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HTT Supercar Case Solution
The development and production of Plethore supercar has led to the need of an integrated information system, which could be used to interconnect, streamline and optimize functions of the entire organization. With the absence of proper IT infrastructure in the organization, the HTT’s top management needs to come with the new system from scratch. The intended solution should be able to eliminate operational islands in the organization and at the same time integrate the entire value chain. This will ensure cost-effectiveness and efficiency of the supply chain and will also assist in the acquisition and retention of the customers. For the purpose of selection of Information System (IS) solution, an evaluate criteria is used, which make use of measurable variables such as start-up cost, training cost and total cost of ownership of the system. In addition to this, it also covers the level of customization and the range of users covered by the system. Using these criteria, HTT has three potential alternatives.
Following questions are answered in this case study solution
Case Analysis for HTT Supercar
First is the use of Sage ERP MAS 500, which will provide the organization with the benefits of an ERP system in minimum price. Secondly, there is the option of SCM system with the name of E2 Shop System. It is also cheap system, which covers the entire supply chain excluding the customer relationship. It will also enable HTT to radically increase the efficiency of its production and material management process. Last alternative exists in the shape of Solarsoft iVP, which is reliable and efficient CRM system, which can go a long way in creating sustainable customer loyalty for the organization in the marketplace. In present circumstances, the selection of Sage ERP MAS 500 looks most appropriate as it will enable covering of all aspects of the value-chain. However, the implementation of such system would require changes in the business processes and the establishment of new IT department.
2. Problem Identification
The main problem faced by HTT is the selection and development of Information System (IS), which will enables the management of HTT to streamline and integrate the processes of production, marketing and customer service related to the Plethore supercar. This system was needed in order to meet the anticipated requirements associated with the launch of supercar. This is due to the fact that there is no proper IT infrastructure and system present in the organization. This was primarily attributed to the lack of need for integrating operation across the enterprise. This has resulted in the emergence of operational islands, which needed to be integrated if HTT wants to fully benefit from the potential of supercar. With the high inventory cost associated with the manufacturing of Plethore, it is imperative for HTT to introduce a new system, which will ensure reliability and efficiency of the supply chain. This system was also expected to streamline the relations of the organization with supply chain partners. The primary supply chain partners in the present case consisted of the suppliers of auto parts and dealers of finished supercars. The IS could achieve this through maintenance of the database, which will provide the top management with essential information regarding the track record of the supply chain, which will enable them to make an accurate decision regarding their selection. The management of cash flow also needed to come under the purview of the new IS in order to enable the organization to overcome liquidity problems. In addition to this, the new IS needs to provide organization with resources to offer excellent services to customers. The resources could exist in the form of real-time information, which will enable HTT to provide unique and customized experience to the customers.
3. Evaluative Criteria
Following is the evaluation criteria for the Information system.
i. Start-up Cost of IS
The start-up cost of IS will include the initial installation and operational cost associated with the implementation of the new IS in the organization. More importantly, it also includes the cost, which is related with the changes in the legacy system, which is brought following the introduction of the new system.
ii. IS Training Cost
In order to make employees benefit from the new IS, it is imperative that the employees are trained to use the new system. This results in the additional cost for the organization. Training can be conducted by the in-house IT department or by the external third party. The in-house option may cost the organization less, but the IT department may not be fully equipped to conduct such activity. On the other hand, external party will be bit expensive but will provide considerably better training to the users.
iii. Total Cost of Ownership
The total cost of ownership will include the start-up, training and maintenance cost. The first two are covered above whereas maintenance costs is related to the optimal running of the IS by the IT department of the organization in case of buying the software. It will be constant overhead for the organization as long as software and the information system are used by the organization.
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