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Westinghouse Electric Cornerstone Case Study Essay

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1. Identify and discuss the risks in Westinghouse Electric’s Cornerstone project.
Westinghouse made the decision to update its older SAP system that was put in place in 1999 to a system that supports its new business processes, configurations, and functions due to the company’s large amount of growth. In addition, the company estimated that by up-dating the program that it had the potential to increase in operation size by fourfold over the next few years following the up-date according to Laudon & Laudon (2014). To lower the company’s risk of having major problems when implementing the new programs, the company managers worked to ensure that every business process within the company had a specific goal according to Laudon & Laudon (2014). Management felt that by matching goals of the program with business processes, the plan would lower the risk of having problems when implementing the new system.
And, according to Hannon (2012), before implementing the program, Westinghouse management brought in management specialists that did risk assessments and change impact studies to try to identify company areas that were more likely to experience the most changes that would need to be addressed promptly. One of the biggest problems that Hannon (2012) reports that the company had was that management determined that the company’s supply chain organization would be greatly affected and would need a more detailed transformation management strategy than some of the company’s

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