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1. INTRODUCTION
This provided case study which is further divided into part A and part B, explains
that how a firm works when it adopts any kind of perspective in order to manage its work
and business.
In part A the rethinking of the main role of information technology mainly focuses
on all over the business context and along with this it also describes that what is the main
role of information technology at the Down corning in late 1994, whereas in part B, the
Apart from this, the case also focuses on that how all the plans are being
implemented and all that plans which help in the re-engineering process of global
processes.
2. BACKGROUND
1943 as a mutually and jointly owned corporation of the corning in-corporate and the
Dow chemical company in order to develop the ability and the potential of all the silicone
and the silicone materials. Apart from this the corporation on the other hand also
manufactured the high purity type of polycrystalline silicon, which is termed as the
In 1994 the Dow corning had the sales of about $ 2.2 billion, employees around
8300 and around 45000 customers from all over the world.
Dow corning along with all its achievements also manufactured and developed
and along with this also marketed 5000 products of silicone, which is very well related to
the chemical materials. In this case it is also mentioned the Dow corning also targeted the
performance of all the products. It has also a great competition with all the large regions
and with all over the global companies. (Andre, 2004, pg 56-67)
On the other hand the situation also arises where the customers of Dow corning
were demanding very fast and with more and more responsibilities in order to have a
unique needs. Along with this one of the main and an important structure which is known
as the matrix structure which also allows the Dow corning in order to view all the
geographical area, all the specific functions. Basically it consists of two business groups.
CPBG and the other one is AMBG. These two above mentioned business groups are
some how different from each other as CPBG totally emphasis on those products which
are established or created under a perfect operational strategies where as the AMBG
business group helps in orientation, innovation and how to focus on the regional and also
On the other hand the Dow corning also helps in order to articulate their all
commitment to a creative and also to an open culture that totally recognized the values
and the norms of their stability. Along with this the management team was also very well
Apart from all those successes, which this company had faced, apart from this
there was something, which results in a great loss for this company.
The breast implants lead to face some crisis. As in 1992, FDA known as food and
drug administration argued that the manufacturers were mot sufficiently producing
something really good and as the measure of safety for breast implants, so therefore they
banned the sale of those kind of breast implants which were filled with the silicone gels.
Due to this banned issue the Dow corning corporation, which were producing for almost
This banned action by FDA also led to a torrent of all their products. Due to this
whole situation, the company faced a lot of problems and only because of this the
company faced such kind of problems, which also led to a great harm and damage for the
4. ACTIONS
Apart from all the mistakes which were somehow made by the Dow corning
corporation, the senior heads also promised their shareholders and their employees that
they will do their best in order to continue with such kind of environment which will be
with an open communication and which will concern both, the Dow corning management
and also the breast implant crisis. Along with this they also came up with about a six
pages of advertising which costs for about $5170 in the local market.
The IT department at Dow corning was also working very well, it had a staff of
about 120 employees who were directed by a director. The IT department was also
• Ending global systems financial reporting and also the training systems.
• Telecommunicating.
In 1992 the system information management also issued one of a very well known
important tool n order to enable their multidimensional organizational structure. The top
managers of the Dow corning are always concerned about their global supply chain
The supply chain management was started along with all the understandings that
what actually are the requirements of their customers and is they able to fulfill their
requirements.
Along with this the Dow corning also started to investigate all over the world the
software package in order to integrate all those chain supply processes along with all the
systems.
The Dow corning corporation is consider as one of that organization which has it
own sets of strategies, which totally work on its own set of principles, and strategies. No
doubt they face some difficulties too but apart from this they also work very well in order
to generate better and better results and also in order to become the most successful
While reviewing the business process and on all the projects related to the re-
engineering process the company decided to implement different methods, one of the
methods is the recent pilot implementation. The more and more success of the pilot
implementation generates such kind of result, which was very much supportive for the
organization itself. Where as on the other hand there were some members who were
hoping to lower down and also they were deciding to reflect them on whatever they had
gained from the entire pilot projects, Lacefield also felt that this was very much important
in order to set different ambitious deadline in order to set further sets of implementations.
It was also stated that if you ever wish to sustain and to keep the momentum of any kind
of change program then in order to do so you have to continue in order to gain milestones
that are very much challenging as well as aggressive. Otherwise, you will get to an end of
the pilot project and it is therefore consider as an anticlimactic when ever it is the
beginning stage.
The Dow corning corporation also opted for many kinds of different approaches.
It also compressed the most upgraded sequence by just signing the SAP agreement and
with the help of this they very easily formed the supplier management relationship.
This project was one of the most important projects for this organization as it was
the one who can save this organization from being harmed.
The Dow corning plan also extended for the operation procurement software.
They worked very well and very much harder in order to be the most successful along
develop all the silicone based products as well as silicon for all over the global market.
The company also had a magnificent history of the consistent and also of the regular
growth in the sales, which thus reached to about $ 2.2 billion in 1994 and also to $ 2.5
billion in 1995.
