Introduction of Case Study

Summery
The case revolves around the business called Tektronix, Inc. that was founded in 1946 and after
50 years of success, in 1993, the high-tech maker of digital equipment was facing increased global
competition. Through the same time, Carl Nuen begins along with his new position as the business
CFO. The largest threat for the business had not been from the exterior environment but from
within as they lacked included Management Information System and suffered with years of
uncoordinated progression.

As the business challenges to find itself in midsection of the 5-12 months restoration program to
solidify its competitive footing, Carl Nuen targets simplifying his company's businesses and
restructure them thus increase presence in operations.
The company blueprints to include Oracle's ERP solution in their current businesses which
includes been split into 3 main areas multiply across 60 countries surrounding the world

 Measurement Business Section (MBD)

 Color Printing & Imaging Section (CPID)
 Training video & Networking Department (VND)

The situation further points out the challenges confronted by the management and professionals in
putting into action an ERP solution across different countries, different divisions, different
businesses and the practical experience required in integrating the financials of all divisions into
one common product

Background
The business was founded in 1946 as a machine of Gadgets' test gadgets and matures to be $1.3
billion producer of electronic digital tools and devices.

The business has a worldwide existence with office buildings in 60 countries with worldwide
management in Oscilloscopes with market talk about that is double its immediate competition. It
is also market leader in TV'S and dimension and monitoring tools as well by color printers.
The largest hurdle that the business was facing was related to its IT Facilities. The company
experienced different program systems and technology throughout the world because of its
different divisions and functions with different graph of accounts and financials of every of its
divisions.
This resulted in the next problems

 The company had not been able to send "up to when" or over a Saturday
 Sales Order needed to be created multiple times in several systems as its made its way
through the order pattern because of its patchy legacy system
 The sluggish order process and services resulted in delays and created opportunities for
problems to creep in to the system
 Company didn't got accurate home elevators performance
 Company didn't acquired capacity to effectively take care of customer accounts and credit
on global basis
 The economic climate was not included. Closing the booklet entries every month took 14
days
 Success of products and divisions was hard to understand
Question-1

What Problems/pain points did Tektronix have with its IT infrastructure before they
enforced ERP system?

The topic field issues inserted in Tektronix's IT manifested themselves in an exceedingly kind of
techniques. Shortcomings created it extremely hard for the organization to dispatch "up to the
Minute" or over a weekday.

The patchwork of bequest systems

A holdover from the changing times once Tektronix was controlled as 26 freelance divisions -
conjointly created the necessity for a sales order to be inserted multiple times in nume Rous
systems since it created its manner through the order routine. This slowed process and customer
service and presented the opportunity for order problems to creep in to the system.

Additional weaknesses in Tektronix's info design intended that the organization lacked correct Info
performance, credit on an internationally basis, and cannot estimate an invoice total for a customer
at order creation.

Nothing of the three departments were running well which was one of the primary problem for
Tektronix
Insufficient standardization was one of the primary problems that Tektronix was
Suffering

Redundancy of order entrance at multiple places in the several parts of the organization

Potential for 0error was one of the primary issue of Tektronix

Imperfect and inaccurate information was also in charge of pain details of Tektronix.

The amount of money systems conjointly suffered with a scarcity of integration. Multiple graphs
of accounts been around across the company. Closing the literature every month got weeks. it
turned out very Tough to comprehend that product and divisions were profitable and this weren't.
Que2
What concrete steps did Tektronix desire manage the risks concerned in such an oversized
and tough project?

Moving towards concrete ERP system was one of the primary steps which Tektronix had taken
To control the risks.

Carl Neun provided Tektronix a fresh vision which is recognized as "Frankfurt is Orlando". It
could
have given a fresh impetus to the business. Neun possessed a opinion that the business's future
success would rely upon his capacity to simplify and restructure its functions. He started reselling
of businesses, changing business process and increasing presence into operations. The business
started employed in 26 impartial divisions Roy Barker, Chief executive of CPID offered a concept
of adopting a fresh business design with an objective of doubling the division's size
Incapability of existing system to aid the department was one of the major problems which

Tektronix considered working after on. CPID growth ideas: From market of images terminals in
mainframes to mass market laptop or computer structured consumers. Easy justification for ERP
execution Through increasing the vision Extension of eyesight mainly occurred through three main
steps.

