Case Study 2
Overhauling the Information Systems Environment
Multi-base Company Limited is a diversified business group with interests in fabric and yarn
manufacturing, paper and pulp, and cement. Its manufacturing units are located across the country
and number eight- one for fabric, two for yarn, two for paper and pulp, and three for cement.
While the head of each unit has considerable operational autonomy, strategic decisions considering
these units, such as capacity expansion, procurement of new technology involving substantial
investment, etc., are made at the headquarters, located in Delhi. The head quarters monitor the
performance of every unit though weekly and monthly reports are which are prepared by CBIS
installed at each unit. Often considerable amount of time of the senior executives based at the
headquarters is taken away in analyzing these reports and drawing inferences for planning and
control. The result is that the senior executives have little time for strategic thinking which they feel
is a must in the present competitive environment. The CEO of the company has thus proposed to
develop suitable computer based systems which might be helpful in understanding the current
status of various manufacturing units in terms of their overall performance, the type of
environmental constraints that operate in the three business that exist for enhancing capacity in
these business areas.
a. What systems would you propose that would serve the company’s needs?
b. Considering that the company already has CBIS installed, will you contemplate complete
overhaul of the systems or add functionalities of the existing systems? Justify your line of action.
c. Justify the requirement of a Chief Information Officer (CIO) in the context of the given case let.
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