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Larry Stewart

on 25 April 2014

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Transcript of PepsiAmericas

Pepsi Brief
Pepsi Americas expanding to Central Eastern Europe (CEE)
To include 6 new Distribution Centers
Czech Republic

Building an information
savvy company
Mach 5 Team
IT Management
Glen Llewellyn

Systems Engineering
Brandon Thomas

Software Engineering
Robert Eberhart
Devin Levy

Database Technologies
Covered by Robert

Information Assurance
David Wilson
Larry Stewart

Problem Statement
Between 2008 and 2010, PepsiAmericas began to look closely at their acquisitions in Central and Eastern Europe (CEE). PepsiAmericas recognized the potential for significant growth in revenue from this region. It also recognized the architectural and structural differences between each of its subsidiaries and between its subsidiaries and itself. PepsiAmericas’ problem became determining the simplest, most cost-effective IT strategy enabling PepsiAmericas’ goal of realizing the revenue growth potential of CEE.
Fair Assumptions Taken
The solution for this case study will focus on integrating the subsidiaries using short term strategy rather than a long term strategy.

The team defines short term as a strategy implemented in under two years.
The team defines long term as a strategy taking longer than two years to implement.

Some of the subsidiaries may already have an existing ERP system.

Any strategies developed will utilize existing software solutions as much as possible and any ERP systems implemented by PepsiAmericas will be public Cloud SaaS ERP solutions from a vendor selected according to a carefully considered, pre-defined set of criteria.

IT services for all subsidiaries will be managed by PepsiAmericas/Pepsi CEE personnel.
CEE Solution
Utilizing a Cloud Based ERP Environment (SaaS)

Utilizing Web Services for unified transfer of data

Data Integration/Synchronization

Standardize environments across subsidiaries

The Problem
PepsiAmericas' problem is determining the simplest, most cost-effective IT strategy enabling its goal of realizing the revenue growth potential of the CEE.
Leveraging existing resources.
Creating processes to integrate data from subsidiaries with existing data.
Collaboration with other teams to create a unified solution.
How Database Technologies Helps to Solve This?
Fair Assumptions Taken
Set of master files and transaction files from which core application could obtain or store data (Beath & Ross, 2011, p. 7).
Stores transactional data until processed
Permanently stores master data.
Central Data Repository (CDR)
IT Management - Problem
Assimilating Central and Eastern European subsidiaries into PepsiAmericas’ IT architecture.
Unified Vision
"Extracted and organized historical...data for subsequent analysis" (Heath & Ross, 2011, p. 7).
Stores processed transactional data
Provides 360-degree view of business.
Data Warehouse
Physical Infrastructure
Network Environment
Systems Design/Configuration
High Availability
Disaster Recovery

Establish Regional Data Center

Update/Standardize Subsidiaries

Configure Systems For Resiliency

Establish Redundant Network

Maintain Capability For Legacy Operations
Database engineers will need to assist subsidiaries transitioning to SaaS ERP by....
Identify data sources and classify the data sources according to owner, location, and purpose.
Determine whether PepsiAmericas should do the conversion or the vendor.
What data will the subsidiaries send to the parent?
What data will PepsiAmericas send to its subsidiaries?
Developing a process for
adding or updating master and/or transactional data, because....
Holding Tables
Web services place the data from subsidiaries into holding tables for later processing by data stewards/custodians.
Data steward/custodian would use Extract, Transform, and Load tools to:
Check for duplicates
Ensure validity of data
Load data into central data repository
Synchronization Process
Data retrieved data from subsidiaries and parsed from web services messages.
Map to data structure in central data repository or data warehouse.
Perform search for data entity using third-party library or logic developed by PepsiAmericas
Search will return:
Not Found
....the data is processed as an update operation.
If found....
If not found....
...the data is processed as an insert.
Search Results and Actions
If undetermined....
...the data may need to be placed into a holding table for review by a data steward/custodian.
Before performing an update or insert....
Must validate data retrieved against predetermined business rules providing criteria for valid data
If fails, application will either clean this data or place it into holding table for later processing by a data steward.
If passes, then processing may add additional contextual data such as country of origin or contractual data.
Problem: Determine the simplest, most cost-effective IT strategy enabling its goal of realizing the revenue growth potential of the CEE
Short term strategy
Two-Tier ERP
SOA as the glue that holds it together and provides data-level integration
Database Technologies helps achieve this goals by:
Assisting in SaaS ERP transition for subsidiaries
Development of processes enabling integration of subsidiary data with PepsiAmericas data.

