CATERPILLAR TUNNELING CASE Harvard Case Solution & Analysis

Caterpillar Tunneling Case Solution

1. Introduction

Caterpillar Tunneling Case: Strengthening customer receiving of business reasoning basically discusses various points with Caterpillar Tunneling Canada Corporation (CTCC) which was a subdivision of Caterpillar Inc., a former US company. The CTCC trades in a number of important matters, including: data unpredictability, poorly defined procedures, a weak operation Resource planning (ORP) system and different communicating of information within the firm. CTCC was formerly known as Lovat Inc., obtained by Caterpillar to make it a subdivision of the parent firm. The firm has been the manufacturer of tunnel automation, which produces tunnel drills (TBMs).(Ucros, 2018)

2. Why was BI important at CTCC? What value could it provide to the firm?

Basically, problems for the firm started in middle of 2010 - 2011 when the firm decided to shift or improve its IT base to SAP from a personalized business (BI) network. Although, SAP would have been an effective change, but it has not been repeated in business due to the restricted resources and lack of asset issuance issues at CTCC. But, it is important to know that the BI network was as uccessful tool, because it made a chain and successfully empowered the data origin. The BI network was a personalized device, which was a feasible step rather than working for a firm but working with good results. However, not all business sections in this firm are BI guaranteed due to different global communicating results and BI port fixed results. Apart from crucial practical issues, CTCC was a productive organization that had a few divisions operating.

And by having BI devices which have the abilities to upgrade the asset administration, reduce the ineffective wastes and to clarify the operations of automation of usual tasks. Main data accessible from any place, on any device will reducead ministration time and importantly will increase data capacity and accuracy.

Remarkable gaincan be made in manufacturing through more time for marketing employees, more reactive consumer service and faster evaluation of product growth series and marketing drives.(Maliovanov, 1983)

3. What were the challenges CTCC encountered while adopting BI? Consider the management, organization, and technology factors.

As the case says, the CTCC experienced numerous of issues and challenges as it was inadequate to use SAP due to a low number of fund within the firm. As part of SAP, the firm introduced an understanding (BI) network as an ERP structure. The most fundamental and apparent issue at CTCC is that from before Caterpillar obtained, CTCC was a family-operated business; therefore, many of the decisions taken by the company were actual. In association with this, the project- build model or model used within the CTCC was originally very separated from that used by Caterpillar. The firm has used a repeated manufacturing model, which has made it hard for the firm to implement and propose manufacturing policies within the recently obtained company. In association with this, before the possession took place at CTCC it was an estimate administration structure that was quite eased and actually did not satisfied to the complication of quality reporting. In fact, the model was so advanced and untrustworthy that it took months after the work was completed. It was an additional allocation of funds program and the value had surpassed the levels which they were looking for. (J.G.H.Hermsen, 1987)

Department of IT

The IT section at CTCC was not a planned business component, it was literally a corporate support purpose. Through the new ERP structure, the IT section wassecured from the movement of entering and exiting the system traffic, but, it had some practical difficulty, such as: the ERP structure, which did not have an official check by the firm to know and find the backup-company in order to have efficient utilization of the IT functions. In association with this, ERP has questioned speed, which has created a circumstances where the local customers need greater services which are yet to be provided to them.

Department of Resource Planning

This was also a considerable problem for the CTCC, which was caused by the ERP sections having2 ERP examiner, who were accountable for managing the business and features of the ERP in the firm. But, they were well placed with the company's ERP directory, which was useful in creating and solving client’s questions. But the issue being faced in the CTCC was that it did not have a particular plan to control the customer inquiry and to overcome the worries. They work well in their own way and have no way to save the details. Therefore, the use of the BI remained comparatively smaller.

4. What does M&A effect on BI implementation at CTCC?

Acquisition and Mergers is a useful business plan to confirm that they are feasible aggressive position. Due to the huge amount of money complicated in the sale of M&A, it is hard for the receiver to finish the deals only with their inner fundraising, and investment has become an important part. In fact, individual perspective to M&A finance are connected to disagreement. Important M&A costs include investment threats, and legislative structure, each of which createssignals in a market that could straightly affect the victory or failure of M&A directly, and the following grantee performance.

In case, managing an M&A happening as business intelligence (BI) at CTCC’s difficulties will make a hurting, workable, fast, certain, and inexpensive detail solutions. BI implementation and mechanics give the CTCC ability to counter to the details of queries that need to be answered quickly while expanding the transformation and combination opening. And time is the best asset of CTCC to have mutual business strategies, which develop the best possible solutions and best practices.

5. Proposed Solutions/Recommendation:

They are two possible proposed solutions for CTCC to move forward with business analytics:(Ucros, 2018)

To refine local BI for Functionality and long-term engagement

  • Organize the meeting with all the department’s crew to state the business process from start to scratch, then define each stage individually with the relevant data.
  • Develop the possible procedures to improve the operations to make desirable profit.
  • Organize different workshops based on BI system’s functionalities and distribute report templates.
  • Ask corporate to assign an ERP Rep within GIS unit in charge of making sure that communications are properly channeled with the local team.
  • Assess report templates to be more adaptable for user needs.
  • Keep browsing the social media channel to distribute and expand the information.
  • Focus on the culture and try to overcome its weaknesses.

To make integration with corporate easier in the long term

  • Do a formal evaluation and examine the overall information of the company, determine how the subsidiary could hold the corporate IT resources better?
  • Consult the external management to advice on the integration of data resources and improving the current structure to make it easier for SAP to integrate and create an acquired template in the future.
  • Create a team composed of technical and operational people who help the consultant with drafting the SAP and ERP department.
  • Distinct the finance department from the ERP department.
  • Prepare more formal documents on BI system functionalities and the management protocols.
  • Ask the GIS manager to spend some time with the local team in order to understand their needs and to fulfil them.
  • Fulfil the BI demands and understand their needs....................

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