Groceries Inc. is a leading retail grocery chain in Canada that offers a wide range of best quality products and service

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Groceries Inc. is a leading retail grocery chain in Canada that
offers a wide range of best quality products and services at a
competitive price to its customers. There are 1200 company-owned
stores Canada-wide, 500 franchises stores, 40 distribution centers
in all provinces of Canada. Groceries Inc. employs 80,000 full-time
and 10,000 part-time employees in Canada. On average, it lists
75,000 items in the store and 4500 vendors who supply them.
Groceries Inc. also has its brand manufactured and provided to
Groceries Inc. by 3rd party food processing
vendors.
Groceries inc. is a publicly listed company on the Toronto stock
exchange. Its current share price is 85 CAD. Financial details are
as follows:
Revenue
30,000 Mil
Gross Profit
9,000 Mil
Cos of Revenue
18,000 Mil
Net Income
1,200 Mil
Sales Growth
10 %
Net Income Growth
2.5 %
Groceries Inc. is the market leader by holding a 25% market
share. Its nearest competitor has a 23% market share. Groceries
inc. faces tough competition from brick & mortar stores as well
as online retailers. Groceries Inc. is known for its best customer
service at an 80% customer satisfaction rating.
Groceries Inc. has commenced its Digital Transformation journey.
Its vision, policies, and strategies incorporate Digital
Transformation.
Groceries Inc. IT team has 750 employees. IT team is responsible
for ALL aspects of IT, including application, infrastructure,
integration, security maintenance and monitoring. IT team is also
responsible for application development and enhancements.
Currently, the IT team has six months of work backlog and cannot
retain talent due to high workload, mundane tasks, lack of career
growth.
Groceries Inc. uses 35 different applications hosted in 2 data
centers in Canada. Both data centers are 90% occupied and have no
space to add additional infrastructure.
Groceries Inc. IT Technologies are coming to the end of support,
and there is no plan to upgrade or replace. Current technologies
are unable to meet business and market needs. As a result, many
business units in the organization have started their work around
solutions by having many offline excel spreadsheets. In short, the
IT Team and Technologies are becoming the bottleneck for business
growth.
Executive management expects Digital Transformation to solve
Business and IT issues.
Cloud Migration:
Groceries Inc. is evaluating moving its Digital Asset Management
(DAM) application to the cloud.
IT team's preferred choice is PaaS. The business team's
preferred choice is SaaS. Marketing executives want to outsource
the entire DAM. IT operations leader would like to keep DAM
on-premise but will support PaaS.
IT infrastructure team thinks that this move will cause job
loss. Business stakeholder does not fully understand what this move
will mean to them. The finance team is only interested in dollar
numbers and won't approve the project until they have total ROI.
Cloud vendor has provided three approaches, but it is up to IT and
Business stakeholders to select one.
Working as a Lead Business Analyst, Digital Transformation
Steering Committee has asked you to perform the following analysis
and report back to the steering committee in two weeks.
Steering Committee consists of senior leadership (VP and above)
from IT and business.
Steering Committee asks: