The Pirelli group - Improved Information System as the central role to the operations so that the company can cut costs, improve competitiveness by developing new technologies and improve response to customer demands.

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Information Systems                0272195

INTRODUCTION

Organisations today face the challenging job of integrating technologies that pull together a comprehensive solution that fits their business needs and Information Technology (IT) budgets.  In a modern company, the ability to reach the right information at the right time is crucial for overall business success.

Information systems must be available 24/7 from all locations, both local and distant.  Information technology provides the access on demand that provides answers to important questions.  Modern information systems must be completely integrated within an organisation, highly available, customisable, and expandable which would allow for increased user demand, rapid understanding by employees and ease of maintenance.  These factors will help ensure an acceptable cost of ownership for an information system.

This was the challenge of The Pirelli Group.

THE BUSINESS CHALLENGE

Pirelli’s information management team, headed by Mr. Arrigo Andreoni had to respond to a new management plan of an improved Information System as the central role to the operations so that the company can cut costs, improve competitiveness by developing new technologies and improve response to customer demands.  This occurred when the Pirelli Group had to face the erratic nature of the global economy in the early 1990’s.

The Pirelli Group with one hundred and two (102) plants in fourteen (14) countries with an employee standing of more than fifty-one thousand  (51,000) people had to institute an information system that would be able to handle a rapid amount of concurrent users at different locations, while preserving good performance and without becoming too complex to run and maintain.

Another challenge that was faced was the culture of the different local chapters world wide, as each marketing and sales division internationally was able to develop its own information systems with no guidance from the corporate office in the past, resulting in existing legacy systems, handed down over the years.

Mr. Andreoni had to sell his approach, gather information on the local systems and the stages of development at each site without alienating the local chapters.  He also had to ensure that the legal requirements laid by the respective governments were met.

Language needed to be considered, as it remained a major barrier.  In designing the software packages, it had to be built with local language and currency interfaces to ensure some continuity.

Solving these issues can dramatically improve the company’s business efficiency and system administration so that goods and information will flow freely across different countries, with all information on sales and marketing linked in an integrated, effective and efficient package.

PIRELLI’S STRATEGY

Pirelli’s Corporate strategy focused on their level of profitability, they took a closer look at the core products, and how best to improve on them and there developmental process.  According to Robson (1997) ‘the corporate strategy provides the framework for the business strategy and in turn, does so much to influence the business strategy, particularly the extent of outsourcing, diversification, scale and scope’. 

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Pirelli’s information systems strategy, however, focussed on the central role of information and employees being able to access necessary data immediately and completely.  Andreoni concluded that the IT departments had to be redesigned and standardised enabling their business to produce and deliver an unprecedented range of high quality goods and services, while competing in a global environment.  The stages to develop a coordinated strategy are:

  1. Strategic Analysis
  2. Strategic Implementation
  3. Strategic Choice

STRATEGIC ANALYSIS

Johnson and Scholes (1993) states that strategic analysis involves understanding three factors:

  1. Environment
  2. Values and Objectives
  3. Resources
  4. ...

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