Digital China Case Report
In this root cause analysis we will investigate the events leading up to the occurrence of the uncertainty that Digital China is experiencing. The "event" that we will discuss in this root cause will be the entrance of China into the World Trade Organization or WTO. Not only will we identify what events are occurring and how these events will impact Digital China, we will also attempt to identify why they are happening. Therefore only when we understand why the events are unfolding as they are we will then be able to put in place corrective measure that will prevent future market changes, of this type, from impacting the organizations operational and business strategy for successful ERP integration and portability.
Prior to starting the root cause analysis, we should take the time to review the data that can help us determine the courses of action that can potentially be the most successful and beneficial to Digital China's growth goals.
From the standpoint of when the CEO Guo Wei first felt the uncertainty of how to proceed, Digital China was formally its own entity for only 4 months. The strategy for Digital China is distributed between the following segments:
Distribution of IT Product (79% of its revenue)
Providing IT services (14% of its revenue)
Manufacturing and Distribution of networking product (7% of its revenue)
Prior to the division of Legend Computers and Digital China under the Legend Company, there are some specific characteristics that will impact the overall root causes.
The Legend Company is very familiar with ERP implementations. On November 9th 1998 the Legend Company began a two phased ERP implementation process that was expected to be completed in October of 1999. Yet in actuality the instance went live in January 5th 2000.