Case B : Sinosteel
Sinosteel Strengthens Business Management with ERP Applications
1. What is the business of Sinosteel, what are its major challenges, and how would an ERP system address the challenges they face?
Sinosteel Corporation is a company submitted to the administration of the State-Owned Assets Supervision and Administration Commission. Its main activity is to develop and process metallurgical mineral resources. In addition, it has a mission of trading and delivering raw materials and services linked to the metallurgical sector. Its main units work on R&D, Trade&Logistics and Equipment Supply Resource.
The major challenges that Sinosteel has are to manage its 76 subsidiaries, among which 53 are in China and 23 abroad. It grew
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4. How did business processes change in order to implement this ERP system?
The initial situation was that Sinosteel built up through the acquisition of many companies, leading to unrelated information systems from one acquired company to another and inefficient communication between its units. To solve this problem, Sinosteel made the choice to use Oracle’s ERP system. But to implement it, Sinosteel needed to get ready first. This went through adapting the way it was operating to make sure everyone’s behavior is matching the tool right. For example, with the standardization of management processes, the managers would need to be trained for the switch to the new system. Moreover, we can imagine that one of the major changes was in the data access and storage. Before putting Oracle’s ERP system in place, Sinosteel's subsidiaries probably made their own databases and files. These databases would need to be refined to fit in the new system. For departments such as the Human Resource Management, this implementation was a considerable change, due to the general standardization across all subsidiaries needing to be taken into account. The regulations being standardized too, everyone had to be informed of the new processes implied by the implementation of the ERP system.
5. What do you think some of the implementation issues and risks might have been with this system?
As mentioned before, the main issues and risks of implementing such a system is getting the people
1. What went wrong? How can you explain how the technology actually led to more rather than fewer mistakes?
4. What problems under the old system are solved or mitigated by the new system?
In business, it is important for companies to be able to communicate effectively. Each department of a company relies on the other departments as they add to the value chain. One way for a company to integrate its different departments is enterprise resource planning. ERPs are software programs that allow companies to join together data across operations on a company wide basis (Jessup and Valacich 248). ERPs store company information in a common database and allow all departments to access it from one central location (Koch). Companies without ERPS may contain many legacy systems, each operating with different
Additionally, it contained no effective way to audit the system to ensure data reliability. This goal being so ambitious, yet most facilities were meeting it and no one questioned it or asked themselves "how is every facility is hitting this goal?" This confirms the lack of an audit system to review the data. Finally, the failure
2. Was the investigation of the problem the most appropriate way to do this? Is there some other things that they should have done? If so, how would you do it differently?
a. Support from the board, it was the right time that the old system kept failing and everyone saw an opportunity to do something big to replace the whole legacy system.
The disadvantage would be the locally the community would loose certain jobs and the country
SAP is known for their ability to innovate and release new software at a fast rate. SAP encountered some early losses when they would not be able to provide consulting services to their new clients. This focus on developing its R&D market led to problems with their ability to market and sell in global markets. It wasn’t until SAP went public on the Frankfurt stock exchange in 1988 that they were able to raise the cash to fund the global operations. SAP still faced problems with clients having to use external consultants to install and modify the software.
The main problems with the existing system and goals for the future system identified as below:
On the other hand, the Asian market still lacks local manufacturers. Not only Vietnam but Cambodia, Brunei and Singapore do not have local manufacturers. If Electrosteel could move quickly and establish itself as a high quality local manufacturer, this could be a source of competitive advantage. The low labor cost would also contribute as a benefit. In the best case scenario, Electrosteel could use Vietnam as a production base to serve the entire Southeast Asia market, not just Vietnam.
One of the lessons learned by Coloplost after the expansion in Hungary is the importance of the transfer of knowledge and communication between all segments of the business. This area needs to be improved prior to further expansion to China. During the last expansion management was so busy dealing with communication issues that they failed to fully take advantage of local sourcing opportunities, instead importing more expensive options.
1. What is the business of Sinosteel, what are its major challenges, and how would an ERP system address the challenges they face?
5. Can we create a competitor for them in china itself, so that they won’t invade our market? – WHAT MAKES U TELL THEIR PRODUCTION IS FROM CHINA?
This paper will dissert about Schneider-Electric, a company I worked for a few years ago in Mexico, and it will cover some of the questions asked in the assignment description about computer platforms, transaction processing systems, intranet applications, policies, etc. Nevertheless, this paper will focus, mainly, on the migration from SQL and the different systems based on SQL to SAP, its implementation, issues and challenges in the process.
Sinosteel is a company that is in charge of producing and processing metallurgical mineral resources, trading and logistics raw materials and products, and it is also related engineering technical service and equipment manufacture. The company is decentralized (it has many subsidiaries), while its business is expanding all around the world.