Saks Fifth Avenue (SFA) is more than just a store. For decades it has been a chain of high-end department stores throughout North America as well as numerous smaller affiliated stores. In the early nineties its headquarters was in its famous flagship store on Fifth Avenue in Manhattan. The first Saks store was opened in 1867, and for decades the enterprise was owned and operated by the Saks family. However, since 1923 Saks has been owned and controlled by outside organizations except for a two-year period beginning in 1996 when it was a public corporation. Even then 50 percent of the stock was retained by its previous owner, the Bahrain-based firm, Investcorp.
I, of course, was blissfully ignorant of most of this when, in the early nineties, TSI began pitching the AdDept system to the advertising department of Saks. In fact, my presentation to Saks may have been the first one that had a fairly serious chance of succeeding. I don’t remember the demo, but I surely gave one at the IBM office on Madison Avenue. I also definitely visited the office of the Saks’ advertising department, which at that time was on one of the upper floors of the store on Fifth Avenue to collect the requirements for the official proposal.
It did not take me long to realize that SFA was very different from Macy’s. The Senior VP at Saks was a woman, and her secretary was a man. I am embarrassed to report that I don’t remember either of their names. Theirs was an unusual setup in the early nineties. More surprising to me was the fact that around his desk were posted large glossy photographs of shirtless male models.
Saks’ advertising department was responsible for more than just the Fifth Avenue store. There were dozens of full-line stores that bore the SFA logo strategically positioned around the continent in locations with the requisite number of rich people. They also managed the little advertising done for even more Off Fifth outlet stores that sold the merchandise that had not been sold at the SFA stores. They also had responsibility for advertising for the Armani Exchange stores. I never quite understood why.
This was the OTS at 700 N. Michigan Ave. in Chicago.
For me the most surprising thing about Saks’ approach to advertising was its focus on New York City. Macy’s focus was somewhat similar, but their primary purpose in purchasing AdDept was to be able to hand additional markets. Saks divided their SFA stores into two groups: New York and OTS, which stood for “out-of-town stores.” Their newspaper advertising was heavily focused on the New York Times. They may have used Newsday for the Long Island store, but I don’t think that they used the other tabloids at all.
Saks also advertised very heavily in fashion magazines. In some ways the system could treat magazines as newspapers that only published one issue per month, but in other ways they were quite different. A fair amount of programming was required to handle Saks’ advertising in Vogue and other such periodicals.
Saks signed a contract with TSI in 1994, which was a banner year for the company. I made sure that all of the users of and prospects for the AdDept system knew that Saks was now on our client list by including the news in an issue of Sound Bytes, TSI’s short-lived newsletter.
At Saks Fifth Avenue, the national retailer based in Manhattan, the implementation of the AdDept system is scheduled for May 1. Advertising personnel will be connected to an AS/400 located at the company’s data center in Lawrenceville, NJ, through a Token Ring network. Both Mac and PC users in all areas of the department and the advertising business office will have access to the data. In addition to the wealth of standard features in AdDept, custom programming will provide the department with the ability to produce advertising schedules by store, to track advertising expenses (gross, vendor, and net) by merchandise vendor, and to produce change reports that conform with the way that the department is organized.
Reading this blurb again brought to mind a few unusual aspects concerning the installation.
I made at least one trip to Lawrenceville, which is closer to Philadelphia than to Fifth Avenue, probably at the time when the AS/400 was installed in 1994. Almost never did anyone from TSI deal with anyone from that facility, and they had never had a hardware problem. However, several years later we received a very strange phone call from someone there who requested that someone from our office dial into the system over the modem. They said that no one could remember where they had put it; they hoped that the noise produced by the modem—it never answered on the first ring—would lead them to it. Apparently it worked. In 1998 all of Saks’ computers were moved to the Proffitt’s Inc. facility in Jackson, MI. I installed a newer faster machine there.
My recollection is that Saks used very little of the custom programming that TSI had coded and implemented at the time of the installation until Tom Caputo arrived eight years later. They mainly used the AdDept system as an easier way to key in expenses for their accounts payable and general ledger systems, which AdDept was designed to feed.
The phrase “the way that the department is organized,” brought back memories of the difficulties that I encountered while training at SFA. The ROP (i.e., newspaper ads) manager, in particular, was quite uncooperative in helping me understand how she worked. She evidently considered ROP her own little fiefdom, and suspected that revealing the knowledge of how her area worked might affect her job security. This was by no means the last time that I was faced with this sort of heel-dragging.
I remember a few other details about that initial installation:
SFA on Wilshire Blvd. in Beverly Hills.
I heard one interesting story related by an employee at Saks. The person at the headquarters who monitored sales by store had been very concerned because the Beverly Hills store in California had in the previous few months posted much lower sales than expected. A call to the store manager revealed a simple explanation: “The princess died.” Evidently a Saudi princess had been purchasing so much so regularly from the store that her untimely demise had dramatically deflated the the store’s total revenues.
Once or twice I spent consecutive days in Manhattan during the installation. Saks arranged for me to stay in a luxurious room at the nearby Sheraton. It was by far the nicest place in which I ever stayed for business.
I remember that on one occasion SFA had asked for a day of training, for which TSI charged $1,000. I discovered when I arrived in Manhattan that no one who actually used (or had any intention of using) the AdDept system was available to spend time with me. So, for several hours I “trained” three interns. For all of them English was a second language. One was named Oscar; I don’t remember the other names.
In subsequent years I was not a bit happy with the state of the installation at Saks. It made me realize that the success of our installations was largely dependent upon the strength of our liaison. The person needed to have the ability to grasp the intricacies of the system, a personality adaptable to working with both TSI and the users of the system, and the clout (direct or indirect) to deal with problems once they had been identified.
I very much wanted to use Saks as a reference account, but they used so little of the system that I was reluctant to mention them. I was frankly puzzled as to why it seemed so difficult to get anyone outside of the finance area interested in making the system work for them. The person with whom we worked the most was Jeanette Igesias1. She was conscientious enough, but she had neither the authority nor the inclination to involve any of the other areas more fully.
In 1998 the retail world was shocked to learn that Saks Holdings, Inc., the parent company, had been acquired by Proffitt’s Inc.2, a company that a few years earlier consisted of a set of stores in Tennessee that could have all fit easily inside the Saks store on Fifth Avenue. Almost immediately after the acquisition the parent company’s name was changed to Saks Inc.
Shortly thereafter I was in Birmingham, AL, to work with employees of the advertising department for the Parisian3, a chain of department stores that Proffitt’s Inc. had previously acquired. The corporate headquarters was also located in the same building. I happened to encounter the same Senior VP from Saks’ adverting department whom I had met in the early nineties. She was there to meet with people from what was then still called Proffitt’s Marketing Group (PMG). She knew that I had been frustrated with the pace of the installation at SFA. She even remarked that maybe under the new ownership they could get something done.
At about this time Ava John was hired by Saks. I think that she worked under Jeanette until Jeanette left SFA in 2002. Thereafter Ava was TSI’s principal contact for the part of the system used by the advertising business office, which included recording invoices that were uploaded to the corporate accounts payable system.
In 2008 Ava was arrested and charged with running an embezzlement scheme that netted her and her friends and relatives more than $680,000 over the course of five years. That may seem like a lot, but it was only a little over $10,000 per month, a tiny fraction of what Saks spent on advertising. I discovered a single mistake at another installation that was about as large as this.
