Metalco is a large Australian mining company. It has a rocky history in terms of its effective use of information systems (IS), and there is widespread dissatisfaction in the company concerning IS and the IS department. The recent resignation of the chief information officer led to the decentralization of the IS function, to move closer to the operating departments. At the same time, one of the division heads has proposed that the company buy the SAP enterprise-wide system, to replace an earlier internal system that had been poorly received. The price tag for SAP is very high, $23 million. Implementing it would also require substantial changes in company processes. In light of its history, recent IS decentralization, and the high SAP price tag, the company is faced with making the decision of whether to go ahead with SAP. An appendix in the case provides extensive information on the procedure used to evaluate SAP and results thereof.
Although demand for enterprise resource planning (ERP) systems in China has been steadily increasing, many such implementation projects have ended in failure. Keda Industrial Co. Ltd. (Keda), a manufacturer of large-scale machinery in China, had successfully deployed its ERP solution. This case study documents Keda’s ERP initiative from conception to its deployment and offers insights into the factors and practices that contributed to its success in the Chinese cultural context.
The associate project manager for the Indian branch of SAP Labs, a multinational enterprise that provides software and software-related services, has been meeting with his manager to discuss ways to estimate staff requirements across shifts for the company’s provisioning team. The team works three shifts, 24 hours a day, seven days a week and services multiple types of requests in the form of tasks, which have one of seven priorities assigned to them. Service level agreements with customers require that the initial reaction time of the team meet specific requirements, which differ across priorities. Employing service agents involves costs for the organization. The project managers must identify a shift schedule that minimizes the number of staff used in a service setting while meeting the service level agreement expectations.
Case Name : SAP: The Challenge of Aligning Sourcing and Innovation Strategies
Authors : Bent Petersen, Dominique Nikerle-Uhthoff, Helen Schwaerzler
Source : Ivey Publishing
Case ID : W14332
Discipline : General Management
Case Length : 17 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
In late 2011, SAP, the German leader in the enterprise software industry, announced a major investment plan for expanding in China and also acquired a leading American firm in cloud-based human capital management software. At first glance, these investments seemed rather unconnected. A closer look at SAP’s strategy, however, revealed a closely connected and coordinated network of strategic decisions and investments for which alignment and finding the right balance were key challenges. Hence, it was crucial to ask: What were the principal challenges for SAP in aligning its innovation and sourcing strategies? Compared to its key competitors – Microsoft, IBM and Oracle – how was it aligning its innovation strategy with its sourcing strategy?