Rich-Con – a Steel Distributor Issue
I. Problem Statement (briefly discuss the main decision, problem or opportunity that management is faced with in this case)
Rich-Con is a Steel Distributor that has just recently implemented a new IT system. Sawyer, Rich-Cons CEO looked for an off the shelf software package with two main criteria – UNIX based system and were written for the metal industry. She searched for a UNIX based system due to compatibility with other hardware that had been purchased earlier. She also felt as though the unique requirements of the steel industry, such as multiple units of measure, remnants, and certifications, could not be tailored using a general logistics system.
The users of the system had very little to no experience with the type of software that Rich-Con selected. The training provided by the vendor was not enough and never really stuck with the employees. Additionally many of them had very little experience with personal computers. This lack of readiness and training of the users defiantly contributed to the meltdown within the company.
Sawyer began immediately seeing problems once the system was rolled out. Billing systems were not reconciling, the system was not tying into other departments and soon employees began to go around the system causing double shipments as well as other problems.
There was such a severe meltdown at Rich-Con after the system went live because of the huge jump the company took. Many of the users of the new software had no experience with modern information systems or even personal computers – and seemingly overnight they jumped into a new system. There was very little training and preparation for employees for use of the new system. Soon employees began to go around the system causing double shipments.
II. Analysis of Alternative Courses of Action (list as many alternatives as you can think of and justify their pros and cons)