Managing Information Technology

(Frankie) #1

from software vendors that work with the ASP. The ASP
provides help desk support and deals with hardware prob-
lems, but applications software problems are handed off to
the individual software vendors.
Collins had difficulty exploring the ASP option. He
contacted his local IBM representative, but it took a long
time to get in touch with a person who represented IBM’s
ASP business. It was early August before Collins could get
definite information on what ASP services IBM could pro-
vide to the Mexican plant. IBM would be able to serve the
Mexican plant through communications facilities linking
the Mexican plant to IBM’s Rochester, N.Y., data center.
Applications software would be obtained from a number of
software vendors with whom IBM has partnership arrange-
ments. Many of these vendors provide Spanish language
versions of some of their software. IBM provides a
Spanish language help desk that hands off applications
software problems to the appropriate vendor’s Spanish
language help desk.
The cost of IBM’s ASP service would be $60,000
per year. There would, of course, be additional charges for
the applications software, training, data conversion, and
start-up. These costs seemed excessive in comparison to
the third alternative and the ASP solution seemed overly
complicated for the startup operation, so BMC abandoned
consideration of the ASP option and concluded that the
piecemeal solution was the only viable option for support-
ing the Mexican operation at the start. However, after the
Mexican plant is in operation and things have settled
down, BMC intends to reconsider both the ERP and the
ASP options for the entire company.


Nagging Difficulties


Collins, Mease, and Barkley had encountered major commu-
nications difficulties in dealing with the BMC people in
Mexico. Salazar and Alvarez had not been active participants
in the task force, and there had been little effective communi-
cation with either of them. According to Collins, there were
four things contributing to these communications problems:



  1. Language.When we talk to each other we don’t
    always understand the true meaning of what the
    other guy is saying. We nod our heads, but we may
    not be on the same page

  2. Cultural.They give the distinct impression of want-
    ing to be self-sufficient, and therefore any help we
    give may be considered paternalistic. This may be
    the result of sensitivities relating to America’s domi-
    nant position ever since the Mexican War

  3. Distance.It would be different if we could drive
    there in a couple of hours. But it is a major disrup-
    tion for them to come up here or us to go down there
    4. Mind-Set.Their mind-set has been on getting up
    and running and producing parts, not on any support-
    ing activities. We just cannot get their attention, and
    you can’t communicate without attention!


Collins, Mease, and Barkley have also begun to
reconsider the task force’s role in providing systems sup-
port to the Mexican plant. Barkley explains their dilemma:

We feel that we are responsible for helping them get
started right, but it is clear that they would like to do
it on their own. We don’t want their local pride to
result in them falling on their faces, but if they have
the capability they definitely need to have a major
role in making the decisions. But we can’t tell
whether they have the capability.
Right now they are concentrating on getting
the plant operational so that they can get parts out the
door. We are ready to help, but they don’t seem to
have the time or the urgency. We are afraid that once
they get past the hurdle of getting into production,
then they are going to expect to get the systems
installed and running in the next week.
The broader question is: How much should we
dictate to them in all areas down there? Do we want
to let them reinvent the wheel because of the cultural
gap between us and them? Or should we insist on
providing some guidance from our functional areas
(human resources, quality, materials control, produc-
tion planning, etc.) to assist them with getting the
basics up and going? On the other hand, do we really
want to pass on any of our “bad habits” to them?

Status on September 12, 2000
Construction of the Mexican plant is on schedule, and it
will be ready to begin production no later than December


  1. As of September 12, Collins and Mease felt that they
    had made little progress in providing systems support for
    the Mexican operation. They had decided to pursue a
    piecemeal approach, so they needed to find vendors who
    could provide and support the basic Spanish language soft-
    ware packages that would be needed to support the small
    start-up operation.
    Maria Alvarez, the human resources/financial man-
    ager, had experience with a small financial software pack-
    age from Contpaq and she would like very much to use
    that package at the Mexican plant. Contpaq has a Web site,
    but it is in Spanish, so Collins has not been able to find out
    much about the software from that source. Grant Thornton,
    BMC’s U.S. consultant for establishing a Mexican opera-
    tion, has an office in Queretaro. This firm will be the


Case Study IV-5 • Systems Support for a New Baxter Manufacturing Company Plant in Mexico 645
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