At the time I did not hear about any of this, and, to the best of my knowledge, neither did any of TSI’s employees, but the scandal was reported in all three of New York’s major dailies. The Post‘s coverage can be read here. I was unable to discover anything posted on the Internet about the ultimate legal resolution. I also know nothing more about Ava.
In 2001 Tom Caputo, who had been TSI’s primary contact at Lord &Taylor5 for several years, was hired by Saks. He had a number of responsibilities in the advertising department, one of which was to oversee the AdDept installation. Tom’s office was not in the flagship store, but in an office building across the street. I met with him there several times. I cannot remember what projects we did for them, but I remember that Tom seemed frustrated with the situation there, or, more likely with what the world of retail had become in the twenty-first century.
Tom stayed at Saks until 2014, the same year that Denise Bessette and I decided to shut down TSI. I had one further contact with him. He asked me if I knew of any job openings that he would qualify for. I had to reply in the negative. By that time the demand for both people and software that was adept at administering the advertising for large national retailers was negligible. I felt sorry for my many acquaintances who were not able to disassociate themselves from this undertaking as smoothly as we did.
In 2007 Saks was spun off from the other department stores that were part of Saks Inc. The executive who had cobbled together this retail giant, R. Brad Martin, summarily abandoned the leadership of the rest of the stores to someone else and elected to run just SFA. His decision to remove the jewel from the crown was described in this New York Post. article.
In 2013 the company was purchased by the Hudson Bay Company, the oldest corporate enterprise in North America. The company had already purchased Tom Caputo’s previous employer, Lord & Taylor. One of the last projects that I worked on at TSI was helping with the migration of SFA’s AdDept system to the HBC computers located somewhere in Canada.
There are still many Saks Fifth Avenue stores. HBC opened a huge store in Toronto in 2014 and at least two other stores in Canada. Administration of all of the stores seems to be split between Toronto and New York.
1. Jeanette Iglesias’ LinkedIn page can be found here.
2. Much more about TSI’s relationship with Proffitt’s Inc./Saks Inc. is available here.
3. Details about the Parisian installation of the AdDept system are provided here.
Parisian, based in Birmingham, AL, was a little different from the other divisions of Proffitt’s Inc.1 (later renamed Saks Inc.). Its stores were somewhat upscale, but they seldom went head-to-head with Saks or Neiman Marcus in major markets. Parisian was acquired by Proffitt’s Inc. in 1996, and the corporate headquarters was immediately moved to the beautiful Parisian building at 750 Lakeshore Parkway on the north side of Birmingham. By that time Proffitt’s Marketing Group (PMG) had already decided to implement the AdDept system at all divisions. Therefore, I never made a presentation or demo for Parisian.
I flew to Birmingham and installed the AdDept system in January of 1999. After that day I never laid eyes on the AS/400 or the system console. They were kept in a closet somewhere in the headquarters building. Parisian’s advertising department was located, if memory serves, on the second floor. PMG was on the ground floor. The AdDept users signed on through the network. TSI had nothing to do with the connectivity.
This was a very strange installation. The personnel in the advertising department were not like those that I encountered anywhere else. Aside from the Senior VP, almost everyone else at every level was female. Moreover, every time that I went there, there seemed to be a large number of new people who needed to learn how to use AdDept. Finally, a very high percentage of these women were strikingly good-looking and blonde, and almost all of them dressed much more stylishly than I had seen at any other location, including Saks Fifth Avenue and Neiman Marcus.2 At those two locations the executives and the people who dealt with customers dressed to kill, but those standards were not imposed on clerical workers.
From left: Kimberly Weld, Sally Carter and Cheryl Sides. Josh Hill from PMG is behind them.
I have found quite a few photos of the people at Parisian, and the names of the employees are indicated on some of them. I also have some notes beginning in 1999 that included more names. I have very clear memories of only two people, Cheryl Sides1, who was the official liaison for the AdDept system, and Sally Carter, the manager of the business office. Cheryl was there from the time of the installation up to the demise of the chain. Sally was replaced by Barry Cleavelin in 2001.
For the first year or so the Divisional VP was Alan Seitel5. The Senior VP for most of the period in question was Bob Ferguson, who came over from Younkers6. He was succeeded by Gary Yiatchos7.
Renita Lewis on the left with her back to the camera. Next, in order, are Diane Vogel, Cheryl Side, Kim Wolff, Regaye Fulcher, Annissa Kennedy, Kimberly Weld, Josh Hill, and Angela Dawkins.
David Dollar.
The people: I could hardly believe how many names were recorded in my notes or beside my photographs. I have almost no memories of any of these people. If my notes included a description of their role at the Parisian, I have included it in their entry in this list:
Diane (Vogel) Worthington’s LinkedIn photo.
It seems incredible that I remember nothing about Diane Vogel, who was the Advertising Director at Parisian from 1996 on. I must have had several meetings with her. Her LinkedIn page can be found here.
Kimberly Weld would have won the national title if there had been a Miss ROP Coordinator contest. Her LinkedIn page is here.
David Dollar was the Co-op Coordinator. I seem to remember that he kept a lot of food in his desk.
I think that Dottie Collins might have handled Co-op advertising before David Dollar. Her LinkedIn page is here, but it contains no useful information.
I mostly remember Kim Woolf as the other Kim. She might have been involved with direct mail I found her LinkedIn page here.
Regaye Fulcher sat next to Kim Woolf in one photo. She may have worked with or for her. Her LinkedIn page is posted here
Ginger Brown worked in direct mail.
Colin Mitchell (a woman) was in charge of insertion orders for the newspapers.
Karen Kennedy worked in the production side of direct mail.
In 2000 Kelley Carter was in charge of co-op.
The next year it was taken over by Mollie Donohue. Her LinkedIn page is here.
I met two new people on my last trip to Parisian in 2005. The first was named Justin Walker. I wrote, “Justin Walker, whose title is director of eBusiness, is, I think, the resident techy for the Parisian division.” His LinkedIn page is here.
The other newcomer in 2005 was Luann Carter who came from Proffitt’s I think that she was in charge of trafficking production jobs. Her LinkedIn page is here.
I remember nothing about any of the following people whose name I recorded at some point: Annissa Kennedy, Angela Dawkins, Renita Lewis, and Kelly Denney.
I am completely stumped as to why I do not remember Mollie.
The installation: This was one of TSI’s most frustrating installations. The only difficult thing that they asked for was Bob Ferguson’s calendar. They printed it on a Canon color copier that used Postscript rather than a version of PCL, the Hewlett-Packer language. I said that I would look into it, but I don’t think that we ever even quoted doing it.
This should have been an easy installation, but it wasn’t. They seemed to have difficulty getting even basic programs to work for them. Some of the problems were just bizarre. In 2000 I reported, “CHKFAXSTS doesn’t work on Colin’s Mac. No matter what option you put in, the program interprets it as a 4. This is one of the more bizarre problems that I have encountered.” CHKFAXSTS is an IBM program; no other AdDept user ever had any problem with it.
Renita and Sally.
In April of 2000 I described some of the other difficulties.
Saks Inc. is putting pressure on Sally Carter to use AdDept to do closings. She told Sandy that she doesn’t want to use it because she doesn’t think that it works. We helped her through some problems today with the P.O. accrual program. I should have gone over the closing programs with her in more detail when I was there, but there was just no time. Wednesday I found a bug that threw off the journal entry by $1 million. I fixed it easily, but we looked bad.
