Case Study: Integrating Erp Systems In A Decentralized Company

1016 words - 5 pages

Case Study: Integrating ERP Systems in a Decentralized Company

Much more in-depth planning should have been undertaken before launching the ERP project. Medical Device Corporation (MDC) should have formed a committee composed of one to two representatives from its various divisions who have expertise on business and IT strategy. This committee would have been able to identify situations the company needed to address in the event of problems transitioning to the new enterprise resource planning system. Had MDC organized the committee, it would have sent the message to the businesses that each division’s input was valued. In the past, each division made individual decisions for their ...view middle of the document...

When it comes to implementing IT into a business, a company should use the basic elements to planning such as it objective, project management, and budgets. Had MDC utilized these elements of planning, it would have developed a better integration strategy compared to the two-phase system strategy it followed.
3. The company executed an implementation approach that signified a complete change in strategy. If the corporate headquarters recognized and respected the decentralization aspect of the company and the valuable cultural differences, they could have leveraged this to their advantage. For example, instead of HQ mandating that all divisions implement the Oracle ERP system, the company could have incorporated other divisions into the decision making and analysis process. This would have made the transition for information sharing react more smoothly among the decentralized management and would have helped to improve the IT and business alignment. 3 (SA’MAAD) Additional improvements include implementing an infrastructure that would each site to share information with headquarters as well as with the other sites and to increase the legal department to deal with the changing business environment to keep the company abreast of all local laws and regulations.
Chaos quickly spread throughout the organization during implementation process to all the decentralized divisions, causing critical problems and failures. During the data conversion and migration process, it became apparent that the data definitions were not standardized since the business processes differed at several divisions. The disparate syntax defining data structures and database schemas required data-cleansing and therefore additional staff, in scare supply, from sub-divisions and consultants with legacy ERP and Oracle experience. Data-cleansing was not originally planned for in either the budget or the project plan and therefore delays and additional expenses ensued. This delay could have been adverted by analyzing the sub-divisions different data definitions. This proactive analysis would help the company realize and plan for data-cleansing. A conversion team could be assigned and scheduled at each division to be partnered with consultants that have both legacy and Oracle experience.

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