erp implamentation
HEC035
Volume 10
Issue 1
February 2012
Successfully Navigating the Turbulent Skies of a Large-Scale ERP
Implementation1
Case prepared by Professor Benoit A. AUBERT,2 Simon BOURDEAU3 and Brett WALKER4
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects.
Bombardier and Its Environment
Joseph-Armand Bombardier was 15 years old when he built his first snowmobile by propelling a farm sleigh across snow with the engine from a Model T Ford (CBC Archives). From these humble beginnings, Bombardier went on to become a key player in the transportation industry. It entered the rail transportation market in 1974, with a contract to produce 423 subway cars for the
City of Montreal. A contract to supply New York City with 825 subway cars followed eight years later (CanadianBusiness.com). Bombardier’s desire to diversify led it to enter the aerospace industry in 1986, when it purchased Canadair, the leading Canadian aircraft manufacturer.
Bombardier acquired Short Brothers plc, a manufacturer of civil and military aircraft based in
Northern Ireland, in 1989, and Lear Jet Corporation in 1990 (Koselka, 1992). Bombardier made its final major acquisition in the aerospace industry in 1992, with the purchase of the de
Havilland Company from Boeing (a timeline is provided in Appendix 1).
For the year ending January 31, 2007, Bombardier Limited reported revenues of $14.8 billion.
The Aerospace and Transportation divisions contribute fairly equally to total revenues.
1
The authors would like to thank all the people at Bombardier who participated in the case study, with special thanks to Souad
El Mallem and Robert Proulx for their exceptional
Volume 10
Issue 1
February 2012
Successfully Navigating the Turbulent Skies of a Large-Scale ERP
Implementation1
Case prepared by Professor Benoit A. AUBERT,2 Simon BOURDEAU3 and Brett WALKER4
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects.
Bombardier and Its Environment
Joseph-Armand Bombardier was 15 years old when he built his first snowmobile by propelling a farm sleigh across snow with the engine from a Model T Ford (CBC Archives). From these humble beginnings, Bombardier went on to become a key player in the transportation industry. It entered the rail transportation market in 1974, with a contract to produce 423 subway cars for the
City of Montreal. A contract to supply New York City with 825 subway cars followed eight years later (CanadianBusiness.com). Bombardier’s desire to diversify led it to enter the aerospace industry in 1986, when it purchased Canadair, the leading Canadian aircraft manufacturer.
Bombardier acquired Short Brothers plc, a manufacturer of civil and military aircraft based in
Northern Ireland, in 1989, and Lear Jet Corporation in 1990 (Koselka, 1992). Bombardier made its final major acquisition in the aerospace industry in 1992, with the purchase of the de
Havilland Company from Boeing (a timeline is provided in Appendix 1).
For the year ending January 31, 2007, Bombardier Limited reported revenues of $14.8 billion.
The Aerospace and Transportation divisions contribute fairly equally to total revenues.
1
The authors would like to thank all the people at Bombardier who participated in the case study, with special thanks to Souad
El Mallem and Robert Proulx for their exceptional
References: AIRBUS WEB SITE (2007). http://www.airbus.com BOEING (2005) BOMBARDIER INCORPORATED (nda). About us. Retrieved June 18, 2007, from: http://www.bombardier.com BOMBARDIER INCORPORATED (nda). History. Retrieved April 28, 2004, from: http://www.bombardier.com BOMBARDIER (2006). Annual Report, year ended January 31, 2006. BOMBARDIER (2007). Annual Report, year ended January 31, 2007. CANADIAN BROADCASTING CORPORATION (1990). Bombardier buys Learjet Corp. CANADIAN BROADCASTING CORPORATION (2004). Bombardier: The snowmobile legacy Retrieved April 27, 2004, from: http://archives.cbc.ca/IDD-1-73-362/politics_economy/bombardier/ CANADIAN BUSINESS RESOURCE (2004) http://www.cbr.ca/CompanyProfile.aspx?CompanyID=2559 EMBRAER WEB SITE (2007) FEDERAL AVIATION ADMINISTRATION (2004). FAA Aerospace Forecasts – Fiscal Years 2004-2015. FEDERAL AVIATION ADMINISTRATION (2005). FAA Aerospace Forecasts – Fiscal years 2006-2017. GENERAL DYNAMICS (2005). Annual Report, 2005. GOAD, G. Pierre (1989). “Bombardier to buy Short Brothers PLC from British government for $50 million,” The Wall Street Journal, June 9, p GOAD, G. Pierre (1990). “Bombardier Inc. agrees to buy assets, operation of Learjet for $75 million,” The Wall Street Journal. KOSELKA, Rita (1992). “Let’s make a deal,” Forbes, 149, April 27, p. 62-63. SIMONETTA, Joe (2004). Embraer-Empresa Brasileira de Aeronáutica S.A. Hoover’s Online. Retrieved May 12, 2004, from: http://www.hoovers.com/embraer/--ID__95436--/free-co-factsheet.xhtml SIMONETTA, Joe (2004). The Boeing Commercial Airplanes. Hoover’s Online. Retrieved May 12, 2004, from: SIMONETTA, Joe (2004). Airbus S.A.S. Hoover’s Online. Retrieved May 12, 2004, from: http://www.hoovers.com/airbus/--ID__40566--/free-co-factsheet.xhtml SIMONETTA, Joe (2004). Bombardier Inc. Hoover’s Online. Retrieved May 12, 2004, from: http://www.hoovers.com/bombardier/--ID__42381--/free-co-factsheet.xhtml SIMONETTA, Joe (2004). Gulfstream Aerospace Corporation. Hoover’s Online. Retrieved May 12, 2004, from: http://www.hoovers.com/gulfstream-aerospace/--ID__40194--/free-co-factsheet.xhtml THE DE HAVILLAND DEAL (1993)