Case Analysis - Tektronix, Inc. Essay

Decent Essays
Business Context/Key Business Drivers
Tektronix is one of the largest suppliers of electronic tools and devices in the world with annual sales of over $2 Billion and presence in nearly 60 countries. It was founded in 1946 in Oregon, USA and has three autonomous lines of businesses – Measurement Business Division (MBD); Color Printing & Imaging Division (CPID); and Video & Networking Division (VND).

However, the company was struggling financially in the context of increased global competition leading to the constitution of a five-year recovery program. Net income had declined 28% Y-o-Y in 1998 while capital expenditures had increased 38% in the same period. In addition, there was no standardization either in business processes or in IT
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Results ▪ ‘Hard’ benefits such as reduction in Day Sales Outstanding, increased inventory turnover, drastic reduction in the cycle time for credit approvals. ▪ ‘Soft’ benefits such as the acceleration in the ability to close financial books, improved availability & better quality of information to aid decision-making, substantial reduction of time spent by employees in collecting data thus providing them more time to analyzing it i.e. increased efficiency and productivity, better visibility into customers and products, and greater flexibility to the management in acquiring new businesses and divesting existing ones.

Relevance and Analysis ▪ The Tektronix case is a timeless but extremely relevant case that beautifully captures the dilemmas, pain, and fears that most organizations went through in the 1990s and 2000s in the process of upgrading to ERP systems. Unlike Tektronix, several companies have failed in the implementation and a closer look at common pitfalls is essential to understand the key success factors.
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