This is another face of our usual problem. I have spent an inordinate amount of time at Parisian providing basic 5250 training to people that do not use the system at all and never will. I have also spent a lot of time writing custom programs (mostly their funky advertising schedule) and more than a little time twiddling my thumbs. I have spent no time with Sally to speak of before the last trip. Most of that was spent getting the store allocations to work.
I also reported that in November of 2000 I was asked to train a whole new group of employees in a classroom setting. It did not go well at all:
Barry Cleavelin.
The people in my class on Friday – who seemed reasonably intelligent to me – retained absolutely nothing. Either I am a much worse teacher than I think that I am or people in this type of setting do not think that they are expected to remember anything.
When Barry replaced Sally, I needed to spend several days with him to help him get up to speed on the AdDept processes. During that period we discovered several things that had been handled incorrectly in the past.
Life in Birmingham: I did not hate Birmingham as much as I hated Jackson, MS, the home of McRae’s. Jackson made me feel angry and frustrated. In Birmingham I just felt uncomfortable.
My records indicated that I ate a lot of lunches at Cia’s, which was inside the Parisian building. I have no vivid recollections of any of them
Most evenings I picked up a sandwich at Schlotzsky’s Deli. I remember that I ordered the same thing every time. It might have been a Reuben; that was my most common order at a deli.
I distinctly remember eating at a small Italian restaurant inside a mall. Ordering was done at the counter. I asked for spaghetti and meat sauce. The man at the counter mumbled something that I could not understand. I asked him to say it again. He did, but I still had no idea what he was asking me. I just said, “Yes.” Twenty years later I still have no idea what I agreed to.
At least once Steve VeZain of PMG took me out to his favorite restaurant, Joe’s Crab Shack.
La Quinta.
For most of my visits I stayed in the nearby La Quinta. It seemed to cater mostly to golfers who came to play the courses on the Robert Trent Jones Golf Trail. The thing that I noted the most about them was that many of them wore leather shoes with no socks. I had never seen this before, and it struck me as being both uncomfortable and unsanitary.
After work I usually jogged five or six miles on paths up and down the highway that ran between the hotel and Parisian. It was not the greatest place to run. Not only was it a little dangerous, but the noise was also disturbing. I had to wear my Bose headphones while I listened to operatic music or instructional tape.
The La Quinta had a pool and a small hot tub. Both of them were outdoors. The first time that I stayed I was able to use the hot tub after my run undisturbed. On all subsequent occasions the hot tub was occupied by golfers. On my last visit I gave up on La Quinta and stayed at a Hampton Inn.
I wrote the following on November 9, 2000:
When I was in Portland early in the year I had enough time to change my clothes before taking the red-eye back to the east. I changed in an extremely cramped stall in the men’s room. When I got home I realized that I was missing one of my wing-tips. I must have left it in the stall. I never threw the remaining shoe away because I thought that I might be able to find the missing one somewhere. After a while I forgot about it.
I went to the store to buy a new pair of dress shoes. I did not want another pair of wing-tips, but the only reasonable ones I could find were wing-tips, so that is what I bought.
This morning I was congratulating myself on forgetting nothing more important than a t-shirt to wear running. I started to put on my shoes. Both of them were right shoes. I evidently picked up the extra shoe by mistake.
I had to make an emergency run to Walmart. It was an unpleasant experience, but I managed to find one pair of shoes that are reasonably dressy (i.e., not hiking boots) in my size. They were on sale for $12.97.
They would not take my new American Express card at Walmart for some reason. I have used it twice.
This store in Pensacola was formerly a Parisian.
Epilogue: In August of 2006 Belk8 purchased the Parisian stores. The management of the advertising was immediately moved to Belk’s headquarters in Charlotte, NC. The five northern stores were sold by Belk to Bon Ton. Some southern stores were closed immediately. The signage on the remaining ones was changed to the Belk nameplate in 2007. Three northern stores continued to operate under their original name until 2013.
1. My experiences working with Proffitt’s Inc. and PMG are detailed here.
2. Most of my trips to Parisian were after the holding company had changed its name to Saks Inc. in 1998. My theory is that the women who applied for jobs in that building, which was the corporate headquarters for Saks Inc., thought that they were applying for a job at Saks Fifth Avenue. Thus, many of those attracted might have envisioned a career at the famous luxury store. After they learned about the other divisions and the pedestrian jobs involved in managing retail, they moved on. This is all just speculation, but I know that the guys in PMG spent as much time upstairs as they could.
3. Cheryl’s last name was, according to the designations on the photos, Sides. However, I also found Sipes and Sykes in the notes. I am not sure what Cheryl did at Parisian beside act as liaison with TSI; she definitely was good at that. I searched the Internet using all three last names but found nothing.
4. I found nothing on the Internet about Sally Carter, Barry Cleavelin’s LinkedIn page can be found here.
6. The history of the AdDept installation at Younkers is posted here.
7. I met Gary Yiatchos when I flew to Seattle for the presentation of the AdDept system to the advertising department of the Bon Marché. That adventure is described here.
8. The history of the AdDept installation at Belk is posted here.
Saks Inc. division based in Des Moines merged into Carson’s. Continue reading →
I am pretty sure that Younkers contacted TSI about AdDept before the company was absorbed into Proffitt’s Inc. I have a rather vivid memory—not to mention a photograph—of a presentation that I did for them at the IBM office in Des Moines. Since Proffitt’s purchased the company in December of 1996, the starting date in the title is probably accurate. It might have been in late 1995.
The downtown Younkers store was connected by skyways to other downtown buildings in two directions.
Doug Pease accompanied me on the first trip to Des Moines for the demo. We stayed at a Holiday Inn that was just north of the downtown area near Mercy Hospital.
I remember that we went to a basketball game at the Knapp Center on the evening of January 27, 1996. The Drake Bulldogs came into the game with a 6-2 record in the Missouri Valley Conference. However, they were defeated by the Tulsa Golden Hurricane1 79-73. Drake seemed to be a little better overall, but they had only one guy who could dribble through a press, and in the second half when the starter had to be benched because of foul trouble. The freshman (Cory Petzenhauser) whom they inserted at point guard was just humiliated. It was painful to watch.
That defeat started a tailspin for Drake, which ended up with a 12-15 record. The coach resigned in March
The only photo that I have of the people from Younkers was taken at the IBM office. The only person whom I recognize is Roger. He is the guy in glasses in the back row near one of the enormous members of his staff.
Des Moines is legendary as a sleepy town, but I remember that Doug and I actually discovered a bit of night life in an assortment of restaurants and bars that were in a redeveloped area between the river and Younkers’ downtown store at 713 Walnut Street.
The system was not actually installed at Younkers until April of 1998.
The primary players in the AdDept installation at Younkers were the Advertising Director, whose name I think was Joe, and Roger Wolf, who was in charge of the advertising business office.
The Tea Room at Younkers.
My recollections of the details of the installation are few. The headquarters was on an upper floor of the flagship store. The Senior VP of Advertising treated us to lunch in the store’s famous tea room. It was quite elegant.
I think that Younkers bought the AS/400 directly from IBM. I don’t remember where it was kept, and I don’t think that I was required to install it. TSI wasn’t involved in connecting the various devices either.
