Case Analysis: Captiva Conglomerate

I. Major Facts

Captiva Conglomerate contracted for new operations supply management software. Upon receipt and testing of the spares module, it was determined that the software is too complex for non-IT staff to use. In addition, the software development firm is four months behind schedule. Captiva also elected the development of a centralized inventory system, which is ten months behind schedule. The software requirements and specifications were clearly not vetted by all stakeholders and to further complicate the issue, the contract is over-budget with 17 un-priced change orders.

II. Major Problem

A weak internal process, limited collaboration and lack of an effective purchasing process lead management to make a purchasing decision that netted poor value from an expensive contract. Currently in ‘crisis management’ mode, Captiva’s management group lacks interdepartmental functional collaboration and purchasing process, which resulted in an over-budget, inadequate and delayed product. They took partial delivery of a product that the intended users can’t use.

III. Possible Solutions/Alternatives

A. Alternative 1: Status Quo. Do nothing. Always an option and sometimes an effective alternative, to do nothing is rarely a good choice. Having received a much needed, but unusable product, taking no action is clearly not an option for Captiva management. They need a usable system.

B. Alternative 2: Form an Integrated Product Team (IPT) to assess and develop an effective Statement of Work (SOW) with specific requirements that fit the needs of all stakeholders. Terminate the current contract and re-post the RFP. This alternative scores high in effectiveness of solution; and although it would likely ensure supply management personnel are afforded an effective tool to increase the likelihood of successful performance, it is probably the most costly of solutions in both time and money.

C. Alternative 3: Form an IPT, develop an effective Statement of...