Sample Models

Model 11.2: ANP BOCR - What should PPG do with its ERP system?

Short Description

PPG Industries is a Fortune 200 company that manufactures coatings, specialty products and materials. PPG operates globally and is separated into 12 business units that focus on different markets. With the complexity of running many businesses under one umbrella, the systems footprint is also large and fragmented. Today, PPG coatings division in North America runs on an old mainframe system for its ERP (Enterprise Resource Planning) that has been around for over 30 years. This ERP system handles order placement, invoicing, inventory tracking, manufacturing, and many other aspects of the operation. Five years ago, the company took a look at its landscape to evaluate a business case for replacing its old ERP systems for coatings with a newer one. This decision would result in a capital transaction in the tens of millions of dollars. So, what should PPG do with its ERP system? There are three alternatives proposed in this model: upgrade to a new system, postpone the upgrade for another five years, or to never upgrade the system.

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