Komatsu had systems that needed to also be integrated with the joint venture. .
Several issues arose during development and the interactions between Cummins and Komatsu from cultural differences to technical issues. Like most projects, especially between established organizations from diverse cultural and business backgrounds these types of issues should be taken into account. Cummins and Komatsu wanted to protect their existing business while increasing sales through the joint venture. Komatsu did not want to create a new line of engines in the same class as the Cummins" B-Series engines for several reasons that included time from research and development and then certification to production while Cummins wanted to increase market share and develop new markets.
Security was a important issues too, the joint venture needed to be able to communicate with each of the parents sending customer data and financial data. Komatsu also stipulated that they wanted to keep the two engine parts lists separated meaning that if a mechanic working on a joint venture engine and it was sold through Komatsu, the mechanic would have to look in the Komatsu database for replacement parts. Cummins did not see this as a problem because the thought that Cummins" mechanics would know a Cummins engine when they saw it even if it carried another's name.
The central issue in this case is that Cummins and Komatsu needed to work together to create interfaces that would be able to communicate with the two different parents" existing IT systems. They need to establish processes, and these processes should have been defined at the executive managerial level, to ensure that the joint venture systems implementation teams would use in creating the new company. Now lets turn our attention to possible solutions to these central issues. .
3 Possible Solutions For The Central Issue:.
The biggest issue as we stated above are the communication and different business culture between Cummins and Komatsu in the Joint Venture process.
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