Sinosteel Strengthens Business Management with Erp Applications

934 Words Jul 24th, 2012 4 Pages
Q1. What is the business of Sinosteel, what are its major challenges, and how would an ERP system address the challenges 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.

It has core business in resources development, trade & logistics, engineering project and science & technology, equipment manufacturing and specialized service, providing comprehensive auxiliary service for steel industry, especially steel mills.


Maintenance of
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- Through the Supply Chain Management (SCM), a better and optimized management of resources (and so cost decrease)
- Through the Customer Relationship Management, a higher customer satisfaction.

Q2. Why did Sinosteel pursue the development of an ERP system? What were the objectives? What challenges (risks) does ERP address for Sinosteel? [The CEO is difficult to understand on some of the objectives, but later in the video an IT manager is more clear and reflects the CEO's position almost exactly. You will need to listen carefully].

The lack of standardization: Even after becoming a subsidiary of Sinosteel, the companies used to keep their former management processes, managerial regulations, coding, human resources management systems, etc. This obviously resulted in a quite difficult global management of the enterprise since having a clear overview of the company was uneasy, if not impossible.


The decentralized information: The information within the different Sinosteel’s subsidiaries used to be kept in the said subsidiary and not to be shared with the other ones. This proved to be very risky.

Thus, before the implementation of the ORACLE Enterprise Resource Planning, the way Sinosteel used to manage its corporate information was risky and could lead to unfortunate or even dangerous misunderstandings.…