1.

Describe the steps taken in the software selection process at Timberjack.

Compare this to a 'traditional' Systems Development Life Cycle.

Step-1 intent: A need was realized. In early 1995, the Swedish groups (Sahlqvist
and the Marta) were investigating the acquisition of new computer software to run
their parts operations. The main reasons where heavy instability of their existing
systems. Frequent system failures came from large amounts of modifications of
their source code. As a result, they not always rely on the data thorough there
present system.
Step-2 Outlining of a future IS system: Coopers & Lybrand (a management
consulting company of about 10,000 employees) helped the top managers outline
a future information systems (IS) plan and strategy.
Here are some of ideas included:

Integration of manufacturing, dealer relationship, sales, parts and service all

in one software.

Hewlett-Packard claimed they would no longer support the current MM3000

software.

An ERP system or distribution company package would best serve parts,

and a separate manufacturing system would best suit the factory.
Step-3 presented to the board: The Coopers & Lybrand consulting firm presented
to the board of directors recommendations for the global software strategy. Each
organizations were given the task of selecting one system to run the parts side of
the organization in the US and Sweden. Utting was assigned to be the project
manager.
Step-4 Software selection consultant: the software selection consultant Bahar Inc.
was invited to bid on the software selection contract. A matrix of requirements and
definition was created for the us and Swedish groups.
Step-5 RFP process - software consultant was selected: Timberjack received a
quotation from Bahar, the fees would be under $100,000.00 USD which included the
following services: RFP creation, vendor and site visits, list of vendors, advice on
negotiation of the contract and final selection consulting. Bahar schedules meeting
dates to accommodate this list of services. They would work with Coopers &
Lybrand to create a requirement list for the project.
Step-6 - RFP process - preliminary lists of requirements: preliminary lists of
requirements for the following where created by Bahr with the partnership of

Coopers & Lybrand: accounting, finance, purchasing/planning, customer service,

pricing, distribution, benefits, information systems, and all capital expenditures.
Step-7- RFP finalized: the RFP with a 52 line item matrix to overview a 200 total
page document with over a thousand requirements was developed to guide the
software selection, lists of standard reports, and instructions to vendors for the
bidding process was included. 50 hard copies were produced, and the RFP was also
copied in electronic format.
Step-8 list of vendors: Coopers & Lybrand consulting firm created a list of vendors;
the venders where to be constrained by a list of standards generated by the internal
standards committee.
Step-9 Vender Request for Quotes: 13 companies were sent the RFP. Well
attended and well represented meetings were held in the USA to answer questions
that the vendors had regarding the RFP. Vender Request for quotes was requested
from 6 companies.
Step-10 Comparative summary: A matrix of 6 companies were generated and used
to compare the strengths of the 6 quotes received.
Step-11 Narrowing the list to two: the oversight group of Baher, Coopers &
Lybrand, and management group went through a quick process of eliminating
several of the bids. The list was finally narrowed down to two bids, QAD and Oracle.
The total implementation cost and deliver time frames where evaluated.

Step-12 Implementation: The final election was made and signed off by both US
and Swedish locations. The implementation would begin.

I felt like Timberjack followed the traditional life cycle of: project identification
project initiation and planning Analysis Design construction testing
implementation Maintenance.

2.

What type of investment is this and what leads you to believe this?

Bahars consulting fees were $75,000.00. The final cost of QAD would be
$1,314,002.

The final amount of rough investment would be about $1,389,002. Plus the
investment of travel, the cost of time for meetings and work by internal employs as
well as the final cost of consulting from Coopers & Lybrand.

3.

What do you recommend for Timberjack and why?

Timberjack was faced with the choice of choosing the same ERP system for two
divisions. The issues arose and where complicated and cumbersome because one
was located in the U.S.A. and the other in Sweden. It was especially difficult
because the requirement was one ERP system that met both US and Swedish
offices needs. Two different cutlers added to the complication as well as the fact
that they were located on different continents; sharing information was a difficult
task. It was important to solve this issue with the acquisition of the new software. I
recommend that they go with Oracle. Oracle was complicated up front and cost
more, final cost of QAD=$ 1,314,002 and Oracle=$ 1,879,802, however both offices
settled their differences on both. The winning factor for me is the support that is
given as well as how quick the install would be. QAD would take about seven
months to install, and Oracle would be about one year. Oracle consulting group in
the United States claimed that there werent suitable consultants available in
Sweden. Consultants from the United States were arranged at no extra cost for the
duration of the install. Will the lack of support in Sweden, the higher cost, not from
higher quality, yet, from 40% higher overhead, not to mention twice as long of a
installation time, I will Recommend QAD

4.

Is Timberjack Getting IT Right'? Be sure to explain your answer.

Making IT work demands a lot, for example, inspired leadership, execution,

motivating and inspiring people, understanding high expectations of senior
management. Part of the problem is bridging the gap with consulting teams that
know both languages. IT success requires understanding from all departments.
Senior managers need to talk the language and know the It world enough to
communicate and make sound decisions. IT people need to break down the
department walls and learn how to communicate in the business lingo. Bringing in
two different consultant teams to help bridge the departmental gap was an example
of Getting IT Right.
A simplified unifying corporate IS platform was selected. The same software and
hardware were selected. This was a good example of Timberjack Getting IT Right.
This platform replaces a wide variety of vertically oriented data silos as explained

in the article Getting IT Right by Field and Stoddard. The new system will serve
individual entities with a simple, horizontally oriented system used through the
whole company.
Because the rate of technological changes so rapidly, IT departments are not as
stable as others. Even though there is so much change in the IT industry perhaps
more than any other area of the organization, IT benefits most from a long term
plan that is robust and long-lasting. It is an example of Timberjacks Getting IT
Right when they started this acquisition project with the development of a long
term IT plan.