Dow Corning corporation 1

DOW CORNING CORPORATION

Dow Corning corporation 2

1. INTRODUCTION This provided case study which is further divided into part A and part B, explains that how a firm works when it adopts any kind of perspective in order to manage its work and business. In part A the rethinking of the main role of information technology mainly focuses on all over the business context and along with this it also describes that what is the main role of information technology at the Down corning in late 1994, whereas in part B, the re-engineering process is carried down. Apart from this, the case also focuses on that how all the plans are being implemented and all that plans which help in the re-engineering process of global processes. 2. BACKGROUND Dow corning corporation is one of those organizations which were founded in 1943 as a mutually and jointly owned corporation of the corning in-corporate and the Dow chemical company in order to develop the ability and the potential of all the silicone materials. (Andre, 2004, pg 56-67) The main principal of Dow corning corporation consists of polycrystalline silicon and the silicone materials. Apart from this the corporation on the other hand also manufactured the high purity type of polycrystalline silicon, which is termed as the principal kind of intermediate material for any semi conductor chips.

Dow Corning corporation 3 In 1994 the Dow corning had the sales of about $ 2.2 billion, employees around 8300 and around 45000 customers from all over the world. Dow corning along with all its achievements also manufactured and developed and along with this also marketed 5000 products of silicone, which is very well related to the chemical materials. In this case it is also mentioned the Dow corning also targeted the performance of all the products. It has also a great competition with all the large regions and with all over the global companies. (Andre, 2004, pg 56-67) On the other hand the situation also arises where the customers of Dow corning were demanding very fast and with more and more responsibilities in order to have a unique needs. Along with this one of the main and an important structure which is known as the matrix structure which also allows the Dow corning in order to view all the geographical area, all the specific functions. Basically it consists of two business groups. CPBG and the other one is AMBG. These two above mentioned business groups are some how different from each other as CPBG totally emphasis on those products which are established or created under a perfect operational strategies where as the AMBG business group helps in orientation, innovation and how to focus on the regional and also on the local customer relationship and also it helps in working geographically. On the other hand the Dow corning also helps in order to articulate their all commitment to a creative and also to an open culture that totally recognized the values and the norms of their stability. Along with this the management team was also very well determined in order to avoid all the initiatives related to re-engineering department.

Dow Corning corporation 4 3. WHAT MISTAKES WERE THERE Apart from all those successes, which this company had faced, apart from this there was something, which results in a great loss for this company. The breast implants lead to face some crisis. As in 1992, FDA known as food and drug administration argued that the manufacturers were mot sufficiently producing something really good and as the measure of safety for breast implants, so therefore they banned the sale of those kind of breast implants which were filled with the silicone gels. Due to this banned issue the Dow corning corporation, which were producing for almost implants for over 30 years, discontinued their production. This banned action by FDA also led to a torrent of all their products. Due to this whole situation, the company faced a lot of problems and only because of this the company faced such kind of problems, which also led to a great harm and damage for the company. (Andre, 2004, pg 56-67) 4. ACTIONS Apart from all the mistakes which were somehow made by the Dow corning corporation, the senior heads also promised their shareholders and their employees that they will do their best in order to continue with such kind of environment which will be with an open communication and which will concern both, the Dow corning management and also the breast implant crisis. Along with this they also came up with about a six pages of advertising which costs for about $5170 in the local market. The IT department at Dow corning was also working very well, it had a staff of about 120 employees who were directed by a director. The IT department was also responsible for the following main areas:

Dow Corning corporation 5 • • • Main framing e-mail. Ending global systems financial reporting and also the training systems. Telecommunicating.

