Mis: Sinosteel Strengthens Business Management with Erp Applications
883 WordsFeb 19, 20124 Pages
MIS: Sinosteel strengthens business management with ERP applications
1) What is the business of Sinosteel, what are its major challenges, and how would an ERP system address the challenge they face?
Sinosteel is a company that is in charge of producing and processing metallurgical mineral resources, trading and logistics raw materials and products, and it is also related engineering technical service and equipment manufacture. The company is decentralized (it has many subsidiaries), while its business is expanding all around the world.
The main challenges for Sinosteel:
- Improving and consolidating its management, overwhelming their lack of centralization.
- Being more efficient, at the level of resources…show more content…
This ERP implementation might be a risky process for diverse reasons:
- The period of adaptation of the users (employees and managers). Although Oracle ERP applications seem to be rather easy to master, employees may have a short or long period of adaptation to understand how it works and the new internal and external resource management of Sinosteel
- Some problems to centralize all the system and all the data between business units
- The relationships with subsidiaries. In fact, Oracle application allows the company’s system to be more centralized. Thus, some subsidiaries can be wary of adopting a policy of transparency by sharing all their data
6) How did this investment in ERP system help Sinosteel achieve operational excellence? What do you think were the benefits of installing this system given the substantial costs involved?
Operational excellence is achieved by focusing on the needs of customers, empowering employees and optimizing current activities.
The Customer Relationship Management (CRM) improved the customer relationship efficiency. In the past, customer information was decentralized and not shared among all the subsidiaries. This could lead to mistakes in sending invoice to the right customer. Today, this kind of risk is avoided, because all platforms share the whole customers’ information.
The Supply Chain Management (SCM) was also necessary to optimize resources