Erp in Ibm

ABOUT THE CASE: The case deals with division of IBM, IBM technology group which sold IBM’S technology ,storage communication and printing products to external and internal customers. The division had a strong IT infrastructure which was robust, scalable and capable of supporting business process around the world, but it needed a leverage which would be possible by implementing an ERP software within one division of the technology group and link it directly to a customer by creating a virtual interface thereby achieving a competitive advantage.

ISSUES WITH THE CASE: If the implementation of ERP software R/3 would be accepted by the group as it required implementation of very novel information technologies supplied by a start-up, when they were comfortable working on a pre-existing EDI(Electronic Data Interchange) which functioned on the same lines of ERP but with limitations. There was also a dilemma if the resources that would be used in implementing ERP could be best used elsewhere.

Selection of an ERP model was necessary, it was finalised that R/3 would be implemented. But this software was not language flexible which was important for the process carried out in Hungary and Thailand.

The implementation of the virtual enterprise also had issues such as that it was all being implemented internally within the Technology group and not to the partners outside IBM customers, suppliers and logistic agents.

HOW THE ISSUES WERE DEALT: The Technology group developed two sets of standards related to information technology. One set specified the hardware, software, and networking elements of each site's IT infrastructure. And on the other hand the IT group settled on a common set of practices for everything from building a business case prior to the implementation, to remaining on site for a period of time after the implementation was complete. These practices were codified into "lessons learned," "ground rules," and "success factors”.

The issue related with the...