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Case Study - Information Systems - 22 Nov

Elco implemented a new ERP system to replace its legacy software that could no longer efficiently handle the company's operations. The old system caused issues with nightly updates, data storage, and reporting that created risks for the business. The new ERP system provided improved visibility into operations, better decision making capabilities through analysis of sales, orders and costs. However, some functionality was still missing for Elco's specific business processes. Additional software and workarounds and were implemented to address these gaps while maintaining flexibility. The new system benefits Elco's customers through more accurate inventory tracking and faster order processing.

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Juliana Tovar saavedra
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332 views

Case Study - Information Systems - 22 Nov

Elco implemented a new ERP system to replace its legacy software that could no longer efficiently handle the company's operations. The old system caused issues with nightly updates, data storage, and reporting that created risks for the business. The new ERP system provided improved visibility into operations, better decision making capabilities through analysis of sales, orders and costs. However, some functionality was still missing for Elco's specific business processes. Additional software and workarounds and were implemented to address these gaps while maintaining flexibility. The new system benefits Elco's customers through more accurate inventory tracking and faster order processing.

Uploaded by

Juliana Tovar saavedra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ELCO

Case study
Example of ERP implementation

1. (2.5 pts) What problems did Elco have with its old software? What were the
business impacts of those problems?
The system that they used was too old and simple for all the activities that the company
was starting to do.The big issue was when the nightly inventory and financial updates
became impossible to process on time. Due to this the activities that the enterprise was
doing were in major risk to be wrong systematized and there were problems in the
storage of data, creating confusion between documents with the same patterns, and the
old software built some unnecessary habits. All of this leaded to the company to launch
an I.S. project in order to replace its legacy applications with a new ERP software
system.
And this was a big challenge to Elco, because their legacy systems were so old that the
business had built many of its processes around them.

2. (1 pts) What are the specificities of Elco’s business processes compared to


other industries?

ELCO must be able to rapidly handle fast inventory turnover and high volume of
transactions, ELCO needed to handle very short lead time for order processing
compared to others companies, the time for each order can be minutes for this the
company must know what product is available in each store.

3. (1.5 pts) How did Elco's ERP improve their decision-making capabilities?
Explain the resulting benefits for Elco;

Elco clearly improve the way they analyze the profitability in all the sectors, for example
by salesperson, manufacturer and customer allowing them to create future scenarios
that they could face. In consequence Elco developed better decisions, got much better
visibility of its business operations and focused on other different areas such as
performance of sales, order quotations and improvements to deliver the invoices on
time.
As other results, they were able to conduct a cost and benefit analysis, where the profit
margins customer satisfaction and positioning the business are one of the most
important aspects. The Elco’s ERP gave them access to all their financial details,
project costs and beyond. They explore different alternative options, facilitated them the
work when they needed to make quick decisions, storing all the information from the
past decisions which might stir up other possible solutions that were more cost effective.

4. (4 pts) Identify the functionalities missing in the new ERP software. What
solutions (tricks-adaptations or additional software) could be found?

Elco opted to use SAP as their ERP, this software incorporates the key business
functions of an organization. The business processes included in SAP are Operations,
Financials, Human capital Management and corporate services.
But as it helped the company, this ERP got different functionalities missing and
disadvantages. This type of customization is expensive to set up and maintain and the
return on Investment may take too long to be profitable, but the CEO decided to keep it,
saying that “We've done a lot to maintain flexibility for our users and still run within a
standard SAP business flows.” So different implementations can be done in order to
solve the problems detected.

New ERP software functionalities missing


-The major SAP ordering and delivery scheduling functions can't wait for long overnight.
-Elco still owns the inventory, but it's assigned to a specific custom.
-The ERP software didn't support this way of doing business.
-Software integration problem.
- A problem may be that employees weren't able to use the new ERP.

Solution
-By running small and frequent updates dedicated to the products received.
-Elco implemented SAP's BI module to combine date for reporting and analysis.
(addition software)
-The solution is training employees in the use of the new software.

5. (2 pts) Describe how Elco's customers benefit from the new ERP system;
--It leads to more timely and accurate records of products available in inventory so that
orders could be rapidly processed,and customers can be guaranteed the quality of
products and ensure they received demand products as soon as possible.a
--It allows identification of all the customers who bought cable from the same reel and
which manufacturer provided this reel of cable,which means that if products have any
problems,staffs can find mistake quickly and customers can acquire better after-sales
maintenance.
--It prevents someone from selling the consigned inventory in the warehouse subpart to
another customer.Customers can improve their efficiency to some extent.
6. (4 pts) Comment on the last paragraph: "Elco did not force (…) standard SAP
business flows.” Use the “I.S. strategy” and “ERP” lessons. Hint: it is a matter of
competitiveness, (re)alignment, and company’s culture.

Information systems strategy changes the goals, operation, products, services or


environmental relationships of an organization to help gain a competitive advantage. It
has to become a strategic necessity for many companies. Also it support the alignment
of the business because the I.S. mission, objectives and plans support and are
supported by the business mission, objectives and plans.

I.S. are essential for decision-making focus on the competitive intelligence, adaptability
and the environment of the company. With the ERP systems any business can manage
the sales and distribution of the business, it absolutely changes the way of doing
business. For example, it has as an advantage more timely and accurate records of
products available for the inventory and orders rapidly processes.

In the case of Elco, it was a good decision to selected this softwares. Besides that, the
company implemented the Business Intelligence that improves the efficiency by module
and combine data for reporting and analysis. That’s why the company is able to analyze
profitability, make decisions and have greater visibility for the future.

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