Retooling for E-Business
Owens Corning changes IT strategy.Youve just spent $280 million and the last six years executing an ERP-centric IT strategy only to find that, in some important ways, its incompatible with the companys e-business push. Meanwhile, the slowing economy is producing softening demand for your companys products and a need to cut costs. Oh yes, and lawsuits and restructuring charges last year forced you into Chapter 11 bankruptcy protection. Time to pull the plug on that ambitious IT strategy and go back to the drawing board, right?
Not if youre Owens Corning, the $5 billion maker of building materials. Rather than tearing its IT strategy down and starting over, the Toledo, Ohio, company is remodeling it by surrounding its SAP AG SAP R/3 ERP (enterprise resource planning) system with a series of Web-based CRM (customer relationship management), supply chain management, and enterprise portal tools and technologies that officials expect will help transform Owens Corning into a true e-business. In fact, CEO Glen Hiner has mandated that, by 2004, the company slash costs significantly by increasing the percentage of customer transactions it does over the Web from about 5 percent to at least 50 percent.