Value Chain and IT Transformation at Desko (A)
(7 pages of text)
This case describes the history of Desko, a Canadian manufacturer of wood office furniture, as it faced a crisis that threatened its own existence. The president and CEO needed to decide which actions to take to improve the effectiveness of the value chain activities of the firm and the information technology (IT) supporting it. He was considering outsourcing parts of certain value chain activities, including manufacturing, to specialized partners. The case also depicts the main characteristics of the Canadian wood office furniture industry and the external factors that played an important role in the development of Desko.
This case exemplifies the impact of globalization on export-oriented manufacturing SMEs. A Deloitte study of manufacturing trends in global markets demonstrated that value chain dispersion was affecting large and small companies throughout North America and Europe. This situation often led to situations where firms were forced to examine the effectiveness of their manufacturing value chains and to evaluate outsourcing options on a continuous basis. The report also highlighted the critical role played by IT in bringing value to the strategic actions undertaken.
Canada/Quebec/Ontario, Medium, 2009
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