IT Investment in ABC Textile and Dyeing Asia Pacific Perspective

Hiep Pham, Narumon Sriratanaviriyakul, Mathews Nkhoma
InSITE 2015  •  2015  •  pp. 914
Quyen Le, Deputy Director at ABC Textile and Dyeing Joint Venture Company (JVC), returned from a meeting with an Enterprise Resource Planning (ERP) service provider. Quyen was wondering which options of ERP implementation would be best suited to gain staff support and pre-pared the company for long term development.
ABC had undergone considerable growth in recent years. Having become one of leading manufacturers of denim fabric in Vietnam market, the company was now facing some organizational challenges. To cope with pressing competition in local and overseas markets, ABC had needed to acquire internationally recognized certification for its quality control system and standardized manufacturing process. The company implemented a quality management process in order to achieve its goal of ISO9000:2008 certification. There was substantial additional paperwork to be handled with the new process. ABC currently used an outdated decentralized computing system in managing its denim manufacturing process. It was time-consuming and difficult to obtain timely and accurate production information—including material planning, production costing, machinery inventory, production reports—and difficult to share information among departments. Furthermore, over a hundred different reports for various stages of the denim manufacturing process were generated and handled by several departments.
Lacking the technical knowledge to deal with complex technological context, Quyen considered outsourcing the implementation of an ERP system to ease the documentation tasks required by the ISO 9000:2008, and to manage more effectively the denim manufacturing and to streamline the reporting system.
Facing concerns and criticisms from staff during the implementation of the ISO 9000:2008 quality management process due to its complex, time-consuming documentation requirement and added workload with no immediate benefits, Quyen was facing a tough decision whether to move forward with implementing an ERP system that promised another tough challenge to get the sup-port from staff and required necessary organizational changes to create business value from the information technology (IT) investment.
ABC Textile and Dyeing JVC (ABC) was part of a textile industry that represented an important component of the global and local economies.
IT investment, Enterprise Resources Planning (ERP), organisational change management
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