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Case study Sinosteel

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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 …show more content…

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

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