MD1Assgn Pineda Francolugo Marco Alejandro PDF

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Marco Alejandro Pineda Francolugo 20-02-20 Walden University Module 1 LeasePlan Case Study

International Automotive fleet management company LeasePlan has been hit by a massive bill for a failed SAP implementation. LeasePlan has since dropped SAP to pursue an alternative IT infrastructure, citing the “monolithic nature” of rhe ERP system as being incompatible with its more agile needs, but no before sinking almost 100 million into its SAP efforts. LeasePlan was establish in the mid-1960, LeasePlan is one of the driver mobility companies, with 1.8 million vehicles under management in more than 30 countries and approximately 6600 employees. Their core business involves managing the entire vehicle life cycle for their clients, taking care of everything from purchasing and maintenance to car remarketing. Fleet management and leasing businesses face tough competition, growing customer demand, and legal complexity. LeasePlan faced the additional challenge of achieving competitive revenue goals while increasing efficiencies. As a service provider, the company is responsible for supporting its customers in a reliable, innovative and flexible way to keep them mobile at any time. Since LeasePlan is a private company and currently there is no public lawsuit going on, it is hard to find information about what actually went wrong with the company but in conducting research for this case study I could found this information: 

The company was consolidating 35 systems into one, which is typically a Herculean task in and of itself

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The company failed in a past SAP implementation at one of its affiliates which took 4 years to implement and another 3 years to settle down after go live

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The Company CIO touted extremely aggressive plan for rolling out the new technology, wich is typically not a goo thing

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LeasePlan was pursuing a big bang rollout strategy for most countries it operated. Wich creates a high-risk profile for most organizations.

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The team acknowledges that change management would be difficult, but that they had it under control with a comprehensive change management plan.

Digital transformation are to often misaligned with an evolving business model and overarching corporate strategy. Its nearly impossible to succeed in this type of situation. Being a responsible buyer of technology and outsourced software development services and working well with suppliers during projects are crucial skills for any organization. Be skeptical of concepts like SAP’s Model Company, Oracle’s Unified Model, NetSuite’s Suite Success, and other ERP software industry hoaxes that may mislead you to unrealistic expectations. Digital transformations are too often misaligned with an evolving business model and overarching corporate strategy. It is nearly impossible to succeed in this type of situation. Not only is LeasePlan in a unique industry, but it was also actively disrupting its industry with new platforms such as CarNext.com and its Car-as-a-Service business models. It is important that we understand our business model and define how your digital transformation or project will support that bigger-picture strategy. If you don’t see or don’t define the connection for the rest of your team, then you’re not ready to be starting a large-scale transformation. Also being a responsible buyer of technology and outsourced software development services and working well with suppliers during projects are crucial skills for any organization.

LeasePlan fleet conversion case study: EV adoption for employee vehicles. (2018). World Business Council for Sustainable Development (WBCSD). https://www.wbcsd.org/Programs/Cities-and-Mobility/TransformingMobility/Transforming-Urban-Mobility/Emobility/Resources/LeasePlan-fleetconversion-case-study-EV-adoption-for-employee-vehicles...