As a result of all these charges towards the income in order to have future
settlements and also the current settlements of all the lawsuits, which are, somehow
directly or indirectly related to the silicone breast implants which are all gel filled.
Along with this the Dow corning corporation had also recorded all the operating
losses in both the years 1994 as well as in 1995. In addition to this, Dow corning
corporation was also facing an increasing global world wide which is also termed as a
global competition also presented all the requirements in order to have more and more
faster cycle times, also in order to have lower costs and along with this a greater and
Each and every employee who works in the Dow corning organization is very
much devoted and also committed towards their work so that they can work very well
and also can put their efforts so well that they can for sure gain success and success.
In order to address these all requirements the management also thought that, it
was very much imperative in order to re-engineer and also to re-design the global
worldwide supply chain. Along with this at the center of all the hard efforts of the re-
engineering process, the main and the most important part was the implementation of the
The senior management also agreed for the implementation of the SAP in the
early 1995 and at the same time they also introduced three main and the most important
• A new and innovative committee along with the process and IT board
kind of functions.
into a well systematic federal system. This kind of well-modified corporation was
working in order to generate most powerful and better and better results.
Lacefield on the other hand also made it clear that all the primary goal related to
the IT departments and units was only to support the project termed as PRIDE, the Dow
corning corporation’s long term effort. Along with this the management also used
different kind of graphics in order to communicate their views related to the re-
engineering process and also the re-engineering efforts to the employees. (Jim, 2004, pg
20-22)
First of all the implementation of the project SAP/R3 would very much easily and
firmly facilitate the implementation process of the global transactions where as this alone
would provide better and better benefits, along with this the firm also anticipated more
powerful advantages, it also produce more significant benefits from the re-designation of
• Financial management.
• Personnel management.
• Customer focus.
• Product delivery.
Finally the re-engineering process was further extended to the four main decision
making process.
• Portfolio development.
• Opportunity development.
• People development.
The efforts of the re-engineering also had expected time duration of about 10
years. All the benefits would further grow and the people skills would also evolve around
On the other hand the management of Dow corning corporation also decided to
invest in the software known as SAP because all the analysis had shown that this above
mentioned software would be efficient enough for the corporation in order to re-engineer
The contract negotiations also focused on all over the full fledge system of the
software. In order to ensure that all these implementations would also lead to the radical
change in the corporation’s process, the senior management also developed a list of the
important and most advantageous lessons in order to formalize much more in the learning
process. Along with this the implementation had also helped a lot in clarifying the role of
All the global team had also accepted the primary and as well as secondary
responsibilities in working with the individuals in order to implement the R3 at all the
pilot sites.
Moreover the IT department has worked very well in order to save this
organization. And it also worked in order to identify the main issues where the actual
problem is so that they can very easily solve that particular problem. All the senior heads
of Dow corning wanted to meet the key requirements as soon as possible in order to be
the most popular one and also in order to be the most successful one.
areas teams for the implementation support only and only to allow the global team in
order t focus on adding the performing as well as the functionality kind of multiple
As one of the part of the workflows of re designing and also developing the
additional functions, the members of the global team had also started communicating and
interacting with all the experts who can solve their issues more quickly and easily.
The company’s head says that we expect that with the help of this we can have a
very good experience with the help of which we can work very well and when we will be
able to work very well then we will for sure generate the best and the best results.
Dow Corning corporation 11
work harder and harder and also to generate better and better results so that they can
produce best and the best. Challenges are of different kind, some are those kinds of
challenges which most of the companies faces due to their competitor’s work. When their
competitor are working very well and producing the best and the best result then the level
of challenge automatically rises and the opponent part has to work harder and harder in
In this mentioned case the challenges are very much critical because the
production of silicone based materials for the purpose of breast implants were banned and
this banning issue cause a great harm for the company itself because due to this the
opponent party was working very well and this was a great misleading issue for the Dow
Challenges which were faced by the corporation were very much challenging and
were no doubt very much difficult because all the opponent parties or the opponent
corporations were very much demanding, but apart from this Dow corning faced these
challenges and made themselves the most successful and also the most powerful one
among other corporations. Moreover all the departments in the Dow corning corporation
worked very well and very much harder in order to generate best and the best results.
the marketing department or any other department they worked very well and produced
such kid of result which was really amazing. (No name, 2000, pg 20-24)
Dow Corning corporation 12
In order to ensure that all the area team are very much better, they are prepared
very well in order to support all kind of the local implementation and as well as the
management, which along with this provide an extended kind of training for all the
members or for all the team members. An initial training also took place in the Midland,
where the members of the global team were not only taught about the existing functions,
but apart from this they were also taught that how to use them, how to maintain a balance
between each and every kind of work and also that how to cope up with each and every
All the employees are very much devoted towards their organization to be the
most popular and to be the most powerful as well as the most successful organization in
This Dow corning corporation is a corporation which is working with full stream
of work and in which each and every employee who works; work according to the
organization’s demand and along with this they also work according to the work load.
the role of the global team is that what actually they are here for, what are their
BIBLIOGRAPHY
No name, (1999), “Panel confirms no major illness tied to implants”, page 30-33.