Tuesday, July 21, 2009
1. Why do you think that Aviall failed in their implementation of an enterprise resource planning system? What could they have done differently?
- The reasons why Aviall failed in their implementation resource planning system are because of inadequate consideration of the magnitude of the project, ERP implementation did not improve the basic operational support system needed by Aviall to provide timely supply chain management, ERP system did not support adequately Aviall's business strategies and ERP system project did not adequately address the issue of systems integration between applications. Aviall have done several things which are differently and these are; project planning through the use of some form of a systematic development process, analysis of the business requirements prior to making decisions about the software to acquire for the ERP system and project management should have been a higher consideration of Aviall.
2. How has information technology brought new business success to Aviall? How did IT change Aviall’s business model?
- The reasons why Aviall failed in their implementation resource planning system are because of inadequate consideration of the magnitude of the project, ERP implementation did not improve the basic operational support system needed by Aviall to provide timely supply chain management, ERP system did not support adequately Aviall's business strategies and ERP system project did not adequately address the issue of systems integration between applications. Aviall have done several things which are differently and these are; project planning through the use of some form of a systematic development process, analysis of the business requirements prior to making decisions about the software to acquire for the ERP system and project management should have been a higher consideration of Aviall.
2. How has information technology brought new business success to Aviall? How did IT change Aviall’s business model?
- Information technology brought new business success to Aviall by Aviall can bettermatch production to demand from the IT improvements, sales force spends more time developing customer relationships than processing routine orders, customers have access to price and availability information in less thatn five seconds - a real time feature, Customers are able to transfer their orders from an Excel spreadsheet directly to the web site, system integrated by using common business databases managed by database software from Sybase, Inc., and by designing the new combined system to properly access and deal with customized pricing charts for 17,000 customers who receive various types of discounts, and with an inventory of 380,000 different aerospace parts, developing Aviall.com to reduce the cost per order from $9 per transaction to 39 cents. Information technology changed Aviall's business model by changing it from a catalogbusiness to full-scale logistics business and putting it as a provider of supply chain management services through the integration of a range of Web-enabled e-business software systems.
3. How could other companies use Aviall’s approach to the use of IT to improve their business success? Give several examples.
- Other companies can use Aviall’s approach to the use of IT to improve their business success by securing to its business that it would have a better impact and has no negative effect such as increase in expenses. Good examples with these are reposition of a firm as a supply chain management services provider through Web-enabled e-business software systems and redesign the customer relationship management system to minimize the routine order processing and permit the sales force to focus on product and service development efforts that will grow revenue.
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