Case Study 3: Aviall Inc.: from Failure to Success with Information Technology
1. Why do you think that Aviall failed in their implementation of an enterprise resource planning system? What could they have done differently?
Answer:
The reasons why Aviall failed in their implementation would the ERP system did not support adequately Aviall’s business strategies. The ERP implemented did not improve the basic operational support system needed by Aviall to provide timely supply chain management. The ERP system project did not adequately address the issue of systems integration between applications. The implementation of the ERP failed due to inadequate consideration of the magnitude of the project.
Aviall could have done differently would Project planning through the use of some form of a systematic development process. The Analysis of the business requirements prior to making decisions about the software to acquire for the ERP system and Project management should have been a higher consideration of Aviall.
2. How has information technology brought new business success to Aviall? How did IT change Aviall’s business model?
Answer:
Information Technology brought new business success for Aviall the System integrated by using common business databases managed by database software from Sybase, Inc. Designing the new combined system to properly access and deal with customized pricing charts for 17,000 customers who receive various types of discounts, and with an inventory of 380,000 different aerospace parts. Developing Aviall.com to reduce the cost per order from $9 per transaction to 39 cents. Customers are able to transfer their orders from an Excel spreadsheet directly to the web site. Customers have access to price and availability information in less than five seconds – a real time feature. Sales force spends more time developing customer relationships than processing routine orders. And Aviall can better match production to demand from the IT improvements.
3. How could other companies use Aviall’s approach to the use of IT to
Answer:
The reasons why Aviall failed in their implementation would the ERP system did not support adequately Aviall’s business strategies. The ERP implemented did not improve the basic operational support system needed by Aviall to provide timely supply chain management. The ERP system project did not adequately address the issue of systems integration between applications. The implementation of the ERP failed due to inadequate consideration of the magnitude of the project.
Aviall could have done differently would Project planning through the use of some form of a systematic development process. The Analysis of the business requirements prior to making decisions about the software to acquire for the ERP system and Project management should have been a higher consideration of Aviall.
2. How has information technology brought new business success to Aviall? How did IT change Aviall’s business model?
Answer:
Information Technology brought new business success for Aviall the System integrated by using common business databases managed by database software from Sybase, Inc. Designing the new combined system to properly access and deal with customized pricing charts for 17,000 customers who receive various types of discounts, and with an inventory of 380,000 different aerospace parts. Developing Aviall.com to reduce the cost per order from $9 per transaction to 39 cents. Customers are able to transfer their orders from an Excel spreadsheet directly to the web site. Customers have access to price and availability information in less than five seconds – a real time feature. Sales force spends more time developing customer relationships than processing routine orders. And Aviall can better match production to demand from the IT improvements.
3. How could other companies use Aviall’s approach to the use of IT to