The Implementation of ERP at Tektronix - Essay Example

The Implementation of ERP at Tektronix Introduction Currently, the industries producing information technologies are the drivers of the financial growth, because the innovations produced by the telecommunications, computing, and electronic media industries have modernized every corporation (small, medium and large). In addition, the use and implementations of the information technology tools and techniques have become as frequent as telephones, fax machines, and business cards in business management. Also, almost every organization now understands that the information technology is a very useful tool for better serving customers, managing employees and business activities, and reaching into the global markets. On the other hand, traditional ways and techniques of business management have become less efficient in managing the business activities and operations. However, with the implementation of information technology tools and techniques such as enterprise resources planning (ERP) and decision support systems (DSS), the ways of business management have changed and improved, and now organizations are more capable in telling their stories and carrying out their business communications out there. This report covers a detailed analysis of ERP system implementation at a specific firm (Tektronix, Inc.). Tektronix, Inc. is an international, multi-billion dollar company that is presently having very little integration with their IT and business systems. In this scenario the new technology based platforms like that Global ERP system makes sense. Mr. Carl Neun, the recently hired CFO of Tektronix, Inc. has established the foundation of new technology based Global ERP system and reengineered information system (IS) and information technology (IT) platforms implementations (Cotteleer et al., 1999). Neun considered that future accomplishment of the business would rely on a powerful restructuring of bushiness working and IT and IS structure. Thus, he has decided to establish a lot of business transformations that involve the change in business procedures as well as improving visibility into overall corporate and business operations. In addition, Neun has also decided to enhance the IT infrastructure that is necessary in the information technology success. Neun new decision was about the establishment of a Global ERP infrastructure that will be presented all through the world (Cotteleer et al., 1999). This research paper will focus on the necessity for organizational development through the ERP based global information connectivity. The main aim of this paper is to present a detailed analysis and impacts of information technology (IT) such as enterprise resource planning (ERP) systems implementation on Tektronix, Inc. In this scenario this research will analyze and assess the Tektronix, Inc. business process renovation as well as discuss the selected aspects of the business processes and information modeling. This research will provide new initiative for Tektronix, Inc. business regarding the effective ERP technology implementation for the better business process management and corporate operations handling. This research will also outline some of the main aspects regarding the new project implementation and discussion of some risks associated with the new technology adoption. Corporate Overview The Tektronix Corporation was established in 1946 as a manufacturer of electronic test devices and equipments. In the 1993, the corporation became a $1.3 billion business manufacturer of electronic test tools and equipments. The corporation was divided into three main divisions: CPID or Color Printing and Imaging Division, MBD or Measurement Business Division (MBD), and VND or Video and Networking Division those are located in side US however business is functional in lot of counties. The Measurement Division in 1998 was having sales of approximately $962.9 million. The division sales composed of a wide range of tools intended for a variety of measurements applications like that: logic analyzers; oscilloscope solutions; intelligent hand-held tools, instruments on a card as well as spectrum analyzers. As the Color Printing and Imaging Division had sales of $728.7 million in 1998, sales of this department consisted of the Phaser™ family of workgroup color printers. Finally, The VND had sales of $394.2 million in 1998. The Video and Networking Division sales were composed of: disk-based storage, video production editing, transmission products, playback systems, software solutions intended for the PC, Windows-based terminals hardware, mainframe, software, high-speed remote connect protocol solution, and distributed digital multimedia hardware (Cotteleer et al., 1999). Enterprise Recourse Planning: An overview Before we discuss the case of Tektronix, Inc the understanding of basic concepts is necessary. An enterprise resource planning (ERP) system is a completely integrated information system that covers most fundamental tasks necessary for a large organization. Additionally, an ERP system is developed and executed around a common database shared by the fundamental business tasks. In addition, an ERP solution offers the functionality of an information system for the whole corporation. However, a corporation must reengineer its business operations to put together with the ERP system. Furthermore, the accomplishment and integration of an ERP normally considered as a biggest information system project ever completed by a corporation (Whitten et al., 2000, p.23; Ehie & Madsen, 2005; Vlachopoulou & Manthou, 2006; Hitt et al., 2002). Current Corporate Scenario Presently, Tektronix, Inc. has effectively established a Global Oracle ERP system. The establishment of the new Global Oracle ERP system at Tektronix, Inc. has taken project cost about $55 million that incorporated software, internal as well as contract labor. Though, the project team answerable intended for establishment of the Oracle ERP system experienced that the time, effort, as well as expense were worth it. Previous to establishment of the ERP system, Tektronix had problems of management as well as information system that lacked incorporation and experienced from years of uncoordinated system development. Tektronix was dealing with an augmented global competition as well as poor financial performance (Cotteleer et al., 1999). Carl Neun believed that the business’s future accomplishment would rely on his capability to make simpler as well as restructure its overall business working and operational operations. His initial work as CFO incorporated selling off businesses, growing visibility into operations and altering business procedures (Cotteleer et al., 1999). The