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Ariba Case Study

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Vivi Ye

on 24 April 2014

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Transcript of Ariba Case Study

Team Task
Team Analysis

Our team is going to help Christopher Martin who is from Implementation Technologies to analyze the problems which he is dealing with the Ariba implementation at MED-X, and provide appropriate recommendations to solve these problems.

Cost Performance Index – CPI
– Measures cost efficiency of work accomplished to date

CPI < 1 project is over budget

Schedule Performance Index – SPI
– Measures Scheduling efficiency
SPI <1 project is behind schedule
Project timeline and Status
The implementation project team components:

Cost Performance Index – CPI
– Measures cost efficiency of work accomplished to date

CPI > 1 project is under budget

Schedule Performance Index – SPI
– Measures Scheduling efficiency
SPI> 1 project is ahead of schedule

Key Staff
Team 1
Ding, Rui
Hsiao, Yung-Chien
Wang, Haowei
Ariba Case Study
Company Background

.: A global pharmaceutical company headquartered in Houston, Txas, with fifty-four plant and more than 40,000 employees worldwide. It's key strategic objectives was to transform its procurement organization into a decentralized purchasing model with a self-service philsophy. By using Ariba e-procurement platform, MED-X would reduce its spending and improve the procurement process.

Implementation Technologies
: A high technology
company which provides global business-to-business(B2B) e-consulting services hearquartered in Chicago with branch offices in New York, Dallas, Miami, and Seattle. It offered a full range of consulting services, including Ariba B2B commerce platform implementation, supplier intergration. Implementation Technologies has been choen by MED-X because this company had successfully implemented Ariba for over thirty clients.

Ariba Inc
. : Ariba offered a powerful suite of e-procurement solutions to help companies manage spending. The Ariba spend management solution was designed to improve bottom-line results. Ariba brought companies together in completely new ways through powerful, easy-to-use web technologies that well overcame the differemces in applications and business processes.

This project began in May and go-live was Octorber 1, 2001. Although the CPR has gone as planned, the project was not going to go live on October 1.

Project timeline and Status
Project budget:
1. Planned cost

2. Actual cost of work performed

3. Budgeted cost of work perfomed

Project budget:
Technical Infrastructure

Software Customization

Project Objectives:

Business Case:
Project Objectives:

1. Design and configure the Ariba solution
2. Provide MED-X with a low-risk and controlled entrée in to leveraging Ariba e-procurement technology
3. Allow personnel to start developing functional and technical expertise in the Ariba Buyer application set

Business Case:
1. To link the external stakeholders like customers, suppliers, partners

2. To get fast return on investment and rapid cost savings

3. To own a secure infrastucture of connectivity

Christopher Martin, the project manager from Implementation Technologies
1 MBA at the Kellogg School of Management
2 A lot technical development experience
3 Know Ariba functionality well
4 First time managing a full-life-cycle c
5 Lack of knowledge about earned value

Team Strengths

The team has a good deal of successfully implemented Ariba experience. Five of those cases were other pharmaceutical companies.

The team can be expected to be highly effective in executing existing programs using proven methods and techniques.

Team Vulnerabilities

The project manager is lack of knowledge about earned value evaluation and may have problems figuring out what was delaying the project.

Some MED-X staffers are assigned as part-time positions. There is probability that part-time staffers will be pulled of the project for other duties.

Adjustments to Consider

Assign a project advisor familiar with earned value evaluation method to assist project manager.

Clarify the priority of this project to make sure the part-time resources will firstly obey the needs for this project.

Cost Performance Index – CPI
– Measures cost efficiency of work accomplished to date

CPI > 1 project is under budget

Schedule Performance Index – SPI
– Measures Scheduling efficiency
SPI> 1 project is ahead of schedule

The recommendation for the project

Establish a Core Team

Replan the rest of work

Extend schedule period

Raising budget

Thank you!
MED-X Resources
Implementation Technologies Resources
Ariba Resources
Problems in Schedule and Budget
Schedule Problems

1. Delay problem has occurred in June and July. And, Chris reported the delay of the project in September.

Budget Problems

2. In Technical Infrastructure, actual cost is over planned budget in very month (except May, July and September). And, actual perform is lower than actual cost in very month (except May and September).

1. A part- time MED-X Staffer had been repeatedly pulled off the project for other duties.
2. The project team didn’t pay attention on the delay accruing at the end of June and July.
3. Project Manager lacks of knowledge and attention to the project.
4. Lack of effective communication.
5. It was the first time for Martin manage a full life-cycle e-procurement implementation.
1. An knowledgeable and responsible Project Manager
1) Choose most knowledgeable and responsible PM
2. An effective communication in Project team
1) A short meeting in every week to report weekly work information
2) Report any problem to Project Manager and Sponsors
3) All employees keep in touch with project manager
4) PM need report important information to his client
5) Strengthen the communication between the organizations
3. Priority of resources and activities
1) Make WBS to sequence the activities
2) Assign resources by the sequence of activities
3) Fix resources and activities problem as soon as possible
4. The project structure should be restructured and streamlined

''Ariba Implementation at MED-X: Managing Earned Value." Norto,Joseph F.; Gershbeyn, Alex; Yung, Derek. Case No.5-404-763. Published 1/1/2006, Kellogg School of Management, Northwestern University, (15 pages).
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