Executive summary
The case study deals with resolving software problem which occurred in Timberjack company, one of the most important loggers in global economy. Company top management came across difficult strategic problems concerning software as different patterns of software were used in different regional headquarters which created additional costs and resulted in essential inefficacy.
That is why it was decided to create general global software framework preventing the risks of software misuse, low coordination and rationalization. The software design process which started centered upon creating flexible software which could react to minor and major manufacturing changes.
There is no denying the importance of the fact that Timberjack came across many difficulties during implementation problems which concerned the choice between different software packages, vendor propositions which not always complied with the interest of company, cleavages between various departments and design teams and customizations difficulties. All these is very interesting and helpful in terms of theoretical experience of software systems creation.
Problem statement
The problem which this case study opens and describes relates to difficult issues concerning manufacturing software development, best available methodology which can be used in this process and positive approaches to coordination between various company’s branches, sectors and departments as well as vendors, project promoters and counterparts. For instance, the first stages of software project (outlining its counters and desirable results) created opposition of viewpoints of Sweden team and North American group involved in this project.
The former thought that it would be more efficient to outline the scope and directions of the software project in just few pages and give it to specialists which would realize it. However, the latter, following Coopers and Lybrand methodology thought that it would be best to spend much time for careful examination of all possible impacts and implications for manufacturing process, which will be run by software and finally this viewpoint became predominant.
Data analysis
The analyzed case gives interesting empirical data on the difficulties concerning organization and realization of software system projects within transnational organization with a joint capital like in this case – Swedish and American. There is no denying the importance of the fact that much of the analyzed data may be used in our future research and practical activities.
One of the most important directions in this respect are coordination difficulties which should be tackled in terms of constructing joint strategic vision and cooperation. This will prevent occurring such problems like in this case when American counterparts say that the Swedish partners received information late because ‘it was difficult to translate reports from English into Swedish’.
Besides this the lack of efficiency and understanding resulted in low effectiveness of software project development. For instance, as report shows Swedish partners new that Oracle databases cost 40% more in exploitation and customization than Progress databases but it was late since Timberjack already included Oracle databases in the project.
Key decision criteria
The decision which was finally taken in the case of Timberjack was made on the basis on efficiency and reducing opposition between Swedish and North American partners. It was a result of compromise. There is no denying the importance of the fact that some elements of software projects were considered as being not functional in Swedish conditions. This was due to North American team trying to do such customizations which best suited the interests of manufacturing and operations in the North America.
Alternative analysis
Alternative analysis which I proposed is based on greater coordination between software groups, better organization of process and designing functional approach to software implementation. The current case shows that the task of creating comprehensive software system in Timberjack company proved to be inefficient due to regional peculiarities of business activities. Hence, it was difficult to accommodate the changes to software in Europe due to previous software and manufacturing practices and procedures.
That is why it seems more appropriate functional approach to software system where several subprojects were created within global system, each designed to meet specific regional and operational interests. Each project should be influenced by North American or Swedish groups depending on the stakes they had in it. In my view, such approach would be effective in avoiding ineffective software use and inflexible global software system in Timberjack.
Recommendations
- create coordination team on the basis of Sweden and North American group which would design global and regional subprojects on the basis of the bests efficacy in given conditions, operational and manufacturing practices.
- Develop appropriate budget and financing policies which will prevent inefficient organization of projects.
- Organize effective communication process between involved departments to avoid misguided actions and misunderstanding.
Lessons learned
Some of the lessons which may be learned from Timberjack mistakes were already mentioned. Among others is poor organization of budgeting policies which led to low interest on the part of vendors. Besides this, one should mention poor work of company’s computer technology departments which failed to provide adequate information on the difference between Unix and other systems, Oracle and Progress and other elements of software system which essentially effect business processes.