Roger and Joe came to Enfield for training. I remember that practically everyone in the department except for Roger’s group used Macs. We had to research the availability of terminal emulation software for them. Joe had some very specific ideas about tracking the progress of production jobs. TSI was asked to do quite a bit of customizing of the trafficking programs to realize them.
Long after I posted this entry I discovered this photo of a meeting at PMG in Birmingham. Roger is the second from the left in the shirt with vertical stripes. Steve VeZain of PMG is waving on the right. Beside him is someone named Chris from Younkers. He must have been in charge of the Mac network.
I was not there for the flooding of the Raccoon River in 2003, but some of its effects were still visible years later.
Roger’s group of four or five accounting people was tucked away in a small area that was like a mezzanine up some stairs from the rest of the department. The ceiling was low. Everyone sat in a single row facing the wall. It was very cramped and felt rickety.
Roger was as almost as skinny as I was, but two enormous women also worked up there. I could not help wondering if the support beams for their floor were up to the task. For me it was a hellish place to work. Two people had radios on all day long. One played heavy metal rock; the other was tuned to the rantings of Rush Limbaugh.
My notes from 1999 indicated a peculiarity in the way that Younkers did its accounting:
They have implemented a great many things that have the result of increasing the budget for storewide ads. Some of this is at the expense of merchants, some at the expense of vendors. Roger understands this, but he is not good at articulating it.
Some of these “great many things” were quite difficult to program. Several years after the beginning of the installation Roger’s group was still not using the system to the satisfaction of the corporate people at Saks Inc.2
The rest of Saks Inc. thinks that Roger is a fuddy-duddy and an obstructionist. The PMG3 approach to solving problems is to put pressure on people to solve their own problems. I think this is why Joe quit. They have put a lot of pressure on Roger to give up his overly intricate accounting procedures and get with the program.
At first I too thought Roger was an obstructionist. The last two trips he has made a strong effort to use AdDept. However, he won’t give up his calendar until he is confident that every single number in AdDept’s calendar can be defended. They now have the worst of both worlds. Roger does the calendar in AdDept. He checks every number by hand. Then he gets frustrated and goes back to his manual calendar.
Steve’s4 idea was to send Ivy5 to show Roger how McRae’s does thing. Roger, who is at least as intelligent as Ivy, understands how McRae’s does things. Ivy has no clue how Younkers does things. Another problem is that Ivy is even less articulate than Roger.
I don’t know what the solution is, but it has to come from someone above Roger. Most people think that they are going to fire him. This won’t solve the problem.
They did not fire Roger, but they did try to make him quit. Liz Ewing6 replaced him as manager of the business office, and Roger was demoted to accounting clerk.
On most of my visits I stayed at a hotel that was within walking distance of the Younkers building. My recollection is that it was a Radisson.7 It was very nice, and Younkers had a discount rate. The thing that I liked best about it was that it had a Jacuzzi that was seldom used by the other guests. I found a good park in which to run, and afterwards twenty minutes in the Jacuzzi felt fantastic.
I had several adventures traveling to and from Des Moines. On one afternoon I was flying from Chicago to Des Moines on United. A tornado that was passing through the area forced us to land in Cedar Rapids. The entire story is recounted here.
I made it to the scheduled meetings on time and worked with the users according to the original schedule. Just another day at the office.
The other adventure involved a stop in Kansas City to play golf with my dad. The details have been posted here.
I have two startling memories from Des Moines. The first came when I was working up in the advertising business office. One of the overweight ladies was regaling the rest of us with a tale of an acquaintance of hers who had a foot fetish. He offered to pay her to allow him to suck her toes.
The other one came from Joe, the original Advertising Director who resigned and then was replaced in 2000 by Kristen Gray8. A group of us was having lunch at a restaurant. The topic of conversation was the difficulty of handling teen-aged offspring. I, of course, offered nothing. Joe mentioned that he had once received a telephone call from the police when his daughter had driven a car into a mall. Evidently no one was hurt.
In 2003 Saks Inc. made Younkers part of its Northern division. The offices in Des Moines were closed, and all administrative functions were transferred to Milwaukee. The stores continued to operate with the Younkers name. In March of 2006 the entire division was sold to the Bon Ton.
The downtown Des Moines store was closed in 2005. In 2014 a huge fire consumed the empty building that I knew as the downtown Younkers store.
Any remaining Younkers stores were closed as part of the Bon Ton’s liquidation in 2018.
1. Evidently the coach in 1922 wanted to name the team the Golden Tornadoes, but he discovered that it was already taken by Georgia Tech. So, he changed it to Hurricanes. At lest that’s what it says here. Of course, hurricanes seldom, if ever, bother Tulsa. I don’t know why or when it was made singular.
2. As is explained here, after Proffitt’s Inc. purchased Saks Fifth Avenue, it changed its name to Saks Inc.
3. PMG stands for Proffitt’s Marketing Group, the people at the corporate headquarters in Birmingham who oversaw the advertising departments.
4. Steve VeZain was the person at PMG charged with monitoring the progress of the installations in the various advertising departments.
5. Ivy Klaras worked at McRae’s in the business office. The AdDept installation at McRae’s is described here.
6. Liz Ewing’s puzzling LinkedIn page can be viewed here.
7. There are no Radissons in downtown Des Moines in 2023, The hotel that I stayed in was either sold or destroyed.
Herberger’s (known locally as Herbie’s) was a chain of department stores arrayed across the northern tier of the Midwest. It was the last Saks Inc. division to employ the AdDept system to manage its advertising. Prior to 1997 it was apparently an employee-owned company and, at least according to an article posted here, a wonderful place to work. The writer speculated that Herberger’s went downhill rapidly after it was acquired by the company then known as Proffitt’s Inc.
The Herberger’s on St. Germain St. in St. Cloud was still unoccupied in 2023.
One of the moves that occurred shortly after the acquisition was the direction by Proffitt’s Marketing Group (PMG) to install TSI’s AdDept system in the advertising department on an upper floor (there were only three floors) of the flagship store in St. Cloud, MN.
I visited St. Cloud a total of three times in 1998 and 1999. I found only a few notes and two photographs to help me remember the experience. Furthermore, I cannot recall the names of most of the people with whom I worked, and I was unable to find any references on the Internet. So, this account will mostly depend upon my increasingly unreliable memory.
The purposes of my first trip to St. Cloud were to install the AdDept system on the AS/400 that had been purchased from and installed by IBM and to train the people who would be responsible for setting up the tables and entering the ads. St. Cloud is north of the Twin Cities, just far enough away to be considered an independent city. On that first occasion I flew Northwest Airlines from Bradley to the very nice Minneapolis-Saint Paul International Airport. I then took a long hike to my connecting flight, At the time1 a regional company flying with a Northwest flight number made the trip back and forth several times a day. I described it in one of my emails to Denise Bessette:
We boarded for St. Cloud at 8:20. We rode on a seatless bus to the plane. Then we sat on the plane for a while. Then we taxied for a while. We left at 9:05. We arrived at St. Cloud at 9:22. 45 minutes on the ground; 17 in the air.
On the subsequent trips I just rented a car at the airport in Minneapolis and drove to St. Cloud.
On all of my visits I stayed at a hotel2 that was only a couple of blocks from Herbie’s. I walked there and used the employees’ entrance from the parking lot behind the store.
Anne Hof.
