Adopting SAP at siemens power corporation

Abstract

This case describes how Siemens Power Corporation, a Richland, Washington, USA-based manufacturer of nuclear fuel assemblies, came to adopt and implement SAP's R/3 application suite, the world's leading enterprise resource planning (ERP) package. The case introduces the reader to the type of decision making related to an ERP adoption and implementation and provides some interesting examples of factors which may influence actual decisions and outcomes. Among other things, the case touches on the following issues: the relationship between restructuring (re-engineering) and software adoption and implementation, the choice of package software, the pros and cons of alternative implementation approaches (‘big bang’ versus ‘phased’), the selection of hardware and the value of consultants.By January 1999 Siemens Power Corporation's (SPC's) restructuring project was more than 2 years under way. To SPC's top management's great relief, the company had made major progress ever since SPC's German parent Siemens AG hired a consulting team to help SPC get back on its path towards profitability. In particular, the largest and riskiest of its individual restructuring subprojects - SPC's SAP R/3 implementation - seemed on the way to becoming a success. © 1999, Association for Information Technology Trust. All rights reserved.