Question:
What role did culture play in Keda’s ERP implementation and how did culture
characteristics help/hinder the project success?
Base on readings, what, if anything should Keda have done differently and why?
KEDA’S SAP IMPLEMENTATION
Business Context:
•Founded in 1992, as a small ceramic machinery manufacturer. Rapid growth during
1990s, basically reapplying European competitor’s business models.
•In early 2000s, Keda become the second largest worldwide company of building
materials machinery.
•By 2002, Keda goes public on the Shanghai Stock Exchange.
•By 2009, Keda continue the exponential growth. Reported revenues (US$209)
double revenues of 2006.
•By 2010, Keda had well diversified products. Their typical sales order were
customize (low volumes and high margins). 2
•Keda, had a great autonomy between departments. This culture enable the company
to great success in innovation. 2
•Thanks to this innovation they become not only leaders in market share and
revenue, but also as a product management innovator.
Key Business Drivers:
•Keda’s business performance was declining. The silo-based model do not allows
integration between functions.
•Provide the needed information for every decision maker in each step in the
decision making process.
•Chinese government was pressuring/encouraging corporations to enter the digital
world.
•Keda’s current system lack of cost/revenue module, thus the company was blind in
terms of pricing.
•Increase of cost due to the suboptimal use of resources, creating a constant battle to
meet demand.
•Keda’s single plant mode could no longer work with a highly diversified business
lines and production. The current system (MRP-II) did not support multi-plant
operations and the vendor suspended the system support.