I think that Josh Hill from PMG was present for all of my visits. PMG owned the system and insisted that there would be no custom programming. This made it extremely difficult for the president of a company with “Tailored” in its name. It came at a time when our programming staff was up to its armpits in alligators; that was good. However, for the first time in my life I knew that I sometimes could not provide what the client wanted or, sometimes, even what they needed.
Al DeCamillis and Christie Vierzba in the training room.
The people: I have pictures of three Herbie’s employees: Al DeCamillis3, the Business Office Manager, Christie Vierzba3, the Direct Mail Manager, and Anne Hof. I remember little or nothing about Christie, Ann, and the other workers in the department.
I think that Al was hired between my first and second trip. He was eager to use AdDept for all of the accounting, but he could not use it for his closing. The method he used was “closing to plan,” which meant that the expenses and income that he reported to corporate accounting always matched the planned amount to the penny. The offsetting entry was to a slush account. Evidently this was what he had always done. It meant that the monthly figures in every advertising account were, for purposes of analysis, worthless. No one could ever determine from the general ledger where too much or too little was spent.
My life in St. Cloud: My first visit to Herbie’s was an eye-opener. By that time I had visited the headquarters of twenty or more retailers. Each was either a free-standing structure or the upper floors of a huge store. Herbie’s was indeed in an upper story of a store, but although the building occupied the entire 600 block on St. Germain Street, it was only two or three stories high. It would never have been considered as a setting for a movie about a department store. It was just a store with departments. It even had a good-sized parking lot. The town itself had a much more Midwestern feel than any that I had been in.
I have remarkably few memories of my time in St. Cloud. I cannot remember any restaurants. My only recollection of the hotel was that there was definitely an iron and an ironing board in my room.
Not much of great note or interest actually happened either in the store or in the town while I was there. By far the most memorable event for me was the stress that I underwent while worrying about what was happening back in Enfield. That tale has been related here.
The location for one very unusual event involving Herbie’s occurred during one of my visits to Birmingham. It has been described here.
The logo that was used after the move to Milwaukee.
Epilogue: The installation at Herberger’s was not a happy one for anyone. In 2000 Saks Inc. decided to transfer the administration of the stores to Carson’s in Milwaukee. The jobs for 260 administrative employees in St. Cloud were eliminated. The stores retained the Herberger’s name but they also replaced the flower with a circle of red hexagons that Carson’s displayed on all of its stores. Eventually Carson’s was renamed the Northern Division. It was then sold to the Bon Ton in 2005. By 2017 all of the Herberger’s stores were closed. In 2023 there were still rumors that the brand might be resuscitated, but I found no evidence that any Herberger’s stores had been reopened.
1. In 2023 the only flights to and from the St. Cloud Regional Airport connected the town with Mesa AZ, Punta Garda FL, and Laughlin NV.
2. It was not part of a chain then. I think that it might be a Marriott Courtyard in 2023.
In large measure this entry is based on and inspired by a set of recently discovered messages that I sent to my partner, Denise Bessette, about new projects that we were researching or working on. The first email was dated in late 1999. The last was in early 2001. The messages portrayed an exciting but scary time for both of us.
By the middle of the nineties it was evident to us that the way that TSI had been programming in the past fifteen years was becoming obsolete or was at least losing popularity. In 1992 Microsoft left IBM at the starting gate when it released Windows 3.1, the first version of its operating system that featured a graphical user interface (GUI) and was also stable enough that large corporations took it seriously. One could still make the argument that text-based software systems like the ones that we had developed were appropriate for many business tasks—in fact, most of the most important ones. However, if you did, you were probably dooming yourself to the fate of typewriter salesmen.
Great if you have just 2 fingers.
In fact, systems like AdDept and TSI’s other systems were branded by many of the magazines of the day as “legacy systems”. The emphasis of the new approach centered around the appearance of the screens, which now featured colors, images, text boxes, radio buttons, and varied fonts. They were certainly more interesting to look at than anything that we had produced. The mouse was the thing! The keyboard was only used when absolutely necessary. Whether they were as efficient or as easy to use was debatable, but, as I already noted, we were well aware of what had happened to the typewriter salesmen.
Another thing that happened during the middle of the nineties was the explosive growth of the Internet. All software developers wanted to be a part of it, but few were exactly sure how to approach it. I knew that we needed to figure out what aspect we should concentrate on, but it was not an easy decision to make. A few early participants made a lot of money, but an awful lot of ideas were catastrophic failures.
The Search for a GUI: I spent countless hours researching ways that we could provide a GUI for the AdDept system that did not involve a complete rewriting of the hundreds (and growing daily) of screens that we had already implemented. Every developer who worked on IBM midrange or mainframe systems must have been faced with the same problem. We all wanted a way to provide a system that looked modern but also took advantage of the thousands of lines of functioning code that had already been written.
I don’t know why, but IBM was not much help in this endeavor. Instead, in the late nineties IBM became a strong proponent of an object-oriented programming language developed by Sun Microsystems called Java. This was a startlingly new language. The first version was released in 1996.
I bought and read ten separate books that purported to teach Java programming. The structure of the language was consistent with the first principle of its design: “It must be simple, object-oriented, and familiar.” Well at least it was simple and object-oriented. The structure of the code was nothing like what I was accustomed to. Its main orientation was to a computer display, which it considered a set of objects, each with a set of properties and methods. That approached worked well enough for a screen, but how would it work for other things? After downloading the software development kit to my laptop and spending hundreds of hours mulling the contents of those books, I could do all of the exercises in every book, but I had not the slightest clue how to begin to code a system to manage any aspect of retail advertising. In fact I could not replicate even one screen of the AdDept system.
I did not completely discard the notion of using Java somehow, but if we did, we would definitely need some help. As I look back on this, maybe this is the reason why IBM was so crazy for Java.
The Spreadout Project: Users of TSI’s systems seldom complained about the look or feel of our data entry screens. Those screens would never have won any design awards, but the formats were completely consistent throughout the application, and everyone knew that they got the job done efficiently. Furthermore, they knew that TSI could implement requested changes rapidly and at moderate costs.
What they did not like much was the look of the reports, which was limited to one non-proportional font—Courier—with no images or even styles like italics or bolding. Many, if not most, of the people who used AdDept were quite good at making and manipulating spreadsheets. They were used to controlling the format of the output, and they liked the flexibility. For example, if they wanted someone to concentrate on one column or row, they could easily change the font, color, or style for just those cells.
Several clients asked us if it would be possible for us to produce an Excel spreadsheet as the output from designated programs in AdDept instead of or in addition to printed reports. I did not know if it would be possible, but I said that I would look into it. I dubbed this project “Spreadout”.
It was rather easy to produce an output file that contained the same rows and columns as the report, and we implemented that option in a large number of AdDept reports. The user could then download that file to their PC. That file could then be loaded into Excel with the rows and columns intact. However, the fields (or cells) in the file contained only text or numbers. It was not possible to download formulas for totaling or designate any kind of formatting. Furthermore, the process of downloading the file was not exactly speedy.
I tried to figure out what it would take to produce code that could provide files that could be opened in Excel with predetermined formulas and formatting. I found some documentation from Microsoft of the Excel files, but I never could concoct a way to provide what our customers asked for. Furthermore I never heard of anyone else who had accomplished this, and —believe me—I searched..
