Aviall failed in its initial implementation of an ERP system due to inadequate consideration of the project's magnitude and failure to properly support Aviall's business strategies. However, IT later brought new success by integrating systems with a common database, designing a new system to handle customized pricing and large inventory. This allowed customers to place orders online in real-time, lowering costs and increasing satisfaction. Other companies could similarly use IT to improve supply chain management, customer relationship management, and inventory tracking to transform their business models.

1. Presented By – Akash Kumar Sahoo
Bibhu Prasad Mohanty
Jagat Jyoti Malla
Subham Bhartti
Suraj Satpathy
Vishal Mishra
Presented To – Dr Manoranjan Dash

2. Aviall Inc.: From Failure to Success
with Information Technology

3. COMPANY PROFILE
• Aviall was founded by Army veteran Edward “Doc”
Booth in 1932 .
• It has its headquarter at Dallas , Texas.
• Aviall Services INC. is a subsidiary of Boeing
company .
• CEO – Mr . Eric Strudel
• CFO – Mr . John M .Meersman
• CIO – Mr . Scott Shadle
• Senior vice-president of global operations and
supply-chain – Mr . William Ampoto

4. • Type – Public Company
• Industry – Aviation and Aerospace
• Specialities – After market solutions , supply-chain ,
AOG , logistics , paint mixing , aircraft parts
repairing , batteries , brake and wheels.
• Company size – Around 5000 Employees.
• Web-Site –www.aviall.com

5. COMPANY OVERVIEW
• Aviall leads the market with its global
distribution of parts and technology in the aviation(the art
of science of making and flying air-craft) and aerospace
sectors.
• It also involves in manufacturing and selling of
airplanes , rockets, and satellite worldwide.
• Aviall markets and distributes products for more
than 240 manufacturers and offers approximately
20,00,000 catalogue items from 40 customer service
centres located in North America , Europe and Asia-
Specific.
• Aviall is committed to supplying the right part at
the right time . proudly keeping the world in flight.

6. PRODUCT TYPES
• Agricultural – pumps , valves , spray booms ,
fans.
• Airframe – fuel system , propellers , batteries ,
piper aircraft.
• Avionics – antennas , annunciators.
• Chemicals and consumables – lubricants , paints
and coating , food beverages .
• Engine – exhaust system , ignition and filtration ,
oil coolers , Rolls-Royce engine parts.

7. FINANCIAL AND FILLINGS
• Revenue - $ 101,33,35,000
• Net income - $ 2,07,78,000
• Total assets - $ 69,11,92,000
• Total liabilities - $ 39,11,08,000
• Stockholders equity - $ 30,00,84,000

8. OBJECTIVES
• To analyse the failure in implementing ERP.
• To analyse that how the information
technology brought new business success to
Aviall.
• To evaluate that how other companies uses the
various Aviall approach to the use of IT to
improve their business success.

9. IMPORTANT TERMS
• ERP(Enterprise Resource Planning) - it is a
process by which a company manage and
integrates the important parts of its business.
• CRM(Customer Relationship management) –
it is a term that refers to practices , strategies
and technologies that companies use to
manage and analyse customers interactions an
data throughout the customers lifecycle , with
the goal of improving business relationships
with customers , assisting in customers
retention and driving sales growth .

10. • SCM(Supply chain Management) – it is the
oversight of materials , information , finance
as they move in a process from suppliers to
manufacturers to wholesaler to retailer to
consumer.

11. 1)Why do you think that Aviall failed
in their implementation of an ERP
system?
Reasons why Aviall failed would include :
• The ERP system did not support adequately
Avialls business strategies.
• The ERP implemented did not improve the basic
operational support system needed by Aviall.
• The implementation of the ERP failed due to
inadequate consideration of the magnitude of the
project.
• It is a very expensive software.

12. What could they have done
differently?
• Proper project planning through the use of some form
of a systematic developmental process.
• Proper investigations and analysis of the business
requirements prior to making decisions.
• Developing information system solutions:
I. investigate
II. Analyse
III. Design
IV. Implement
V. Maintain

13. 2)How has IT brought new business
success to Aviall?
• System integrated by using common business databases
managed by database software from Sybase Inc. (a
software company , subsidiary of SAP , to manage and
analyse information in relational databases).
• Designed the new combined system to properly access
and deal with customized pricing charts for 17000
customers who received various types of discounts and
with an inventory of 380000 different aerospace parts.
• Developing aviall.com to reduce the cost per order
from $9 per transactions to 39 cents.

14. How did IT changes Avialls business
model ?
• Customers are able to transfer their orders from
an excel spread-sheet directly to the website.
• Customers have access to price in availability
information in less than 5 seconds – a real time
feature.
• Sales force spends more time developing
customer relationships than processing routine
orders.
• More customer satisfaction.
• IT changed Aviall from a catalogue business to
full-scale logistics business.

15. 3)How could other companies use
Avialls approach to the use of IT
improve their business success to give
several examples ?
• Reposition a firm as a supply-chain management services
provider through web-enable e-business software system.
• DELL has no inventory cost.
• GMC(General motors co.) tracks inventory and information
through SCM(supply chain management) system.
• DELL manages customer data through CRM(customer
relationship management) systems , predicts the needs.

16. Latest news regarding Aviall
• Aviall has signed an agreement with GE aviation to
become the sole provider of CF34-08 and CF34-10 new
and used parts and line replaceable units or LRUS for
corporate business jets.
• Aviall services INC. wins $ 1.24 million federal
contract from the US Air-force material command for
engines , turbines and components.
• Aviall services INC. wins $ 1.14 million federal
contract from the defence logistics agency for aircraft
engine and its parts.
• Aviall and Michelin announce strategic collaboration
agreement.

17. CONCLUSION
• By concluding it can be viewed that
implementation of ERP was not up to the mark ,
proper planning and research is needed.
• The project planning must be done in a systematic
pattern and the identification of the business
requirement is highly needed in future.
• So at the end it can be said that Aviall must
improve their planning and develop the strategy
for implementing new software.