CASE STUDY ANALYSISANALYSISINVACARE STRUGGLES WITH ITS ENTERPRISE SYSTEM IMPLEMENTATION

Presenter Team: Name Roll No. - 10

1

Ashok Prasad - 08 Asmita Das Joyanta Guha - 32 Kalyan Prasad - 34 Sangeeta Mishra

- 49

COMPANY PROFILE
Invacare Corporation is the world's leading manufacturer and distributor in the $8.0 billion worldwide market for medical equipment used in the home Headquartered in Elyria, Ohio, USA Conducts Business in over 80 countries Sells its products in the United States, Australia, Canada, Europe, New Zealand, and Asia to more than 25000 Home Health & Medical provider locations Follows a JIT (Just in Time Delivery) business model
2

PRODUCT RANGE:
Invacare is the only company in the Home Medical Equipment industry with a full line of products:
Rehab Products Custom power and custom manual wheelchairs, seating and positioning, and scooters. Respiratory Products Oxygen systems, sleep, and nebulizers. Standard Products Bath safety, walkers, wheelchairs, beds, and therapeutic support surfaces.
3

PRODUCTS:

CASE INTRO
In 2004, Invacare began replacing its legacy systems for Purchase to payable process with modules from Oracles 11i E-Business Suite
Note - Installation of Oracle E-Business suite was trouble free four years ago.

The new software module Order to reach was tested under real business conditions Was felt ready to be used & the software went live in October 2005
5

Customer dissonance increased, details for stock availability shipment, etc. was not being available Despatch of goods was behind schedule, Sales decreased, extra expenses incurred to expedite orders, The companys internal processes like financial reporting etc. also jumbled up Losses totaled $30 million for the 4th quarter 2005 and spilled over to the first quarter of 2006 Manual inventory count was done in Q-4, 2005
6

AS A RESULT

WHAT WENT WRONG???

Configuration of software? Integration of the business processes with the new system? Lack of extensive testing?????????
QUESTIONS TO BE ADDRESSED...

How did problems implementing the Oracle enterprise software affect Invacares business performance? What people, organization and technology factors affected Invacares ERP implementation?
7 If you were Invacares management, what steps would you have taken to prevent these problems?

OrderOrder -to to-Cash Service

Order-to-cash is a composite process that integrates data from individual enterprise systems and legacy financial applications. The process must be modeled and translated into a software system using application integration tools.
8

Customer Relationship Management (CRM)

Process begins with lead generation, marketing campaigns and order entry which is typically supported by CRM systems

CRM systems examine customers from a multifaceted perspective. These systems use a set of integrated applications to address all aspects of the customer relationship, including customer service, sales, and marketing.

Enterprise System
Once order is received, manufacturing is scheduled & parts availability is verified- processes that are usually supported by ERP systems

10

How Enterprise Systems Work

Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise
11

Supply Chain Management Systems

Then processes for distribution planning, warehousing, order fulfillment and shipping that are usually supported by SCM systems

Intranets and Extranets for Supply Chain Management

Intranets integrate information from isolated business processes within the firm to help manage its internal supply chain. Access to these private intranets can also be extended to authorized suppliers, distributors, logistics services, and, sometimes, to retail customers to improve coordination of external supply chain processes.

12

ORDER TO CASH

Order is billed to the customer which is handled by Enterprise Financial Applications If the purchase at some point requires customer service, then CRM systems are invoked again
13

WHAT HAPPENED ...

Oracle 11i was termed as a Complete, Simple and Fast solution, & was released to the market / customers quite fast without extensive testing,

Early bugs started getting reported, e.g. the shipping firm DHL Worldwide, which began implementing the earliest release of 11i reported trouble installing the software,
14

STEPS TAKEN & LESSONS LEARNT Oracle worked closely with Invacare to resolve the problem
Extensive Testing before releasing to Customer ... Wait & watch policy should be adopted for initially stabilizing the product Take feedback from the current users before going for the next product Understand the mindset of - We'll be more comfortable when more people are comfortably upgrading
15

Thanks !

16