4-page Case Study - Posted 10/15/2007
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Tesco

Tesco Employees Drive Service Excellence with New Communication Infrastructure

To work together effectively, employees need sophisticated, fully integrated collaboration tools. With this in mind, leading U.K. retailer Tesco has created a communication environment that takes advantage of major investments in Microsoft® enterprise and desktop solutions. The fully integrated solution is based on Windows® SharePoint® Services, Microsoft Exchange Server 2003, and Microsoft Office Live Communications Server 2005. The new technologies, which are set to enhance collaboration on a global basis, deliver project workspaces that capture key information and drive successful solutions for customers. What’s more, Tesco is reducing travel expenses and protecting the environment with new video conferencing capabilities.

Situation

Effective collaboration helps employees deliver better solutions for customers, promotes creative thinking, and reduces operational risk. In addition, it helps to drive productivity by improving communication between geographically distributed teams.

The success of leading U.K. retailer Tesco stems directly from the quality and commitment of its employees. The store, which operates a major international division, operates 2,500 stores worldwide, 1,900 of which are in the U.K. The group employs more than 380,000 people.

This international workforce consists of dynamic individuals working hard to develop world-class services for customers. The IT team, for example, aims to deliver excellent service for employees across the group, requiring consistently excellent communication between core teams in the U.K. and in Bangalore, India.

Previously, employees found it difficult to collaborate effectively between these locations. This is because communication depended on standard telephony, ISDN-based video conferencing, and Lotus Notes for e-mail and Web-based work spaces.

Mike Yorwerth, Group Technology and Architecture Director, Tesco, says: “With different communication platforms between the U.K. and India, we found it difficult to support effective employee collaboration. In addition, video-conferencing was expensive, limiting its value for driving projects.”

The company lacked the infrastructure to ensure that long-distance communication was as productive as a face-to-face meeting. As a result, Tesco employees often had to fly between the U.K. and India for meetings. With up to 30 people flying between sites at any one time, the disruption to employees’ work/life balance was becoming a serious problem. In addition, travelling long distances increased expense and had a significant environmental impact.

To address these issues, Tesco began looking for a solution that could enhance collaboration and integrate easily with existing infrastructure. Ease of use was also a pre-requisite for the new technology tools.

Solution

In addition to its requirements for improved collaboration, Tesco has undertaken a major overhaul of desktops worldwide. At the heart of the project—known as Simpler Desktop—was the deployment of Windows® XP Professional as the client operating system and Microsoft Office 2003 as the desktop productivity tool.

Alongside Simpler Desktop, Tesco implemented Windows Server™ 2003 as its enterprise operating system. In addition, it deployed Microsoft Exchange Server 2003 communication and collaboration server, as its core e-mail infrastructure.

Using the new Microsoft-based infrastructure, Tesco rolled out a new collaboration solution. Working with Microsoft Services, the company created a collaboration architecture comprising:

  • Windows® SharePoint® Services—the core server technology for information sharing and document collaboration.
  • Exchange Server 2003—the enterprise-level e-mail and messaging infrastructure.
  • Microsoft Office Live Communications Server 2005—which drives real-time communication, locates people, and shares information instantly.
  • Microsoft Office Communicator 2005—a client application for delivering real-time communications.

Under the Simpler Desktop programme, Tesco has updated client machines in the U.K. The programme, which was supported by Microsoft Gold Certified Partner Conchango, was completed in September 2006.

In addition, the company is trialling the new collaboration solution in its IT department at company headquarters in Hertfordshire in the U.K. Microsoft Services and solution architects from Tesco worked on the design of the solution, with Microsoft Services providing a proof of concept built on Windows SharePoint Services.

Works Spaces Capture Key Project Information
The new communication infrastructure has highlighted the advanced integration available with Microsoft solutions. Windows SharePoint Services sits at the core of this technology.

This technology delivers team sites for collaboration, driving increased performance across the group. Information workers, for example, can use sites to co-author documents and access project documents. They can also benefit from new features, such as “check in,” “check out,” and “document version control.” As a result, individuals can realise their potential and help drive improved business outcomes.    

Windows SharePoint Services offers a comprehensive set of plug-and-play collaboration servers and is fully integrated with Exchange Server 2003. As a result, e-mail can be accessed conveniently through the Windows SharePoint Services portal environment. 

Windows SharePoint Services also interfaces seamlessly with Live Communications Server 2005 and Office Communicator 2005 to support instant messaging and other real-time collaboration technologies. As such, it creates a single point where all Microsoft communication tools can be accessed centrally.

Working with client technologies such as Microsoft Office Outlook® 2003, Office Communicator displays the status of network users. Symbols on the desktop highlight whether users are available or busy, working, online, or offline.

