United under SAP

Bachelorarbeit von Marcel Gundlach

Abstract:

Nowadays, companies all over the world face incredible pressure in global markets. To survive and to stay competitive, procurement of every description needs to be developed as a major leverage to save cost in the recent years. To achieve competitive differentiation with advantage, companies have to empower information workers. Business processes are the key to unlock the potential of these strategies.

A supportive IT structure may play a decisive role for business processes and can make a great deal of difference. The implementation of an ERP system provides an opportunity of a ‘‘configurable information system (IS) package that integrates information and information-based processes within and across-functional areas in an organization’’. In information system areas, implementation is defined as ‘‘the process that begins with the managerial decision to install a computer-based organizational information system and is complete when the system is operating as an integral part of the organization’s information system’’. After implementation, significant benefits such as improved customer service, better production scheduling, and reduced manufacturing costs can accrue from successful implementation of ERP systems as well as staying competitive against competitors in matters of flexibility and adaptively. But especially, more transparence through a common used system enables the opportunity of increasing inner-company’s processing and working flows with fast and convincing criteria of decisions.

In the scope of this thesis the methods and concepts of SAP implementation for ThyssenKrupp Escalator in Zhongshan (in the South of China) have to be investigated and presented. This investigation has to include both the project approach and before-after situation in order to increase the practical relevancy. However, ERP systems are expensive and time-consuming, and once ERP systems are implemented, management should evaluate whether it is successful and delivers promised benefit. The successful implementation is extremely coupled on the predetermined goal(s). Furthermore, Chinese culture is quite different from Western countries; so is organizational culture imbedded within national culture and it is a core attribute to discern between the Chinese view of satisfaction and the Western view.

The SAP implementation project in Zhongshan cut both ways: for ThyssenKrupp Co. (China) Ltd. and ThyssenKrupp Airport Systems Co. (Zhongshan) Ltd., which means both companies – N.B. based in the same location – will be united from the IT point of view. Finding existing information islands and to see the effect of improvement by implementing SAP needs a research of the whole project’s analysis. Target is to find out potential of improvement of the company’s business processes according to eliminate existing information islands. The specific aspects of business in China have to be shown and the main barriers pointed out, as well as possibilities emerging. With these facts as basis, a result of implementation success has to be worked out, which provides enhancement to the existing methods of capability improvement by considering the local requirements.

In order to attain meaningful results, this thesis’ approach is primary based on an attending survey on issues of the implementation project of SAP directly in situ at ThyssenKrupp Escalator in Zhongshan, in respect of practices in China.

In the beginning of this work, definitions are given on the main terms required, so e.g. „SAP system” and „Information island”. „Information island” may be confused, since that term may not be defined in other works. Further, explanations are given to show the considered aspects.

After that, from ThyssenKrupp Group down to the company’s plant ThyssenKrupp Escalator in China (Zhongshan) is introduced with thoughtful details such as the organizational structure and facts and figures.

In the following, Chinese culture on the business company is focused. The fundamental circumstances to consider are explained. This chapter has been involved due to the site survey according to the matter of relative importance about information treatment. The Chinese culture aspect contains special characteristics and can be of strategic and operative influence. The basic indicators are introduced and illustrated.

As next, the main activities are focused: the process of implementation with its goals, including actions and responsibilities. This is concluded by the requirements in aims, a strong focus on the actual analysis with current used processes and software as well as the scheme of improvement. The differences between the „as is” and „to be” are shown by that and the specific approach analyzed, in order to understand the importance for a structured approach like the relevant one for this thesis: ASAP. The actual analysis based primarily on a representatively chosen core process. The accelerated SAP roadmap during the realization phase is presented with its key activities and deliverables as it is the method of choice for the project approach.

In chapter 6 the survey results are presented, reaches are described. Researches of internal information islands are discussed, the general issues presented and evaluated upon applicability in China. The SAP implementation plays the essential role, so its utility is emphasized as well. Reaches and results in form of a once more comparison between the „as is” and „to be” is a useful extension and derivation to show the major drivers for success. Assets and drawbacks is the discussion for possible improvements but also for barriers after going live. After the description of results, a summary and an outlook for the future conclude this work.

