Santa Cruz Bicycles Plm Systems

Implemented well a PLM software require an enormous time of work and, therefore, the company need to think of all the details such simple operational questions whose often requires mangers to modify the business process minimally or redesign them to adju st the information system.

Santa Cruz Bicycles adopted a similar PLM system software used by large global manufacturer, therefore, the company need to verify that his system is fully aligned with their business strategy, IS strategy, and organizational strategy.    

When the request for Santa Cruises Bicycles will rises, the firm should purchase a new machine to fabricate enough intricate parts for the prototypes but also employ a supplementary master frame builder to be able to reduce the building time for a new prototype.

Innovating new technologies is half the battle for bike manufacturers, therefore, Santa Cruz Bicycles need to be aware constantly. Indeed, if one of their competitors creates a more technology advanced bicycle design or suspension, the company need to be certain that with the PLM system they currently used, they will be able to upgrade their product quickly or release an even more advanced technology.

What are possible risks they need to be aware of?  

Implementation delays: In order for a system like the company has implemented work, all the other processes must be aligned, and these types of changes take times and not always guaranteed to work well.

Very high cost: PLM had also a very high cost because implementing enterprise systems requires organization to make changes beyond just the processes, but also in their organization structure and its represent additional hidden cost.

Have a high risk of failure: Implementing enterprise system is as we seen before costly and no guarantee of success. Indeed, there are a lot of enterprise system horror stories like Kmart who wrote off its 130 (one hundred thirty) million ERP investment.