I did, however, managed to provide an alternative that proved popular to some clients. Almost all the AdDept customers used Hewlett-Packard printers that were accessible by the AS/400. HP sold books that documented the format for files in HP’s printer command languages, PCL 4, PCL 5, and PCL 6. I could then write code to produce spooled files that contained the output in exactly the format that the client specified. The downside was the considerable amount of coding required for each report, many times as much as it took to produce it in the Courier-only. It also required an extra step to send the output directly to the printer without being reformatted.
However, a few clients were so insistent about the need for a precise format that they were willing to pay the price. These reports were almost always the ones that they distributed to other departments or to higher-ups.
If anyone else ever did a project like this for the AS/400, I never heard of it. Unfortunately, I never figured out how it could be marketed as a stand-alone product usable with other AS/400 software.
As the new millennium approached, we—that is, Denise Bessette and I—felt that we needed to expand TSI’s horizons. In January of 2000 we flew to San Diego for IBM’s PartnerWorld conference in the hope of making contact with people who could advise us how to adapt to the need for modernization and the Internet. That enjoyable but frustrating experience has been described here.
On February 25, 2000, I took the time to write up in a fairly detailed manner how, given the inherent limitations of a small business like ours, TSI should to proceed in trying to develop a second line of business. Here is a portion of that memo:
General principles:
1. We should get the best people available to help us.
2. We should maintain AdDept as a dependable source of income. Whether we should invest a lot of time and/or money in enhancing and marketing AdDept is still to be determined.
3. We should try to leverage our assets better. Our income is too heavily dependent upon the number of hours put in by Mike and Denise.
4. We should assume that the economy will remain strong for another two years. On the other hand, we should avoid debt or at least large amounts of debt in case this assumption turns out to be false.
5. We should add new skills that are more marketable. That means learning some subset of Windows, object-oriented programming, and the internet. We should be thinking past the next project to the one after that if we can.
6. We should look for partners with skills and assets that complement ours.
7. We should not be deterred by the fact that some of these principles seem incompatible.
8. We need to act fast. Pursuing René2 cost us seven months. On the other hand we might have gone down some less profitable paths if she had been on board.
I think we should take the following steps as soon as possible.
1. Find out what it takes to get our existing clients to use AdDept for insertion orders. The following clients are not using AdDept for IO’s: Macy’s East, Neiman Marcus, Filene’s, Saks Fifth Avenue, and Hecht’s. I checked Herberger’s. They have ads through March 29, 2000, at least. Macy’s West is apparently starting. Gottschalks ran insertion orders yesterday. I don’t know about Meier & Frank, but I can take care of that on my trip.
2. Find out which advertising departments have access to the internet and would be willing to use it to check on insertion orders. I don’t think that this would be a problem with most of them. Unfortunately, we don’t really have anyone in the office who can do this for us.
3. Make an appointment with Ken Owen3 to run the idea of a clearinghouse for insertion orders by him. He may be very interested in working with us on it. I have quite a bit of respect for him. At the very least, he is smart and completely honest.
4. Run the clearinghouse idea by at least one of our clients. Why not schedule our trip to New York and run it by Tom, Chris, and whoever their ROP person is?4
5. Run the clearinghouse idea by at least one newspaper or someone who knows how newspapers think about these things today.
6. Start trying to package and market AdDept and/or AS/400 products and services. We need to maintain or enhance our cash position over the next six months.
7. We should find out what, if anything, the National Newspaper Association (NNA)5, the AAAA6, and AP AdSEND have done in this regard. The AP is a potential partner in this venture. I once had a copy of the NNA’s EDI spec7, but I seem to have thrown it out when we moved. I will see what I can find on the Internet.
Requirements for hiring a marketing/client services person:
1. He/she must be able to get along with Mike and Denise. This includes having a good work ethic. I think Doug barely met these qualifications.
2. Must be able to get along with the clients.
3. Must be willing to spend a lot of time on the phone.
4. Must be able to talk to decision-makers and occasionally presidents of corporations without looking foolish. Doug could do this, but his ability to identify the real decision-maker was just so-so. He was also almost always overly optimistic, but this might be necessary to offset my tendency to see the negative side of everything.
5. Must be able to refrain from overselling.
Pluses:
1. Intelligence. Determination can go a long way to overcome deficiencies in this categories, but I don’t think I want to try to explain things to someone any duller than Doug.
2. Retail experience.
3. Newspaper experience.
4. Other advertising experience.
5. Good business sense.
6. Sales experience.
7. Computer experience.
How to proceed.
1. We can run an ad in the Courant. There are almost as many classified ads for sales and marketing people there as for programmers. The only major retailer in the immediate area now is Ames, and they run no ROP. Therefore the chances of finding someone in Hartford who understands retail advertising are slim.
2. We can contact a headhunter. We don’t have to pay unless we find someone, but we will have to pay plenty if we do. It might be worth it if it speeds up the process.
3. We can advertise on the Internet. Does that cost money? If so, how much?
4. In interviews I think that we should consider dangling a carrot of a spinoff of a .com company for the insertion order clearinghouse. I am not exactly sure how to present this idea to someone. Maybe we could offer them a percentage of the new company with the understanding that we would try to sell it once it has become established.
In retrospective I find it impressive that I was able to earmark in advance so many important issues that TSI would face over the next few years. We made some mistakes, but we made a lot of good decisions.
A month later, on March 25, 2000, I mailed a letter to our contacts at all of the companies that used AdDept. I solicited their opinions on what TSI’s priorities should be in the new millennium. Here is a copy:
TSI is in the process of evaluating how best to allocate its resources over the course of the next year or so. Our highest priorities will remain providing excellent support for existing installations and responding to requests for custom programming from existing clients. However, there are a few additional projects that we are considering. We are very interested in learning what our existing clients think about them.
1. Menu maker: This is a fairly simple idea both in concept and in implementation. You would be provided with either a PC/Mac program or an AS/400 program that would allow you to create your own menus. The menus would reside in a separate library so that they would never get mixed up with the standard AdDept menus. You would provide the name for the menu and the heading text. For each option you that want to add, you would be allowed to select from a list of AdDept programs and menus. You could also enter your own command or an IBM command (e.g., WRKQRY). If you selected an AdDept menu or program, the description and the online help would be filled in for you, but you could override the text to make it say what you wanted.
2. GUI front end: Most software companies that market systems of a size comparable to AdDept have budgeted more than $1 million to “modernizing” their data entry screens to use a “graphical user interface” that is consistent with the methods used by Windows and Mac programs. It is now technically feasible to create a fairly nice GUI front end for AdDept for much less than that using products available from third party vendors. However, there is still a considerable capital outlay involved. We also estimate that it would take at least half of a man-year of labor. Furthermore, the PC or Mac would have to meet certain minimum requirements. Terminals would still use the green screens. TSI’s support regimen would be more difficult. The interactive programs would probably run slower on older AS/400’s. They may actually run faster on newer boxes.
3. Output to Excel: We believe that it is technically feasible (albeit difficult) to create a file from the AS/400 that is usable by Microsoft Excel with no intervening steps. It is a relatively straightforward task to download data files (or even spooled files) to spreadsheets today, but many intervening steps are required to get something presentable. TSI’s proposed method would allow you for each report that is eligible for this kind of treatment to designate (and permanently store) the formatting of the worksheet—report titles, column headings, “fit to page”, and most of the other values in “File, Page Setup.” You would also be allowed to designate fonts and sizes for the report title, the column headings, the body text, and each level of subtotals. The subtotal values would be formulas, not simple values. The same program could be used for data files that are produced by queries. The resulting worksheet could then be edited as needed. You can even edit, add, or delete lines in the worksheet. The subtotals will automatically be updated. Most simple reports could be reformatted to use the proposed program. It might be difficult or even impossible to generate some complex AdDept output using this approach.
