Commins/Comatsu/Telko

Cummins has an emphasis on “Customer-Quality” in the attempt to deliver customer-quality they have built joint ventures between with other engine manufacturers and distributors. The Case Study focus on two different joint ventures they established with Telco of India and Komatsu of Japan and are viewed from the Cummins point of view. Each of the joint ventures was to use Cummins engine design and thus Cummins would license the engines to the joint ventures.

In this paper we will review the Information Technology (IT) issues that surrounded the joint ventures between Cummins and Komatsu.

2 Identification Of The Central Issues In The Case Study:

Cummins had very distinct requirements that they wanted to maintain in their joint ventures. Cummins requirements was that the information systems, of the joint venture, would ne

Due to cultural differences that existed between the Cummins and the Komatsu partners working on the project there were several other issues that arose. These problems could be summed up as in one term, communication problems. The communication problems began with the initial contact between M. D. Lankford, Business Systems Consultant for Cummins. Lankford recalled that that “The data center director who took me on the tour spoke no English. His card did not even have English on the back. The interpreter spoke English well, but she did not understand the technical terms of the computer area.”

There should have been negotiations on several fronts and milestones could have been created in a project plan where each company would have been known what they needed to deal with, when they needed to deal with it and when they needed to report back to the other company.

4.5 Financial Systems/Transfer Rates:

Cummins and Komatsu failed to define financial subsystems and business processes. Since financial issues are a destroyer of many relationships. We can assume that the responsibility chart would clearly define these responsibilities for both Cummins and Komatsu. It is important that the responsibilities be defined early in the relationship.

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