Caterpillar is the world's leading maker of earth-moving machinery and supplier of agricultural

equipment. Caterpillar wants to end its support for its Dealer Business System (DBS), which it
licenses to its dealers to help them run their business. The software in this system is becoming
outdated and senior management want to transfer support for the hosted version of the software to
Accenture Consultants so it can concentrate on its core business. Caterpillar never required its
dealers to use DBS, but the system has become a de facto standard for doing business with the
company. The majority if its 50 Cat dealers in North America use some version of DBS, as do about
the half of the other too or so Cat dealers in the rest of the world. Before Caterpillar turns the product
over to Accenture, they call you in as a change consultant.

1. What factors and issues should it consider? What are the pluses and minuses?

Caterpillar wants to focus on their core business and since the existing system is old they

want Accenture Consultants to take over the Dealer Business System that was recognized and

used by dealers associated with caterpillar. In other words, the system that was developed and

used by the company and their dealers as a standard for doing business needs modernization or

upgrades. The change will mean a lot to the company and the people that work in the

organization and so pros and cons needs to be established.

Pros:

- Productivity and efficiency– relying on old system with limited capabilities is

frustrating and time consuming and an upgrade / improvement in the system will

make things faster in the company and the people involve move efficient.

- Reduced risk and better security– data entry or data transfers done manually results

to more errors and mostly vulnerable in terms of system confidentiality and security

as information are handed down from one person to another.

- Technology integration – the upgraded system may support new processes from data

entry to employee relationship.

- Economical and less operational expense – outsourcing processes may be beneficial

to the company as it save more its expenses in the entire operation and maintenance.
Cons:

- Difficult to implement in existing systems –employees are reluctant to change and

moving from old processes to new becomes a challenge since they are already used

to the old system and they have already adjusted. With the change new adjustments

is needed to fully adapt the system.

- Training requirement – New system implementation requires training staff and

management to understand and adopt the system change which will require

changing the usual manner of work is very tedious and demands a lot of attention on

most employees.

- Can affect the overall performance of the business since output will be compromised

and you are minimizing production for a period of time due to the changes and

trainings to be conducted.

References:

1. Draminu.com, (2019), Kaizen Advantages and Disadvantages Retrieved on Feb 12, 2012

from https://draminu.com/kaizen-advantages-and-disadvantages/

2. Laudon, K. C. & Laudon, J.P. , n (2014), Management Information Systems: Managing The

Digital Firm, Prentice Hall, pages 485 – 558

2. What question should it ask?

Normally, improvement is a great way for a business to operate and compete but is the

change more beneficial or can cause harm to the company. Here are some questions I may ask if

given the chance:

- Will the new system identify the company or can create a distinction from other

companies like the old system does? How?

- What is the ROI?

- Where all the stated disadvantages resolved and had been answered?

- How long is the transition?

- Is the new system open to integration?

- What is the chance of failing and what’s the back up plan?

Reference:

1. Laudon, K. C. & Laudon, J.P. , n (2014), Management Information Systems: Managing The Digital
Firm, Prentice Hall, pages 485 – 558