For such a large company this creates a lot of delay and issues for the company. Their documentation is there; it is just not created and dispersed in the most efficient
Information technology investment was also considered to lag behind the level that was required to initially support the growth and also to support the company in their ongoing global operations. Communication flow was also poor and untimely due to the structure of the business and lack of information systems. Some of the main problems were that; there was an over dependence on in-house manufacturing, SBUs operated as stand-alone businesses with independent inventory and systems which meant duplicated systems that were not integrated, and dysfunctional distribution operations such as outdated inventory ordering methods and inefficient movement of goods along the supply chain. Service levels were low at 80% although the amount of inventory (and therefore ‘money’) tied up in inventory was high (i.e., capital and inventory carrying costs). The inventory issue was also highlighted by the low number of inventory turns and inadequate replenishment practices.
This created confusion of reporting responsibilities, political tension, and reluctance to take responsibility and action. To address the main problem Erik Peterson is inexperienced and this shows in his incapacity to handle various situations in the case. He lacks the support of the upper management (Jenkins and Hardy), and does not reach out for help among his peers( Green,Cantor) He also has to face insubordination,Curt Andrew being the prime accused in this case. He also faces the Turn on Deadline 1) Lack of communication from frontline workers to Curt Andrews (and thus Erik) in providing tower building status, updates, or needs. Erik seems hampered at quickly knowing exactly where the 21 towers stand.
However, the implementation of GGOL faces huge resistance. Individual Sources: Firstly, there is fear of the unknown among the employees and the top managers. The outcomes of GGOL are uncertain, employees feel like their safety and job securities are threatened, especially resignation of plant managers has already happened. Secondly, individuals have habits. They prefer to work in their accustomed ways.
Although Novartis was a multinational company, communication among managers was greatly lacking. Managers within the company were unable to accurately know facts concerning their departments. For example, managers were often unaware of how many associates they had employed in their company. These realities lead to the development of The Novartis Human Resources Information System (HRIS).
Dynacorp Strategic The old division of labour was divided into Engineering, Manufacturing and Marketing units. The new division of labour includes business units composed of engineering and manufacturing functions. As well, a small number of people from the marketing division were assigned to each business unit to deal with market strategy and market positioning. The new “skeleton” of the organization is linked together much stronger. Since before engineering and manufacturing had difficulties moving products from one division to the other, the unification of the two divisions will allow for greater integration.
This was a very complex task considering the numerous combinations of hardware and software components available. Competitors were often unable to successfully develop a strategy that minimized the high manufacturing, carrying, and inventory costs associated with the product life cycle. Computer makers often focused on minimizing one associated cost instead of fully integrating a system that considered lowering every expense. Also, technology was constantly changing throughout this time period. PC competitors were constantly investing capital into new products and services to remain competitive in the market.
The problems faced currently are: a. Information Systems at IW have developed into system with “niche” (exception to current standards) and “sunset” (outdated) technologies, leading to higher IT costs. b. Because of the lack of sustainable coordination, “Shadow IT groups” have been developed within the business units resulting in substantial IT resources that were neither being managed nor considered in the high costs under scrutiny within the IT function. c. Due to lack of standard data definitions, “several versions of truth” could be extracted from the IW depending on the way of extraction.
But this irreprehensible customer service does not come easily. It requires very dedicated employees that go above and beyond to ‘wow’ the customers. Ironically, the same elements that enabled Nordstrom’s success are responsible for its current misfortune. The controversial Sales Per Hour System (SPH), the decentralized management structure, and the not very clear distinction between working hours and non-working hours, have had very damaging consequences for Nordstrom. This firm’s significant earnings growth came to an end in the late 80’s when employee complaints, union allegations, law suits and regulatory orders began to arise.
In Summit’s case, the integration of this information was done manually in batches. This wasted enormous amounts of time and dramatically effected the efficiency and organization of the company. * As the company grew and found out it could no longer process inventory and updates in the amount of time necessary, the system got to its breaking point. This process became extremely costly due to the manpower and amount of time