Case Analysis
Information Technology at COSCO
Diana Marie S. Bulaong
Kevin B.Santiago
Kristine Charmaine P. Padilla
Asst. Professor Maria Sagrario R. Simbulan
October 2, 2012
Learning Outline:
I. Introduction
II. Company Back ground
III. Case Analysis
a. Problem/s
b. Areas of Consideration
c. SWOT Analysis
d. Alternatives & Recommendations
e. Conclusion
f. Implementation
IV. Update/s
V. Appendices
INFORMATION TECHNOLOGY AT COSCO
I. Introduction
“To operate globally, a company like COSCO can’t rely on human brains alone. We just wouldn’t be able to stand up. In order to be a true multinational, you must have information technology to support you. We are now the second-largest shipping company in the world, and the world number two must rely on IT.”
-Wei Jiafu, COSCO Chairman
In January 2005, Captain Wei Jiafu, chairman of Beijing-based COSCO Group, noted with pleasure the impact of COSCO’s investments in information technology (IT). COSCO had just placed ninth in an annual ranking of China’s 500 most IT-intensive companies up from 33rd the year before, and Wei had been cited as a “most far-sighted IT enterprise leader.” Among Asia-Pacific companies, Hewlett-Packard and Business Weekly had just named COSCO an “adaptive enterprise” for its IT achievements. More importantly, IT had delivered plenty of practical benefits. Wei noted: “This year’s operating profit is RMB 12 billion; over three times that of last year. Last year’s profit was three times that of the year before. This is the heavy impact of IT.” The benefits of IT stemmed primarily from COSCO’s recent implementation of SAP’s enterprise resource planning (ERP) system for financial functions and IRIS-2, a back office system that managed container ship bookings and cargo. With this foundation laid, COSCO was now building new capabilities. Several initiatives were under way in early 2005; the consolidation of IT functions from across the