4. Insertion order clearinghouse: We have long thought that the methods used for reserving newspaper space leave too much room for error and are overly labor-intensive, both for the advertiser and for the newspaper. The purpose of this project is to make the ordering process easier and to minimize the potential for miscommunication.
Instead of faxing the orders, the AS/400 would send them electronically to TSI. We would post them on a website. When the newspaper reps sign on, they would see all orders for them from all advertisers who are using this service. They would be able to add comments or questions and confirm them electronically with or without reservation numbers. They could also print the orders and, eventually, download them directly into their reservation systems. When you sign on, you would see all of your orders. It will be immediately obvious which ones have been confirmed, which have been read but not confirmed, and which have not been read yet.
What do you think of these ideas? Do you have any ideas of your own? We would greatly appreciate it if you would communicate your feedback to us at your earliest convenience. The last thing that we want to do is invest a lot of time and money in something that is of little or no perceived value to our clients.
I don’t recall receiving any substantive responses to this, but around this time Steve VeZain sent me a rather lengthy email that explained some of the priorities for Saks Inc. Our dealings with him and his company are detailed here.
Net.Data: At some point I became acquainted with an online forum called IGNITe/4007. This was a website where AS/400 developers could pose questions about using the AS/400 for applications for the web. Although some IBM experts participated, the forum was not run by IBM, but by a former IBMer named Bob Cancilla8, who worked for a company in Rochester, MN, the home of the AS/400.
Bob also wrote the book shown at left that explained how to use the AS/400 as an Internet server. IBM disdained the approach of its customers using a book written by someone who had actually gotten the AS/400 to function as an Internet server. Big Blue preferred that its customers spend hundreds of dollars on classes or thousands of dollars on consultants rather than $15 or $20 for a book. They also championed something called WebSphere to manage applications written in Java. During February and March of 2000 I had puzzled over the Redbook that documented this product. I was nearly ready to give up on the idea of using the AS/400 for anything related to the Internet until I found Bob’s book and website in April of 2000.
I purchased this excellent tome and followed most of Bob’s advice. I successfully configured TSI’s model 150 as an HTTP server to serve web pages to browsers and as an FTP server for exchanging data files. It was possible to use the AS/400 as an email server, but Bob advised against it. We elected to use AT&T for sending and receiving emails for our employees. We later configured our AS/400 to send outgoing emails through the SMTP (simple mail transfer protocol) server. Eventually IBM decided that it was a bad idea to have its own proprietary HTTP server and supported a version of the Apache server used by almost everyone else.
At that time the most popular scripting language for web-based applications was PERL. IBM never supported it on the AS/4009. Instead it provided its own language, which was called Net.Data (pronounced “Net Dot Data”). This was the only web language that could be used on the AS/400, and no other system in the history of the world ever used it. We obtained a copy of IBM’s handbook on Net.Data (posted online here), and I determined that we could probably use the language for what we wanted to do. Here is what I wrote about it at the time.
I signed on to the IGNITe400 website and registered as a member. It’s free. You can ask questions there. I looked at a few of them. Bob Cancilla himself answered some of the questions! I also looked at IBM’s Net.Data website. It is full of information.
I printed out a lot of documentation. I am now convinced that we can do what we want to do with HTTP server and Net.Data. This is exciting. Buying that book was a great idea. The links alone are worth the price. The biggest difficulty that I see will be working out the process of getting the orders from our customers and then from others.
… I have more than doubled my knowledge about the AS/400 and the internet in the last two days. Moreover, I think I could do it! I think that we should try it some time this coming week.
Net.Data was an interpreted language, just as BASIC was on the Datamaster and the System/36. The programs (which in web parlance were called scripts or macros) were not compiled into executable machine code. Changes to the scrips took effect as soon as the programmer made them. So, a developmental environment was a necessity. The time it took the processor to interpret the code and generate the HTML code that the browser could understand made all of the programs considerably slower than the compiled BASIC programs on the same machine. However, they were lightning fast compared to Java, the approach blessed by IBM.
So, I taught myself how to use Net.Data to deliver interactive scripts for a browser (at the time the main choices were Netscape Navigator, Internet Explorer, and whatever Apple called its browser before Safari). The language itself was relatively easy to understand, but programming for numerous constantly changing browsers was much different from programming for a very stable AS/400 and its 5250 user interface.
I also had to learn the Common Gateway Interface (CGI), which was the method of reading from and writing to files on the AS/400. This was totally different from what we were accustomed to. Our programs had always read the files a record at a time even after we switched to the AS/400’s relational database. With Net.Data it was necessary to execute an SQL statement that returned a set of data—rows (records) and columns (fields)—that was stored in an array (called a table in Net.Data). It was then necessary to loop through the rows of the array. I was already somewhat familiar with SQL, but I needed to learn how to use “joins” to do complicated selections.
These two volumes got a workout. The binding on the HTML book split in two years ago.
I also needed to buy books on HTML and JavaScript. If I had realized before I started that I needed to learn all of this, I might have deemed that the project would require more time and effort than I could afford. However, by the time that I realized what I was up against, I had invested so much time that I was not about to abandon the project.
There was no syntax-checking of Net.Data macros, and, at first, there was no editor to help by color-coding the statements. So, when I ran into a problem, which happened quite frequently, I had to search elsewhere for help.
Life got a lot easier when IBM put its Redbooks on CDs.
In researching for this blog, I found a pdf online for a Redbook (technical manual) that IBM published for people like me in 1997. It is posted here. Even a quick glance will make it clear that writing applications for the AS/400’s HTTP server would be a daunting task. For example, it contained this statement: “Net.Data Web macros combine things you already know such as HTML, SQL, and REXX with a simple macro language.” I did not know HTML at all, I knew only a little SQL, and to this day I have no idea what REXX was. Also, the Redbook neglected to mention that it was not really possible to write interactive programs without JavaScript.
I hung in there. Here is one of my last messages: “I feel a lot of pressure to work harder. I want this new project operational yesterday. It is going to be difficult at first. I want to get over the hump.”
I spent a lot of time in the IGNITe/400 forum. My best source of information was a guy from (I think) New Zealand, of all places. I never met him in person or even spoke with him on the phone. His name was Peter Connell, and he helped me through every difficult coding problem that I encountered. Not once was he stumped. By the time that I was well into the project, I was able to provide solutions to coding problems that others described.
TSI’s Internet Project: Even before Denise and I attended PartnerWorld, we had pretty much decided that our best shot at developing a successful Internet product would involve insertion orders, which is what newspapers and magazine call reservations that they receive from advertisers for ROP (display ads), inserts, polybags, or any other kind of advertising. TSI’s AdDept customers sent their reps at newspapers a schedule that listed all of the ads that they wanted to place for a specified period—usually a week. Most of them faxed this information to the papers. The rep at the paper examined the schedule. Sometimes questions required phone calls. Sometimes requests (such as designated positioning in the paper) could not be accommodated. Even after final approval the schedule was often changed by the advertiser before the ads ran, sometimes with very little advance notification.
