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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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Introduction

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) ...read more.

Middle

The advantages of open systems are as follows: * Less reliance on proprietary products * More competition leading to lower cost * Decreased probability of schedule delay * Better tested products (more users) * Portable applications * Interoperability * Faster technology insertion * Foundation for system evolution ? VALUES AND OBJECTIVES Corporate culture at Pirelli posed a threat because the local units made their own decisions and built their own systems to meet their specific local needs. The objective was to cut costs, however, the support activities that would be needed in order to ascertain the objective, also added additional costs to the project: * Procurement, purchasing of inputs used in the company's value chain. * Technological development to meet needs of developing countries * Human Resource Management activities involved in the hiring, training of personnel * The Company's infrastructure, including management, planning and financial accounting STRATEGIC CHOICE The use of Porter's Five Forces Model could evaluate the available choices, in keeping with the business and IT strategy: Porter's Five Forces Model Information Technology has a unique impact on the competitive climate and on the degree of interrelatedness of products and services with rivals. This can lead to unusual degrees of simultaneous competition and collaboration between companies. ...read more.

Conclusion

2. The right resources were not committed to the project. They needed to have business managers on board who had adequate knowledge of the business. 3. The entire business had to embrace the new roles in the integration process. Key individuals at Pirelli should be given responsibility for end-to-end businesses. 4. Internal support services can become a strategic facilitator for the organisation. Building internal centres of expertise can reduce consulting costs in the future and Pirelli's objective was to cut cost. CONCLUSION Businesses today need to integrate information to drive customer loyalty and satisfaction, improve operational efficiency, compete for online customers and trading partners, and identify and respond to emerging opportunities. In short, information integration provides a competitive advantage. Complete integration architecture should include multiple technology approaches to address the range of integration challenges businesses face. Pirelli needs to understand this, providing the most comprehensive business integration solution on the market. Andreoni's goal was to provide a comprehensive, scalable and open database platform and infrastructure for building the new generation of Web-based database applications, while allowing users to rely on their existing databases. This would make them better positioned than any of its competitors to achieve its goal because its platforms, infrastructure and middleware are so comprehensive and suited for them to become a truly global multi national organisation. ...read more.

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