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Presenter Team: Name
Roll No.
Asho shok k Pr Prasa asad d - 08 Asm smit ita a Da Das s Joyanta Guha - 32 Kalyan Prasad - 34 Sangeeta Mishra
- 10 1
- 49
COMPANY PROFILE
Invacare Corporation is the world's leading manufacturer and distributor in the $8.0 billion worldwide market for medical equipment used in the home
Headquartered in Elyria, Ohio, USA
Conducts Business in over 80 countries
Sells its products in the United States, Australia, Canada, Europe, New Zealand, and Asia to more than 25000 Home Health & Medical provider locations
Follows a JIT (Just in Time Delivery) business model
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PRODUCT RANGE:
Invacare is the only company in the Home Medical Equipment industry with a full line of products:
Rehab Products Custom power and custom manual wheelchairs, seating and positioning, and scooters. Respiratory Products Oxygen systems, sleep, and nebulizers. Standard Products Bath safety, walkers, wheelchairs, beds, and therapeutic support surfaces. 3
PRODUCTS:
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CASE INTRO…
In 2004, Invacare began replacing it’s legacy systems for “Purchase to payable” process with modules from Oracle’s 11i E-Business Suite
Note - Installation of Oracle E-Business suite was trouble free four years ago.
The new software module “Order to reach” was tested under real business conditions
Was felt ready to be used & the software went live in October 2005
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AS A RESULT…
Customer dissonance increased, details for stock availability shipment, etc. was not being available
Despatch of goods was behind schedule,
Sales decreased, extra expenses incurred to expedite orders,
The company’s internal processes like financial reporting etc. also jumbled up
Losses totaled $30 million for the 4th quarter’ 2005 and spilled over to the first quarter of 2006
Manual inventory count was done in Q-4, 2005
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WHAT WENT WRONG??? Configuration of software?
Integration of the business processes with the new system?
Lack of extensive testing?????????
QUESTIONS TO BE ADDRESSED...
How did problems implementing the Oracle enterprise software affect Invacare’s business performance?
What people, organization and technology factors affected Invacare’s ERP implementation?
7 If you were Invacare’s management, what steps would you have taken to prevent these problems?
Order--to Order to--Cash Service
Order-to-cash is a composite process that integrates data from individual enterprise systems and legacy financial applications. The process must be modeled and translated into a software system using application integration tools. 8
Customer Relationship Management (CRM) Process begins with lead generation, marketing campaigns and order entry which is typically supported by CRM systems
CRM systems examine customers from a multifaceted perspective. These systems use a set of integrated applications to address all aspects of the customer relationship, including customer service, sales, and marketing.
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Enterprise System Once order is received, manufacturing is scheduled & parts availability is verified- processes that are usually supported by ERP systems
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How Enterprise Systems Work
Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise 11
Supply Chain Management Systems Then processes for distribution planning, warehousing, order fulfillment and shipping that are usually supported by SCM systems
Intranets and Extranets for Supply Chain Management Intranets integrate information from isolated business processes within the firm to help manage its internal supply chain. Access to these private intranets can also be extended to authorized suppliers, distributors, logistics services, and, sometimes, to retail customers to improve coordination of external supply chain
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ORDER TO CASH
Order is billed to the customer which is handled by Enterprise Financial Applications If the purchase at some point requires customer service, then CRM systems are invoked again 13
WHAT HAPPENED ...
Oracle 11i was termed as a ‘Complete, Simple and Fast’ solution, & was released to the market / customers quite fast…… without extensive testing,
Early bugs started getting reported, e.g. the shipping firm DHL Worldwide, which began implementing the earliest release of 11i reported trouble installing the software, 14
STEPS TAKEN & LESSONS LEARNT… Oracle worked closely with Invacare to resolve the problem
“Extensive Testing” before releasing to Customer ...
Wait & watch policy should be adopted for initially stabilizing the product
Take feedback from the current users before going for the next product
Understand the mindset of - “We'll be more comfortable when more people are comfortably upgrading” 15
Thanks !
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