Rich-Con Steel : A case on Implementing IT Solution

Rich Con Steel company was founded in 1857 in Kansas city. It distributes hardware and did no manufacturing or processing beyond cutting sheet metal. Later company expanded its operations by developing deep expertise in steel rolling or bending beams into desired configurations

Marty Sawyer , an IT savvy manager who recently took the role of President of company from her father. She felt existing IT infrastructure as outdated and needs to be replaced.

Disclaimer: Images are for representation purpose only and they do not represent any person or place in actual

Status Quo of IT infrastructure• A legacy financial and inventory management software running on IBM

System 3 computers • A reliable software to keep track of material and update general ledger.• System did not have the ability to keep track of orders. Orders were hand

written• System could not generate the historical information as it lacked database

Marty’s Vision

Single Change Agent

LEGACY SYSTEM

•Incapable of order management.•Incapable of generating historical information.•High failure frequency•Costly maintenance

MODERN SYSTEM

•Automated Order management capability.• Trend analysis capability.•Low maintenance cost

Marty’s Selection Strategy

In house development:•Wasn’t working too many bugs.•Completion time indefinite.

Standard Package:•Catered most of unique requirements of steel industry.•Huge Order handling capability•Facility to Customize•Proven at other sites of similarindustry

GAP:•No clear goals were defined •Package did not fulfilled all the requirements specific to Rich-Con Steel company.•Software required multiple configuration•No maintenance contract

Marty’s Implementation Process• Incomplete customization.• No User testing. Direct Implementation• Inadequate training to users• No standard methodology of Implementation• IT Vendor’s approach reactive• President of company as single change agent• Company mentally and emotionally not prepared for change

Final Outcome !!Incorrect billing

Incorrect Shipping

Other management

Issues

Lost back orders

Internal mess

Employees sidestepping new

System

Customer Complaints

Incorrect Invoicing

Ideal Approach of ImplementationSELECTION:Firm Strategy:Identify firms objectiveAvoid cost thrift approachPrepare people for upcoming change.

Business Process: Hire external consultant to assess existing business process and IT infrastructure and map it with desired states Design Implementation road map

IT Infrastructure:Seek advice from IT experts on best available solution.

External Environment:Get feedback from other similar industries

Organization Structure:Create specific team and identify a leader (CIO) to implement IT solution.President of company to play role of change management leader and not a role of change implementation leader

Culture:Select IT vendor who have experience of implementing the solution in similar industry

Ideal Approach of ImplementationADOPTIONCustomize the software as per RichCon Steel company’s need.Provide adequate trainings to usersAdequate amount of testing before implementationA backup plan in case of failureEnsure a proper maintenance and support contract

EXPLOITATIONOptimum use of IT infrastructure to gain business advantage

Rescuing Marty from existing quagmire

• Go back to original legacy environment to restore day to day operations• As challenges of legacy environment still hold true adopt following strategy to

start with solution finding and implementation:• Hire an IT consultant to work in tandem with the vendor and IT team.• Marty Sawyer should limit her role a change management leader• CIO and IT team to take care of Implementation• Have planned User Acceptance Test and dry runs.• Bring Automated/integrated solution in practice• Ensure proper support contract is available• Phase out legacy system once all intended requirements of the new system

are established

THANK YOU