RICH CON STEEL – Case Analysis.

Desired functionality from new system: Ordering/receiving raw material, tracking inventory, filling
orders for customers and billing.

Current Business process: Complex. Focused on distributing hardware. No manufacturing beyond cutting
sheet metal.

Legacy Systems: IBM System Three machine (1969). Key punch operation. No database. Homegrown
code by Rich Con (Low quality?). No ability to track orders – customer, purchase and work. Reporting
was vey tedious. Maintenance was a challenge as technology was becoming obsolete.

In-house development of a new system (customizing an AT&T accounting package) did not work due to
improper product selection and extensive modifications made to the package.

Company decided to select an integrated package tailor made for metal industry that runs on AT&T
hardware.

Analysis

A. Distribution of roles and responsibilities –

 Marty Sawyer was responsible for
o Managing a company as the President.  
o Integrating a new IT system (75%)
o Operationalizing of Roundo machine
 Marty had too much on her plate and she was able to do justice to any of the 3 roles. She should
have formed her technical team and delegated the responsibility of Selection of new technology
system to this new. In the end, the issues as a result of new technology implementation became
too big and cumbersome to handle. As a result, she could not devote any time to her primary
role as a President of the company. This was one of the compelling reasons for the firm’s
downfall.

B. Unwillingness of employees to use the new system –

 There was no proper training scheduled for the employees.
 The employees had no incentive to learn the software and they were the new system
incorrectly.
 They went back to the paper based process, because it was quicker and needed no learning
curve.  
 Employees felt that they were not prepared for this new system.

C. Improper Implementation and Transition –

 The new software was procured without a maintenance contract. Rich Con did not attempt to
customize the product – most of the time was spent on sundry activities. As a result the logic in
the system was flawed.
 Rather than hiring a separate consultant to do the implementation, Marty relied on the vendor
itself without ascertaining the quality of such an implementation or the impact it would have in
the long run. Instead of opting for a pilot based approach, Marty decided to adopt a blast
 implementation. Employees were left stunned as they didn’t know what was coming and found
an escape route by rescinding back to their old process.

D. No interdepartmental collaboration
 The sales department was doing well with the new system.  
 There was not enough information percolating from the sales department to billing
 Data reconciliation became a problem

E. Other issues
 Union problem,
 Rolling division of Roundo needed attention,
 Sales were dropping.
 New management team was not performing as expected.
 The company needed information to make a plan and improve performance. For this
information they needed a new MIS. Hence there was a rush with implementation.
 These issues could have been addressed if Marty had devoted equal time to her role as
company President.