Case analysis- Do you think that the IT deployment in Frito Lay was strategic?

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1.  Do you think that the IT deployment in Frito Lay was strategic? Justify your answer

Yes, in our opinion IT deployment in Frito Lay was strategic.

What was their micromarketing strategy?

Prior to IT deployment, Frito Lays lacked organization and management processes along with the necessary information systems. Also the old strategy for decision making was adopted. And the paper based technology was not enough to react to rapidly changing market conditions. A lack of timely information limited their ability to move to their strategic vision.

Lessons learnt

  1. Frito Lays didn’t want to give up the benefits of their centralized structure while deploying a decentralized structure. They wanted to reap the benefits of both the structures to ease their decision making and achieve control over their operations.
  2. Frito Lays decided to recast their vision so as to make it corporate-oriented rather than a sales oriented initiative. Deploying IT would help Frito Lays achieve their objective of a corporate oriented vision.
  3. The integrated nature of their business and lack of inventory buffers, called for an inter-functional approach.

Functional Redesign

For the strategic plans to succeed, a substantial IT infrastructure would need to be put in place. The HHC concept was a solution to Frito Lay’s lack of good information that would make their micromarketing strategy feasible. Owing to the implementation of HHC the following benefits were attained that helped Frito Lays in achieving their strategic objectives:

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  • Information collected from HHC helped to increase the effectiveness of micromarketing strategy along with improving efficiency of the sales operations
  • HHC synchronized the book inventory with the truck inventory to pinpoint mistakes if any. This lead to dramatic decrease in accounting errors
  • Non value added time was spent in serving customers

Building Information Infrastructure

  • To optimize their whole business rather than just singular functions, series of IT projects were undertaken to redesign the operating process.
  • MIS was implemented to enable Frito Lays to get a strategic perspective of the top management with respect to ...

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