Written Assignment Unit 7

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School

College of Charleston *

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CULTURAL

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Management

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Nov 24, 2024

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docx

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Uploaded by andrewqgreenwood61

1 Panera Bread - Agile Development for Competitive Advantage Panera Bread, a leading bakery-cafe chain with over 1,700 establishments in the United States and Canada, found itself at a critical juncture. Faced with rapid growth and an ever- changing business environment, Panera Bread recognized the imperative need to expedite the delivery of its Information Technology (IT) solutions to remain competitive. To address this challenge, the company embarked on an agile transformation journey. This transformation included a series of agile-training workshops, pilot projects guided by an agile coach, and the enterprise-wide implementation of the Disciplined Agile Delivery (DAD) framework (Null, n.d.). The adoption of Agile methodologies at Panera Bread has yielded substantial benefits, including faster and more frequent delivery of IT solutions, improved solution quality, and a harmonious relationship between IT and business functions. Additionally, Panera Bread has successfully leveraged Agile development to increase its digital sales, which now account for 25% of the company's total sales (Null, n.d.). Furthermore, the company has achieved remarkable success with its customer loyalty program. This case report delves into Panera Bread's Agile development journey, examining its contribution to competitive advantage and its impact on various business forces and activities within the company's value chain. Key Issues and Underlying Issues: 1. Agile Development for Competitive Advantage: The primary issue revolves around how Panera Bread's adoption of Agile development methodologies has contributed to its competitive advantage. This entails identifying the specific forces impacted by Agile practices and the underlying reasons for these impacts. 2. Impact on Value Chain Activities: Another central issue pertains to the influence of Agile development on both primary and support activities within Panera Bread's value

2 chain. This involves understanding the benefits, if any, that Agile brings to these activities, as outlined by Porter's value chain concept. Facts Affecting the Issues:  The adoption of Agile development has enabled Panera Bread to significantly expedite the delivery of IT solutions.  Agile practices have led to improved solution quality, enhancing customer satisfaction.  A more harmonious relationship between IT and the business has emerged, fostering better collaboration.  Digital sales, facilitated by an enhanced mobile ordering process, now constitute 25% of the company's overall sales.  Panera Bread has successfully implemented a customer loyalty program, further bolstering its digital sales.  The company's value chain includes both primary activities (inbound logistics, operations, outbound logistics, sales/marketing, and service) and support activities (firm infrastructure, human resource management, technology development, and procurement) ( Bourgeois et al., 2019). Tentative Solution and Implementation: To leverage its Agile development practices for competitive advantage, Panera Bread should consider the following steps:  Continue the integration of Agile methodologies, ensuring that Agile principles are followed throughout the organization.  Invest in ongoing training and coaching to maintain a culture of agility.

3  Expand Agile practices to other departments beyond IT, such as marketing and customer service, to further enhance customer experience.  Implement regular performance measurement and feedback mechanisms to fine-tune Agile processes continuously.  Foster cross-functional collaboration between IT and business teams to drive innovation and meet evolving customer demands. Follow-up and Contingency Plans: To ensure the success of the proposed solution, Panera Bread should:  Continuously monitor key performance indicators (KPIs) related to Agile development, digital sales, and customer satisfaction.  Seek feedback from employees and customers to identify areas for improvement.  Conduct regular Agile maturity assessments to gauge the organization's progress.  Establish contingency plans to address potential challenges, such as resistance to Agile adoption or unforeseen market shifts, by remaining adaptable and open to changes in strategy (Tavanti, 2023). Conclusion In summary, Panera Bread's adoption of Agile development has not only expedited IT solution delivery but also significantly contributed to its competitive advantage. By further embedding Agile principles across the organization and nurturing a culture of agility, the company can continue to thrive in an ever-evolving industry. Regular monitoring, feedback, and adaptability will be key to ensuring continued success in the dynamic bakery-cafe market.

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4 References Bourgois, D.T., Smith, J.L., Wang, S., & Mortati, J. (2019, August 1). Information systems for business and beyond (2019) . Saylor Foundation. https://digitalcommons.biola.edu/cgi/viewcontent.cgi? article=1000&context=open-textbooks . Licensed under a Creative Commons Attribution- NonCommercial 4.0 Null, C. (n.d.). 10 companies killing it at scaling agile. TechBeacon. https://techbeacon.com/app- dev-testing/10-companies-killing-it-scaling-agile Tavanti, M. (2023). The Impact Challenge for Global Sustainability. In Developing Sustainability in Organizations: A Values-Based Approach (pp. 427-437). Cham: Springer International Publishing.

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