...Textronix, Inc.: Global ERP Implementation 1. What are the business and technology issues that drove Textronix to implement an ERP? (15%) * Financial performance was suffering; gross margin had decreased from 42.9% in 1997 to 41.5% in 1998. They were losing money in many divisions. * 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 * They had very old technology with unintegrated systems that created numerous business problems 2. Why did Textronix implement ERP in stages? How should a company decide between implementing in stages or going big-bang? (25%) They implemented the system in stages because: * The system was very complex due to the number of divisions involved and the need to implement it world-wide * By using this approach they were able to learn from early experiences and gain quick acceptance from the stages that were implemented first Going with the big bang approach is very risky. If the system fails there is often no way to recover. So, it should only be used if the company must shut down one system and start the other immediately in ALL parts of the company. 3. How did Textronix manage the risks of ERP implementation? (30%) They managed the risks by: * Having...
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...Situation Analysis: Tektronix (est.1946) was a maker of electronic test equipment. It has grown to be $1.3 billion manufacturer of electronic tools and services. The business was split into three divisions, namely Color Printing and Imaging Division (CPID), Measurement Business Division (MBD) and Video and Networking Division (VND). Tektronix was the leader in oscilloscope, television set, monitoring equipment and color printer with divisions based in US and international presence in nearly 60 countries. Problem Identification: As the CFO of Tektronix, Neun had seen many problems and implemented strategies to overcome them. In the initial days, he resorted to making decisions of selling off businesses, changing business processes and increasing visibility in operations. However, due to lack of integration, Tektronix was facing some issues- * The management and the information system lacked integration and suffered from uncoordinated evolution. * Financial performance of the company was suffering * One of the major issues faced was the IT infrastructure using different application systems and technologies around the world. The systems were not standardized globally and there was no visibility in the inventory system. * Architectural problems were engraved in the patch work of the legacy systems. It also created the need for a sales order to be entered multiple times in systems as it made its way through the order cycle. This slowed processing and led to...
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...As Tektronix decided to implement the new Oracle ERP system, the company chose to introduce it in phases, based around the specific functionality or a particular geographic region. Implementing in phases, or in waves as Tektronix called it, allowed the company to experience regular feedback on specific areas of implementation, allowing time to adjust processes and scheduling as needed. The phased approach enabled the company to achieve frequent victories, which kept team and employee morale high throughout the process and provided encouragement to the Board despite the high cost and long timeline of the overall implementation. To ensure Tektronix's success, the ERP implementation was divided into five manageable sub-groups: (1) Financials, (2-4) Order Management/Accounts Receivable (OMAR) in the three divisions, and (5) the global rollout. Within the sub-groups, additional waves were created to ease into the system. For both the Financials and OMAR, Tektronix decided to implement the new system in the United States first. Though the ultimate goal was for location to be irrelevant in the system and processes required for an order to be completed, it was important that the company see the added-value of the implementation as it proceeded. When deciding whether to implement in stages or full scale, a company must consider several factors related to the feasibility of each option. Like Tektronix, companies with multiple and/or unrelated business units will benefit more from...
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...Tektronix, Inc.: Global ERP Implementation 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...
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...Tektronix Inc: Global ERP Implementation 1.Business Context/Key Business Drivers * Tektronix manufactured a broad range of electronic test and measurement equipments, color printers and video and networking products. * In 1993, it was a $1.3 billion manufacturer and a worldwide leader in oscilloscopes with a more than twice the market share of its largest competitor. * It was the number one manufacturer of televisions, measuring and monitoring equipment and color printers. * multiplicity of application systems and no uniformity in technologies in its offices around the world. The Inefficient shipping schedule was inefficient because of problems with inventory. * Errors in order management. * NOo system to measure performance metrics and obtain customer information. * The technologies used were old and redundant technologies. * Inefficient financial administration, operations and profitability analysis was inefficient. 2. The Key Business Objectives: * Replace the legacy systems, do away with the need of manual coordination, * Implement improved information technology for fast and error free customer and organizational information, * Achieve integration in functioning across divisions and countries by creating a common template for various services, * Standardize processes, streamline their financial system, and create a functional order management system 3. Challenges and Solutions...
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...MBA Program Course: Financial Analysis and Decision Making MBA730 Instructor: Marlena L. Akhbari Wright State University Finance and Financial Services McGraw-Hill/Irwin =>? McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond...
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...MBA Program Course: Financial Analysis and Decision Making MBA730 Instructor: Marlena L. Akhbari Wright State University Finance and Financial Services McGraw-Hill/Irwin =>? McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond...
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...Towards a conceptual framework for strategic cost management - The concept, objectives, and instruments - Von der Fakultät für Wirtschaftswissenschaften der Technischen Universität Chemnitz genehmigte Dissertation zur Erlangung des akademischen Grades Doctor rerum politicarum (Dr. rer. pol.) vorgelegt von Ibrahim Abd El Mageed Ali El Kelety geboren am 11.01.1965 in El Menoufia - Ägypten eingereicht am: 14. Juni 2006 Gutachter: Prof. Dr. Uwe Götze Prof. Dr. Dr. h.c. Jürgen Bloech Prof. Dr. Peter Schuster Tag der mündlichen Prüfung: 18. Juli 2006 Acknowledgement To the Almighty God “ALLAH” Who have granted me all these graces to fulfill this work and Who supported me in all my life. To Him I extend my heartfelt thanks. It is a pleasure to express my sincere and deepest heartfelt gratitude to my “Doktorvater“ Prof. Dr. Uwe Götze for his kind supervision, continuous encouragement, valuable enthusiastic discussion and unfailing advice throughout the present work, as well as financial support during my latest period of study in Germany. He assisted in all matters, provided solutions to different problems. Prof. Dr. Uwe Götze supported and helped me during my learning period in Germany and writing this thesis. I am very lucky being one of his students. I would like to express my deep thanks to Prof. Dr. Dr. h.c. Jürgen Bloech - Georg-August University of Göttingen - for his kind acceptance to act as an examiner. I would also like to express my sincere thanks to Prof. Dr. Peter...
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