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Step-1 intent: A need was realized. In early 1995, the Swedish groups (Sahlqvist
and the Marta) were investigating the acquisition of new computer software to run
their parts operations. The main reasons where heavy instability of their existing
systems. Frequent system failures came from large amounts of modifications of
their source code. As a result, they not always rely on the data thorough there
present system.
Step-2 Outlining of a future IS system: Coopers & Lybrand (a management
consulting company of about 10,000 employees) helped the top managers outline
a future information systems (IS) plan and strategy.
Here are some of ideas included:
Step-12 Implementation: The final election was made and signed off by both US
and Swedish locations. The implementation would begin.
I felt like Timberjack followed the traditional life cycle of: project identification
project initiation and planning Analysis Design construction testing
implementation Maintenance.
2.
What type of investment is this and what leads you to believe this?
Bahars consulting fees were $75,000.00. The final cost of QAD would be
$1,314,002.
The final amount of rough investment would be about $1,389,002. Plus the
investment of travel, the cost of time for meetings and work by internal employs as
well as the final cost of consulting from Coopers & Lybrand.
3.
Timberjack was faced with the choice of choosing the same ERP system for two
divisions. The issues arose and where complicated and cumbersome because one
was located in the U.S.A. and the other in Sweden. It was especially difficult
because the requirement was one ERP system that met both US and Swedish
offices needs. Two different cutlers added to the complication as well as the fact
that they were located on different continents; sharing information was a difficult
task. It was important to solve this issue with the acquisition of the new software. I
recommend that they go with Oracle. Oracle was complicated up front and cost
more, final cost of QAD=$ 1,314,002 and Oracle=$ 1,879,802, however both offices
settled their differences on both. The winning factor for me is the support that is
given as well as how quick the install would be. QAD would take about seven
months to install, and Oracle would be about one year. Oracle consulting group in
the United States claimed that there werent suitable consultants available in
Sweden. Consultants from the United States were arranged at no extra cost for the
duration of the install. Will the lack of support in Sweden, the higher cost, not from
higher quality, yet, from 40% higher overhead, not to mention twice as long of a
installation time, I will Recommend QAD
4.
in the article Getting IT Right by Field and Stoddard. The new system will serve
individual entities with a simple, horizontally oriented system used through the
whole company.
Because the rate of technological changes so rapidly, IT departments are not as
stable as others. Even though there is so much change in the IT industry perhaps
more than any other area of the organization, IT benefits most from a long term
plan that is robust and long-lasting. It is an example of Timberjacks Getting IT
Right when they started this acquisition project with the development of a long
term IT plan.