Submitted By- Group-9 Shailesh Aggarwal NMP77Animay Kumar EM01Nikhil Padalia EM04

Founded in 1946 as electronic test equipment maker in OregonIn 1993 - $1.3 Bn Manufacturer of electronics tools and devices.Businesses 1) Measurement Business Division (MBD)Major product as logic analyzers, oscilloscope solutions, intelligent handheld tools etcSales increment from $812.3Mn (1996) to $ 962.9 (1998)

2) Colour Printing and Imaging Division(CPID) The phaser family of workgroup color printers, selling into office, graphic arts, engineering/scientific markets etc. Sales went from $561 Mn to $738 (1998)

3) Video and Networking Division(VND) Sales going down in 1998 Presence in 60 countries and a worldwide leader in Oscilloscope, television test measurement and monitoring equipment.

Lack of integration and presence of in coordination of IT system. Global competition was increasing Financial performance was suffering Many legacy systems in US alone No standardisation Redundancy of order entry at multiple places Chance of error Incomplete and Inaccurate information Inability of existing system to support the division Business Expansion

Neun (CFO) visions: Frankfurt is OrlandoInitiated by Roy Barker, President of CPIDInability of existing system to support the divisionCPID expansion plans: from niche market of graphics to terminals in mainframes to mass market PC based customersFocus on standardization & keeping things simple Easy justification for ERP implementation

Neun s vision for the enterprise had 3 components

Separability of the businessesLeveraging shared servicesStaying as plain vanilla as possible

Retain manufacturing package

Buy v/s Build

Single vendor ERP strategy to refrain from issues like Maintenance Integration Upgradation

Choosing Oracle

Steering committee

- To develop a Global business model

- To develop Business practice changes and guiding principles

Complex Architecture

Key roles like program manager, user leader, global leader, functional experts, power users, functional sub teams and test teams.

Project headed by Carl Neun (CFO) final arbiter and had complete authority on implementation.

Division presidents and Neun acted to resolve major project management problems.

Carl Neun believed scheduling much more important than budget.

The program was implemented in waves and each wave delivered a specific set of functionality for a particular division or geographic region.

1. Selecting Software2. Worldwide Business Model3. Project Organization& Management4. Project Schedule

The project was divided into 5 sub-projects Financials Order Management and Accounts Receivables modules in the 3 business divisions Global rollout

Approach was to implement to each of the sites incrementally and rollout in waves

Global RolloutStart with Holland Distribution center and implement in waves in select EU & non EU nationsBig Bang implementation in EU , America , Asia ,Australia

OMAR(Order Management/Accounts Receivables) Customization needed becauseDifferent business lines have different types of customers.Oracle did not have some of the functionality required for OMAR.Customer facing documents should be in local language.Each country had slightly different legal language for official documents

Natural choice Favouring Management,

Initially launched in beta version and instability forced implementation team to spend months on debugging.

Initially Poor results by large consulting firm, later hired Aris, oracle and other consultants.

Tektronix took responsibility of business change while consultants worked on the system details.

More Complex Structure, large number of Products.

CPID assembled products domestically and relied heavily on local distribution centers, while MBDs new business model demanded direct shipment to end customers.

Hired Oracle consultants at a very early stage.

Extensive testing was done which delayed the project but resulted in zero startup problems.Faced resistance from Users

VND went for a rapid implementation.

Advantage:VND was the smallest of the three divisions at Tektronix.The implementation team was in a position to benefit from all the prior work that had been done in the other two divisions.

Issues:The most complex products.Division was in the process of absorbing a recent acquisition.

1. OMAR at CPID2. OMAR at MBD3. OMAR at VND

Started implementation in Europe as it would address majority of international implementation issues.Started with distribution centre in Holland because everybody used that.Implementation was successful. They were able to ship even more quickly than before. After Holland DC implementation, the Tektronix team opted to implement Oracle in pilot set of countries representing both EU and Non-EU nations.This followed by big bang for the rest of the European countriesBig bang implemented all three divisional systems together.After Europe, the American implementation adopted similar big bang approach. For implementing in Asia/Pacific region Tektronix team first went after English-speaking countries Singapore and IndiaAfter this two countries they tackled the language difficulties in Korea, Taiwan, and Hong Kong.The final country to be implemented was Australia, which had older, mature business processes, and complex legacy systems needing simplifications.The rollout covered 23 countries in less than 500 days.

Expensive but successful ImplementationTektronix had visibility into finished goods inventory regardless of where the inventory was located.Increased capacity to take on additional business & Reduction of StaffImproved flexibility to buy new businessesReduced StaffSame day shipments in some divisions rose from 15% to 75%More visibility into sales trends and financial performance.Financial analysts were able to drill down to several levels of detailEntire organization became more thinkers than doers

Not to fall in trap of a big bang seduction.

The incremental approach overcomes the challenges arising from the lack of business synergies

Managed different locations independently, but monitor centrally to ensure fast corrective measures in case of any deviations , Hire consultants

ERP provides Standardization & Go for Less Customization ,Proper software/vendor selection is necessary, ERP is not just a Software Change

Pursue a vigorous testing program simulating live work environment to avoid risks and surprises arising from the integration of complex business operations

Apart from economic justification , ROI analysis and budgeting for the project will also help to control the implementation costs

Support from people and Senior Leadership ,Power User approach

Enterprise-wide full installationA straightforward ERP Implementation approach. It means all ERP modules, such as financials, manufacturing, and human resources, etc, are implemented in all business units at all geographic locations at the same time.The Big bang is difficult to manage for very large organizations. It is easier in organizations that are centralized. It is easier for small, simple organizations.

Unit by UnitThis is common approach among large or diverse companies where there are not many common processes across business units.Time consuming, but does often lead to increased employee acceptanceMore departments may be added over time with their own discreet instances of the ERP application

Key-Process InstallationSmaller companies often opt to focus on a few key processes for their initial ERP installation. For instance, they may decide to start out using the ERP application's financial module and add other features as the company grows

THANKS.