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IT & MIS

Case 19: An IT Manager Intentionally Destroyed Company’s ERP to Increase Company’s Dependency on Him

Topic

IT/ERP, Team Management

Company

A Global Manufacturing Company

Problem

The company has an ERP that was supposed to be the best in world that was supposed to be able to handle ‘anything’, but only a small fraction of the ERP was used and there were many add-ons.

Facts known

The ERP is used world-wide and in other countries it run very well and was much more useful/powerful than how it was in Indonesia

Audit process

Interview, observation, system test

Findings
  1. The ERP implementation was done with insufficient internal team resources (not enough people understand the system).
  2. Not enough training was given to the internal team to increase the quality of their contributions
  3. There were only 4 people in IT department and the highest position was held by a supervisor who was caught to have intentionally destroyed the system by erasing a line of programming
  4. The ERP was prone to internal modification because it had open kernel
Suggestions
  1. Fire the IT supervisor
  2. Establish a small team who would work toward completing the ERP implementation to optimally harvest its benefits
Follow up
  1. The IT supervisor wasn’t fired but a new IT Manager was appointed to be his boss and the IT supervisor’s access to system was blocked.
  2. A small team to continue the ERP implementation was established and the implementation was continued and the benefit was harvested in several section
  3. Several years later, global HQ decided to implement an even newer more secure ERP
Engagement

4 months

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