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Introduction

This case study will be used for a series of staged assignments.  It should be thoroughly read and understood prior to working on any of the assignments.

Setting

Precision Electronic Parts (PEP), Inc., is a small private business that has retained you to assist in the development of a new billing and payment system and associated processes.

Background

PEP is a small, private specialized electronics company in Kansas. For the past 20 years, it has manufactured a wide range of precision electronic components and replacement parts for medical equipment used in hospitals, doctor’s offices, and pharmacies. Last year, the company began building and delivering custom low voltage motors that reduced electricity costs and made older medical equipment more environmentally friendly.  More recently, PEP has added a new line of more efficient low voltage motors that can be used in precision equipment outside the healthcare industry.

As a result, PEP is experiencing significant increases in orders for the motors. The manufacturing facility has been expanded, and the sales and marketing teams have been enlarged.  All of this is straining the Ordering & Shipping Department and the Inventory Management Department, which have received no increase in personnel.  They are meeting the challenge, but the Executive Leadership Team (the CEO, COO, CFO, and CIO) know that they are only treading water.  The Finance Department, however, is getting further and further behind in their invoice, billing and payment processes.  The Business Administration Department has stepped up to the task, but is at the breaking point.

IT Steering Committee

The IT Steering Committee (ITSC) at PEP is comprised of the Executive Leadership Team, the Senior Vice President and Vice President.

• Carolyn West is the Chief Executive Officer (CEO). She has been at the company for 11 years. Carolyn has a background working for and managing electronics companies. Like most CEOs, Carolyn is focused on the strategic and long-term business health of PEP. She chairs the IT Steering Committee. Carolyn and the committee members jointly make decisions about IT systems and major organizational business process changes.