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GSB 522 Rich-Con Steel

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GSB 522 Rich-Con Steel. Rich-Con Steel. Rich-Con Steel . How big a risk did Sawyer think she was taking when she decided to implement the BAI system? Why was there such a severe meltdown after the new system went live? What were the principal root causes? . Root Cause.

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slide1
GSB 522

Rich-Con Steel

Rich-Con Steel

rich con steel
Rich-Con Steel

How big a risk did Sawyer think she was taking when she decided to implement the BAI system?

Why was there such a severe meltdown after the new system went live?

What were the principal root causes?

root cause
Root Cause

Marty Sawyer’s failure to recognize this system as strategic – lack of leadership/insight/proper planning

PEIT implementation brings new business processes and business process change is organizational change:

  • Externally imposed
  • Interdependence-increasing
  • Sudden
  • Large-scale
  • Core
  • Unignorable
implications of an enterprise wide process enabling it
Implications of an Enterprise-Wide Process-Enabling IT

The Centrality of General Managers for IT Success

Types of decisions facing general managers with respect to PEIT have far-reaching consequences:

  • Organizational structure
  • Performance
  • Competitive strategy
  • Relations with partner companies
  • Does a General Manager need to be deeply versed in the technologies under consideration?
model to prepare for process enabling information technology
Model to Prepare for Process Enabling Information Technology

A Model for Implementing Process-Enabling Information Technology

Descriptive causal link between factors and pitfalls

Prescriptive strategies for managers to influence implementation

Groups

Pitfalls

Process

Technology

People

Strategies

a model for implementing process enabling information technology
A Model for Implementing Process-Enabling Information Technology

Understanding causal links between factors and pitfalls can help managers identify ex ante the most significant non-technical threats a given PEIT implementation project will face.

Strategy categories to attempt to counter threats:

Level: at which project is governed

Style: managerial style adopted

Phasing: intended timeline and milestones

Scope: number of sites, divisions, geographies, functionality

Preparation: resources devoted to preparing the organization and its members prior to cutover

rich con steel1
Rich-Con Steel

Teams: What would you do if you were Sawyer at the time of the case?

Continue to use new system vs. pull the plug.

Why?

rich con steel2
Rich-Con Steel

Aftermath:

Tried to continue using the system.

Able to stabilize system but too much damage

September 1999 the Sawyer family sold Rich-Con to Falcon Steel

http://kansascity.bcentral.com/kansascity/stories/1999/09/13/story1.html

http://www.falconsteelco.com/default.htm

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