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Case E

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by

Thomas GUILLAUME

on 17 February 2012

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Transcript of Case E

BUSINESS OVERVIEW Sinosteel Corporation is a China state owned strategic resources enterprise. “It is a large multi-national enterprise with core businesses engaging 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.” One Brand Two Goals Four Strategies Three Core Business One Corporation name
One Corparation image
One Product Logo Sinotsteel will measure up the standards of 500 companies in the world around 2010
Sinosteel Corporation will be internationally well known and competitive. Metallurgical mineral ressources development and processing
Trade and logistics of metallurgical ressources and products
Project Servicing and Equipment Building Specialization
Internationnalization
Industrialization
Informatization Five Industries Mining
Carbon
Refactory materials
Ferroalry
Equipment Building What are its major challenges?
How would an ERP system address the challenges? Over the years, Sinoseel has acquired hundreds of companies. In the process, the company has inherited the information systems of its many subsidiaries.
Sinosteel faces some international challenges. The enterprise has a global presence. Integrating all overseas company together, Sinosteel has forged a well-managed global operations structure.

The Oracle ERP system the enterprise uses enable it to standardize the coding used its different subsidiaries.
Sinosteel provides challenges “from itself to itself”. In every aspect of its businesses, the enterprise strives to provide exemplary world class results.
The Oracle ERP system enables Sinosteel to standardize its managerial regulations.

Sinosteel is always looking forward to it business efficiency and to sustainable development. It operates in the kind of industry where all resources have to be commanded all around the world and delivered at the right place and the right time.
multiple benefits emerged: a centralized and unified platform which covers the whole enterprise.

improved information consolidation and collaboration in the enterprise.

Major milestone in Sinosteel’s efficiency and sustainable development major upgrade of management expertise.
Conclusion Oracle’s implication enabled efficient management of all core business functions:
information sharing: customers information is now centralized
customer relationship management.
Free flows information which create a better conection between
Implementation: flexible plateform
HOW THE ERP SYSTEM HELP SINOSTEEL ACHIEVE
OPERATIONAL EXCELLENCE? WHAT WERE THE
BENEFITS OF INSTALLING THIS SYSTEM GIVEN THE
SUBSTANTIAL COST INVOLVED? An ERP System would address the challenges Sinosteel faces by:

Increasing the management efficiency of the whole enterprise
Providing an efficient management of all core business functions.
Increasing its customer’s relation management
Optimizing its management processes
Fear to the change from the employees
Risk of having information stolen
Electronic and or technical failures
What do you think some of the implementation issues and risks might have been with this system?
WHAT FACTORS WERE IMPORTANT IN THE CHOICE
OF ORACLE? (1/4) Sinosteel had to choose an Enterprise Resource Planning which fitted to its business strategy in order to improve its management level. The main points they had to respect were in line with:
HR Management.
Resource assignment optimization
CRM and security issues
Supply Chain Management
WHAT FACTORS WERE IMPORTANT IN THE CHOICE
OF ORACLE? (2/4) But Sinosteel had to take into account its Business Environment as well.
As a worldwide company which owned many subsidiaries and various Human
Resources problematical the company need a leader in the enterprises resources management.
The choice of Oracle is logical from this point of view because the company is
international and know how to deal with those issues.
WHAT FACTORS WERE IMPORTANT IN THE CHOICE
OF ORACLE? (3/4) Those applications enable an efficient management of all core business functions:
Information sharing in all core business functions
For CRM Oracle provide the centralization of customers’ information, without it information were detained by subsidiaries now Sinosteel has a global vision of Customers Information.
For Supply Chain Management ERP System improve efficiency thanks to a better free flow of information.
For HR the most important point is that ERP System let connected employees to data
to financial data.
WHAT FACTORS WERE IMPORTANT IN THE CHOICE
OF ORACLE? (4/4) Oracle’s Information System Strategy is adapted to business leaders:

The technologies used are very advanced,
The company developed have a very various range of e-business applications and their
experience in ERP implementation is one of the best.
The system is very flexible and so very easy to use with a minimum of formation.
HOW DID BUSINESS PROCESSES CHANGE IN ORDER
TO IMPLEMENT THIS ERP SYSTEM? Sinosteel main issues are to distributed resources at the right time in the right place and all over the world so in order to use ERP in an efficient way the company had to operate a globalization of its Supply Chain Management.

In HR the interest was to connect employees’ data to financial ones which was something undone before.

For CRM Sinosteel had to improve its sharing of information and its controlling ofcustomers’ information between the different That implied a better collaboration. Ana
Elise
Pierre
Clément
Thomas Case E : Sinosteel Clément Ana Elise Thomas Elise The ERP system and Sinosteel WHY?
Improve Management efficiency
Consolidation of operations’ management
Optimisation of core business processes
Hencing online interactions with external partners
AIM?
Fulfil uniform management capitals, human resources, clients and operations
Oracle became the foundation of the sophisticated business information platform.
Challenges
Ensure the coordination of all decentralized business units
Security-oriented
Revelant to address the time-to-market context
Direct impact on the management
Is able to deliver timely updates of accounting records and gain insights into the business transactions; achieve synchronous flow of materials
Integration of service and constant exploration of business mode of the Group
To forecast demand for a product.

Risks
Systems tend to be large, complicated, and expensive.
Implementation required an enormous time commitment
Affectation of most major departments in a company.
First in China to launch and ERP projetc
The company's diverse legacy systems and complex business activities make this a very demanding project.
Pierre Most important key factors Operation specialization: divide business of the specialized companies clearly and prevent business overlapping between the specialized companies.
Integrate its systems for human resources management with its financial and operation management systems.
Market internationalization: allocate the resources all over the world.

To improve their informatization practice.

Continuously innovate.
Consolidation of Sinosteel's headquarters and eight subsidiary companies located in Beijing.

Provided a solid technological foundation for future growth by standardizing business procedures. Challenges and Risks
Full transcript