RICH CON STEEL Case Analysis.

Desired functionality from new system: Ordering/receiving raw material, tracking

inventory, filling orders for customers and billing.
Current Business process: Complex. Focused on distributing hardware. No
manufacturing beyond cutting sheet metal.
Legacy Systems: IBM System Three machine (1969). Key punch operation. No
database. Homegrown code by Rich Con (Low quality?). No ability to track orders
customer, purchase and work. Reporting was vey tedious. Maintenance was a
challenge as technology was becoming obsolete.
In-house development of a new system (customizing an AT&T accounting package)
did not work due to improper product selection and extensive modifications made to
the package.
Company decided to select an integrated package tailor made for metal industry
that runs on AT&T hardware.
Analysis
A. Distribution of roles and responsibilities
Marty Sawyer was responsible for
o Managing a company as the President.
o Integrating a new IT system (75%)
o Operationalizing of Roundo machine
Marty had too much on her plate and she was able to do justice to any of the
3 roles. She should have formed her technical team and delegated the
responsibility of Selection of new technology system to this new. In the end,
the issues as a result of new technology implementation became too big and
cumbersome to handle. As a result, she could not devote any time to her
primary role as a President of the company. This was one of the compelling
reasons for the firms downfall.
B. Unwillingness of employees to use the new system
There was no proper training scheduled for the employees.
The employees had no incentive to learn the software and they were the new
system incorrectly.
They went back to the paper based process, because it was quicker and
needed no learning curve.
Employees felt that they were not prepared for this new system.
C. Improper Implementation and Transition
The new software was procured without a maintenance contract. Rich Con did
not attempt to customize the product most of the time was spent on sundry
activities. As a result the logic in the system was flawed.
Rather than hiring a separate consultant to do the implementation, Marty
relied on the vendor itself without ascertaining the quality of such an

implementation or the impact it would have in the long run. Instead of opting
for a pilot based approach, Marty decided to adopt a blast implementation.
Employees were left stunned as they didnt know what was coming and found
an escape route by rescinding back to their old process.

D. No interdepartmental collaboration
The sales department was doing well with the new system.
There was not enough information percolating from the sales department to
billing
Data reconciliation became a problem

E.

Other issues
Union problem,
Rolling division of Roundo needed attention,
Sales were dropping.
New management team was not performing as expected.
The company needed information to make a plan and improve performance.
For this information they needed a new MIS. Hence there was a rush with
implementation.
These issues could have been addressed if Marty had devoted equal time to
her role as company President.