Tegan Essay

Introduction: In the year 1971, TEGAN was founded by Dafydd Lloyd in the town of Mumbles and was known as the second largest distributor of educational toys in Europe. Lloyd’s company got listed on London Stock Exchange as per its deep down interest in the electronic revolution where his company earned £5bn. Tegan by the year 2008 employed 3,000 people across its headquarters and 15 warehouses. Integrity, speed and a spotless reputation were Tegan’s principles which were followed even after his retirement. A Chinese toy manufacturer known as Fan Li approached Tegan to distribute its accessories for its Chinese made products in Europe in the May of 2007. According to the case, it was specified that Tegan’s traditional products had generally

Dunnock, the old version of packaged software system is the one where basically the accounts payable system of Tegan was depended. As noticed in the Tegan, Dunnock was internally customized and also includes number of external modules had been custom written. Jones was a very knowledgeable and expert in the A/P system. But for more than two years Tegan was observing as well as examining the issues regarding A/P system. For many times, the IT experts as well as personnel had tried to change the system but they could not be successful as these lead to create many other problems for the company. The interaction with Fan Li’s business proved to be the wrong decision for Tegan as it affected the company’s

But if there are different alternatives provided than outsourcing is not the best option as it includes numerous risks and project failures. In the case of Tegan/Hrad Technica outsourcing the A/P project has proved to be not a best option. As observed in the case, it shows that Tegan had highly skilled employees and a good knowledgeable team which had a good expertise in the A/P system. It has also been observed that the A/P project sounds to be tactical and also needs a great effort for the implementation of the SAP project in its system. Hence, it would be easy as well as simple for the Tegan to incorporate the A/P project into the larger SAP project instead of undertaking on a rapid solution to address its increasing growth in the market. As per Tegan prior to outsource its A/P project, it also included co-sourcing usability in its system. These included outsource of the upgraded Dunnock instead of a complete taking apart of the whole system. To meet its changing business and user requirements, Tegan could have began on the internal customization of