1. Murat Orkun Akan Ahmet Veysi Coşkun Fatih Koç
VANDELAY CASE
Murat Orkun Akan
Ahmet Veysi Coşkun
Fatih Koç

2. Vandelay Industries $8B Corporation, founded in Minnesota
Production of rubber and latex
It employed people and manufactured on four continents.
No integration – No compatibility

3. Old Information System
Each plant has its own system for MRP
Examples of information system inefficincies
Scheduling
Forecasting
Order Management
Human Resources
Financials and Accounting

4. Project Background
Vandelay had decided to implement a single ERP information system througout the corporation
R/3 from SAP AG

5. The Software Vendor: SAP
Founded in 1972 in Walldorf, Germany
Goal  producing integrated application software for corporations
First major product R/2 System
Also known as ERP (Enterprise Resource Planning)

6. The Software Vendor: SAP
In 1992, The new product  R/3
Advantages:
Ease of use
Ease of integration
Scalability
More open standarts

8. The Software Vendor: SAP
Reason for this rapid Growth:
Client-server technology
Modularity, functionality (exhibit 2), and integration
Marketing Strategy

10. R/3 Usage

11. The Consultants: Delloite and Touche Consulting Group / ICS
Merger of Delloite, Haskins & Sells and Touche Ross
In 1995, Consulting Group
1 billion dollars revenue
Employed 8000 professional
More than 100 countries
R/3 Global Logo Partner

13. Vandelay Project
18 months
50 people
$20 million

14. Team Structure Team Name Team Composition and Time Commitment
Issues addressed by team
% of total issues addressed by team
Steering Committee
Division VPs
8 people meeting monthly
Business Strategy,e.g. sequence of site installations
5 %
Project Team
Operations employees,e.g. planner/buyers,financial accountants
20 people,full time.
Implementation specifics:,e.g.rules for reserving inventory for a customer order
95%

15. Managing Change Centralization vs. autonomy
Change agents and organizational inertia
Software

16. Questions
What was one of the reasons for the rapid growth in sales of SAP products in mid 90s?
How would you describe Vandelay Project team structure (issues adressed,team composition etc.) ?
What were the reasons for a change in information system?

17. Thank you for listening
Any questions ?