supplier management throughout the entire company. The ESM group has the following
business goals: Build a new Supplier Performance Data Management service to distribute supplier
performance informantion across all departments. Provide documentation to show departments how to
best use company-wide supplier performance information when negotiating individually with suppliers.
Minimize ESM group operating expenses by eliminating the procurement of additional software licenses.
INTERVIEWEES ESM Director The ESM Director is a business decision maker who manages the
day-to-day operations of the ESM group. The ESM Director best understands how the ESM group fits
within the bank's corporate strategy. Supplier Managers The Supplier Manager is a role within the ESM
group. Supplier Managers manage the 40 largest suppliers. Supplier Managers best understand how
supplier performance data is used to manage suppliers. Business Analysts Business Analysts collect and
store supplier performance data. Business Analysts query the distributed spreadsheets by request from
the Supplier Managers. Business Analysts provide insight into manual data managemt processes.
Department Managers Department Mangers are responsible for managing their respective supplier
relationships. Department Managers provide insight into how supplier performance data is used for
supplier management at the dapartment level. Answer & Explanation Correct Answer Explanations No
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Correct Answer:
