Submitted By- Group-9

Shailesh Aggarwal NMP77

Animay Kumar EM01
Nikhil Padalia EM04

 Founded in 1946 as electronic test equipment maker in Oregon

In 1993 - $1.3 Bn Manufacturer of electronics tools and devices.
Businesses
1) Measurement Business Division (MBD)
Major product as logic analyzers, oscilloscope solutions, intelligent handheld tools etc
Sales increment from $812.3Mn (1996) to $ 962.9 (1998)

2) Colour Printing and Imaging Division(CPID)

The phaser family of workgroup color printers, selling into office, graphic arts, engineering/scientific
markets etc. Sales went from $561 Mn to $738 (1998)

3) Video and Networking Division(VND)

Sales going down in 1998

Presence in 60 countries and a worldwide leader in Oscilloscope, television test

measurement and monitoring equipment.

Lack of integration and presence of in coordination of IT system.

Global competition was increasing
Financial performance was suffering
Many legacy systems in US alone
No standardisation
Redundancy of order entry at multiple places
Chance of error
Incomplete and Inaccurate information
Inability of existing system to support the division
Business Expansion

Neun s vision for the enterprise had 3 components

Separability of the businesses
Leveraging shared services
Staying as plain vanilla as possible

Neun (CFO) visions: Frankfurt is Orlando

Initiated by Roy Barker, President of CPID
Inability of existing system to support the division
CPID expansion plans: from niche market of graphics to terminals in

mainframes to mass market PC based customers

Focus on standardization & keeping things simple
Easy justification for ERP implementation

1. Selecting
Software
Retain manufacturing
package
Buy v/s Build
Single vendor ERP
strategy to refrain from
issues like
Maintenance
Integration
Upgradation
Choosing Oracle

2. Worldwide
Business
Model
Steering committee
- To develop a
Global business
model
- To develop
Business practice
changes and
guiding principles
Complex Architecture

3. Project
Organization
& Management
Key roles like program
manager, user leader,
global leader, functional
experts, power users,
functional sub teams
and test teams.
Project headed by Carl
Neun (CFO) final
arbiter and had
complete authority on
implementation.
Division presidents and
Neun acted to resolve
major project
management problems.

4. Project Schedule
Carl Neun believed
scheduling much more
important than budget.
The program was
implemented in waves
and each wave
delivered a specific set
of functionality for a
particular division or
geographic region.

 The project was divided into 5 sub-projects

Financials
Order Management and Accounts Receivables modules in the 3 business divisions
Global rollout

Approach was to implement to each of the sites incrementally and rollout in waves
Global Rollout

Start with Holland Distribution center and implement in waves in select EU & non EU nations
Big Bang implementation in EU , America , Asia ,Australia

OMAR(Order Management/Accounts Receivables) Customization needed because

Different business lines have different types of customers.

Oracle did not have some of the functionality required for OMAR.
Customer facing documents should be in local language.
Each country had slightly different legal language for official documents

1. OMAR at CPID

Natural choice Favouring Management,

Initially launched in beta version and
instability forced implementation team to
spend months on debugging.
Initially Poor results by large consulting
firm, later hired Aris, oracle and other
consultants.
Tektronix took responsibility of business
change while consultants worked on the
system details.

2. OMAR at MBD
More Complex Structure, large
number of Products.
CPID assembled products
domestically and relied
heavily on local distribution
centers, while MBDs new
business model demanded
direct shipment to end
customers.
Hired Oracle consultants at a
very early stage.
Extensive testing was done
which delayed the project but
resulted in zero startup
problems
.

3. OMAR at VND
VND went for a rapid
implementation.
Advantage:
VND was the smallest of
the three divisions at
Tektronix.
The implementation
team was in a position to
benefit from all the prior
work that had been done
in the other two
divisions.
Issues:
The most complex
products.
Division was in the

 Started implementation in Europe as it would address majority of international

implementation issues.
Started with distribution centre in Holland because everybody used that.
Implementation was successful. They were able to ship even more quickly than
before. After Holland DC implementation, the Tektronix team opted to
implement Oracle in pilot set of countries representing both EU and Non-EU
nations.
This followed by big bang for the rest of the European countries
Big bang implemented all three divisional systems together.
After Europe, the American implementation adopted similar big bang approach.
For implementing in Asia/Pacific region Tektronix team first went after Englishspeaking countries Singapore and India
After this two countries they tackled the language difficulties in Korea, Taiwan,
and Hong Kong.
The final country to be implemented was Australia, which had older, mature
business processes, and complex legacy systems needing simplifications.
The rollout covered 23 countries in less than 500 days.

 Expensive but successful Implementation

Tektronix had visibility into finished goods inventory regardless of where

the inventory was located.

Increased capacity to take on additional business & Reduction of Staff
Improved flexibility to buy new businesses
Reduced Staff
Same day shipments in some divisions rose from 15% to 75%
More visibility into sales trends and financial performance.
Financial analysts were able to drill down to several levels of detail
Entire organization became more thinkers than doers

 Not to fall in trap of a big bang seduction.

The incremental approach overcomes the challenges arising from the lack of business synergies
Managed different locations independently, but monitor centrally to ensure fast corrective

measures in case of any deviations , Hire consultants

ERP provides Standardization & Go for Less Customization ,Proper software/vendor selection is

necessary, ERP is not just a Software Change

Pursue a vigorous testing program simulating live work environment to avoid risks and surprises

arising from the integration of complex business operations

Apart from economic justification , ROI analysis and budgeting for the project will also help to

control the implementation costs

Support from people and Senior Leadership ,Power User approach

 Enterprise-wide full installation

A straightforward ERP Implementation approach. It means all ERP modules, such as financials,
manufacturing, and human resources, etc, are implemented in all business units at all geographic
locations at the same time.
The Big bang is difficult to manage for very large organizations.
It is easier in organizations that are centralized.
It is easier for small, simple organizations.

Unit by Unit

This is common approach among large or diverse companies where there are not many common
processes across business units.
Time consuming, but does often lead to increased employee acceptance
More departments may be added over time with their own discreet instances of the ERP application

Key-Process Installation

Smaller companies often opt to focus on a few key processes for their initial ERP installation.
For instance, they may decide to start out using the ERP application's financial module and add other features

as the company grows

THANKS.