Creating a strategy that minimizes disruptions and does not have a negative impact.
One IT
Extending the IT backbone
Beginnings of a globalized Enterprise Architecture
IT Governance
Re-evaluation of existing principles for relevancy.
Addition of Service Oriented Architecture principles with addition of Cloud services.
Policy Driven Security
Reusable Services
Risks & Compliance
Policies & Procedures
Disaster Recovery
Enterprise Architecture
Information/Data Architecture
Technology Architecture
Security Architecture
Change & Projects
IT Personnel
IT Management

Systems Engineering - Problem
Systems Engineering - Data Center

SLA Requirements

Required Services

Unified Authentication Service

Operating System Baseline

Migrate To Single Vendor

Unified Management Platform
Systems Engineering - Standardization
HA Virtual Clusters for Subsidiaries

DFS Storage Architecture

Backups Mirrored To Data Center
Systems Engineering - Resiliency
Data Center Network

Subsidiary Network Connectivity

Site Interconnectivity

Connectivity To U.S. CDR
Systems Engineering - Redundancy
P2V Current Physical Environment

Migrate Applications To Virtual Host

Migrate Data To New Storage Architecture
Systems Engineering - Legacy
Enhance Capabilities Through Standardization

Leverage Existing Components When Necessary

Provide Highly Available Architecture For Optimal Performance
Software Engineering
Software Engineering - Problem
Current software used in CEE


Independent organizations ∆ PepsiAmericas
Integration & Assimilation
Previous code base can be reproduced to comply with SOA
CDR integration
Utilize a common language base - code
Software Engineering - SaaS
SaaS can eliminate the need for new code to be develop for conforming purposes

SaaS will provide continuity in terms of processes

SaaS will allow PepsiAmericas to maintain a hold of their EA desires
Software Engineering - SOA
Reusability of code
Automated processes
Financially responsible

Software Engineering - SOAP
<?xml version=”x”?>
<soap:Envelope xmlns:soap=https://foo.bar/soap-envelope”>
What is a Web Service? Why SOAP?

SOAP can encapsulate the XML protocol

Transport protocols supported

Tunnels easily through firewalls while doing so securely

HTTPS & SSH supported for connectivity to the ERP
Information Assurance

Need to incorporate Information Assurance to the IT operations, where all of IT considers security and risks for projects and operations.

Information Assurance is to ensure IT risks are controlled while allowing for rapid growth in the CEE market with a vision towards standardization and centralization as the CEE market matures.

Ensure that security technical controls are aligned with the implement of business capabilities and objectives
Implementation of an Information Assurance Governance structure
Adopting COBIT 5 Framework

Secure Technical and Operational Implementations
SDLC / Change Management

Access & Data Management

IT Operations
Information Assurance
the Enterprise
Applying a
Enabling a
SDLC / Change Management
Planning and Design
Migration of Data
IT Operations
Back Ups
Vulnerability Management
Access and Data Management
Access Administration
Data Separation
Technical Considerations
Secure Technical and Operational Implementations
SDLC / Change Management
Access Management / Data Management
IT Operations

A Controls
Governance Structure
IA Conclusion
Driving Factor Fundamental
IA Framework
Risk Management
These are the guidelines for each discipline to follow.
Individual Discipline Review
Considering the problems identified herein, in addition to the potential solutions provided, it would be prudent for PepsiAmericas to implement the proposed solutions in order to ensure a successful integration of its newly acquired distribution centers and future prospective business ventures to include possible alignment with bottling industries and vendors.
Overall Conclusion
Thank you
for your time
Q & A
IT Management collaborating with the Project Management Office
Determining milestones
Setting schedules
Establishing a change management processes and procedures.

Leveraging lessons learned from PAS’ Implementation

Utilizing previously established metrics and adjusting accordingly

Organizational Structure
Old Model
Corporate - Centralized
Territories - Distributed
New Model
Territories IT moved into Centralized model
Standardizing IT operations
Leveraging the CDR for:
Timely reporting
Business metrics
IT Management teaming with business leaders
Demonstrating gained business intelligence
Phased approach
Limited to no disruptions

Bringing CEE subsidiaries onboard
Extending the IT backbone and CDR
Improving forecasting and reporting

Leveraging Cloud services
Tying together global operations

Introducing CEE subsidiaries to the PAS IT architecture.

Demonstrating the benefits of moving towards an Enterprise Architecture.

Paving the path towards streamlined processes without disruptions to profitable operations.
Integrating CEE software to PepsiAmericas
Uniform Language Standards

Utilizing SaaS when available



Connect to ERP and CDR
IT Mgmt:
Aligning CEE IT with PAS IT.
Forming the foundation of an Enterprise Architecture.
Systems Engineering:
Implement A Resilient Enterprise Architecture Design
Software Engineering:
Integration ~ Integration ~ Integration
Data Integrity
Data Integration Considerations
IT General Controls Governance
Technical Security Technologies
Because PepsiAmericas will implement a two-tier ERP strategy....
Engage data governance to ensure the integrity of the PepsiAmericas data
Identify what changes, if any, they must make to the central data repository and/or data warehouse.
Manage changes through process definition
They also need to define:
The type of data
Its structure
Access control
Possible compliance issues

PepsiAmericas and its database engineers need to....
Full transcript