Border States Industries Case Study Questions.

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1) What problems was Border States Industries encountering as it expanded? What people, organization, and technology factors were responsible for these problems? Border States Industries expanded as a result of their new business line and also due to extensive growth from their core business of wholesale distribution. BSE’s existing system at that time known as Rigel was designed only for electrical wholesalers and it did not fit into BSE’s requirements anymore. This is the technology factor that contributed to BSE’s problem. During the implementation of the new ERP software, the senior management worked closely with SAP and IBM’s consultants for the successful implementation of the system. The day-to-day operations of the company suffered at this time as the managers had to work on the new project. Here the senior managers are the people factors that were responsible for this problem. The Organization factor that was responsible for BSE’s problem was BSE’s decision to customize the new SAP ERP system extensively. During the initial implementation of the SAP ERP software, instead of adopting the best-practice business processes that was available with SAP Software, BSE decided to customize it to look more like its old ERP system ‘Rigel’. The implementation process took much longer than the management had planned for and that resulted in the delay of their launch date for the new ERP system. This caused their costs to go up by 50%. People were trained much earlier in the process and so they had to be trained again when the system went live, and further the system was not tested properly before it went live. 2) How easy was it to develop a solution using SAP ERP software? Explain your answer. BSE had problems during its initial implementation of SAP ERP because of its intensive customizations, issues with re-training employees to use the software,

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