implementation ERP
1. What are the current challenges facing Bombardier?
They faced challenges from acquiring many companies because during the acquisitions Bombardier inherited the data, processes and systems of each company which created inefficiencies. Systems didn’t communicate with each other resulting in low inventory turns and price inconsistency. This was not productive for Bombardier and was time consuming for the employees. The biggest problem was the low visibility of inventory and the lack of communication between systems. Bombardier had now a global presence but was not organized to maintain growth without changing the vision and processes. Another challenge is resistance to change, this factor can have a huge impact on the new vision and processes. Management must be part of the new vision and must pass this message to employees in order for this to work. Involvement of employees must be considered and planned in order to succeed.
2. To what extent is Bombardier an integrated company?
Bombardier has a global presence, but it has become a silo organization’ as a result of its acquisition strategy. Management did not realize the impact that every division had it’s own data system and was not entirely compatible with all the locations. Therefore, we can assume that Bombardier was not an integrated company because of the lack of communication between the divisions. With global competition, organization must change to process-oriented structure to allow easy integration of information and be more flexible with it’s new environment. They must take a business process view and use the necessary tool’s to succeed to integrate that business process and break the silo process to achieve a company integration. Six Sigma tools were used to evaluate the processes to become an integrated company and be considered ‘’One Company’’.
3. What are the challenges associated with integration?
It has a high initial set up costs. It may cause conflicts and friction
They faced challenges from acquiring many companies because during the acquisitions Bombardier inherited the data, processes and systems of each company which created inefficiencies. Systems didn’t communicate with each other resulting in low inventory turns and price inconsistency. This was not productive for Bombardier and was time consuming for the employees. The biggest problem was the low visibility of inventory and the lack of communication between systems. Bombardier had now a global presence but was not organized to maintain growth without changing the vision and processes. Another challenge is resistance to change, this factor can have a huge impact on the new vision and processes. Management must be part of the new vision and must pass this message to employees in order for this to work. Involvement of employees must be considered and planned in order to succeed.
2. To what extent is Bombardier an integrated company?
Bombardier has a global presence, but it has become a silo organization’ as a result of its acquisition strategy. Management did not realize the impact that every division had it’s own data system and was not entirely compatible with all the locations. Therefore, we can assume that Bombardier was not an integrated company because of the lack of communication between the divisions. With global competition, organization must change to process-oriented structure to allow easy integration of information and be more flexible with it’s new environment. They must take a business process view and use the necessary tool’s to succeed to integrate that business process and break the silo process to achieve a company integration. Six Sigma tools were used to evaluate the processes to become an integrated company and be considered ‘’One Company’’.
3. What are the challenges associated with integration?
It has a high initial set up costs. It may cause conflicts and friction