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The Pirelli Group.

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1.0 Introduction The Pirelli Group is one of the top tyre manufactures in the world, with headquarters in Milan, Italy, and 102 plants in 14 countries employing more than 51,000 people in 1991. The company also had sales and marketing presence in many other countries. They are major suppliers of higher-rated (performance) OEM tyres for the world's leading performance sport cars such as Porsche, Jaguar, and BMW. Pirelli is known for its tyres, but they are also the known as the second largest provider of electronic cables worldwide. In the early 1990's, the company faced the challenge of the emergent evolutionary nature of the 'Global Economy'. Automobile sales fell worldwide in those years, resulting in drop in tyre sales. Coincidentally, sales in their second major product line fell when worldwide spending on telecommunications and energy also dropped sharply. The demands of the global market were high and competition was fierce. The company needed quick recovery to its accustomed level of profitability. The management team developed a plan that focused on the core products, cost cutting, and improving competitiveness by developing new technologies in response to customer demands; they needed fast access to information. ...read more.


On the other hand, the new system can speed up the decision making process, and improve reliability of the products and services to a global market. When deciding on the software to use, it is good to keep in mind, the cost and the time it would take to actually have the software ready to use. Readymade software packages are being used worldwide, while some prefer to build their own systems. The use of SAP R/3 would be advantageous to the strategy, since it is a world leader in almost all industries and it is a proven product. While some companies opt for readymade, some prefer to design and build their own systems. 2.2 Designing an International Information System The System Development Life Cycle (SDLC) is the traditional systems development method used by most organisations today. SDLC is a structured framework that consists of sequential processes by which information systems are developed. This step-by-step process includes the following tasks: 1. Systems investigation 2. Systems analysis 3. Systems design 4. Programming 5. Testing 6. Implementation 7. Operation and maintenance Some of these tasks are present in most projects, whereas others are present in different projects. ...read more.


Once the specifications are decided it should not be changed because this could delay the project with scope creep. Systems developers use the design specifications to acquire the software needed to for the system to meet its functional objectives and solve the business problems. Custom software are more expensive than packaged applications, if the packaged ones do not fit, it means that the business will have to do some customising. The testing stage looks for any errors in the systems, it is very time consuming, but if the improper test are done, it could also be very costly. The implementing stage is converting the old system to a new system. The operating and maintenance stage is the final stage and can be followed by fewer or more stages. Depending on the type of information system, whether it is at the operational, tactical or strategic level, the systems is debugged and this continues throughout the life of the system. 4.0 Conclusion The SDLC provides management with the control over the development process, and this type of system development can assist in detecting errors, thus again keeping cost to a low. Pirelli implemented the SAP R/3 and it was successful, profits rose, costs were cut, and staffs were reduced, the project was not yet fully implemented and the business was already reaping rewards. ...read more.

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