Siemen's Clicks with Click2Procure

Topics: Strategic management, Management, Strategy Pages: 4 (1189 words) Published: March 16, 2011
Do you feel the advantages of using this system outweigh the disadvantages? Strategic planning, management and operational control can be successful with the implementation of the appropriate ERP solution for a company. The ERP solution to be implemented by Siemens in this case is Click2procure, a procurement platform which involves connecting buyers and suppliers using web-based technology. Siemens stands to benefit from the use of this system through reduced operational and administrative costs while increasing efficiency. Click2procure will also aid in the improvement of daily management activities such as demand planning and forecasting and there will be greater accessibility of data for managers to make better informed decisions. In addition, improved handling of larger volumes through aggregating purchase orders will allow for Siemens to negotiate better pricing and payment terms with its suppliers while reducing inventory and improving order fulfillment rates. Though the cost of implementing this system is significant, Siemens plans to market Click2procure to other outside businesses which will in turn offset these associated expenses and generate future revenue. This expansion effort will inevitably create new jobs and opportunities for employees in areas of the business that may face staff cutbacks during the transition. On the other hand the disadvantages associated with the implementation of Click2procure include its possible rejection by employees as they adapt new procedures; possible loss of jobs as processes improve; information accessibility and security issues; and the general inflexibility of the system to accommodate customized orders. To a large extent, the success of the new system will depend on the training of staff and utilization of the system by employees. It is therefore imperative for the management of Siemens to effectively communicate its business plan and strategy with its employees. To be successful,...

References: Pearlson, Keri E., Saunders, Carol S. (2010). Managing and Using Information Systems: A Strategic Approach (4th ed.). John Wiley & Sons. Hoboken, NJ.
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