Managing Information Technology

Case Study III-3 • ERP Purchase Decision at Benton Manufacturing Company, Inc. 451

Vice President

Human

Resources

S. R. Hamilton

Vice President

Distribution

T. C. Scott

Vice President

Finance

L. L. Gibson

Vice President

Administration

G. W. Hill

ERP Study

Jerry Cook

Adam Meyer

President

and CEO

W. S. McHenry

I. S.

Department

V. R. Shaw

Vice President

Manufacturing

P. L. Miller

Vice President

Sales

H. H. Sears

Vice President

Engineering

I. H. Grove

EXHIBIT 1 Partial Benton Organization Chart

the structure of our industry is changing, our dealers

are changing, and the economy is changing, the need

for us to change is not universally recognized in the

company management. We have some managers

whose view is more defensive and who are less

willing to embrace change.

Benton’s present human resources information sys-

tems are old and inadequate. Susan R. Hamilton, human

resources vice president, is an enthusiastic supporter of an

ERP system. Hamilton says:

I have talked with human resources managers who

have ERP systems from several different vendors,

and they are all enthusiastic about their systems. I

know that an ERP system will enable us to increase

productivity, serve the needs of our employees much

better, and significantly improve the management of

our human resources at Benton. Although I realize

that converting to such a system will be a long and

difficult process, I can’t wait to get started.

Tracy C. Scott, vice president for distribution, has

seven years’ experience with Benton and is one of the few

top managers that have management experience outside

the company. Scott advocates an ERP system:

Our present computer systems work well at the

distribution centers, but they only provide local

information–I can’t get a quick picture of the entire

Adopting an ERP system will be a monumental
undertaking for Benton. According to Cook:

An ERP system is not just a huge infusion of soft-

ware and technology. We have learned that this is not

just an IT project. Rather, it will require wholehearted

commitment from all departments. They have to be

willing to change their work processes to conform to

those dictated by the ERP–the software is almost an

afterthought. Benton has never faced change of this

magnitude!

Reactions to the ERP Proposal

Cook and Meyer know that there is strong support for an
ERP system from IT management, and they are confident
that, although President McHenry does not seem to want to
get personally involved, he is supportive of an ERP sys-
tem. To make sure that McHenry understands the issues in-
volved in adopting an ERP, Cook and Meyer have urged
him to visit with a friend of his who is the CEO of a com-
pany that installed an ERP two years ago and is reported to
be very pleased with the results.
There is also a great deal of support for an ERP sys-
tem from operating-level management. But the reaction of
VP-level management (see the partial organization chart in
Exhibit 1) is mixed. According to Cook:

Contrary to what Benton management believed in

past years, we’re going to have to change. Although