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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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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 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 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 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 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 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 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