Zaidi Oil: the SAP ERP dilemma

Abstract

Subject area

Decision Analysis, Management Information Systems, Strategic Management, Organizational Development, Financial Management, Risk Management.

Study level/applicability

MBA-1 (Decision Analysis), MBA-2 (MIS).

Case overview

On a beautiful October morning in 2011, the CEO of a mid-size oil marketing company located in Nairobi, Kenya has to make a tough decision whether to upgrade their current B1 system to a bigger version of SAP. Abbas, the new Information Communications Technology (ICT) Director of Zaidi Group, was worried that Zaidi was building a bigger and bigger company on top of a more and more small enterprise resource planning system. Abbas's fears also include RedLock's past inefficiencies. Kariuki, the Finance Director, on the other hand was into the fear of overspending in a huge information technology (IT)system where current functionalities required can be addressed by a smaller system through add-ons, customization and development.

Expected learning outcomes

Demonstrate some tools in decision analysis for problems with multiple objectives including some issues indecision framing and cognitive inertia; Raise the issue for fundamentally changing a firm's infrastructure; Demonstrate the alignment of IT strategy to Business Strategy.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Citation

Acosta, F.R. and Acosta, A.S. (2014), "Zaidi Oil: the SAP ERP dilemma", , Vol. 4 No. 8. https://doi.org/10.1108/EEMCS-01-2014-0023