Tektronix Inc

STRATEGIC ISSUES IN PROJECT MANAGEMENT












Learning Journal - Evaluate a Process for Making Decisions

Procedure (Option 1)

Isabel Saldaña Zavala

Jones International University





















October 13th, 2012




STRATEGIC ISSUES IN PROJECT MANAGEMENT


Tektronix Inc. Case Analysis

Abstract

This paper contains the analysisof the problem of Tektronix Inc. This case caught my attention strategies employed by the Chief Financial Officer (CFO) to implement the system and information technology (IT) in the whole process of production and sale of electronic test equipment. Throughout the case analysis process can be observed from identifying problems to implementing strategies to improve the company (Cleland and Ireland,2006, P.172).
Also, it can be said that to have a good result from the implementation of the strategies was important to create a steering committee that were familiar with the project where everyone spoke the same language and have a common philosophy, which allowed greater control of deployment Project Enterprise Resource Planning (ERP).

Case Analysis
Tektronix was founded in 1946 asan electronic test equipment manufacturer. In 1993, Tektronix increased it sales which reached $ 1.3 billion. The Company activity is divided into three autonomous divisions: Measurement Business Division (MBD) (high growth), Color Printing and Imaging Division (CPID) (medium growth), and the Video and Networking Division (VND) (low growth). Tektronix was the leader in its three divisions focusedand based in the United States and had an international presence in over 60 countries.
The company was a world leader in oscilloscopes with a market share of more than double its nearest competitor. Despite having a strong and stable position in its markets, the company was affected by a legacy of fifty years that limited its flexibility and growth opportunities.
In 1993 Tektronixhires Carl Neun as Chief Financial Officer (CFO) who assumed overall responsibility and began to assess the Company situation and identified that one of the main problems was the Information Technology (IT) infrastructure. The Company had many application systems and different technologies worldwide; there were more than 460 systems only in the United States. Neither system was global norstandardized.

IT architectural problems were expressed in deficiencies such as:
• Lack of an information system that would allow the company to send "a minute" or on Saturday, the information required by a subsidiary.
• There were 26 separate divisions with bureaucratic management.
• A sell order was introduced several times in different systems, through the order cycle.
• Thecompany did not have accurate information on the performance of customer accounts and credit operations globally.
• They could not calculate a total billing when a customer order was issued.
• Financial systems also suffered from a lack of integration.
• It took the Company weeks to close the books at the end of the month.
• It was very difficult to know which products and divisionswere profitable and which not.

To solve the identified problems, Neun adopted the following strategies:
• He implemented and standardized IT in each division.
• He implemented shared services and comparable financial aspects.
• He made simple necessary changes on software package in order to standardize processes and simplify software maintenance.
For the implementation of hisstrategies, Neun had unlimited authorization from the CEO. Implementation began with the creation of a steering committee comprised of directors of each division in the world. This implementation was considered as a unique exchange program, consisting of many waves. Each wave was given a specific set of functions for every division or geographic region. Neun’s autonomy allowed quick decisions. In...