Newspaper ads were expensive … and valuable.
Errors on both sides were not rare, and they could be quite costly. The newspaper often gave the retailer free ads to make up for the mistake. The advertiser’s loss might be much greater. In the nineties and early twenty-first century ads in newspapers were the primary vehicle for communicating with customers. Mistakes in the ads could cost the retailer thousands in sales, and they were embarrassing to the advertising department. Occasionally heads rolled.
In 2000 most retail advertisers faxed their schedules to the newspapers. If the line was not busy, the phones were rather reliable. However, what happened to the schedule after the fax machine received it? Was the printout legible? Did the rep ever get it, and, if so, what did he/she do with it. What assurance was there that the fax that the newspaper used to compose the paper was the final version?
We thought that the Internet might provide an opportunity to speed up this process and to improve its reliability. My first idea was to replace faxing with email. If the AS/400’s (free) SMTP server were installed, AdDept could compose and send to the newspaper an email that contained the schedule. Wouldn’t the newspaper rep immediately print the schedule? If so, how was this better than faxing? Doesn’t it just add another step? Besides, email is demonstrably less reliable than faxing. The worst that usually happens with faxing is that the output is blurry or even unreadable. Emails, in contrast, can be held up by any Internet Service Provider (ISP) that handles the message, and there could be dozens. So, the schedule might never make it to the rep’s inbox.
Eventually Denise and I settled on using FTP to send the schedule from the client’s AdDept system to TSI. Thereafter TSI’s AS/400 managed the whole process using a combination of BASIC programs and Net.Data macros. Details of the actual design are posted here.
After Denise and I agreed on the design, several details still needed to be settled:
Who will do the coding at TSI?
Who will pay for the service, the advertiser or the newspaper?
How much will we charge?
How will we market the product to our clients and their newspapers?
How can we entice advertisers that did not use AdDept to use this method for insertion orders?
Can we take advantage of the link established between TSI, the papers, and AdDept for other modules?
What will the product be named?
Will the project be part of TSI or a new financial entity?
The answer to #1 turned out to be Mike Wavada. I expected that I would eventually train Denise or one of the programmers so that they could at least support the existing code, but it never happened. It astounds me to report that this was a one-man coding job from day one, and no one else at TSI ever learned Net.Data. Hundreds of papers and most of the AdDept clients relied on it starting in 2002 and continuing through early 2014. Think about this: Between 2003 and 2012 I took six vacations in Europe and one cruise in the Caribbean. There were no serious incidents!
Questions 2-5 are addressed in the entry about marketing of AxN, which is posted here.
From the outset I was hoping that the nexus connecting newspapers and the retailers through TSI’s website could be used for other communications as well. The most obvious one was for the delivery of the files that contained the layouts of the ads. Nevertheless, I was reluctant to pursue this for several very good reasons. The first was that the Associated Press already had a huge head start with its very popular product called AdSEND10. There were also several other companies that offered similar services.
The other thing that gave me pause was the potential legal liability. It seemed to me that if we failed to deliver an ad correctly and/or promptly, we could easily be sued. A fundamental tenet of TSI’s operation had been to avoid any activity that might occasion a lawsuit. Throughout the first two decades of its operation, TSI had successfully avoided litigation. Also, we knew nothing about the process of sending ads electronically, and the AP already owned satellites that it used for this purpose. I also learned later that AdSEND had twelve dedicated T-1 lines, and one of TSI’s clients told me that that was not nearly enough. TSI eventually installed one T-1 line that easily handled the insertion order traffic generated by AxN.
An idea that I liked better was for the newspapers to transmit their invoices electronically through TSI’s servers to AdDept users. I even came up with a cool name for this: e-I-e-IO, which stood for electronic invoices and electronic insertion orders. My idea was to provide a program to feed the newspaper’s billing system with the information from the insertion order, and to feed the retailer’s AdDept system with the same information. I did a little research to see if one software system for billing or accounting was dominant in the newspaper industry and discovered that this was decidedly not the case. So, we would face the prospect of persuading one paper at a time, or, at best, one chain of papers at a time. Furthermore, someone else had already claimed the URL that I really wanted: eieio.com.
The name that I picked for the new product would still work if we came up with other ways for TSI to serve as a nexus between advertisers (A) and newspapers (N). It was AxN, which was pronounced “A cross N”. The A and the N were always portrayed in dark blue Times New Roman. The x was always in red Arial.
That leaves question #8. Denise was always in favor of making AxN a separate financial entity. However, we never found a way to extricate it from the rest of the business. We looked at the revenues separately, but we never even did a separate P&L for it.
1. René Conrad was TSI’s liaison with Kaufmann’s, the May Company’s division based in Pittsburgh. Both Denise and I had a very high opinion of her. When Doug Pease left TSI in 1999, we tried to hire René. Details of the AdDept installation at Kaufman’s are posted here. The unsuccessful pursuit of René is documented here.
2. Ken Owen is a friend and was a client. The latter role is explained here. By 1999 Ken’s business had drifted away from creating and placing ads for clients to software for the Internet. He gave us a little free advice, but the role for him that I envisioned did not materialize. I communicate via email with Ken every year on March 4, the holiday that we celebrate together—Exelauno Day.
3. Tom Caputo and Chris Pease were our key contacts at Lord & Taylor in Manhattan in those days. The history of the installation at L&T is recorded here.
4. I did contact the NNA, but nothing came of it. The person with whom I spoke was nice enough, but it became evident that trying to work with this organization would be extremely time-consuming and not the kind of thing that I was good at or enjoyed. Eventually I discovered that there were almost as many administrative systems for newspapers as there were newspapers. It appeared that there were no accepted standards.
5. The American Association of Advertising Agencies (AAAA—universally pronounced “four A’s”) published an annual list of software for ad agencies. For years TSI’s GrandAd system was on the list. I am not sure what I had in mind as an additional relationship. Perhaps I envisioned ad agencies that specialized in retailers might want to use AxN for insertion orders and would work with us to create an interface. Perhaps I thought that other software companies might add the interface to their products for ad agencies. Nothing like any of these things ever happened.
6. EDI is short for Electronic Data Interchange. It refers to an orderly setup that enables participant to exchange information electronically. When there are only two participants, it is usually just called an interface. “Specs”, which is short for specifications, refers to the documentation published and delivered to the participants and prospective participants.
7. I have no idea what the name of this group meant. At the time IBM was busy promoting the idea of e-business. IBM’s marketing director proclaimed at PartnerWorld that IBM “owned” the concept. So, that may explain why the e is not capitalized. I was surprised to find an article in Enterprise Systems Journal about IGNITe/400. It is posted here.
8. Bob Cancilla went back to IBM for a while and then became a consultant. His LinkedIn page is here. In 2018 he wrote about the thirtieth anniversary of the AS/400. It is posted here. The article explains some of the reasons why IBM treated the AS/400 division and its customers so shabbily almost from day one.
9. For some reason IBM repeatedly changed the name of the AS/400 to a bunch of things with the letter i appended. The operating system remained the same. Everyone at TSI, like most users, still called it the AS/400 even after the name changes.
10. In 2007 Vio Worldwide acquired “the assets” of AdSEND. The deal is described here. In 2010 Dubsat acquired Vio Worldwide. This transaction was reported here.
