Keda’s SAP Implementation is the restructuring that the company needed to go through to expand and be more productive with the products they were creating. At first the company had a lot of problems with keeping track of inventory and how much a product cost to be made. The system they had could not keep up with the growth of the company. They needed a new system or they would continue to lose money fast. To start off they looked at where the system that they had went wrong. It was that fact that the system didn’t cover multi-product production. This was killing them in the long run so they decided they needed a change. They looked at 20 different management systems and had them all come in to present their product. Keda also had them give reverences that proved that the product worked. Keda used this as a learning opportunity to figure out what work and didn’t with other companies. They wanted a system that was customizable to their products and the system that they wanted. There were nine systems that could work for their company they decided on SAP as the winner. They then start to work their way through the system so that it would work with ever department so everyone knew what their job was and who they need to work with to do it. They created a management structure for each department, they then invited those heads to work with the IT department to make the system able to talk between each department. The manager didn’t like this at first because they had to work
Question #2: Would your colleagues on the executive committee agree with your selection and prioritization? The above priorities should be well received because they solve or improve many of the frustrating employees around the company. This answer will look at each division (upper management, sales & marketing, order fulfillment and distribution, and ITS) and see why the four IT priorities should be well received by the executive committee. The KL upper management is on record stating that the company has IT challenges “…around coordinating the various, and at times conflicting, business priorities across the enterprise. We sure could use better IT tools for this as well as ready access to timely performance data.”, CEO Joseph Campbell. In addition, COO Jens McCreary stated that the company needs to improve global supply-chain management and leverage the expertise to outpace out competitors and cut our operating costs…” Considering these quotes it’s safe to assume that the CEO and COO should be accepting of these four IT priorities because will want to see IT provide better services in order to reach their goals. The products, manufacturing and distribution divisions of the company want to see SAP standardized and compatible across the company in order to
Bombardier has no easy task! In order for the integration to be successful, they need to integrate 63 systems. This would be a major undertaking as most sites had established their own information systems and databases. Ensuring that all the databases are merged into 1 global data warehouse will be a major feat. In order for SAP to function as intended, they will need to redesign their database architecture as well as endure the rigors of data cleansing and preparation.
This process reduced not just customer’s satisfaction but also profit; there is a need for a financial information management to integrate all their business processes. SAP (System Applications Program) was introduced to the company to ensure efficient communication among the different modules of the business process.
1) How did information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?
The production staffs viewed the adoption of SAP as an ERP system that focuses on function such as inventory, finance, accounting, production, etc. They had doubt about how SAP modules are relevant to their business processes. The production staffs believed the functional view poorly represents the interaction with other functional views.
H. C. Stark Inc. invested in the SAP R/3 Enterprise Resource Planning software for the company but, only the finance dept. uses the software while the production, scheduling, shop floor scheduling and raw material orders and are still processed manually. These departments still believe in using the paper method of processing the transmittal of the sales orders from customers to the operations department. This process is longer than incorporating the software to accomplish the same tasks. Starck doesn't make full use of the functions in SAP R/3. In fact, schedule misses were mostly due to equipment failure. Mike from the sales dept stated there was an "informational
Keda's business heavily relied on key business functions - such as R & D, purchase of raw materials, inventory management, production - that comprised mainly of assembly line and workshop process, logistics and S&M.
The system allows to company to modernize its strategies and processing more efficiently than its competitors
As a result the implementation took place in quite excellent way that they started to benefit from new SAP system. The database system became more reliable on business intelligence such as demand forecasting, inventory reducing redistributing expenses which generated a lot of revenue. In addition Nestle made a five year deal with IBM in $500 million for software, hardware, IT services and integration of its mysap.com, e-business software system etc. Nestle was practically successful with SAP system and it was trying to solve the information management system by improving the SAP system all over the world. They were using e-procurement to its major regions to improve the system management.
Q.1: How did the information systems and the organization design changes implemented by knudstorp align with the changes in business strategy?
1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?
Q1. ERP projects are expensive and risky. Why did Keda decide to embark on an ERP?
1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?
Although there are signs that the company has a matrix structure in place, they do not follow a programme management approach and numerous failures within the structure exist. Their approach to management is still that of a traditional organisational approach, which tends management to lack both strategic purpose and customer focus.
ERP, which is an abbreviation for Enterprise Resource Planning, is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with the core business processes of a corporate house to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components; Business Management Practices, Information Technology and Specific Business Objectives.