Development of an Integrated Information System Strategy Across Various Operating Companies
The Client
- Pro Mach, a leading provider of packaging equipment which historically operated as a holding company of 10 distinct manufacturing businesses, was acquired by an equity investment group
- The distinct companies had been operating autonomously for the prior five years; each had its own IS function and ERP (eight ERPs in total)
- The new Pro Mach leadership team wanted to maintain the strength of the individual company brands while developing a more integrated organization to better serve customers and deliver new solutions
- Pro Mach’s leadership increased acquisition activity, focused on maximizing profitability across the organization, and initiated investments to create faster organic growth
- Pro Mach sought LÛCRUM’s expertise to develop an integrated information system strategy and implemented common processes and systems across all divisions that would support organizational and financial goals and could accommodate future growth
What the Client Wanted
- Comprehensive evaluation of IT environment and strategic consulting
- To be able to run the companies as one operating entity using an integrated information system strategy that would implement a set of common processes and systems across the various operating companies
- A strategy to maximize the profitability of its operating units and invest where significant returns could be generated quickly
Challenges
- Developing a strategy to integrate the operating companies while maintaining the distinct brand characteristics, strength and culture of each
- Getting 10 companies with eight different ERPs in a mid-market setting to come to an agreement on a common solution
LÛCRUM’s Role
- Conducted an assessment of the IT systems throughout all 10 divisions with the executive management team
- Recommended implementing an integrated ERP across the operating companies
- Led the ERP evaluation and led the operating units to a decision on a common ERP.
- Managed the implementation of the new ERP system using a multi-vendor implementation model with minimal internal IT staff
- Developed a companywide customer database which includes all division sales for the last three years
- Developed and implemented an Internet-delivered cross leads database available to all Pro Mach business developers and field technicians
- Currently leading the evaluation and selection of the companywide customer relationship management package
LÛCRUM’s Approach
- Get all stakeholders in alignment: visited the various operating companies and assessed the culture, talent, business processes and related information systems of each.
- Focus heavily on the capabilities and tendencies of the staff at each company in order to recommend a solution that ultimately would be adopted and driven at the operating company level
Efforts
- Initial assessment: four months
- ERP evaluation: three months
- ERP implementation: three years
The Benefits
- Streamlined business processes
- Improved operating performance through lower costs
- Improved decision-making
“Consolidation of acquired companies and driving synergies and economies of scale is a real challenge for companies that regularly make acquisitions. People are the key in any strategic consulting engagement. Regardless of the system ultimately proposed and implemented, it comes down to the people and their ability and willingness to adapt to change and to leverage any new system.”
- Karl Ulreich, LÛCRUM
Pro Mach project leader, currently functioning as ProMach’s CIO