Tektronix, Inc. was facing a number of the information technology troubles that were (Cotteleer et al., 1999): Vulnerability to arrange errors because of slow processing in the course of customer service Not possible for the corporation to ship “up to the minute” or the Saturday Need for a sale order to be penetrated numerous times in dissimilar systems as it completed its way in the course of the order cycle. Lack of correct performance information to handle client account as well as credit on worldwide basis. Lack of incorporated financial structures composed of numerous charts of accounts that guide to: Complexities in shaping which products as well as divisions were gainful. Finagling the books took two weeks every month. Project Approach The new Global ERP technology platform implementation at the Tektronix, Inc. will transform the overall working and ways of handling the business. This will completely change the Tektronix working technology, as well as its business. Both non-quantifiable and quantifiable benefits will be attained through new global ERP technology platforms. For this implementation we will take following steps: Change management The ERP technology implementation business will require effective management of the new technology. In this scenario we will document all the processes and contracts of the overall technology based system implementation. Analysis In case of the new ERP system implementation there is a vital need for the business working and taking better competitive edge. In this scenario the analysis for the new technology platform implementation is really necessary. To do this we will conduct interview, research, and survey based techniques for analyzing the profitability of new technology platform implementation. Planning The successful completion of a project demands successful planning for the project. Thus, to make this project successful and achieve desired goals, we will make use of some technology based planning tools for instance, MS Project. These tools will be helpful in planning the project activities. Project Management Project management is an effectively planned and organized endeavor to achieve a desired goal (Lonergan, n.d). In case of project management for the ERP system implementation business will require employing better project management team and manager. This will offer business to effectively manage and run the project within cost and time. Project Team A project team is a collection of permanent and temporary resources (human and equipments) allocated to work on the deliverables of the project all who will assist in accomplishing the project goals (Marios Alexandrou, 2010). This project team selection and handling will be an important part of the overall the project. In this scenario business management will carry out screening, tests, and interviews to find out a skilled project team. Risk Management at Tektronix for ERP A risk is a magnitude of the chance or outcome of not achieving an established project or business goal (Pressman, 2001, p.146; Kerzner, 2006, p.743). Risk analysis is the process of evaluating and classifying the threats or challenges to corporations, individuals, and government agencies produced by potential natural and human-caused unfavorable events. In IT, a risk analysis report is used to facilitate technology related objectives with a corporation’s business objectives (TechTarget, 2009). In the same way, risk management is the process of identifying, evaluating, and managing what might go against a project previous to it becomes a challenge to the successful implementation of the information system or the completion of the project. Furthermore, risk management is an essential skill to control a project effectively (Whitten et al., 2000, p.83; Turban et al., 2005, p.712). This part of the report will present a detailed overview of the how Tektronix will be able to effectively handle the risks associated with the implementation of a huge Global ERP system Here I will try to assess some of main salient features of Tektronix’s technique to implementing the ERP system. Tektronix needs to handle establishment of the risks through setting a well-researched plan and present shortcomings need to be well documented. The incapability to access real time as well as dependable date of the status of assets like that finished goods, work in progress and the location of the inventories in the entire spoke of a complex as well as potentially paralyzing company arrangement. The methodical review of this inadequacy will produce a powerful foundation from which to employ a planning model to make simpler the environment as well as then put together the new platform to every business model, effectively producing the “global business model”. Tektronix Inc. needs to reduce risks through recognizing with the procedures that could be shared through a variety of business units. Additionally, the general ledger, accounts receivable, a central customer services registry, a common chart of accounts as well as a single-item master table will bind the entire divisions jointly. This will offer real-time visibility into global processes. Through joining up the main players in every functional as well as geographic area will further minimize risks to the project. These will run interference as well as perform as negotiators when business change will be required. In addition, this will determine issues in the course of a blend of technical as well as functional strengths (Cotteleer et al., 1999). In case of Tektronix Inc. the global ERP implementation “Apathy” is sometime overlooked risk in such a type of huge projects that consume long time frameworks. Neun’s project teams need to shape a rhythm of project management waves. Every milestone needs to be distinguishing. All ERP implementation project phases need to be delivered in waves. All project waves will be built upon the earlier successes (Cotteleer et al., 1999). In case Tektronix Inc. vendor issues need to be resolved well. In IT, there are a lot of other activities; it is most excellent not give their vendors the capability to “punt”. They will, when specified the prospect, point the finger at a number of other vendor and cast the blame. That vendor will perform the similar in turn to the subsequently vendor, and so on. The simple method to end the conflict is to arrange a meeting among all these players and strength them to tackle the matter. There is typically no simple or speedy method to make easy such a functional meeting. Tektronix Inc. needs to tackle the matter rather usefully. After selecting Oracle as their platform, they need to make sure to employ in Oracle’s own advisors. These persons would have contact to every the inside people who had the response