Alcan Case Study

1414 Words6 Pages
Alcan Case Analysis Executive Summary Like many of its competitors and comparable manufacturers in the discrete and process metal production, process metal and service-related businesses, Alcan is continually challenged with how to unify their diverse business units and processes to gain competitive advantage. The dynamics of many process-related industries include growing through mergers and acquisition, which has also been an area that continues cause Alcan challenges from an IT perspective as well. Alcan's critical business processes and strategies include sourcing the best possible materials, approving and working with suppliers, while also negotiating with them for the best possible price. Of the many raw materials the company relies on, Bauxite is the most strategically important across the business units Alcan operates today. During the time period of the case study, Alcan generated $23.6B in revenue, operated in 61 countries and had 68,000 employees. They had grown aggressively through acquisition, creating approximately 1,000 duplicate systems, with 400 of them being just for pricing. Given this massive duplication of IT resources, Alcan pays SAP AG hundreds of millions of dollars a year in maintenance fees alone. These are the key factors of the case and set the foundation for the assessment of the pros and cons of the current Alcan IT infrastructure. An analysis of the proposed Alcan infrastructure is also provided, in addition to a recommendation for
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