Audencia- Digital Business Information and Value Chains – Lpacheco 2019

Digital Business Information

and Value Chains
Introduction to digital business and value creation
Laura Pacheco
Audencia- Digital Business Information and Value Chains – Lpacheco 2019

Module 4
Hershey’s Case study
 Hershey's case study

 Company presentation : History, industry

 Business Model Canvas:
Audencia- Digital Business Information and Value Chains – Lpacheco 2019

 How it create, deliver and capture value, to whom, partners,

 Customer relationship, Key Activities, Key resources and Costs
 Why they wanted to implement the ERP: Motivation, Expected benefits,
 The Plan : How it was supposed to happen
 Actual Outcome : What really happens
 What went wrong?
 What would you have done differently?
 Questions?

 Why they choose to start on April ?

 What is their value capture strategy? Maximizing or minimizing?
 Why they store products in temporary facilities? Why this was a problem?
Audencia- Digital Business Information and Value Chains – Lpacheco 2019

 What is the impact of not delivering ?

 What was the Y2K bug?
 Hershey’s BMC

Candies Brand
Marketing variety variety

Retailers Distributors
Seasonal
Audencia- Digital Business Information and Value Chains – Lpacheco 2019

Candies products
production

Availability
Distributors
Candy
eaters
Cocoa Retailers
Raw and
materials distributors
Low prices
Several
production
locations

Production Candy
Marketing
costs sales
 Several other cases

 Most recent PSA (French car maker)

 In 2011 Agrati one of PSA suppliers change their warehouse system
 99% of Agrati activity is for the car industry, they manage more than 300
Audencia- Digital Business Information and Value Chains – Lpacheco 2019

different pieces for the car industry, they work on a just in time basis

 When they change the warehouse system they had new references for the
products (UPC) but the PO or requests for PSA were using the previous
references, so they didn’t know what to ship to where
 As PSA production line works on a just in time basis they had to stop the
production line for 2 weeks while Agrati sorted their product references