Tektronik Case

1. What problems did Tektronix have with their IT infrastructure before they implemented the ERP system?

Tektronix Inc. is a company of Wilsonville (Oregon) that manufactures electronic devices and tools. They have three autonomous divisions: Measurement, Colour Printers and Video & Networking.

In 1993, they contracted Carl Neun as CFO. He thinks that has to simplify and restructure the company operations. He wants to sell off business, change business processes and increase visibility. For make this happened, Neun has to change the implementation of improved IT.

Tektronik have many different application systems and technologies around the world. They have architectural problems (these make impossible to the company to ship "up to the minute" or on a Saturday), patchwork of legacy systems (they have slow processing orders and customers service. These make possible to have an error order), expediting an order required manual coordination, etc.

All this makes Tektronik a very difficult management company. They need a person with leadership skills to simplify all and implement a new system.

2. What concrete steps did Tektronix take to manage the risks involved in such a large and difficult project?

They take:

1- Justify the change and change manager's vision: They have to justify why the company need a radical change and try to convince managers of the different regions on the company.

2- Implement the ERP

2.1- Select software for manages better the company (they took Oracle because Neun was used this software and it's better to take a external company that make the R&D and the software that make it by your own spending thousands of money).

2.2- Worldwide model: Created a steering committee, rules of Business Practice Changes and Guiding Principles, one worldwide implementation of Accounts Receivable and General Ledgar.

2.3- Project Organization and management: Create key roles into the different departments, geographic area, etc.

2.4- Project schedule: Implement a single change program, consisting of many waves. With this, they obtain regular feedback and flexibility in scheduling for managers.

Five major sub-projects: Financials, OMAR (Order Management/Accounts Receivable) implementations (3 projects on the 3 different divisions) and Global Rollout.