Neun's eyesight for the business got three components independently from the business enterprise
which
Are the following:

Separability of business

Leveraging of distributed services

Staying as basic vanilla as you can

Each components possessed their different positives as well as negatives

Implementation of distributed services was also an integral subject in the steps used for revival/
proper planning ERP selecting software

The selecting software process includes keeping manufacturing program, Buy vs Build, Single

VendorERP technique to avoid issues like Maintenance,Up gradation, Integration Choosing

Oracle Worldwide model done making a steering committee.

Que 3

Why did Tektronix implement ERP in stages? How does a company decide between
implementing in stages and going big-bang?
Tektronix executed ERP in periods for the next reasons:

-The firm was not ready to commit to the changes expected for the post-implementation
business environment

-The proposed execution symbolized a significantly different method of doing business than
the current business environment
-Implementation in levels will also provide them with versatility to make decisions

-This approach permits regular opinions and reviews after every phase. Hence, motivating
learning from earlier experience and mistakes

-The IT facilities was jogging huge legacy developers hence its overall flexibility to take
the whole ERP project simultaneously was dangerous and cost intense ,a stage sensible execution
was therefore undertaken

-With regular victories through small accomplishments of heading live with ERP offered
high team morale and also described a clear eye-sight and goal of the task
Decision between Execution of ERP in phases and heading big-bang:

IT facilities: A business having various program systems running right through its different useful
items with huge legacy systems is more likely to have its ERP implementations in phases so
as to put into practice ERP only in those functions, which are, regarded as of tactical
importance.

Integration: Whenever a company desires the good thing about getting the entire good thing about
the involved software across all functions of the business it generally should go the top bang
approach?
Multiple Location: Those companies that are geographically dispersed need reliable
communication links for on-line control and uniformity in its execution often go for ERP
in levels as later they can be rolled out to other locations. Tektronix was having occurrence
in 60 countries, mainly USA. Choosing big bang procedure at the same time was very hard from
the idea of view of its efficiency and performance from financial aspect

Customization: When a business would like customization, the job of fitted the ERP software
to meet the requirements of a specific business and mapping of the organizational set ups,
functions & environment of the corporation into the related model of the business that is
inlayed in the ERP software it generally choose going right through stages
Ongoing Workflow: Some organizations select for 'Big Bang' ERP Execution Technique, where,
the ERP team works in parallel and configures the ERP system, without troubling the current
process workflow. It is vital to keep carefully the existing business process working

Dependency: The issues of employing in phases are that all stage depends on information from
other phases. Through the phasing in of the machine there could be incorrect information, so
companies firmly like big bang for all your key modules For these reasons, the staged way to
execution was better best suited for large-scale assignments like ERP that require significant
fund.

Que 4

How Tektronix approached the problem of the perceived need to customize the ERPsystem?

To be able to modify the ERP system of Tektronix they do the next steps which can get serially
as below:

Sponsorship
The CFO at Tektronix Carl Neun was the sponsor/Champ for the task.

The CEO acquired given unlimited power to Carl Neun and he was the ultimate decision
Machine on the task.

This helped to solve all the problems in the job quickly.

Task Team Structure
One project supervisor was present for exact rollout.

Business design and guiding key points

Created business process and tasks by divisions almost at the organization level.

Project Schedule
This program was put in place in form of waves and each influx delivered specific group of
Efficiency for a department as well as region.
The job was split into four sub tasks coping with financial and order
Management.

Global Rollout

Way was to put into practice to each one of the sites incrementally and rollout in waves
Global rollout was done to be able to execute throughout several physical regions.
They will prepare yourself to leverage their R&D investment over hundreds and
Thousands of UNITED STATES nationals.

