Tegan/Hrad Technika Case
The purpose of this paper is to analyze the reasons for the failure of an outsourcing IT project and its effects on the long term partnership of the vendor (Hrad Technika) and their client (Tegan) from each of their perspectives. Hrad Technika and Tegan had shared a favorable working relationship for 3 long years until they encountered this issue. When the IT project of Tegan’s Account Payable system was outsourced to Hrad Technika, both parties seemed to feel unanimously positive about the success of the project.
Hrad Technika was very optimistic about this project in the beginning and saw it as an opportunity to strengthen Tegan’s trust over Hrad’s development capabilities. It saw this project as a climbing ladder to gaining further work from Tegan in the future. However, the project did not pull through as expected leaving Hrad in a complex situation to fix the relationship and to make sure that such a problem never crops up in the future.
Tegan had been looking for assistance and support from Hrad for their A/P IT system which had been working on old legacy system. Since Tegan was growing at a fast speed and relied on the IT system to make payment, they wanted to upgrade to a newer reliable software application which would support them during the Christmas rush. Tegan assigned Hrad Technika to do the development and the problems started when they were not able to match the timeline and budget as per their proposed contract, which they had won after making the specification and bidding.
This case gives us an indepth insight on the management of outsourcing a project from the service provider as well as the client’s end and gives us a broader picture of IT outsourcing.
Outsourcing the A/P Project: Ri...
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... IT per say, which can define the needs and requirements as we see they are bidding and getting information from their partners and then making up RFQ, there is no way they can decide what they want their internal teams to do. If you do not have expertise, you better work with partners. As per Porters strategy map, if this functionality is your key functionality you should keep this in-house and do not give it to other for the development, but I don’t see any option available here. Since, their margins are so low and they run so close to the crash scenario ‘Outsourcing’ was a good option, had this gone well for the development. The failure resulted from communication lapses between the client and the outsourced firm. The client failed to provide all essential information required for the optimal functioning of the system.
Trade-offs involved: Requirements Analysis
In the beginning of March the newly joint corporation, McKesson HBOC started a negotiating process with Oracle Corporation. Unfortunately for McKesson, the negotiations ended without a contract. On April 1 Bergonzi let Hawkins know that he found an offer that could be a good deal. The agreement would require McKessonHBOC to sell $20 million worth of software to Data General, along with a license and a right to return any inventory that was not sold during the period of 6 months. The corporation would also have to help Data General find customers for the product. In return, they could buy $25 millions worth of computer hardware. The contract was signed on April 5 the same year. The senior management thought that backdating the sales and purchases would raise the company's revenues up to the desired levels. In order to cover their actions, the company created a false delivery receipt that showed the date of the delivery as March 31, 1999, while in reality the product was delivered in April. Both, the information about the $25 Million purchase of hardware from Data General as well as the return agreement concealed from the public.
...System (SMS). Knowing that the Harley-Davidson’s employees were not very susceptible to quick changes, SiL’k team made sure to employ company’s model to highlight People, Processes and Technology for any change initiatives. Additionally, company’s Technology decisions were differed to company’s Architecture Integration group to ensure all technical solutions will be compatible with existing Information Systems architecture. Last but not least, the team took an open communication approach and throughout the process, each party involved, shared their monthly updates as well as project newsletter that communicated objectives, activities and progress to the community. This was clearly an ultimate teams collaborative effort, which brought them all toward shared vision of the new process and activities, resulted in shareholder’s decision in favor of the new supplier.
The relationship between the TTA and vendors during the project were also not very good. This, furthermore contributed to the delay of the project (Arthur Tatnall Victoria, 2013; Arthur Tatnall Victoria, 2013). According to the case, there were a lot of issues which lead to potential failures. Right from beginning, the project cost analysis and the estimated duration was too optimistic. Followed by, the tender system, vendor management, change management, project midway-assessment and so on, nothing of these were managed well. This report will discuss through each focus area of IT governance (Victorian Ombudsman, 2011).
Identify and work the BATNA. Also be aware of other negotiator’s BATNA. Remind other negotiator the advantages of TexasAgs offer relative to their unpredictable BATNA. Remind them in subtle way their BATNA is not as strong as it looks. The new production facility of competitor will not be operational until 1987. Resell rights, favoured nations and meet competition are not industry norm and they would not get it even with new competitor. (Lewicki, Saunders, Barry, 2011, p. 258).
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
Mr. Torbett, in the case about the Home Builders Institute (HBI), I noticed some key problems related to the Structural, Human Resources, Political and Symbolic frames. I will go through each of these problems in order to identify which frame it relates to, what the problem is, why it was caused, a recommendation for fixing the problem and any possible ramifications. This will provide some potential future step as you progress in your journey at HBI.
The main problem, in this case, is involving Vermont Teddy Bear which was John Sortino in 1981 is that the companies point of sale system was severely lagging behind. In 2011, The company struggled with major surges in customer periods, for example, Valentine's day and Christmas Eve this occurred because of VTB's intricate middleware system. The issue may have happened because instead of revamping it's system during down periods the company attempted to do patch work jobs over time. This is quite alarming because a major retailer would not have these types of issues with the system when they need it most. Which leads to the next point of the IT supervisor being faced with a dilemma on what to improve prior to the next surge period(Mother's
From initial assessment the project had all of the indicators of a sustaining product line. Which would justify all of the decisions management made as rational. Making a product with increased critical performance features with our current processes and enhance the value system of HP sounded great! Unfortunately, this was a disruptive technology that should have been developed for less than $50 and marketed to gaming community. This case is a classic lesson on the importance of knowing what direction you development team is going, sustaining or disruptive, and accurate categorization. If the project is incorrectly categorized it effects all facets of business including finance, development, marketing, and, management.
Kesavan, R., Mascarenhas, O. A., & Bernacchi, M. D. (2013). Outsourcing Services to India: A Review and New Evidences. International Management Review, 36-44.
Ans: Jean has failed to consider a fundamental rule of “business as usual”. The manager level employees of all departments are cautious about status quo being maintained. In addition to this, Jean has also failed to account the need for cross functional team. The repercussions of which will be in the form of increased pressure on him in making sure users of the software package implemented have right kind of expertise and qualifications to use.
This case study is related to the computer glitch that happened in a bank. The Royal Bank of Scotland has caused millions of the customers unable to access their account. This incident happened is caused by a junior technician in India do not have the skills that are efficient in carrying out a given job.
[4] Gupta, Sachin. For a global software company, outsourcing began at inception . World Paper. April 19. 2004 http://www.worldpaper.com/2004/april/april4.html
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
In this case study it was stated that there were a problem happen in the outsourcing for the Royal Bank of Scotland. What happen was there were an error that happen during the routine software upgrade that cause million of that bank customer cant access to their account. The error happen when one junior technician in India was accidently wiped all the information during the routine software upgrade. The member of staff that was working under the program for the Royal Bank of Scotland, NatWest and Ulster Bank and it was based in Hyderabad, India.
Sometimes, the cost of the driving factors in customer relationship management systems outsourcing does not become a seller's reputation. In these scenarios, it is possible that the CRM service provider can disappear overnight, along with all official documents. It is also possible that the information remain with the service provider may have to get used for other purposes