Presented By – Akash Kumar Sahoo Bibhu Prasad Mohanty

Jagat Jyoti Malla Subham Bhartti

Suraj Satpathy Vishal Mishra

Presented To – Dr Manoranjan Dash

Aviall Inc.: From Failure to Success with Information Technology

COMPANY PROFILE

• Aviall was founded by Army veteran Edward “Doc” Booth in 1932 .

• It has its headquarter at Dallas , Texas.• Aviall Services INC. is a subsidiary of Boeing

company .• CEO – Mr . Eric Strudel• CFO – Mr . John M .Meersman• CIO – Mr . Scott Shadle• Senior vice-president of global operations and

supply-chain – Mr . William Ampoto

• Type – Public Company• Industry – Aviation and Aerospace• Specialities – After market solutions , supply-chain ,

AOG , logistics , paint mixing , aircraft parts repairing , batteries , brake and wheels.

• Company size – Around 5000 Employees.• Web-Site –www.aviall.com

COMPANY OVERVIEW• Aviall leads the market with its global distribution

of parts and technology in the aviation(the art of science of making and flying air-craft) and aerospace sectors.

• It also involves in manufacturing and selling of airplanes , rockets, and satellite worldwide.

• Aviall markets and distributes products for more than 240 manufacturers and offers approximately 20,00,000 catalogue items from 40 customer service centres located in North America , Europe and Asia-Specific.

• Aviall is committed to supplying the right part at the right time . proudly keeping the world in flight.

PRODUCT TYPES

• Agricultural – pumps , valves , spray booms , fans.

• Airframe – fuel system , propellers , batteries , piper aircraft.

• Avionics – antennas , annunciators.• Chemicals and consumables – lubricants , paints

and coating , food beverages .• Engine – exhaust system , ignition and filtration ,

oil coolers , Rolls-Royce engine parts.

FINANCIAL AND FILLINGS

• Revenue - $ 101,33,35,000• Net income - $ 2,07,78,000• Total assets - $ 69,11,92,000• Total liabilities - $ 39,11,08,000• Stockholders equity - $ 30,00,84,000

OBJECTIVES

• To analyse the failure in implementing ERP.• To analyse that how the information

technology brought new business success to Aviall.

• To evaluate that how other companies uses the various Aviall approach to the use of IT to improve their business success.

IMPORTANT TERMS• ERP(Enterprise Resource Planning) - it is a

process by which a company manage and integrates the important parts of its business.

• CRM(Customer Relationship management) – it is a term that refers to practices , strategies and technologies that companies use to manage and analyse customers interactions an data throughout the customers lifecycle , with the goal of improving business relationships with customers , assisting in customers retention and driving sales growth .

• SCM(Supply chain Management) – it is the oversight of materials , information , finance as they move in a process from suppliers to manufacturers to wholesaler to retailer to consumer.

1)Why do you think that Aviall failed in their implementation of an ERP system?

Reasons why Aviall failed would include :• The ERP system did not support adequately

Avialls business strategies.• The ERP implemented did not improve the basic

operational support system needed by Aviall.• The implementation of the ERP failed due to

inadequate consideration of the magnitude of the project.

• It is a very expensive software.

What could they have done differently?

• Proper project planning through the use of some form of a systematic developmental process.

• Proper investigations and analysis of the business requirements prior to making decisions.

• Developing information system solutions:I. investigateII. AnalyseIII. DesignIV. ImplementV. Maintain

2)How has IT brought new business success to Aviall?

• System integrated by using common business databases managed by database software from Sybase Inc. (a software company , subsidiary of SAP , to manage and analyse information in relational databases).

• Designed the new combined system to properly access and deal with customized pricing charts for 17000 customers who received various types of discounts and with an inventory of 380000 different aerospace parts.

• Developing aviall.com to reduce the cost per order from $9 per transactions to 39 cents.

How did IT changes Avialls business model ?

• Customers are able to transfer their orders from an excel spread-sheet directly to the website.

• Customers have access to price in availability information in less than 5 seconds – a real time feature.

• Sales force spends more time developing customer relationships than processing routine orders.

• More customer satisfaction.• IT changed Aviall from a catalogue business to full-

scale logistics business.

3)How could other companies use Avialls approach to the use of IT improve their

business success to give several examples ?

• Reposition a firm as a supply-chain management services provider through web-enable e-business software system.

• DELL has no inventory cost.• GMC(General motors co.) tracks inventory and information

through SCM(supply chain management) system.• DELL manages customer data through CRM(customer

relationship management) systems , predicts the needs.

Latest news regarding Aviall• Aviall has signed an agreement with GE aviation to become

the sole provider of CF34-08 and CF34-10 new and used parts and line replaceable units or LRUS for corporate business jets.

• Aviall services INC. wins $ 1.24 million federal contract from the US Air-force material command for engines , turbines and components.

• Aviall services INC. wins $ 1.14 million federal contract from the defence logistics agency for aircraft engine and its parts.

• Aviall and Michelin announce strategic collaboration agreement.

CONCLUSION

• By concluding it can be viewed that implementation of ERP was not up to the mark , proper planning and research is needed.

• The project planning must be done in a systematic pattern and the identification of the business requirement is highly needed in future.

• So at the end it can be said that Aviall must improve their planning and develop the strategy for implementing new software.