The case study is divided into 2 main sections.

The 1st section of the case study starts off with

introducing the company and its background, its vision, mission Core values,
Rolls Royces financial position in the market and SWOT Analysis is conducted.
The 2nd section, which is the
System Analysis
phase, focuses on investigating the main problems faced by Rolls Royce, their causes, selecting
a suitable Information Systems strategy and in the sub section, the ERP implementation is
discussed.
Problem Solving and IS Building Model to:
1-Define & Understand the problem
2-Develop alternative solutions
3-Choose the best solution
4-Implement the solution

Rolls Royces
SWOT Analysis:
Strength (Business)

Rolls-Royce holds number one position in the super-luxury car segment.

Major market share with leading aircraft manufacturing companies like Airbus and Boeing
Strength (IT)

The company used a system known as CPA for monitoring financial transactions which included
pipeline inventory, inter-site transport.

Rolls Royce used a CAD system that supported in the process of altering the file formats.
Weakness (Business)

Perception of high prices

Constant delay in delivery of engines to clients. For example, Boeing blamed engine make Rolls
Royce for yet another delay in delivery for its first 787 Dreamliner. (Robertson, 2010)
Weakness (IT)

Data redundancy was a major area of concern in Rolls Royce.

In the current system the data was not normalized, screened and was not stored in a sensible
format in the data repository which led to problems in copying data to other systems.

The company lacks a legacy system. The company has implemented more than 1500 systems
over a period of time.

Due to numerous systems used within the company, they had problems establishing direct online
communication with customers and partners.
Systems were conventional with absolutely no room for growth to sustain changing business
environment.

The company used a system called MERLIN, which was a scheduling system based on MRPII
systems. The software was capable enough to handle the scheduling but involved a lot manual
manipulation.
Opportunities (Business)

Internationalize there operations as an active player in the modern market

Modification of business process to adjust and fit in the new ERP systems available

Workshops and training to employees should be provided to work with the current systems and
the systems that are to be implemented to make the maximum benefit out of the systems
implemented.

Demand for comfortable and relatively cheaper cars.

Opportunities (IT)

Implementation of an ERP system that would reduce manual manipulation which would reduce
time consumption.
Threats (Business)

The rising price of raw materials such as steel threatens to offset the companys earning

Threat from rival companies such as Engine Alliance who manufactures and supplies air craft
engines
Threats (IT)

Use of SAP by other major manufacturers in the market.

Engine Alliance has already implemented SAP A&D (Aerospace & Defense)

Transmission of data across communication links due to globalization poses IT Security risk to
the data.

Problem Definition:
Problem Identification:
Rolls Royce has been a global power system and services company, yet the company had several
problems in their management systems. Rolls Royce currently uses a number of systems,
approximately more than 1500 systems. Many of these systems were developed within the
company itself. The company had no particular ERP system, and maintaining and operating a
legacy system would fall expensive and difficult.
2.2: Causes of the problem:
The current systems did not provide an accurate, consistent and accessible data which was
important for timely decision making and performance assessing.

These systems are quite out dated and often had problems in compatibility to the new
manufacturing environment

Data redundancy was a major area of concern in Rolls Royce.

In the current system the data was not normalized, screened and was not stored in a sensible
format in the data repository which led to problems in copying data to other systems.

Due to numerous systems used within the company, they had problems establishing direct online
communication with customers and partners.

Systems were conventional with absolutely no room for growth to sustain changing business
environment.

The company used a system called MERLIN; which was a scheduling system based on MRPII
systems. The software was capable enough to handle the scheduling but involved a lot manual
manipulation.

The company worked with systems for controlling procurement, finance and commercial
functions which had problems in communicating with former systems.

Solution Objectives:

Optimize the use of Information System for strategic decision makings

Timely retrieval of data and information

To automate business processes

Modification of existing processes to adjust and fit in the new IS systems available

Data base building to batch and track documents and correspondences automatically and
schedule reviews and approvals

Identification of alternate solutions:

There are two alternate ERP systems that are taken into consideration for Rolls-Royce. They are
Alternate 1
:
SAP
-
Systemanalyse und Programmentwicklung
(System analysis & programme development in data processing)

which is a German enterprise software application

Alternate 2: Oracle E-Business Suite

which is a collection of applications.

Both ERP systems are rated on top two in the list of ERP systems.
SAP Technologies Recommended for Rolls Royce:

SAP R/3
is an integrated computer system that can manage and sustain the entire business management
tasks of an organization. In Rolls Royce, SAP r/3 would be able to handle business process such
as

Invoice payment,

Production resource management and

Financial account control.

SAP Aerospace and Defense (A&D)
it is known for its configurable flexibility. The system allows intelligent and quick response to
demand and supply of dynamics across global supply network to serve the purpose of
outstanding performance based services. SAP for A&D supports processes in

Manufacturing

Operations,

Proposal management

Program management,

Contract management.

Manufacturing management.

Order management.
Implementation:
Integrate Finance, Manufacturing, Procurement and Distribution of Rolls Royce

Business Processes workflow

To connect all departments and sectors through SAP R/3, so that one can instantly retrieve data
from any department
(Exforsys.com, 2014)

Strategic business Units (SBUs)

Evaluation of the Solution:
It was very difficult to determine the best ERP system fit for the Rolls Royce as it depends on the
functions and requirements of the company. However the core implementation team found that
SAP R/3 & SAP Aerospace and Defense (A&D) is the best fit solution for the company. After
successful implementation, the management evaluated SAP R/3 and measures their performance
by finding the following improvements in their business processes.

Increases customer satisfaction due to the higher availability of products

Accurate & timely information leads to reduced reconciliation's and better management of the
billing process leading to quicker payment and a reduction in accounts receivable (DSO),
number of disputes per order.
Reduction in sales order processing costs.

Reduced time to calculate selling price.

Increased Cash Flow (one-time event).

Savings result due to access to real-time transaction information by all authorized users
(visibility),

Reduced distribution costs.

Reduced order-to-delivery time.

Reduced delivery-to-invoice time.