The Decision Options IBM - Assignment Example

In my opinion, the decision options IBM has in this case situation is to implement an integrated system allowing for better management of the supply chain across all of its plants and faster response to constant business changes, and to cut the costs that are sabotaging all other operations to begin with. According to this case, IBM needed to make necessary changes in order to survive on the market. (p. 2) All other decisions related to this basic idea, such as speeding up the cycle of product development, integrating IBM as global organization, and simplifying the process for the customer fall under it. 2. In order to make those decisions IBM needs to undergo certain processes.

They include the following: finance, human resources, customer relationship management, incorporated supply chain, and incorporated product development. Naturally, one area of organization always requires more attention than the others, and in this case it is Personal System Group who had the major problem with the supply. It is recognized that this area needs to be properly taken care of, because it is equally important to overall success of IBM as its any other part. In fact, given that Personal System Group is a computer manufacturer its role in IBM is integral. 3. Implementation of an integrated system suggests that IBM will benefit out of it, because it will resolve an issue it currently faces; an issue of plants working as an independant units rather than one single unit.

However, certain risks of doing this have to be taken into account. The time and complexity of the process could potentialy be problematic, given that not all the plants are on the same page. Also, they would need to go fast in order to cover all the necessary steps in order to bring all the plants under one system. Cutting the costs, on the other hand suggests major benefit to IBM. However, cutting the costs is mostly unpleasent for it requires major changes and sometimes almost impossible changes.

For instance, Personal System Group had issues with supply forecast, which made it extremely difficult for IBM to stick to the initial decision to cut losses. Also, the SAP team facing request to cut $5 million in costs and expectation to improve delivery date causing them to overlap some some phases is another example of consequence IBM faced with this decision. (p. 6) Another issue is concerning implementation of the system and. All the issues, including the one dealing with the expe nditures are pointing out to the need of implementing the system that would integrate all the activities under one scheme. 4. I can use the facts underlined in this case to support my suggested opinion.

That implementation itself was an issue can be seen on page 13 of the case where it says that ’’in the case of IBM, it was evident that implementing SAP across the entire organization was too big a project to undertake, both from technological as well as organizational perspective. ’’ On the other hand, to believe that SAP as a system will make the necessary changes was conclusion made by IBM executives based on results other companies had with implementation of it (General Motors, Nestle, Microsoft, etc.) (p. 17) 5.

The five most important concepts I learned from this case are the following: In order for organization as large as IBM to stay competitive on the market and avoid potential issues is to implement system that works and integrates all its parts. Properly conducted plan has to be in place before deciding to undertake certain system. What works for one organization will not necessarily work for others. One organization needs to know its boundries and act accordingly. Taking bold steps doesn’t always pay of.