Caterpillar Tunneling Corporation Harvard Case Solution & Analysis


The case introduces Caterpillar Tunneling Canada Company, a subsidiary of United States-based Caterpillar Inc. engaged in providing Tunneling services to its prospective clients. The companywas established in 1972, under the name Lovat Inc. It specializes in providing tunneling technologies for soft ground and hard rock geographic conditions. It also provided custom design and manufacture of tunnel boring machines (TBM). Along with this, the company also offered refurbishment, technical support, sparepartsfulfillment and reselling services of TBMs. The equipment manufactured by the company could be used to construct transportation and utility tunnels ranging from 2 to 12 meters in diameter. Although, being one of the world’s largest heavy equipment manufacturer, the company hasstill seen some significant growth since its establishment. However, it can be assessedthat the company was facing tremendous problems with its IT system and infrastructure. Thiscompromised its ability to convert raw business data into business insight, so that the management could effectively generate financial reports and evaluate the performance of the company in the market. Furthermore, it decided to upgrade its outdated ERP system with SAP, an enterprise resource planning system, to be fully implemented in Caterpillar Inc. Due to budget allocation problems,the management decided to cancel the new ERP implementation and instead deployed a business intelligence platform, locally, as an intermediary solution to make aneffective business decision. However, it was assessedthat the BI platform had raised the need for new ERP and IT management system, as it complemented the already troubled ERP system. Thus implementing a new ERP was important if the management was to effectivelymanage its IT resources.

Caterpillar Tunneling Corporation Harvard Case Solution & Analysis


Caterpillar Tunneling Canada Corporation was established in 1972, under the name Lovat Inc., which was later converted to Caterpillar Tunneling Canada Corporation, with its headquarters established in Toronto, Canada. The company employed a staff of 330 people, which included sales agents stationed across the world.

Which, in turn, enabled the company to expand its reach on a global scale and give its potential clients the accessibility to engage with the company through its sales agents. The company was a subsidiary of Caterpillar Inc., through which, they acquired Lovat Inc. After implementing the plan to enter into the tunnel boring business.

Lovat Inc. was later namedCaterpillar Tunneling Canada Corporation. Moreover, Caterpillar Inc. was formed through the merger of Holts Manufacturing Company and C. L. Best Tractor in 1925,which, in turn, enabled them to be recognized as the world’s largest manufacturer of heavy equipment. Additionally, the company was already engaged in many other industries, which included mining, construction, forestry and agriculture.

They provided a range of diversified products to its prospective clients.More so, between the years 2005 to 2006, the company decided to transform its business through the implementation of SAP in its business model.This enabled the company to enhance its share in the market and gain a competitive edge over its competitors in the highly diverse and competitive market.................................

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