Owens-Corning Case Study
Stand of contents
1 . Case Study Questions........................................................................................................... you 2 . Owens-Corning's Enterprise System Struggle...................................................................... you 1 . Example Questions
Read the Owens-Corning Case Study and then consider the following concerns: 1 . Explain the problems Owens-Corning had having its information systems prior to setting up its venture system. What management, firm, and technology factors had been responsible for individuals dilemmas?
2 . What management, corporation, and technology problems do Owens-Corning confront in adding their organization system in effect?
a few. How did implementing an enterprise system change the method Owens-Corning went its business?
4. Was installing a great enterprise program the right solution for Owens-Corning? Explain. 2 . Owens-Corning's Enterprise System Have difficulty
In the early on 1990s Owens-Corning was a Us leader from the manufacturing and sale of such building materials because insulation, siding and roofer, but supervision wanted the organization to develop. The company experienced only two possible pathways to progress: offering a fuller selection of building materials, and/or becoming a global pressure. To increase its range of products Owens-Corning decided to acquire other companies. To become a global force, management understood the company will have to become a global enterprise that could coordinate the activities of all of its models in many distinct countries.
Headquartered in Toledo, Ohio, Owens-Corning had been divided along catalog, such as fiber-glass insulation, outdoor siding, roofing materials. Every single unit operated as a unique entity having its own set of information systems. (The business had much more than 200 archaic, inflexible and isolated devices. ) Every single plant had its own products, pricing activities, and trucking carriers. Owens-Corning customers needed to place separate telephone calls for each and every Page one particular
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product ordered- one every for exterior, roofing and insulation. The business operated just like a collection of autonomous fiefdoms.
Owens-Corning management assumed that these concerns could be resolved by putting into action an enterprise system. The organization selected organization software by SAP AKTIENGESELLSCHAFT to function as the foundation for the broad organization overhall. " The primary purpose with SAP was to entirely integrate each of our business devices on a global basis so everyone was operating on the same system with the same information, " answered Dennis Sheets, sourcing manager to get the efficiency and roof business. Bedsheets wanted to centralize purchasing. " Prior to SAP, " this individual said, " we were shopping for widgets around the globe without any consolidated knowledge of simply how much we were ordering and by whom. Today [using SAP's R/3 software] we can discover how many icons we're using, where they're being bought, and how very much we taken care of them, [allowing] us to consolidate the general acquisition process. " Now, he added, " we can... make better business decisions and better buys. " Sheets expected the company's material and provide inventories to drop by 25 percent as a result.
However , the project to install SAP's enterprise system would in the end cost Owens-Corning about hundred buck million and take a long period, too expensive and time consuming to get justified simply by the factors given by Linens. The company wished that the fresh system would also allow it to digest purchases more easily. Owens-Corning wanted to get other companies to expand 4-seasons catalog so it may increase product sales from $2. 9 billion in 1992 to $5 billion in a few years. That meant that Owens-Corning would have to absorb it's the gothic, inflexible devices from the businesses it bought. If Owens-Corning were to get a global organization, it would desire a flexible program that would permit the company to gain access to all of the data within an open and consolidated approach. ERP...