Acer - Changing Erp Trends

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Executive Summary

Acer Incorporated is a Taiwanese multinational electronics manufacturer that is involved in selling computer hardware and software, and providing IT business services for companies around the world. Acer currently uses an Enterprise Resource Planning (ERP) system called Triton, which is a self-developed ERP system. One of the factors that set Acer apart from its competitors is that the company is its own Original Equipment Manufacturer in addition to selling its own brand of computer. In order to determine what challenges Acer currently faces, three analysis methods were used; Porter’s five forces analysis, the Political, Economical, Social and Technological (P.E.S.T.) analysis and the Strengths, Weaknesses, Opportunities and Threats (S.W.O.T.) analysis. These analysis methods lead to three main issues. The first issue is that Acer is in need of an IT supported process to deal with its electronic procurement inefficiencies. Secondly, Acer has not dealt with reallocation of its ERP system very well. Lastly, the general business units (Acer Inc., BenQ & Wistron) showed a lack of product diversification were consequently engaged in depleting each other’s market share by promoting similar products and targeting same customer base. To address the E-procurement issues, vendor consolidation should be implemented in order for Acer to focus on fewer vendors who are capable of supplying all required goods and services. Also, Acer should consider upgrading their existing ERP system software to assist in better prediction of their sales, procurement and customer relationship functions. To address the issues faced with the relocation of the ERP system, Acer should outsource their IT components to allow themselves to focus on their core competencies. In addition, Acer should develop relocation branches which can include ‘permanent facility’, ‘temporary facility’, and ‘warehouse & distribution centers’ which would vary in terms of IT infrastructure. Finally, to address the issue of a lack of product diversification, Acer should target two niche markets to attain sustainability; Computer products and solutions, and Mobile Communications. The aforementioned strategies were further analyzed using a cost-benefit approach. From the analysis, it is evident that the total benefit over the total cost of implementing these strategies will generate present-value revenue of close to 40 billion dollars (NT$), which is approximately $1.2 billion in US dollars over the 5 year life span of the project. Based on the problems identified, the detailed analysis and the implementation method each strategy, it is clear that Acer should implement all three strategies in order to stay competitive.

Table of Contents
1.0 Introduction1
2.0 Acer’s Overview1
2.1 Organization1
2.2 ERP Systems2
2.3 Business & Competitive Analysis2
3.0 Problem Identification and Analysis4
3.1 E-Procurement5
3.2 Reallocation of ERP systems5
3.2 GBU product diversification and IT coordination6
4.0 Alternative solutions and suggestions6
4.1 E-Procurement6
4.2 Reallocation of ERP systems7
4.3 GBU product diversification and IT coordination7
5.0 Recommended Strategies and Implementation Methods8
5.1 Strategy I – Vendor Consolidation and Streamline CRM & SFA8 5.2 Strategy II – Outsourcing & ERP Implementation12
5.3 Strategy III – Market Position16
6.0 Cost-Benefit Analysis of Recommended Strategies19
7.0 Conclusion20
8.0 References21
Appendix A: Cost-Benefit Analysis22

1.0 Introduction
The purpose of this report is to develop IT strategies for Acer Incorporated (Acer) to help the company become more competitive within their industry. Firstly, the overview of the organization and current Enterprise Resource Planning system is analysed to determine what problems to the company is facing. This analysis is substiated by using Porter’s five forces analysis, the P.E.S.T. analysis and the S.W.O.T....
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