Tektronix, Inc.: Global Erp Implementation
Tektronix, Inc.: Global ERP Implementation
Business Context/Key Business Drivers • Tektronix, Inc. was founded in 1946 as a maker of electronic testing equipment. In 1993 Tektronix had grown to be a $1.3 billion manufacturer of electronic tools and devices. It was based in the United States and had an international presence in nearly 60 countries. • After 50 years of success, the company was facing increasing global competition of high-tech producer of electronic equipment. Tektronix should simplify and restructure its operations. A key enabler was the implementation of a enterprise resource planning (ERP) to standardize the information technology (IT) infrastructure as well as financial system. Initiative Objectives/Benefits
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Despite the fact the company was a market share leader in some products; it was hampered by a fifty-year old legacy that limited its flexibility and growth opportunity by global integration. There were many application systems around the world and the company lacked accurate information and integration between the systems. It was difficult see the financial reports as well as where the cost could be cut.
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The company was split into 3 divisions: Color Printing and Imaging Division (CPID), Measurement Business Division (MBD) and Video and Networking Division (VND). The implementation of ERP could support and integrate all division company, enabling it to be a global competition, increasing efficiencies.
Initiative challenges • Tektronix chose Oracle system to be implemented. The company had to develop new business process/model that was able to fit into the ERP. The company created a steering committe to address those issues. The system was implemented by division and after in 23 countries and it took less than 500 days to be completed. Below some challenges and initiative found during the implementation: Depto. / Division Financials Initiative / Challenges • Standardization of charts-of-accounts and elimination of most of the
Business Context/Key Business Drivers • Tektronix, Inc. was founded in 1946 as a maker of electronic testing equipment. In 1993 Tektronix had grown to be a $1.3 billion manufacturer of electronic tools and devices. It was based in the United States and had an international presence in nearly 60 countries. • After 50 years of success, the company was facing increasing global competition of high-tech producer of electronic equipment. Tektronix should simplify and restructure its operations. A key enabler was the implementation of a enterprise resource planning (ERP) to standardize the information technology (IT) infrastructure as well as financial system. Initiative Objectives/Benefits
•
Despite the fact the company was a market share leader in some products; it was hampered by a fifty-year old legacy that limited its flexibility and growth opportunity by global integration. There were many application systems around the world and the company lacked accurate information and integration between the systems. It was difficult see the financial reports as well as where the cost could be cut.
•
The company was split into 3 divisions: Color Printing and Imaging Division (CPID), Measurement Business Division (MBD) and Video and Networking Division (VND). The implementation of ERP could support and integrate all division company, enabling it to be a global competition, increasing efficiencies.
Initiative challenges • Tektronix chose Oracle system to be implemented. The company had to develop new business process/model that was able to fit into the ERP. The company created a steering committe to address those issues. The system was implemented by division and after in 23 countries and it took less than 500 days to be completed. Below some challenges and initiative found during the implementation: Depto. / Division Financials Initiative / Challenges • Standardization of charts-of-accounts and elimination of most of the
References: • • • • http://www.tek.com/ http://en.wikipedia.org/wiki/Tektronix http://en.wikipedia.org/wiki/Enterprise_resource_planning Davenport, Thomas H. (1998) – Putting the Enterprise into the Enterprise System.