Case Study

Topics: Enterprise resource planning, Big Bang, SAP AG Pages: 3 (702 words) Published: July 8, 2011

KEDA Industrial Company Ltd. (KEDA) founded in the year of 1992 is a Chinese ceramic machinery manufacturer company. Due to the nature of the primary products, all the departments of the company functioned independently and the problems were solved in ad-hoc manner. This helped the company to achieve efficiency in its operations. But things were not all rosy for KEDA as the disconnected business units often duplicated resulting in redundancy and heightened costs. This lack of integration also resulted in increased competition. Some of the other challenges that forced KEDA to go for ERP were governmental pressure and the issues related to inventory management. The company first began its computerization in the year 2000. Dr. Zhu, Head of the IT department developed a major 5 year plan leading to conducting a wide status quo analysis and also to have an integrated organisation structure with streamlined data flows. After enquiring about several local and global vendors, KEDA shortlisted nine such companies out of which SAP emerged as a winner. The implementation team were formed that included key users, the consultants and the IT officers. With some clashes between the suggestions and interests of the key users and the module owners, the implementation went smoothly and speedily with the help of the senior management. The SAP was successfully installed in the company in the August of 2005. To expedite the entire process, an aggressive big bang approach and forced compliance by the users were adopted. It helped in increasing the data accuracy from 85% to 98%. Within months ERP implementation effort was a great success resulting in decrease in operation and management cost, and improved efficiency.


* Leader in market share and revenue
* Product and management innovator

* Lack of internal IT expertise
* Lack of...
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