Enterprise Resources Planning(ERP): Upgrading Information Technology for a Battery Manufacturer
Battery Manufacturer $100mm Sales Revenue
A battery manufacturer well-established in the industry since 1906 experienced an accelerated rate of growth over the last several years, mainly as a result of new ownership that provided financial stability and direction for the future. In order to support this expansion, the firm recognized the need to improve ineffective management information services. A home-grown order entry module, as part of a manufacturing support system was developed for implementation in an effort to upgrade existing computer systems.
However, the software had taken a lot longer to develop than anticipated, and pressure from the operating groups caused a string of software development cardinal sins to be committed. As a direct result, the new systems crashed during conversion, and stopped deliveries of products. The unsuccessful start-up caused a high level of frustration among the users. In an effort to resolve the problems associated with the new system, a task force consisting of members from both business and systems functions was created. Outside consultancy was retained with the following objectives:
- To identify a long-term systems strategy to the company's rate of expansion
- To provide a cohesive direction for both management information systems and its user base
- To define the Management Information Systems organization that will effectively support the business as it expands, and
- To build user involvement into all future systems planning in order to promote communication, credibility, and trust
We began by surveying the business managers to establish a comprehensive understanding of the company short and long-term goals, objectives and key drivers. We then reviewed the present MIS technology direction including software, hardware, and communications. The future direction of the business was evaluated with respect to the impact marketing, sales, manufacturing, distribution, finance and administration would have on MIS support.
Our findings indicated that the company was strong with a dedicated staff, great technical competence, strong business knowledge, the ability to get a lot done, and good people with strong relationships. However, the MIS organization was weak in leadership, ineffective in use of talent, and out-of-step with the company direction and momentum. The group also had poor credibility with the user community, and possessed a tendency to oversimplify project requirements. The day-to-day operations were characterized by weak development methods, poor systems documentation, weak internal communications, little education and training, and no long-range planning. This group was flying by the seat of their pants. In addition computer memory capacity was at 90+ per cent.
We recommended upgrades to the current operating system, CPU, memory, data base software, and applications software. Our recommendations included state-of-the-art integrated software, a relational data base management system, use of an active data dictionary, fourth generation programming language, real-time business software applications, standardized SAA platform hardware, standard programmable logic controllers(PLC's), and standard personal computers.
An implementation plan was developed as well as the costs and benefits for the upgrades. A new software development methodology was designed driven by user business direction. Finally, we designed a new MIS organization, enhanced with functional business group representatives, and a new vice-president of MIS. The company has since implemented the recommendations.