Multibase Company Limited is a diversified business group with interests in fabric and yarn manufacturing, paper and pulp, and cement. Its manufacturing units are located across the country and number eight- one for fabric, two for yarn, two for paper and pulp, and three for cement. While the head of each unit has considerable operational autonomy, strategic decisions considering these units, such as capacity expansion, procurement of new technology involving substantial investment, etc., are made at the headquarters, located in Delhi. The head quarters monitor the performance of every unit though weekly and monthly reports are which are prepared by CBIS installed at each unit.
Often considerable amount of time of the senior executives based at the headquarters is taken away in analyzing these reports and drawing inferences for planning and control. The result is that the senior executives have little time for strategic thinking which they feel is a must in the present competitive environment. The CEO of the company has thus proposed to develop suitable computer based systems which might be helpful in understanding the current status of various manufacturing units in terms of their overall performance, the type of environmental constraints that operate in the three business that exist for enhancing capacity in these business areas.
Questions:
a. What systems would you propose that would serve the company’s needs?
b. Considering that the company already has CBIS installed, will you contemplate complete overhaul of the systems or add functionalities of the existing systems? Justify your line of action.
c. Justify the requirement of a Chief Information Officer (CIO) in the context of the given caselet.
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