Business Context * Tektronix originally founded as maker of electronic test equipment in 1946 * Company had grown to a $1.3 billion high-tech manufacturer of electronic tools and devices * Headquartered in the U.S. with an international presence in almost 60 countries * Business split into three autonomous divisions: * Measurement Business Division (MBD): Worldwide leader in oscilloscopes - more than twice the market share of its next largest competitor; worldwide leader in television test, measurement and monitoring equipment * Color Printing and Imaging Division (CPID): market leader for workgroup color printers * Video and Networking Division (VND): video production, editing and transmission products, and storage and playback systems
Key Business Drivers * Financial performance was suffering; gross margin had decreased from 42.9% in 1997 to 41.5% in 1998. * Tektronix was looking to maintain a competitive presence in the market * Company’s future success depended on ability of CFO to simplify and restructure operations by selling off unprofitable businesses, integrating new acquired businesses, changing business processes and increasing visibility into operations
Initiative Objectives / Benefits Objectives | Benefits | Separate the needs / requirements of each division, but enforce standardization within each division | * Each division would have its own instance of the system for its customer fulfillment process * The requirements of one division would not drive the practices of another * ‘Frankfurt is Orlando’ | Leverage shared services: tie divisions together with central customer registry, consolidated set of books and single item registry | * Each division could provide a global, up-to-date view of financial status * Apples-to-apples comparisons