as well as latest patch fix upgrades. They as well would have no justification whatsoever to be able to bypass the buck to a number of outside vendors (Cotteleer et al., 1999). Roll-out risks need to be handled through carefully coordinating the timing as well as order of rollouts. They need to start by US CPID the simplest organization carrying to US VND, and then to US MBD. Encompassing the proven functional solidity of these three establishment in the US divisions, they select to roll out in worldwide regions foundational upon which would be incrementally more difficult in scenario of language, culture and technical challenges. Generally, this moves more from fundamental Western ISO, in this technique they would be able to reduce the likelihood that implementation errors will be exaggerated via the worldwide replication (Cotteleer et al., 1999). Addressing Challenges of Global Implementation This section will discuss how the company will address the particular challenges of global implementation. In this case of new technology based Global ERP structure establishment at the Tektronix business and handling particular challenges of global implementation we need to consider and analyze a variety of business documents like that transactions documents, including policy and procedure documents, training material, management reports, project documentation and requirement documents concerning to the Tektronix business’s ERP establishment. Visual observations and inspections were established to enhance the understanding of foundational business procedures as well as present information processing. The new Global ERP implementation project was started by Mr. Neum stating the vision for the enterprise was composed of three components: one is enhancing the shared services, second is about the reparability of the business and third one is about staying as “plain vanilla” as possible (Cotteleer et al., 1999). In case of pervious ERP technology establishment Tektronix spent small time in choosing appropriate technology of the ERP Package. Mr. Vance and Mr. Neum equally had earlier experience with Oracle’s Enterprise Resource Planning solution. Tektronix had chosen Oracle, however spent two months in assessing Oracle to make sure it would work in its atmosphere (Cotteleer et al., 1999). On the other hand, now the management of the Tektronix business is more conscious regarding the new ERP technology establishment, in this regard they need to establish a steering committee. The steering committee will refine the corporate vision through a “Global Business Model” that will set the strategy intended for the new Global system implementation at the business. In this case there are following considerations those need to be considered and incorporated in the new technology based platform implementation at the business of Tektronix. However, Tektronix has established Global Business Model regarding the implementation of the Global Enterprise Resource Planning technology based system implementation. Tektronix Inc. business ERP technology based project needs to be organized around the diverse area’s main players as well as key roles to set up appropriate management and communications arrangement. The main players from every functional and geographical area run interference and act like negotiators to determine issues as well as support business transformations. The new ERP system project was divided into waves. The idea of waves was to implement convenient parts of the structure at a time. In establishing above technology parts of Tektronix Inc. business ERP system there is need to follow following recommendations for future project: Apparent description of the project’s scope as well as guidelines requirements should be established. The steering committee needs to form the “Business Practice Changes, “Global Business Model” and Guiding Principles.” Encompassing a distinct scope as well as guidelines facilitating project leaders to correctly formulate decisions that were consistently followed in other areas. This stop conflicts and keeps the project run in the right directions. The ERP project has to be correctly organized. The communication and management infrastructures should be built upon a numeral of fundamental roles. In addition, their roles should be matched with main players in areas who ran interference and act as negotiators when business transformations are needed. The ERP project plan has to be correctly organized in main, sub-projects, and their smaller tasks. Additionally, by separating the project in controllable tasks (waves), the project team will be capable control the implementation of the performance of project’s components. The outcomes guide to resolve conflicts and smoother implementation. The ERP project plan should initially execute those jobs that direct other parts of the project. The consistencies of the chart-of-accounts as well as transfer pricing practice will be placed first previous to other tasks start. This facilitates the jobs that trail not to be modified. By implementing a “plain vanilla” ERP system, the project group will be capable to deal with issues one by one and to cautiously analyze the true needs for a development. Global ERP Project should hire a consultant to organize the scope of the project. Control the knowledge that is discovered from one part of a project to another. For instance, when moving from the OMAR at CPID to the OMAR at MBD and ultimately to the OMAR at VND, the information of the structure should be developed and approved. Conclusion To survive in this ever-increasing competitive world, the implementation of latest information technology has become necessary for almost every organization. Now organizations are gaining more and more benefit by implementing latest tool and technologies. The enterprise resource planning is also a most excellent use of information technology. This report has presented a detailed analysis of the conducted reengineering business processes in Tektronix, Inc. In this report I have presented a detailed analysis of the new ERP technology platform implementation at Tektronix, Inc. business and its related issues, opportunities and development recommendations. I hope this analysis and research based report will offer a deep and detailed overview of new technology based structure implementation at Tektronix, Inc. Bibliography Bosilj-Vuksic, V. & Spremic, M., 2005. ERP System Implementation and Business Process Change: Case Study of a Pharmaceutical Company. Journal of Computing and Information Technology, 13(1), pp.11-24. Cotteleer, M., Westerman, G., Austin, R.D. & Nolan, R.L., 1999. Tektronix, Inc.: Global ERP Implementation. Case Study. 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