Organizational management is an effective method of protecting earnings, reducing bad liabilities and consequently strengthening the decision-making process to embrace change. From the case study, A Make-or-Buy Decision at Baxter Manufacturing Company, the company's executive management is faced with tough decision making process on whether to buy a new software for the manufacturing to stamps or make the products using the old systems they had been using previously or buy ready-made products to reduce production cost to maximize on profit. Baxter Manufacturing Company is a family run company founded by Walter R. Baxter in 1978 to deal with stamping products. Over the years Baxter has gained a reputable business relationship with leading automobile industries increasing the demand for their products. Recently, the new Manufacturing Information Systems Manager, Don Collins, with the aid of the vice president Manufacturing, Lucas Moore, are recommending a integration of a new production system that incorporates customer service and tracking raw materials. President Kyle Baxter and the vice President customer relations are facing a difficult decision-making process to decide on whether to purchase the recommended Effective Management System manufacturing software following the failed past experiences in such moves (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012). This paper will discuss the challenges faced by Baxter's executive management in these situations as well as discuss the positive and negative impacts of change management in an organization.
In the problem identification, Baxter Manufacturing Company has over the years lead in the stamping industry and has remained an advanced competitive advantage in the global market. However, with the advent of technology Baxter needs to integrate information technology systems in the production and other major operations to remain in the competitiveness of the stamping industry as well as increase production time with reduced cost (Brown et al., 2012). The case study presents some loopholes that may negatively affect the success of the new change in the manufacturing technology systems because previously the company has made two similar attempts to purchase a manufacturing system that failed to work out. In this case, they still believe in the word given by the selling company instead of benchmarking other companies with already installed systems to make a proper and conclusive decision on whether they can purchase the new system. The proposal for the recommended purchase is rushed. Although the Manufacturing vice president Lucas Moore had done his research on the new software the company needs to purchase nobody else knows the logistics of the new operations making such a rushed decision would be very costly for the company because when only one person who is conversant with the new system there could be some overlooked aspects that would be evaluated collectively.
The case of Baxter Manufacturing Company presents numerous challenges emanating from the change needed in the integration of the new software in the company's manufacturing system. Initially, the important and expensive decision-making process for the purchase of the new software system is left for the president and the vice president to make a conclusive decision. They are not conversant with the advantages and disadvantages offered by the new software system. Therefore, they are relying on the information provided by the manufacturing vice president and the information system manager and also the evaluation of the company's past experiences in such situations in decision-making advantages and disadvantages (Cohn, 2014). Although, they are aware of the two-part failures they are aware that they must make a decision soon regarding the new recommended manufacturing software. In the dilemma, the relevant authority and experts should be incorporated to incorporate different views and suggestions to evaluate the risk factors as well as improve the existing loopholes that would attribute to past failures (Cohn, 2014). Baxter and Barkley are both reluctant in making a decision because of the past two experiences and are afraid to fail for a third time to mitigate such a challenge they need to benchmark in other companies that have already integrated the new software in their manufacturing process to ensure that they are aware of all the norms and vices attributed to integrating the new software in their stamp production system. Again, they also need to consult with the experts in the manufacturing plant to ensure that the advantages of the new software supersedes the disadvantages as well as reducing the cost of production thus, remaining their competitive advantage in the global market.
Change management is essential in embracing organizational changes or improvement of the systems. Technological evolution is the principle change driver that requires redirection, redefinition, as well as operating systems to improve productions as well as increase competitive advantages (Anderson & Anderson, 2001). In the process of change management for the Baxter Manufacturing Company's case study will need integration of technological evolution in the production system to increase their efficiency and rate of production of stamp dies for effective customer services and increased raw materials management. The Baxter executive personnel is responsible for evaluating the positive and negative impacts on the provided by embracing the change system that will impact on the level of their new stamps productions as well as integrated consumer records. The primary advantage of this new system seems to be promising is the increase and efficiency in customer management. Embracing the change in production and enhanced customer databases will increase efficiency and timely delivery of customer services. When Baxter integrates the change in their manufacturing plant they will be able to monitor and dictate the flow of their raw materials in the production's department. They will be able to prioritize the most important productions in the right quantities based on the clear and distinctive customer ordering system. Therefore, through embracing the new technological evolution in the change management of the new software will increase their operations efficiency because the production will be made on order and customers request.
However, implementation of the change in the new software system the company may face difficulties because of the cost implications of buying a new production system they will need to train the staff or hire experts to operate the new production plant which is deemed expensive especially in the initiation stage. The organizational transition process can be the tedious and poor management of change embracement can lead to huge loses or optimization of the organizational systems. Especially in the Baxter Manufacturing Company where the change needs are only identified and familiar to the manufacturing vice presidents and the information systems manager who are recommending the change. Also, the decision is made only the president and the vice president without full information of the pros and cons of the change will limit their change management and implementation effectiveness (McKeen & Smith, 2015). In conclusion, the Baxter Manufacturing Company is facing an immense milestone that would lead to its increase of downfall in the global marketplace advantage. Making the appropriate decision in embracing the new recommended software will require timely and informed decision-making process to ensure that the incorporation of change management favors the competitive advantage to its customer management and reduced production costs.
Anderson, D. & Anderson, L.A. (2001). Beyond Change Management: Advanced Strategies for Today's Transformational Leaders. San Francisco: Jossey-Bass/Pfeiffer. Retrieved 12/21/11 from https://books.google.com/books?id=WbpH7p5qQ88C&printsec=frontcover&dq=beyond+change+management&hl=en&sa=X&ei=kEfzTpewMYKpiQLGz5S8Dg&ved=0CD0Q6AEwAA#v=onepage&q=beyond%20change%20management&f=false
Brown, C.V., DeHayes, D.W., Hoffer, J.A., Martin, W.E., & Perkins, W.C. (2012). Managing information technology (7th ed.). Don Mills, Canada: Pearson Education.
Cohn, Chuck (2014). Build vs. Buy: How to Know When You Should Build Custom Software over Canned Solutions. Retrieved from: https://www.forbes.com/sites/chuckcohn/2014/09/15/build-vs-buy-how-to-know-when-you-should-build-custom-software-over-canned-solutions/#143054a5c371
McKeen, J. D. & Smith, H. A. (2015). IT strategy: Issues and practices (3rd Ed.). Upper Saddle River, NJ: Pearson Education.
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