In 1992 the system information management also issued one of a very well known information network known as the information network principles. The information system of the Dow corning is considered as one of a very important tool n order to enable their multidimensional organizational structure. The top managers of the Dow corning are always concerned about their global supply chain management. (Andre, 2004, pg 56-67) The supply chain management was started along with all the understandings that what actually are the requirements of their customers and is they able to fulfill their requirements. Along with this the Dow corning also started to investigate all over the world the process along with the implementation of SAP, as an alternative, they introduced a software package in order to integrate all those chain supply processes along with all the systems. The Dow corning corporation is consider as one of that organization which has it own sets of strategies, which totally work on its own set of principles, and strategies. No doubt they face some difficulties too but apart from this they also work very well in order to generate better and better results and also in order to become the most successful organization in the world. (Andre, 2004, pg 56-67)

Dow Corning corporation 6 5. PROJECT MANAGEMENT APPROACH While reviewing the business process and on all the projects related to the reengineering process the company decided to implement different methods, one of the methods is the recent pilot implementation. The more and more success of the pilot implementation generates such kind of result, which was very much supportive for the organization itself. Where as on the other hand there were some members who were hoping to lower down and also they were deciding to reflect them on whatever they had gained from the entire pilot projects, Lacefield also felt that this was very much important in order to set different ambitious deadline in order to set further sets of implementations. It was also stated that if you ever wish to sustain and to keep the momentum of any kind of change program then in order to do so you have to continue in order to gain milestones that are very much challenging as well as aggressive. Otherwise, you will get to an end of the pilot project and it is therefore consider as an anticlimactic when ever it is the beginning stage. The Dow corning corporation also opted for many kinds of different approaches. It also compressed the most upgraded sequence by just signing the SAP agreement and with the help of this they very easily formed the supplier management relationship. This project was one of the most important projects for this organization as it was the one who can save this organization from being harmed. The Dow corning plan also extended for the operation procurement software. They worked very well and very much harder in order to be the most successful along with most powerful one. (Jim, 2004, pg 20-22)

Dow Corning corporation 7 Dow corning organization is a jointly owned company of the corning incorporation as well as of the Dow chemical corporation which manufacture and develop all the silicone based products as well as silicon for all over the global market. The company also had a magnificent history of the consistent and also of the regular growth in the sales, which thus reached to about $ 2.2 billion in 1994 and also to $ 2.5 billion in 1995. As a result of all these charges towards the income in order to have future settlements and also the current settlements of all the lawsuits, which are, somehow directly or indirectly related to the silicone breast implants which are all gel filled. Along with this the Dow corning corporation had also recorded all the operating losses in both the years 1994 as well as in 1995. In addition to this, Dow corning corporation was also facing an increasing global world wide which is also termed as a global competition also presented all the requirements in order to have more and more faster cycle times, also in order to have lower costs and along with this a greater and more enhanced responsiveness for all the needs of the customers. Each and every employee who works in the Dow corning organization is very much devoted and also committed towards their work so that they can work very well and also can put their efforts so well that they can for sure gain success and success. In order to address these all requirements the management also thought that, it was very much imperative in order to re-engineer and also to re-design the global worldwide supply chain. Along with this at the center of all the hard efforts of the reengineering process, the main and the most important part was the implementation of the SAP/R3. (Jim, 2004, pg 20-22)

Dow Corning corporation 8 The senior management also agreed for the implementation of the SAP in the early 1995 and at the same time they also introduced three main and the most important changes in the IT management. • A new and innovative committee along with the process and IT board which consists of the senior officers. • The functions of IT, which was generally combined to perform different kind of functions. • The vice president, Charlie Lacefield of engineering and manufacturing department was also appointed to the most newly positions. There were different functional computing corporations; they were re-organized into a well systematic federal system. This kind of well-modified corporation was working in order to generate most powerful and better and better results. Lacefield on the other hand also made it clear that all the primary goal related to the IT departments and units was only to support the project termed as PRIDE, the Dow corning corporation’s long term effort. Along with this the management also used different kind of graphics in order to communicate their views related to the reengineering process and also the re-engineering efforts to the employees. (Jim, 2004, pg 20-22) First of all the implementation of the project SAP/R3 would very much easily and firmly facilitate the implementation process of the global transactions where as this alone would provide better and better benefits, along with this the firm also anticipated more powerful advantages, it also produce more significant benefits from the re-designation of the Dow corning’s four main and core process of operations.

Dow Corning corporation 9 • • • • Financial management. Personnel management. Customer focus. Product delivery.

Finally the re-engineering process was further extended to the four main decision making process. • • • • Portfolio development. Opportunity development. Direction and planning. People development.

