Tektronix, Inc.: Global Erp Implementation Essay Sample
Business Context/Key Business Drivers • Tektronix. Inc. was founded in 1946 as a shaper of electronic proving equipment. In 1993 Tektronix had grown to be a $ 1. 3 billion maker of electronic tools and devices. It was based in the United States and had an international presence in about 60 states. • After 50 old ages of success. the company was confronting increasing planetary competition of hi-tech manufacturer of electronic equipment. Tektronix should simplify and reconstitute its operations. A cardinal enabler was the execution of a endeavor resource planning ( ERP ) to standardise the information engineering ( IT ) substructure every bit good as fiscal system. Inaugural Objectives/Benefits
Despite the fact the company was a market portion leader in some merchandises ; it was hampered by a fifty-year old bequest that limited its flexibleness and growing chance by planetary integrating. There were many application systems around the universe and the company lacked accurate information and integrating between the systems. It was hard see the fiscal studies every bit good as where the cost could be cut.
The company was split into 3 divisions: Color Printing and Imaging Division ( CPID ) . Measurement Business Division ( MBD ) and Video and Networking Division ( VND ) . The execution of ERP could back up and incorporate all division company. enabling it to be a planetary competition. increasing efficiencies.
Inaugural challenges • Tektronix chose Oracle system to be implemented. The company had to develop new concern process/model that was able to suit into the ERP. The company created a maneuvering committe to turn to those issues. The system was implemented by division and after in 23 states and it took less than 500 yearss to be completed. Below some challenges and inaugural found during the execution: Depto. / Division Financials Initiative / Challenges • Standardization of charts-of-accounts and riddance of most of the complex transportation pricing patterns that were in topographic point. • Many linguistic communications into the company. • It was the highest speed. the most commodity-type concern. and the greatest needed to cover with growing. • Instability of “beta” version. Approach • Contracted little and big consulting houses every bit good as independent adviser ( Arias ) . • Decreed that English would be the individual linguistic communication used for concern indoors Tektronix. • Tektronix decided to travel with a “beta” version of the bundle. • Contracted a big consulting house for aid. • It was able to larn powerful lessons. construct internal accomplishments. and set up patterns that helped with all of the future execution stages.
OMAR – CPID
OMAR – MBD
• More complex environment construction division ) . • They met a batch of opposition.
OMAR – VND
OMAR – Global Rollout
• The smallest division. • It had the most complex merchandises. • The division was in procedure of shriving a recent acquisition and incorporating a subordinate in California. • Managers placed less accent on ERP execution. • After execution in the US. the company planned to widen its “wave” attack to international sites. • Complete the execution of ERP system in less than 2 old ages. • Tackled the linguistic communication hard to non English-speaking states.
• Contracted Oracle advisers. • Review the concern model many times to understand why they were making that. • They pursued a vigorous proving plan. • It benefited from all the anterior execution. • They did a speedy execution. • Few people. less opposition and easier to develop. • The executive degree was less involved.
• Started with Europe. • The company utilized the “big-bang” attack. • The execution was done or completed on clip in 23 states. • Worldwide. the company had full information visibleness. by division. of all the stock list and minutess.
Although it cost about $ 55 million in package. internal and contract labour. the squad members were proud and satisfied with the accomplishments. The company had now capacity to turn its concern well. concern procedure benefited from increased efficiency and standardisation. there was better visibleness into client and merchandises than of all time before. The company was more flexible to get new concern and divest others. Because of betterment of informations integrating the fiscal analysis were more dependable. The operation of the concern could be better manageable.
Tektronix CFO and CIO were masters of all the success achieved by the company. Their leading was important because they have the right vision for execution of the new system. They were able to link the demands with all squad and follow up the execution of the system.
Relevance and analysis • Harmonizing to Thomas H. Davenport ( Puting the Enterprise into the Enterprise System ) . there are many benefits every bit good as some booby traps. The Tektronix executives fundamentally followed all the regulations. ERP is a complex system that should be reconciled with the concern demands. The concern procedure must be modified to suit the system. There are tremendous costs of execution. The organisational behaviour should be structured to accommodate the new system. • Tektronix executives did a really good occupation. One country they could hold done otherwise would be to pass a little more clip comparing characteristic and cost of other ERPs alternatively of taking Oracle as “the best option. ” • Implement a new IT system is non a undertaking easy. It is important understand how it works. its characteristics and how it can suit. empower and alter the concern company. Establish an execution program and give support of squad leaders is another cardinal issue to the concern success. The consequences will be reached.
hypertext transfer protocol: //www. tek. com/ hypertext transfer protocol: //en. wikipedia. org/wiki/Tektronix hypertext transfer protocol: //en. wikipedia. org/wiki/Enterprise_resource_planning Davenport. Thomas H. ( 1998 ) – Puting the Enterprise into the Enterprise System.