Winning the Bet

Winning the Bet

Claudia Moya

Pasco-Hernando State College

Abstract

International Game Technology (IGT) is a very profitable manufacturer of slot and lottery machines. Before 2002, the business was run by numerous information systems under individual functional units, making it difficult to obtain crucial data. As business continued to expand, it became more difficult to produce comprehensive information in a timely fashion. Changes needed to be implemented to satisfy the needs of the growing manufacturer. The company decided to implement an Enterprise Resource Planning (ERP) system with the hopes of reducing current conflicts.

Winning the Bet

        International Game Technology is a leading manufacturer whose revenue continues to increase yearly. In 2005, it had revenue of $2.4 billion which increased to $4.1 billion by 2014. Slot machine and lottery machines don’t seem to be affected by the economic hardships that other businesses and individuals are going thru. Being in this line of business seems to be profitable, with all the hopes and dreams of individual trying to “win it big”.

        In 2002, the company had to evaluate their information systems which were not able to meet the demands of the expanding business. The information systems in place were actually slowing down processes and procedures as well as cutting into business profits. Each line of business had its own information system which handled different aspects of the company. There was no centralized system that could provide all necessary data. This of course, required immediate attention and correction. All departments were being affected on a daily basis which cut into time that could be spent addressing other tasks. The accounting department in particular, is a great example of an area which encountered serious delays due to the lack of technology within the company. It took the 2 weeks, every time, to close the books.

        The CIO of International Game Technology was addressed by the accounting department who was looking for solutions. After further analysis, he approved the implementation an Enterprise Resource Planning system to correct some bumps in the road. Millions of dollars were spent to implement an Enterprise Resource Planning system with the hopes that it would make things easier. And it did, the system provided many benefits! Price proposals, manufacturing sheets and procedures to name a few are areas which were immediately improved. Proposals and estimates where more accurate, accessibility of manufacturing sheets was easier and the production of products was improved due to the new system not allowing incorrect processes to take place. The average production shipping time reduced from 9-10 weeks to 7-8 weeks and expedited orders from 7 weeks to 4 weeks. All of which increased revenue for the company while also decreasing the production error rate from 10% to 0%. Could that be possible? Production and error rates improved? Absolutely!