The Decision-Making Elements of a Self-Building SAP ERP Unit - A Case Study of VOIT Company

• Main Authors: Shu-yu Fan, 范舒寓
• Other Authors: Tain-yi Luor
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/09587371551152532123

碩士 === 國立臺灣科技大學 === 資訊管理系 === 101 === Back in 2008, Jeremy accepted the position of department head of Enterprise Resource Planning (ERP) Maintenance Department when the latter was facing a brain drain problem and declining customer satisfaction issues. At same time, the General Manager expected this move of Jeremy to the ERP Maintenance Department could improve the sector’s revenue. At about the same time, one of his large customers, WD Motor, required a modification on the system in ERP to accommodate cost allocation logic changes. However, this change will create conflicts with the original planning. The ERP Maintenance Department was established in 2000 by the division; ERP technical personnel with comprehensive understanding the modules are very rare on the market. As such, the scope of the Department's core business is focused on high-value and high-margin consulting services on ERP application modules. Target customers are already on-line ERP system customers, and will stay away for ERP programming service. Thus, in this unique phenomenon, in which ERP clients presented complex custom development requirements for which technical ability is lacking, the programming requirements must be outsourced to a consulting firm. Jeremy has many years of experience in the ERP market. He observed that such a situation indicates that the retail and electronics industry is seeking for one-stop shopping. Many customers expect a single point of contact for ERP outsourcing services. Given such demand, Jeremy considered a new business model in which the maintenance department may bring other opportunities. Jeremy wanted to create a SAP ERP programing team in the ERP maintenance department , which will provide customers with a full range of ERP outsourcing services. In addition, the company can fulfill WD programing demands through systematic design and development, thereby evolving into an supplying ERP application and programming service ERP maintenance provider. Jeremy faces the challenge of gaining approval from the General Manager for SAP ERP programing team, primarily because the uncertain economic situation after the 2007 U.S. subprime mortgage crisis has made companies risk averse. Convincing the General Manager of the benefits of this process is a major challenge. This case study is as follows. For many years in the information services industry, ERP maintenance outsourcing market faces the complex problem brought by demand for ERP programming customization caused by the constantly changing environment. Hence, ERP maintenance departments and outsourcing vendors must cooperate toward providing the customization process and specialization. As the ERP maintenance department is not staffed by technical personnel capable of customized programming, The ERP maintenance department is compromised as collaboration usually favors the requirements of vendors. It causes the ERP maintenance department to be lack of the autonomy. Vendors are expected to provide programming services to customers. This study analyzes the theoretical factors for decision making involved in make-or-buy situations. It will also explore factors involved in the symbiotic relationship required in the collaboration between ERP maintenance departments and outsourcing customers. The cost of human resources, technical resources, and the external environment will be discussed, along with other key factors that influence decisions to outsource and resolve customer issues.For the company in the case study, ERP created a win–win situation for the maintenance department, which can develop customized products to meet customer demands on ERP system maintenance departments.