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CASE STUDY ANALYSISCASE STUDY ANALYSISCASE STUDY ANALYSISCASE STUDY ANALYSIS----

INVACARE STRUGGLES WITH ITS INVACARE STRUGGLES WITH ITS INVACARE STRUGGLES WITH ITS INVACARE STRUGGLES WITH ITS

ENTERPRISE SYSTEM ENTERPRISE SYSTEM ENTERPRISE SYSTEM ENTERPRISE SYSTEM

IMPLEMENTATIONIMPLEMENTATIONIMPLEMENTATIONIMPLEMENTATION

Presenter Team:

Name Roll No.

Ashok Prasad - 08

Asmita Das - 10

Joyanta Guha - 32

Kalyan Prasad - 34

Sangeeta Mishra - 49

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COMPANY PROFILE

� Invacare Corporation is the world's leading manufacturer

and distributor in the $8.0 billion worldwide market for

medical equipment used in the home

� Headquartered in Elyria, Ohio, USA

� Conducts Business in over 80 countries

� Sells its products in the United States, Australia, Canada,

Europe, New Zealand, and Asia to more than 25000 Home

Health & Medical provider locations

� Follows a JIT (Just in Time Delivery) business model

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PRODUCT RANGE:

� Invacare is the only company in the Home Medical Equipment industry with a full line of products:

� Rehab Products Custom power and custom manual wheelchairs, seating and positioning, and scooters.

� Respiratory Products Oxygen systems, sleep, and nebulizers.

� Standard Products Bath safety, walkers, wheelchairs, beds, and therapeutic support surfaces.

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PRODUCTS:

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CASE INTRO…

� In 2004, Invacare began replacing it’s legacy

systems for “Purchase to payable” process with

modules from Oracle’s 11i E-Business Suite

� Note - Installation of Oracle E-Business suite was

trouble free four years ago.

� The new software module “Order to reach” was

tested under real business conditions

� Was felt ready to be used & the software went live

in October 2005

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AS A RESULT…� Customer dissonance increased, details for stock availability

shipment, etc. was not being available

� Despatch of goods was behind schedule,

� Sales decreased, extra expenses incurred to expedite orders,

� The company’s internal processes like financial reporting etc.

also jumbled up

� Losses totaled $30 million for the 4th quarter’ 2005 and spilled

over to the first quarter of 2006

� Manual inventory count was done in Q-4, 2005

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WHAT WENT WRONG???� Configuration of software?

� Integration of the business processes with the new system?

� Lack of extensive testing?????????

QUESTIONS TO BE ADDRESSED...

� How did problems implementing the Oracle enterprise software

affect Invacare’s business performance?

� What people, organization and technology factors affected

Invacare’s ERP implementation?

� If you were Invacare’s management, what steps would you have

taken to prevent these problems?

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OrderOrder--toto--Cash ServiceCash Service

Order-to-cash is a composite process that integrates data from individual enterprise systems and legacy financial applications. The process must be modeled and translated into a software system using application integration tools.

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Customer Relationship Management (CRM)Customer Relationship Management (CRM)

CRM systems examine customers from a multifaceted perspective. These systems use a set of integrated applications to address all aspects of the customer relationship, including customer service, sales, and marketing.

Process begins with lead generation, marketing campaigns and

order entry which is typically supported by CRM systems

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Enterprise System

Once order is received, manufacturing is scheduled & parts availability is

verified- processes that are usually supported by ERP systems

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How Enterprise Systems WorkHow Enterprise Systems Work

Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise

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Intranets and Extranets for Supply Chain ManagementIntranets and Extranets for Supply Chain Management

Intranets integrate information from isolated business processes within the firm to help manage its internal supply chain. Access to these private intranets can also be extended to authorized suppliers, distributors, logistics services, and, sometimes, to retail customers to improve coordination of external supply chain processes.

Supply Chain Management Systems

Then processes for distribution planning, warehousing, order fulfillment

and shipping that are usually supported by SCM systems

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ORDER TO CASH

� Order is billed to the customer which is handled by Enterprise Financial Applications

� If the purchase at some point requires customer service, then CRM systems are invoked again

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WHAT HAPPENED ...

� Oracle 11i was termed as a ‘Complete, Simple and Fast’

solution, & was released to the market / customers quite

fast…… without extensive testing,

� Early bugs started getting reported, e.g. the shipping firm

DHL Worldwide, which began implementing the earliest

release of 11i reported trouble installing the software,

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STEPS TAKEN & LESSONS LEARNT…� Oracle worked closely with Invacare to resolve the problem

� “Extensive Testing” before releasing to Customer ...

� Wait & watch policy should be adopted for initially stabilizing

the product

� Take feedback from the current users before going for the

next product

� Understand the mindset of - “We'll be more comfortable

when more people are comfortably upgrading”

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Thanks !