Tektronix Case Study

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As Tektronix decided to implement the new Oracle ERP system, the company chose to introduce it in phases, based around the specific functionality or a particular geographic region. Implementing in phases, or in waves as Tektronix called it, allowed the company to experience regular feedback on specific areas of implementation, allowing time to adjust processes and scheduling as needed. The phased approach enabled the company to achieve frequent victories, which kept team and employee morale high throughout the process and provided encouragement to the Board despite the high cost and long timeline of the overall implementation.

To ensure Tektronix's success, the ERP implementation was divided into five manageable sub-groups: (1) Financials, (2-4) Order Management/Accounts Receivable (OMAR) in the three divisions, and (5) the global rollout. Within the sub-groups, additional waves were created to ease into the system. For both the Financials and OMAR, Tektronix decided to implement the new system in the United States first. Though the ultimate goal was for location to be irrelevant in the system and processes required for an order to be completed, it was important that the company see the added-value of the implementation as it proceeded.

When deciding whether to implement in stages or full scale, a company must consider several factors related to the feasibility of each option. Like Tektronix, companies with multiple and/or unrelated business units will benefit more from a phased implementation approach. This allows the company to evaluate the success or failure of the implementation at different stages and in various functionalities. Implementing in stages incurs less risk for large companies than a full-scale approach, a...

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...ged change and drove stability. They also managed risk with their wave implementation plan and other measures. The company had performed their due diligence and had earned their rights to success.

Other firms can learn from Textronix's experience curve. Adaptive project management methods for the future might be iterative, or implementation occurring in increments that result from each iteration so that outcomes and interactions can be tested and understood as they appear. This method has fast cycles and delivery of value so that ‘iterative' doesn't equate to slow. The delivery of functionality should be performed as early as possible so that feedback is incorporated into learning and improves cycles. Also, the team should be highly skilled personnel capable of learning IT. Finally, companies should resist using ROI that assumes predictability of outcomes.

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