Implementing an Integrated Software Product at Northern Steel

Abstract

This case describes the implementation of the payroll and human resources modules of an integrated software product in a large manufacturing organization. The firm is located in a large metropolitan city and system implementation took place following a major organizational restructuring (from a public to a private enterprise) and downsizing (from 10,000 to 2,000 employees) effort. The extensive maintenance required by the existing legacy systems and the high cost of modifying them to address the year 2000 problem motivated the company to acquire an integrated software product from a vendor, and adapt it to the organization. Implementing the software took longer than scheduled and was 35% over budget. Some of the problems encountered include conflicts between the Accounting and Human Resources departments, technical difficulties in building interfaces to existing systems, inadequate staffing of the project team, the IT director who left during the project, and a poorly functioning steering committee.