Read this article and answer all questions in Section B.

H* Case Study

In 1996, H* set out to upgrade its patchwork of legacy IT systems into an integrated ERP environment. It chose SAPs R/3 ERP software, Manugistics supply chain management (SCM) software, and Seibels customer relationship management (CRM) software. Despite a recommended implementation time of 48 months, H* demanded a 30-month turnaround to roll out the systems before Y2K. Based on these scheduling demands, a cutover was planned for July 1999. This go-live scheduling coincided with H* busiest periods when it would receive most of its Halloween and Christmas orders. The H* implementation team had to cut corners on critical systems testing phases to meet the aggressive scheduling demands. When the systems went live in July of 1999, unforeseen issues prevented orders from flowing through the systems. As a result, H* could not process more than $100 million worth of confectionaries orders, even though it had most of the inventory in stock.

Given the lessons learned in previous ERP implementations, your role as a consultant is to bury the ghost in the past so they can confidently prepare for the next upgrade. They aim to implement an intelligent enterprise system to compete in the dynamic business world.

Business Rationales

H* is one of the worlds leading manufacturers of chocolate and other confectionery products. It has a global confectionery market share of approximately 6.5%. Given that it is a US-based company, it has a strong presence in the United States, holding up to 45% of the chocolate market share in the US. H* dominance in the chocolate market is due to its famous brands. This company continued to expand its product portfolio to focus on product innovation, strategic partnerships, and acquisitions to maintain its market share and competitive position in the confectionery industry.

This world-leading manufacturer is not lack challenges. The company faces intense competition from domestic and international confectionery manufacturers, which has

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intensified due to the entry of new players and the rise of private-label brands. This has resulted in a need for H* to be innovative and develop creative ways to stay ahead of the competition.

Furthermore, nowadays, consumer preferences have been changing. Especially more and more consumers are now seeking healthier and more sustainable options. This shift in consumer preferences has impacted the sales of H* traditional confectionery products, creating a need for the company to innovate and diversify its product offerings to cater to the changing needs of consumers.

Lastly, H* is highly dependent on raw materials such as cocoa and sugar, which are subject to supply chain disruptions due to weather-related events and other factors. This creates significant supply chain challenges for the company, as it must manage its inventory and operations effectively.

Technical Rationales

In addition to the business challenges, H* faces several technical challenges. Firstly, the company is vulnerable to cybersecurity threats that could lead to data breaches and loss of confidential information, affecting its reputation and financial performance.

Since the late 1990 ERP implementation, they have not upgraded their systems. Operating on its legacy IT infrastructure has tremendously hindered its ability to innovate and adapt to customers changing needs. To compete, the company may need to update its IT infrastructure to stay ahead.

Over time, H* gathered vast amounts of data from various sources, including social media, e- commerce, and supply chain operations. This data includes customer feedback, sales, operational, and marketing data. However, managing and analysing this data effectively can be challenging for the company due to the sheer volume and complexity.

In addition, H* struggled to manage and analyse data. Due to lacking technology and skilled employees, H* could not ensure data accuracy and consistency. The company may receive data from various sources, which may be inconsistent, incomplete, or inaccurate, making it difficult to gain meaningful insights. Therefore, the company must ensure the data is clean, accurate, and consistent to get the most value from its analytics initiatives.

Another challenge is lacking the necessary in-house data analytics capabilities and expertise. Investing in data management solutions such as data warehouses, data leaks, and data governance frameworks is essential to improve its analytics capabilities.

As the company grows and expands into new markets, it may need to handle more data and manage different data sources. Therefore, it is essential to have a robust and flexible data management system that can scale and adapt to the changing needs of the business. Furthermore, H* must ensure its data management solutions are scalable and flexible to accommodate future growth and changing business needs.

To overcome these challenges, H* needs to implement an intelligent enterprise system to make timely and informed decisions.

In regards to this case study, can you please answer this question. This question is worth 20/50 marks.

Question B2

As a consultant, critically provide several strategies to assist the change of mindset of H* company and a few strategies for the top management to lead the intelligent enterprise strategically.