In this podcast, Bruce Ash talks about Dollar General's leveraging of technology to fly under Wal-Mart's radar screen, the political challenges he faced as CIO for a rapidly growing retailer, and his takeaways CIOs can use to create business impact.
If you're a CIO for a rapidly growing retail chain, you had better make sure you can deliver the business impact of IT to the organization. Bruce Ash has done just that repeatedly. He spent about 20 years developing IT infrastructures to support two major retailers --Talbots and Dollar General. During Ash's 10-year stint as CIO with Talbots, the company grew from 175 stores to 900 stores in four countries. On the other hand, Dollar General's explosive growth was like nothing Ash had ever experienced before at Talbots. Ash's nine-year tenure as CIO coincided with the company's expansion from 4,000 stores to 8,000 stores in 35 states. He said, "One year we opened 700 stores and three distribution centers to support the additional stores. Some retailers don't even have 700 stores."
Some retail analysts say that Sam Walton's original vision for Wal-Mart resembled that of today's Dollar General. This modern version of the neighborhood general store sells everything from apparel to toys from electronics to household goods, all at prices most people can afford to pay. Each Dollar General stores carries more than 5,400 core products from America's most trust brands and manufacturers.
As CIO of Dollar General, Ash became the linchpin between the business community, the corporate leadership team, the company's strategy, and the deployment of IT. He says, "The business impact of IT came from building the infrastructure to support the company's fast-paced growth strategy. It included bringing in a point of sale system that improved both our customer experience and our supply chain. We could process a variety of alternative payment methods. As a result, customers could get through the checkout line faster. The merchandise information this system captured enabled us to have perpetual inventory in the stores, including automatic stock replenishment."
Bio Before becoming CIO for Dollar General, Bruce Ash spent 10 with Talbots as senior vice president and CIO. He also was vice president of information systems at Filenes in Boston. He also has held senior IT at Foley's in Houston, Texas, and Federated (Macy's) Department Stores' corporate offices. He is currently doing retail IT consulting for 1010data, an emerging company that provides an analytics software as a service for business intelligence.
PeopleSoft. Brocade. and Forte. All of these IT companies got their start with funding from Norwest Venture Partners. Since its inception more than 45 years ago, Norwest has funded more than 400 IT companies in areas ranging from infrastructure to security. Today, the $2.5 billion fund concentrates on early-stage IT companies in areas such as semiconductors and components. enterprise software and service, communications systems and Internet infrastructure.
So what technologies does a VC firm like Norwest find particularly attractive these days? Robert Abbott, general partner at Norwest, says, "CIOs want to buy things that are easy to deploy and to manage over time. To this end, we like managed infrastructure services, such as outsourced security, and enterprise applications based on software as a service. We also like enterprise applications based on an appliance model. With so much emphasis on virtualization, we're looking for things that will take the challenge out of managing all those virtual machines. We still continue to fund things that make it easier to manage all the systems in a data center.
Like many venture capital firms, Norwest values its strong relationships with CIOs and other people in the IT industry. Abbott says, "We're always looking to expand our network of CIOs. We like hearing about the IT problems they're trying to solve. Likewise, we like to show CIOs portfolio companies with solutions that could potentially help them. If any CIO is interested in networking with Norwest Venture Partners, please contact Elizabeth Ferrarini at elizabethferrarini@yahoo.com.
Bio Since joining Norwest Venture Partners in 1998, Robert Abbott has focused primarily on infrastructure, systems and components. He sits on the board of ClariPhy, KACE, mBlox, Mozes, Occam Networks, Stream Processors and Xilient. He has also worked with such companies as Embark, Escalate (acquired by GERS), mPower (acquired by Morningstar), Quantum Effect Devices (acquired by PMC-Sierra), and Summit Microelectronics.
Abbott has nine years of operational experience in various roles, from engineering to marketing and product management. Before joining Norwest, Abbott was at Silicon Graphics. Prior to Silicon Graphics, he worked at IBM-ROLM Systems. He holds a bachelor of science and a master of science in electrical engineering and an MBA, all from Stanford University.
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