Tektronix implemented an ERP system in stages over multiple years to reduce risk. A steering committee was formed to oversee the project. Implementation began with financial modules and then expanded to additional functions and regions. The staged approach allowed lessons from prior stages to be applied and avoided a "big bang" disruption. Overall, the implementation was successful and improved integration, visibility, decision making and other key metrics.
Tektronix implemented an ERP system in stages over multiple years to reduce risk. A steering committee was formed to oversee the project. Implementation began with financial modules and then expanded to additional functions and regions. The staged approach allowed lessons from prior stages to be applied and avoided a "big bang" disruption. Overall, the implementation was successful and improved integration, visibility, decision making and other key metrics.
Tektronix implemented an ERP system in stages over multiple years to reduce risk. A steering committee was formed to oversee the project. Implementation began with financial modules and then expanded to additional functions and regions. The staged approach allowed lessons from prior stages to be applied and avoided a "big bang" disruption. Overall, the implementation was successful and improved integration, visibility, decision making and other key metrics.
Tektronix implemented an ERP system in stages over multiple years to reduce risk. A steering committee was formed to oversee the project. Implementation began with financial modules and then expanded to additional functions and regions. The staged approach allowed lessons from prior stages to be applied and avoided a "big bang" disruption. Overall, the implementation was successful and improved integration, visibility, decision making and other key metrics.
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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