NBNS - Elizabeth Pirinis Necessary but Not Sufficient 1 a...

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Elizabeth Pirinis March 18, 2010 Necessary but Not Sufficient 1) a) Gerald Fish is the CEO of Stein Industries, a mid-sized company that is a client of BGSoft. They claim to have tripled their business in the last three years due to the usage of BGSoft’s system and to have had their investment fully returned in no more than a year. Gerald Fish, being in charge of running the company, made a move three years ago that allowed them to grow from being a fifty million dollar company to a two hundred million dollar company. Gerald Fish is known for being conservative with money. b) Brian is a Divisional Vice President working under Craig, the CEO, for Pierco, one of BGSoft’s clients. Brian’s division was experiencing problems that they partially attributed to BGSoft as their inventory went down, shortages went down and sales decreased. He was in charge of announcing a new product line that they invested in upgrading but could not produce enough of to meet demand. Not having the budget to increase capacity, he works with KPI to install an advanced planning and scheduling system. He is responsible for the whole company changing the way that it functions in order to increase capacity and profits. c) Harrison is one of Pierco’s plant mangers that identified a problem with the new system that Brian was responsible for implementing. He identified that BGSoft’s forecasting was off, leading to inventory levels in the plant being too high for some products and to low for others. The deliveries were therefore not being made on time and the company was putting too much money in producing too much inventory. 2) a) Scott uses the ERP System to help explain this concept of “Necessary but not Sufficient.” He explains how the system diminishes limitations as it does things that were not possible before its creation. Before communication between departments was challenging and collecting data was tedious. In order to adapt with these limitations, companies have been practically forced to upgrade their current system with this new technology that they really do not understand the complexities of. Through modifying the product with what the customers wanted, BGSoft lost sight of the rules that resulted from these limitations being in place at the beginning. By ignoring these limitations and only focusing on the “physical” ones, they are still present. Due to this explanation, we can deduce that “technology is necessary but not sufficient.” BGSoft did all they could do to make gains without thinking about these rules that existed before the technology was there and now still exist.
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