The efforts of the re-engineering also had expected time duration of about 10 years. All the benefits would further grow and the people skills would also evolve around throughout the process. On the other hand the management of Dow corning corporation also decided to invest in the software known as SAP because all the analysis had shown that this above mentioned software would be efficient enough for the corporation in order to re-engineer all its world wide workflow process. The contract negotiations also focused on all over the full fledge system of the software. In order to ensure that all these implementations would also lead to the radical change in the corporation’s process, the senior management also developed a list of the re-engineering priorities. (No name, 2000, pg 20-24) 6. PARTICULAR CHALLENGES TO THE GLOBAL COMPETITION

Dow Corning corporation 10 This implementation, which is termed as a pilot implementation, also gives some important and most advantageous lessons in order to formalize much more in the learning process. Along with this the implementation had also helped a lot in clarifying the role of all over the global team. All the global team had also accepted the primary and as well as secondary responsibilities in working with the individuals in order to implement the R3 at all the pilot sites. Moreover the IT department has worked very well in order to save this organization. And it also worked in order to identify the main issues where the actual problem is so that they can very easily solve that particular problem. All the senior heads of Dow corning wanted to meet the key requirements as soon as possible in order to be the most popular one and also in order to be the most successful one. In future implementation, the management also expects to rely on those particular areas teams for the implementation support only and only to allow the global team in order t focus on adding the performing as well as the functionality kind of multiple implementations. (Jim, 2004, pg 20-22) As one of the part of the workflows of re designing and also developing the additional functions, the members of the global team had also started communicating and interacting with all the experts who can solve their issues more quickly and easily. The company’s head says that we expect that with the help of this we can have a very good experience with the help of which we can work very well and when we will be able to work very well then we will for sure generate the best and the best results.

Dow Corning corporation 11 The company has to face a number of different kinds of challenges in order to work harder and harder and also to generate better and better results so that they can produce best and the best. Challenges are of different kind, some are those kinds of challenges which most of the companies faces due to their competitor’s work. When their competitor are working very well and producing the best and the best result then the level of challenge automatically rises and the opponent part has to work harder and harder in order to save their own company or organization. (Curtis, 2000, no pg)

In this mentioned case the challenges are very much critical because the production of silicone based materials for the purpose of breast implants were banned and this banning issue cause a great harm for the company itself because due to this the opponent party was working very well and this was a great misleading issue for the Dow corning corporation. (Jim, 2004, pg 20-22) Challenges which were faced by the corporation were very much challenging and were no doubt very much difficult because all the opponent parties or the opponent corporations were very much demanding, but apart from this Dow corning faced these challenges and made themselves the most successful and also the most powerful one among other corporations. Moreover all the departments in the Dow corning corporation worked very well and very much harder in order to generate best and the best results. Each and every department whether it is an IT department or the finance department or the marketing department or any other department they worked very well and produced such kid of result which was really amazing. (No name, 2000, pg 20-24)

Dow Corning corporation 12 In order to ensure that all the area team are very much better, they are prepared very well in order to support all kind of the local implementation and as well as the management, which along with this provide an extended kind of training for all the members or for all the team members. An initial training also took place in the Midland, where the members of the global team were not only taught about the existing functions, but apart from this they were also taught that how to use them, how to maintain a balance between each and every kind of work and also that how to cope up with each and every kind of work related activities. All the employees are very much devoted towards their organization to be the most popular and to be the most powerful as well as the most successful organization in the world. (No name, 1999, pg 30-33) This Dow corning corporation is a corporation which is working with full stream of work and in which each and every employee who works; work according to the organization’s demand and along with this they also work according to the work load. The implementation system which is also mentioned above is very well-defined, the role of the global team is that what actually they are here for, what are their responsibilities. (Andre, 2004, pg 56-67)

Dow Corning corporation 13

Dow Corning corporation 14 BIBLIOGRAPHY Colas Andre, (2004), “Biomaterials Science, Second Edition: An Introduction to
Materials in Medicine”, page 56-67.

No name, (1999), “Panel confirms no major illness tied to implants”, page 30-33.

N name, (2000), “Chronology of silicone breast implants”, page 20-24.

Jim, (2004), “Dow Corporation”, page 20-22.

Curtis, (2000), “Breast implants at Dow Croning Corporation”.

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