Analyze the case answering those four questions in essay form. From Ideas to App

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Analyze the case answering those four questions in essay form.
From Ideas to Application: Real Cases sclose the cost of the project, but analysts estimate it was well over $10 million. International Game Technology (IGT) is a leading manufacturer of slot machines and lottery machines for casinos and government lotteries. Headquartered in Reno, Nevada, with sales headquarters in Las Vegas, the company also maintains sales, manufacturing, and service sites in Africa, Australia, Europe, and South America. Its Reno site alone produces 140,000 machines annually, It has been profitable for many years. In 2005, it had a profit of $437 million on revenue of $2.4 billion, apparently a situation that would lull executives of other companies to think "If it ain't broke, When the system was ready, three fundt incorporated into one enterprise system: produ development, manufacturing, and finance. Like other ERP systems, R/3 is highly structured even when modified for a particular customer. As often happened the new system forced IGT to cha business processes. However, the company chose SAPs system because it found it less rigid than other ERP systems. This was important to IGT, because it builds machines to order The system afforded the company several benefits Price proposals are made based on more accurate information and estimates. Managers on the manu- facturing floor can view or print out manufact process sheets at their own PCs. Employees can longer ignore specifications or "cut corners." The system does not allow a process to continue attempt such as this is made. The products are made more efficiently and with fewer errors. The system connects all of the company's sites around the globe One of the system's modules is project management which enables managers to monitor design changes don't fix it. Not IGT managers. Until 2002, each business function had its own information system. IGT had different systems for handling sales, customer orders, manufacturing, and accounting. When managers wanted to receive information about a specific customer order, they had to go to each functional unit to receive a different piece of the information: customer details from the sales department, status of the machines being manufactured from the manufacturing units, applications that handled different books, such as accounts department itself had several software applications and costs involved in new product development. The new system replaced the old MRP (material requirements planning) system, but the company s uses its internally developed factory control system which has been successfully integrated into the SAP ystem. The factory control system enables man to know which machines are built at which plant receivable, accounts payable, and the general ledger s was growing, managers complained that they could not get comprehensive information on orders. The IT department developed interface software to connect the systems, but there were still complaints that information was not coherent. The nT agers IGT reduced the average period of order to shipping from 9-10 weeks to 7-8 weeks. When a rush order is entered, IGT can now fulfill it in four weeks instead of seven weeks. Between 2002 and 2005 the error rates in orders for raw decreased from 10 percent to almost 0. Inventory mishmash of software. The loudest complaints came from the accountants. Every year it took them two weeks "to close the books. The accounting department pressured manage- ment to purchase a new system that would make their turn increased from 6.3 to 8.4 percent per work more efficient. The CIO understood their plea but was afraid that satisfying this department's request would trigger similar requests from other units, such as engineering and manufacturing. The result might IGT's CIO admits that the implementati challenging. The company makes a varietyof machines, which meant that many bills of materials had to be entered into the system and new ones be a better information system for each department, have to be entered for new products). Adapting some but disparate systems that still were not connected to each other. On the CIO's advice, IGT management features to the way IGT operates was not easy However, the implementation A steering committee and project team were assembled. Their members focused on business CIO credits the success to strong support senior management, the establishment of a committee with members from all affected units, a steering functionality rather than the technology. After the first selection, systems from three companies were considered: SAP, Oracle, and J.D. Edwards (which program to help employees understand how to use was later acquired by Oracle). After further the new system, and the rigorous testing ystem underwent before it was used. consideration, SAP won the contract, and IGT embarked on a two-year effort. In 2003, the company switched to using the R/3 ERP system. IGT did not Source: Bartholomew, Jackpot," Baseline, D., October 2, 2006: (www.igt.coml, 2007 "ERP: Hits n A

Explanation / Answer

Answer 1) The problem that IGT faced before the implementation of the ERP system are :

Answer 2) As it was higly structured, therefore it allowed the managers and other team mates to understand the various processes easily. Sitting at one place and getting information of all the sub departments is what they wanted and they got that after the implementation of ERP.

Answer 3) The benefits are:

Answer 4) The old factory control system was working fine, it was just some changes which had to be made into it to make it more efficient. Therefore, the IGT decided to modify it to some extent and use the same instead of investing on a new one.

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