Tektronix already possessed a producing bundle developed by an inferior player within the

ERP market. So long as the corporate possessed solely lately completed implementation of the.
pac

Que 5
How did Tektronix manage the risks of ERP implementation?
Tektronix faced execution risks. As a mature company, generally a producer of measurement tools
and color printers, they experienced a much more intricate legacy environment, a more
diverse product family, and a more geographically allocated execution rollout. Tektronix
efficiently managed the many hazards associated with ERP implementation

The potential risks in ERP execution:

-ERP system execution demands significant amounts of planning. If planning should go wrong,
there are incredibly high likelihood of failure
-Techie difficulty in applying ERP
-The implementation usually takes longer time than expected
-Failure in complementing business process with the ERP system
-The real cost might go beyond the budgeted cost
Tektronix managed the many risks in the next ways:

->Waved execution: Their ERP execution was seen as a change programmer that contains different
waves of change. Each influx in this program would deliver features to another business product
or physical region. Although each influx would be maintained individually, the overall task
team would control the interdependencies to ensure that program continued to be on course.
The features of wave execution are:
>Feedback and exactly how well it has been implemented
>With each successful influx, there is success that will keep morale high
>Waves ensure flexibility

>Attention to program: There is complete importance directed at program. This mitigates the
chance of delays. Momentum is retained and it can help to maintain self-discipline among
employees

>Strong duties: Carl needed the entire responsibility perfectly. A steering committee was proven
to monitor the entire implementation process. There is assignment of obligations. By resorting to
monitoring and steering committee, it becomes easy to recognize risks and for that reason work at
them

>Seller: Tektronix didn't spend enough time in checking features and costs across distributors.
They decided to go with Oracle, as their environment was appropriate for Oracle. Tektronix needed
3 years to use its Oracle applications. Inside the first time they executed a standard ledger in
16 countries. They focused on transforming accounts receivables and cost management in
its local accounting centers throughout the world. After financial applications were
integrated, they added new capacities within their business product product information
>Strong Management Support and Creating a Coalition: While using mandate that Carl
extracted from the CEO, he could execute the task with unlimited expert and minimize through
the politics, allowing him to make quicker and far better decisions. He also received strong support
from the presidents of the business enterprise divisions, various IT professionals, in each
department. This helped lower amount of resistance to change and suffered momentum for
the task as it quickly set up a solid coalition of the happy to steer and support the change

>Minimum disturbance: Carl was presented with complete independence in the execution. This
helped to make quick and successful decisions

>Quality of team: There were full work to choose the right task team, and there were
regular attempts of proper communication

>Roll-out hazards were handled by carefully orchestrating the timing and order of rollouts. They
commenced around Cither simplest corporation moving to US VND, and then to US MBD. The
MBD was the most sophisticated business model.

6. How successful was the Tektronix ERP project?

The team thought the time, work and cost from the project was worth it
The company experienced done goods inventory presence irrespective of its existence on the globe
Same day shipments brought up from 15% to 75% in at least one department which was a
significant achievement.

Cycle amount of time in obtaining credit approvals, over a day pre-implementation have been
practically eliminated

Advanced data integration allowed financial experts to drill right down to several degrees of
detail within a account
Enhanced presence in Sales style and inside performance
Closing reserve of accounts by the end of each period was accelerated substantially
Standardization of business operations led to better decision making
Customers were also happy with the results. They experienced far better and satisfied in their jobs

CONCLUSION
It really is clear that even though execution at Tektronix was expensive it was an effective
implementation. This is because of the existence of lots of critical success factors along with risk
mitigation techniques that were adopted. The occurrence of professional sponsorship through the
project life routine, plus a transformation leader including the CFO as the task champ was critical
to the success of the project. In conditions of global rollout, preventing the big bang seduction and
following incremental procedure was a smart decision. However, there are few areas including the
requirement research, software/supplier selection process and change management where in fact
the project team didn't carry out in depth examination or execution. Concentrate on many of these
areas can have made avoided a few of the problems which were faced through the implementation.
The bottom line is, the successful adoption of ERP at Tektronix helped it to triumph over lots of
the inefficiencies that have been present before and, along the way, enabled it to be a lot more
agile and adaptable.