The Organisational and Information Systems of Rolls Royce to Succeed the 150 seater Replacement Project

The market value for a 150 seater engine in the next 20 years will be worth approximately US $185 billion. However, the Rolls Royce market share is only around 5% in the current market. In addition, the company is also facing some operations and organisational issues. Therefore, in order to be able to gain the maximum benefit from the new 150 seater market opportunity, there are four major aspects in which the company should improve. These are to encourage employees to be more involved in a lean supply chain initiative, to measure its business unit performance based on their contribution to overall company performance, and to improve information technology/enterprise resource planning (IT/ERP) and business alignment. First, the company has implemented major lean or efficient supply chain initiatives; meanwhile, the company supply chain performance is still far below its main competitor. In fact, these programs were also implemented by the competing company. Therefore, it is highly recommended that the company should not introduce any new supply chain improvement initiative for the 150 seat replacement project but rather to attempt to effectively implement the current supply chain initiatives by encouraging employees to get more involved in the supply chain improvement initiatives. Second, there was an indication that the current company's performance management could not encourage its business unit to perform better. This is because its business unit's performances were measured based on cost. On the other hand its business unit is asked to perform as a profit centre. Therefore, it is recommended that the company should treat its new business unit for the 150 seater program as a small company. The unit is given more authority and the performance is measured based on its financial value added and its contribution to the overall company performance. Third, in order to gain maximum benefit from the company's information technology or enterprise resource planning (IT/ERP) investment, Rolls Royce should improve its IT/ERP and business alignment to achieve level 4 and be above Loftman's IT and Business alignment maturity. To achieve that level, the company needs to focus on improving its IT functions to be able to understand more about the company needs, particularly in relation to the improvement of supply chain visibility