Techtronix, Inc.

: Global
ERP Implementation
Amogh Ansh
Mital Sharma
Aatish Mahajan
Tanya Aggarwal
Shivam Vaish
Ankit Sekhri
Need for the change: Challenges

 Increased global competition

 Management and information systems lacked integration and suffered from

uncoordinated evolution

 Lack of integration in financial systems

 High growth of CPID required upgradation of systems

Vision for ERP Implementation

 Separability of the businesses

 Leveraging shared services

 Staying as “plain vanilla” as possible

Planning for ERP

Selecting Software

Worldwide Business Model

Project Organization and Management

Project Schedule
 Selecting Software
 Tektronix was strongly willing to purchase the package rather than building it in-
house

 They concentrated on having a single vendor policy, as it was not in the best
interest of the company to fight with the maintenance, integration and upgrade
issues due to implementing multiple packages

 Finally, Oracle was chosen as the ERP vendor

Worldwide Business Model

 Started with creation of a steering committee

 The role of the committee was to refine the company’s vision and to develop
a global business model that set out the guidelines to which system must
adhere in order to be successful

 The implementation of the business model necessitated a complex

architecture in which each of the three divisions had its own worldwide
implementation of Order Management, Accounts Receivable and General
Ledger
Business Practice Changes and Guiding
Principles
ERP System Architecture
Project Organization and Management

 The infrastructure was built on a number of key roles such as Program

manager, User manager, Global Leader, Functional Experts, Power users,
Functional Sub-teams, and test teams
 Combination of both technical and functional strength used to resolve critical
project issues
 The project was headed by Carl Neun (CFO), who acted as the final arbiter of
all disputes. He had complete authority on implementation given by the
company’s CEO. He also established a set of fundamentals based on the
business model
 The Division presidents and Neun worked together to resolve major project
management problems
Project Schedule

 Implementation a single schedule program consisting of waves

 Each wave delivered a specific functionality for a particular division or
geography
 Flexibility in scheduling
 Time vs cost payoff –Spending extra resources to keep project on track
Implementation
 The implementation was split into five major sub-projects

 First, led by Gary Allen (IT Director) was the implementation of the financial
management systems

 Subprojects two through four, led by each of the divisional IT Directors, consisted
of the Order Management/Accounts Receivable (OMAR) implementations in the
three divisions and the final global rollout led by Gordon

 Financials in parallel with OMAR in CPID division (First in US)

 Standardize chart of accounts and simplify transfer pricing practices
Implementation-Financials

 Implemented to have single view of financial information worldwide

 Change in business process-vanilla approach
 Standardisation of chart of accounts and elimination of transfer pricing
complexity
 Larger changes in Europe – profit centre to commission basis
 All transactions processed through single location Marlow England]
 Usage of vernacular language by sales people
 Oracle package didn’t satisfied all requirements
Implementation support

 Independent consultants Small and large consulting firms were used

 Hired Aris Consulting specialized in Oracle implementations
 Functional expert teamed with user and IT leads from Tektronix
 Cost reduction due to resell the interface to other companies initially develop
for manufacturing package and oracle
OMAR

 Implementation similar to financials but different execution

 Plain vanilla not possible
 As different consumers belonged to different business
 Oracle needed new functionality for OMAR
 Different language for customer facing documents
 Country specific vernacular language for legal official documents
Implementing OMAR at CPID

 Shift in business strategy to a standard,built to stock products

 Initially launched with a beta version which was full of bugs
 Initial poor results from collaboration with consulting firm
 Later Aris,Oracle and other consultants were hired.
 Business change handled by tektronix,system details handled by consultants
 Successful domestic implementation helped build skills and establish practises
for future waves.
Implementing OMAR at MBD

 Much higher level of complexity

 MBD business model demanded direct shipment to customers
 Early reliance on Oracle consultants
 Vigorous testing program “Actual work,actual load”
 Resulted in longer implementation time ,however launch relatively free of
problems
Implementing OMAR at VND
Advantages:-
 It was the smallest of three divisions
 Implementation team was in a position to benefit from prior work.
 It went under rapid implementation
 Small size, few people were trained and very few resistance
 High risk approach was used.
Issues:-
 The most complex products were there. Made to order approach was used.
 Division was in process of absorbing recent acquisition.
 Workforce was distributed in Oregon and California.
Global Rollout

 The team planned to extend its wave approach globally starting from Europe,
as it would address all the implementation issues.
 Started with distribution centre in Holland as everybody has used it.
 After Holland, the team decided to implement pilot project in EU and non EU.
 After this big bang theory was implemented in all the European countries.
 Same approach was used in Americas and Asia pacific.
 In Asia the team went to first English speaking countries like Singapore and
India.
 The final country to be implemented was Australia which had older and more
complex legacy systems.
 The roll out covered 23 countries in 500 days.
Results

 Days sale outstanding and inventory levels improved.

 Visibility of finished goods inventory.
 Same day shipments rose from 15 to 75 percent.
 Data integration lead to drilling down of detail to single account.
 Time spent on data collection reduced from 90 to 10 percent lead to more
effectiveness.
 Improved information lead to better decision making for the managers.
Key takeaways for the next major
implementation :
 Establishing a sense of Urgency
 Forming a powerful guiding coalition
 Creating, Communicating and empowering others to act on the vision
 Planning for a creating Short Term wins
 Consolidating improvements and producing still more change
 For firms to be competitive, business and information strategies need to
aligned