The solution, which is fully integrated with Active Directory® directory services, and Tesco’s enterprise Voice over Internet Protocol (VoIP) network, also delivers computer-based telephony and low-cost video conferencing.

Flexible Video Conferencing Reduces Meeting Room Requirements
By using the new technology, Tesco has reduced the need for dedicated meeting rooms with video-conferencing facilities. Instead, people can communicate using video-conference links from any desktop equipped with Office Communicator 2005.

Yorwerth says: “Video conferencing is incredibly flexible with the Microsoft infrastructure. It is also cost-effective while delivering high quality of service. We can use any of our meeting rooms by combining existing speaker phones with a laptop that has Office Communicator 2005 and a built-in projector. It works really well.”

Benefits

Tesco employees are key to the company’s success, building excellent customer relationships and delivering creative solutions. By creating a collaboration infrastructure based on Microsoft technology, these individuals are being empowered with the tools to collaborate more effectively.

Reduced Travel Costs, Reduced Carbon Footprint
Tesco works hard to ensure sustainable development. As a result, it aims to minimise environmentally damaging air travel and reduce the negative impact of excessive travel on employees’ personal lives.

The new infrastructure ensures that employees travel less. Previously, up to 30 IT professionals took flights between the U.K. and India. Over time, this number will be reduced through the use of video-conferencing. Yorwerth says: “Over a one-year period, I expect the new Microsoft infrastructure to save hundreds of thousands of dollars in travel expenditure alone. It will also help Tesco minimise its environmental impact.”

Employees Empowered to Make the Best Business Decisions
The new communication infrastructure provides a fully integrated solution that addresses all their collaboration requirements. It will help promote faster and better-informed business decisions and streamline communications across the enterprise. Technology tools, such as Office Live Communications Server 2005, ensure that team members can manage projects effectively. Employees can also use the system to see if colleagues are online and can respond immediately to work requests.

“The infrastructure will give team members the tools to respond quickly to change and access the information they need to make critical decisions,” comments Yorwerth. “The new efficiencies this creates will help people maintain the competitive advantage that eventually filters down to improved product prices and customer services.”

Greater Flexibility Drives Customer Loyalty
To develop customer loyalty, businesses must respond rapidly to changing market requirements. Tesco is using the new technology to achieve this by combining Windows SharePoint Services with the European buying operation for non-food items such as clothing. Taking advantage of the shared work spaces in Windows SharePoint Services, for example, reduces the time required to place orders for new season fashion ranges.

Yorwerth says: “This highlights how Microsoft technologies can increase the business value of our IT investments. We have gained new ways to enhance customer service and we are using the infrastructure to deliver the latest fashions to consumers at the best possible prices.”

Individuals Optimise Performance and Drive Better Business Relationships
The new Microsoft infrastructure has helped employees in the IT team enhance their personal productivity. As a result, the company wants other areas of the business to roll out a similar, one-stop communication and collaboration solution.

To this end, managers are making business cases to roll out similar infrastructure for other groups in the company. In addition, they hope to combine Microsoft communication tools with their partners to enhance business relationships. For example, Tesco.com, which regularly works with external developers, could use the shared work spaces within Windows SharePoint Services to reduce the life cycle of projects. 

Yorwerth believes the new communication environment will increase the speed that Tesco can integrate new operations abroad. Yorwerth says: “Microsoft technology ensures we can work with new operations that are outside the Tesco core network quickly and effectively. Working with a common platform, we can integrate with new partners quickly and deliver the benefits to consumers.”

For More Information

For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com

For more information about Conchango products and services, visit the Web site at: www.conchango.com

For more information about Tesco products and services, visit the Web site at: www.tesco.com

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

Document published March 2007
Solution Overview



Organization Size: 380000 employees

Organization Profile

Tesco is the leading retailer in the United Kingdom, with a major international division. It has 2,500 stores worldwide and employs more than 380,000 people.


Business Situation

Tesco employees needed a new communication infrastructure to help drive service excellence and maintain customer loyalty.


Solution

Tesco deployed Windows® SharePoint® Services, Microsoft® Exchange Server 2003, Microsoft Office Live Communications Server 2005, and Microsoft Office Communicator 2005.


Benefits
  • Employees gain better work/life balance. 
  • Tesco meets environmental targets.
  • Employees respond more effectively to business change.
  • Increased flexibility helps improve customer service.

Software and Services
  • Microsoft Exchange Server 2003
  • Microsoft Windows Server 2003
  • Microsoft Office 2003
  • Microsoft Office Live Communications Server 2005
  • Communicator
  • Microsoft Windows XP Professional
  • Microsoft Office SharePoint Server

Vertical Industries
Retail Industry

Country/Region
United Kingdom

Partner(s)
Conchango