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Management Information systems


How would you advise Macharia to proceed on the issue of upgrading the B1 System? Should they upgrade to higher version of SAP or should they just improve the B1? What criteria would you use as a basis for your decision/recommendations?




Subject Administration Pages 2 Style APA


Managing Information Systems Case Study
Information and communication technology (ICT) in contemporary organizations is fundamental in promoting competitive advantage and increasing the market share. According to Reinoso and Castillo (2018), ICT enhances the business process and increases operational efficiency. This case study evaluates Mr. Macharia’s (the CEO) next stages about upgrading the B1 system. It involves evaluating if the change should improve the B1 or upgrade to a higher SAP version.
Mr. Macharia’s next steps after the debate involve evaluating the effectiveness and potential of the current B1 system to address his concerns. Notably. Abbas’ fears about RedLock’s previous inefficiencies, especially the mistakes with customizing, should not be ignored (Acosta & Acosta, 2014). Detailed research about the B1 system and its potential currently would be critical in making an informed decision. This implies that an audit system of the B1 is essential before deciding to upgrade to the SAP. Another vital evaluation is RedLock’s efficiency in upgrading the system. From the case study, it is apparent that Zaidi has not benefited adequately from the B1 system due to RedLock’s internal inefficiencies.
The next step is to make an informed decision from the detailed evaluation of RedLock’s efficiency and the potential of B1. The decision involves upgrading the SAP B1 or transitioning to the SAP A1 version that is powerful and involves more applications. This decision can be informed by conducting an environmental analysis and competitive position of the company using the strengths, weaknesses, opportunities, threats (SWOT), and Porter’s five forces tools. According to Oneren, Arar, and Yurdakul (2017), these tools are essential in enhancing an organization’s strategic decision-making process. The company’s strengths include a strong financial position, competitive young IT professionals, and investment in the company’s growth and development. The weaknesses include a decentralized system without effective coordination and non-technical directions. The opportunities include expansion to other countries, growth in the ICT system, and more implementation of the ICT and innovation. The threats include competition and uncertainty in RedLock’s effectiveness.
The most appropriate decision for Zaidi is to upgrade to the SAP A1 version, which is new and versatile according to its needs and preferences. Drawing from the company’s opportunities, Zaidi should explore other markets in Africa, which can be achieved through implementing the new SAP system. Besides, improving the B1 system raises the question of sustainability and application in the company’s growth and development. Haseeb et al. (2019) described that social and technological aspects are essential in achieving sustainable competitive advantage. Advancing to the SAP A1 supports the expansion opportunities and aid in rivaling other companies in Zaidi’s competitive landscape. Another element supporting this decision is the company involved in implementing the A1 system, which has specialized in the oil and gas industry.
Zaidi’s implementation of the SAP A1 system will require a consideration of three factors. The firm’s ICT infrastructure has been primarily decentralized, and the governance and purchasing approaches have not been adequately coordinated. This should be addressed before implementing SAP A1. Another core recommendation is to conduct comprehensive research about the new system before implementation. This will help establish a suitable plan for its implementation, including training the employees. An effective change management model should also be employed, such as Kotter’s or Lewin’s. This will ensure the new system is implemented successfully and potential challenges and risks, including resistance to change addressed.
In summary, Zaidi’s most suitable decision is to upgrade the SAP system to A1 rather than building on the B1. SAP A1 will allow the company to exploit its opportunities and address the concerns with the B1. The SAP A1 system will also be prospective in fostering a sustainable competitive advantage.


Acosta, F. R., & Acosta, A. S. (2014). Zaidi Oil: the SAP ERP dilemma. Emerald Emerging Markets Case Studies, 4(8), pp. 1-10.
Haseeb, M., Hussain, H. I., Kot, S., Androniceanu, A., & Jermsittiparsert, K. (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability, 11(14), 3811.
Öneren, M., Arar, T., & Yurdakul, G. (2017). Developing competitive strategies based on SWOT analysis in Porter’s five forces model by DANP. Journal of Business Research-Turk, 9(2), 511-528.
Reinoso, J. R. R., & Castillo, D. C. C. (2018, November). Importance of ICT’s Use in Business Management and Its Contribution to the Improvement of University Processes. In Conference on Information Technologies and Communication of Ecuador (pp. 241-252). Springer, Cham.


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