After analyzing the case, it can be determined that, the company was in dire need of an effective IT infrastructure and ERP management system. This would ensure that the management could produce timely and accurate financial reports to help them evaluate the performance of the company, compared to the budgets allocated and with respect to other organizations operating in the same market.
On the other hand, it was assessedthat the company was facing significant issues due to its outdated ERP system, regarding data inconsistency, poorly defined production, business processes and ineffective reporting. Furthermore, it was evaluated that, the company decided to implement SAP in its business model just like its parent company.
However, due to budget allocation problems, it was canceled and instead a Business Intelligence platform was implemented, locally to make effective decisions. Information technology department was not regarded as a strategic business unit in CTCC, and it provided a supportive function in the company.
Their IT manager, Simon Swiss was responsible for the supervision of global information services of its parent company in Toronto,which also supported someCaterpillar facilities outside of Toronto. This could have compromised his ability to effectively manage CTCC’s IT services and its GIS integration with the parent company, leading to inefficient IT resource allocation and management.
This could also compromise the company’s ability to convert its raw data into actionable business insight, which could then be used to make effective business decisionsto increase their share and profitability in the market through increased sales. Parent company’s GIS system had exposed CTCC’s IT department to vast IT resources, which could be used to adopt stranded operating procedure that has benefited their parent company since its implementation.
The GIS system also secured the inflow and outflow of data from CTCC, attributed to its corporate firewall. But despite this, CTCC would not be able to take advantages of these opportunities, if the IT manager was preoccupied in traveling to and managing other facilities. Therefore, the management needs to consider that, the IT manager has sufficient time available to perform his duties effectively.
Furthermore, CTCC’s ERP department was small and operated under the same roof of its IT department. It was evaluated that, the ERP department consisted of two ERP analysts responsible for managing the ERP database structure queries for its custom information.McEwan supervised the ERP department, due to the inability of its parent company to guide the future management of CTCC’s system.
Furthermore, its ERP system was not integrated with the GIS system of its parent company, as its IT counterpart. Therefore, it can be determinedthat the management of the company should consider the implementation of an upgraded ERP system (SAP), to mitigate the risk of ineffective allocation of data and using this data effectively to drive relevant information from them.
Similarly, the management should also consider establishing a separateERP department, independent from its IT department. This would allow them to establish effective communications between the departments and allocate more resources in the form of ERP experts, to effectively manage the function of database allocation of the ERP system………………………
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