Group 3 - Tektronix

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SYPNOSIS-

• Founded in 1946 as electronic test equipment maker in Oregon.


• Expanded into manufacturing electronic tool and devices
• Business Split
1. Measurement Business Division (MBD)
2. Colour printing and Imaging Division (CPID)
3. Video and networking division (VND)
• Presence in 60 countries and a worldwide leader in Oscilloscope, television test measurement and monitoring equipment.

Challenges in management and information system:


Not properly no common not able to take Financial not able to close Business was
coordinated and business up quick projects, performance was books even in 2 growing and
lacked integration processes not inventory visibility suffering weeks current system
standardized- was low not able to
support it.

ERP Implementation Stages


Steering committee
Project
creation to develop Implementation in
Software selection organizational and Project schedule
a global business 5 sub projects
management
model- guidelines

Implementation was a success


Ques. 1 -Why did Tektronix implement ERP in stages? Compare the stage based approach and going via the Big Bang
approach to implementing ERP systems.
Answer - The Tektronix used huge legacy programmes, changing entire ERP at once could have been risky and expensive.
This approach allowed regular feedback and reviews and allowed them to learn from previous experience and mistakes.
The proposed implementation represented a significantly different method of doing business than the current business
environment.

Implementation in stages gave them flexibility in making decisions. 


IT infrastructure - A company having various application systems running through its different functional units with huge
legacy systems is more likely to have its ERP implementations in stages to reduce risk and cost
Integration - When a company wants the advantage of getting the full benefit of the
integrated software across all functions of the organization it generally goes the big bang approach.
Multiple Location - Those companies that operate in multiple locations needs a reliable communication links for online
processing and uniformity which can be achieved by big bang approach. The use of stage-based approach helps reduction
in risks, companies can roll out to multiple locations once they have implemented programme successfully at one location.
Ques. 2 - How did Tektronix manage risks associated with ERP implementation?
 Selecting the right vendor Tektronix didn't spend a lot of time evaluating features and prices amongst
vendors. They chose Oracle since it was suitable with their surroundings. The Oracle applications took
Tektronix three years to implement. They implemented a general ledger in 16 countries in the first
year. Then they concentrated on converting receivables and cost control in the company's regional
accounting centres throughout the world. They added additional features to their business unit
product information after implementing finance apps.
 Waved implementation: Their ERP deployment was perceived as a series of changes, each with its
own set of challenges. The program's waves would each bring capabilities to a different business unit
or geographic region. Despite the fact that each wave would be controlled independently, the overall
project team would manage the interdependencies to keep the programme on track.
 Attention to schedule - The importance of the scheduling was not overlooked. This reduces the
possibility of delays. The momentum is maintained, and it aids with staff discipline.
• Strong Management Support and Building a Coalition: Carl was able to execute the project with limitless
autonomy and cut through the politics thanks to the CEO's mandate, allowing him to make faster and more effective
decisions. He also had a lot of help from the presidents of the various business divisions, as well as various IT
managers in each division. This reduced resistance to change and helped the initiative maintain momentum by
swiftly forming a strong coalition of those eager to steer and support the change.
• Implementation support
They used combination of large and small consulting firm for the support. For example for financial implementation
they worked with Aris consulting as firm specialised in ORACLE Implementations.
• Strong responsibilities - Carl handled his entire responsibilities admirably. A steering committee was formed to
oversee the implementation process as a whole. There were responsibilities assigned. It is much easier to detect
hazards and seek to mitigate them when using monitoring and steering committees.
• Minimum interference - Carl was given complete freedom in the implementation. This helped in making quick
and efficient decisions.
• Quality of team - There were full efforts to choose the right project team, and there were consistent efforts of
proper communication
Ques. 3 - What is your overall assessment of Tektronix’s ERP implementation?
Answer –
 Implementing in stages: This meant that if there are any changes required or software is available then it can be
easily implemented.
 Vendor selection: At the time of vendor selection, they didn’t take lot of time and went with Oracle for there
ERP requirements. This saved time and money.
 Plain vanilla strategy adopted: They would minimize the changes to software. They would rather change the
business process instead. The software was only changed if package simply couldn’t execute the process or
when non-vanilla approach constitutes a key competitive advantage for the company.
 Employee satisfaction: There was high satisfaction among the end users.
 Standardization: There were 3 business fronts and thus there was some level of standardization was expected
and there was a requirement of these 3 business to be maintained separately.
 Consultant hired: Two types of consultants were hired one for critical work (Aris Consultant) and one more less
paid one for the lesser functionalities.
Improvement after ERP implementation -

 Day Sales Outstanding and inventory levels show improvement


 Inventory visibility improved regardless of its global location
 Same day shipments increase from 15% to 75%
 Prior 24-hour credit approval wait virtually eliminated
 Data integration allowed financial analysts to drill down multi-level in accounts
 Financial book closing process accelerated (earlier it was 2 weeks)
 Information leveraged to make better decisions
 Reporting on sales become more
 Satisfied end users
 High employee morals and satisfaction
 Feeling of “ERP as an enabler” irrespective of the project cost incurred is optimistic
ERP System Architecture
THANKYOU
Group No. 3
2021135 - Anish Dessai
2021136 - Anjitha Ann K
2021137 - Anmol Shukla
2021138 - Anubhuti Chourasia
2021139 - Anuj Dhond

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