Table of Content:

Text Sample:

Chapter 4.2, Corporate culture and Chinese work attitude:

China is indeed a specialty for „Western” foreigners but also because in comparison to their own point of view - compared to the own culture and work attitude. The motive is rather based on being unaware of the country-specific (corporate) culture. To reach success in business requires to acknowledge and to bridge that gap. Flexibility and tolerance is inevitable.

The following table is a prefacing, summarized overview of some differences in a concise manner (Table 4.2-1: Differences between Chinese and German).

1 – Lifestyle:

Derived from their lifestyle, Chinese people are quite group orientated. This based on the aspiration for harmony. Similar to the way of solving problems, mistakes and uncover other’s weakness should be avoided. Instead, to be on friendly terms with each other (be in „harmony”, even if being at variance) should be retained unchanged.

2 - Boss position:

According to the corporate culture is must be known that Chinese role allocation is highly established by priority. Interestingly from this follows that often a manager in a leading position is faced with a lot kind of daily duties and tasks, sort of all-round or universal manager with role model function. High respect is what they receive and grant them a good status in case of positive reputation.

3 - Own opinion:

No doubt, Chinese have an own opinion. But here are two behavior pattern worth to explain: on the one hand, they are easier willing to give a positive response in form of an affirmation to the opposite’s opinion due to the fact to cause no fight – or: to do not hurt the opposite’s „face”. On the other hand, another culture related aspect is that Chinese have a self-conception for lower demands within their inherent community and, hence, represent the common opinion of the group.

4 - Problem solving:

As already described, the communication, if problems have to be solved, is preferred indirectly from Chinese side. Again the „face concept” takes its meaning. A gruff reply is objectionable.

5 - Show oneself:

This is an important culture mannerism that carries the aspect of a „face”-concept and has consequently influence on personal work attitude and in that way on business processes. Avoiding conflicts to not „lose or hurt face” – the own as well as other’s, especially in front of third or in public. But to criticize is alright if it is in private, according for businesses even welcome.

Chinese businessmen are exerted to circumvent disaffirmation but to search for similarities. That results from the importance of reputation and keeps the harmony.

Systematic approach:

Their systematic approaches are different compare to most Western ways what can be seen, for example, in the different needs when reports are created or requested. However, study and knowledge is of great importance for Chinese. The traditional Chinese way of learning is in the first instance imitation, learning by heart, learning from example. By contrast, analyzing may be of less importance. Time schedule planning is also less important – preferably thinking in the short run and focus on the present. Also frequently charismatic for Chinese work attitude is that Chinese employees partly tend to work less independent and assume not too much responsibilities. But recent reports and researches show, here is an upward trend, especially caused by the increase of international cooperation along with and within Chinese companies but also due to the improved and adapted educational changing for students; what, after all, makes it to a differential of generation and job position.

Interpersonal relationships (Guanxi):

Personal relationships in the business world have a big impact on many operations. In China it has even a bigger impact, roots by the intensity and meaning of relations. This famous characteristic in China is called „guanxi”. The meaning of relations is high and even more than that: it is useful and often necessary. In cases like relationships between friends, between teacher and student or between colleagues it can be also open to foreigners. But guanxi is neither something to categorize nor just a group association. It is a network of connections where a relationship between two people is „valued”. This sense of community requires nourishing relationships with interactive maintenances. Right from the start a common group background (for example the own family, alumni, (ex-) colleagues, people from the same village, etc.) may have an advantage. In general, guanxi is a mutual matter of to give and to take for a long-term relationship – where relationships are developed and maintained based on trust. In other words, guanxi enables chances, sometimes even just in the first place. Also as foreigner it should be adapted and combined with the own values to deal with a job in China. In general, the role and position of a foreigner can vary. In some cases foreigners are still rare for Chinese, as it were „new” or „different”. For example, that openness might be reserved at the beginning. But usually there is no barrier for foreigner to get into it, as long as they are eager interested and want to become integrated, so Chinese are open for it.