the enterprise systems implementation: an integrative framework

8/8/2019 THE ENTERPRISE SYSTEMS IMPLEMENTATION: AN INTEGRATIVE FRAMEWORK

1/18

THE ENTERPRISE SYSTEMS

IMPLEMENTATION:

AN INTEGRATIVE FRAMEWORK

By:Deepali Khanna ( 09609019)

Ankit Goyal (09609025)

Nitin Maheshwari (06503866)


2/18


3/18

Introduction

Enterprise Systems(ES): Large-scale,

integrated application-software packages

that use the computational, data storage,

and data transmission power of modern

information technology to support

processes, information flows, reporting,and data analytics within and between

complex organizations.

9/8/2010 3The Enterprise Systems Implementation : An Integrative Framework


4/18

Why there is a need of ES:

As the pace of change accelerates in the

twenty-first century as a result of technological

opportunities, liberalization of world markets,

demands for innovation, and continually

decreasing life cycles, organizations are

finding that they have to continuously re-adjust

and re-align their operations to meet all thesechallenges like better decision-making, and

achieve a competitive advantage.



5/18



6/18

Problems with ES:

Half of ES implementations fail to meet

expectations (in 1997).

More than 70 percent of ES implementationfails to achieve their estimated benefits.

The level of return on investment (ROI) is

rather low.

Serious conflicts with their business strategies

and the majorities of ES projects are often

characterized by delays and cost overruns.

9/8/2010 6The Enterprise Systems Implementation: An Integrative Framework


7/18

Issues Identified

The certain issues specific to these enterprise

systems have to be taken into account like

unsuitability and extent of business processes

re-engineering required in institutionalized

business.

ES configuration options to fit business

processes is:

Costly

Risky

Time Consuming

Difficult.



8/18

ES Characteristics

ES is both strategic and operational.

Strategic systems aim at making the organization more flexible

and responsive to customer needs.

The evaluation of strategic systems has to be based on costwhile ES softwares operational costs and benefits are more

easily identifiable and quantifiable than the strategic ones.

Financial techniques such as discounted cash flow, are

constantly misused while evaluating strategic IT decisions

It is difficult to assess in quantitative terms, a qualitative terms

using techniques like Likert type scales and interviews

respectively.



9/18

Stakeholders Analysis

A number of ESs stakeholders operate outside the

organizations boundaries.

SCM - Co-operation between business partners

CRM - Cooperation with the organizations customers.

EXTERNAL STAKEHOLDERS



10/18

Cost And Benefit Analysis

There is a high percentage of intangible costs and

benefits.

Intangible assets are created by investments in

software, training and organizational

transformations induced by IT.

All three costs are taken into account while

considering ES projects: tangible costs

intangible assets

hidden costs

Intangible or hidden and underestimated costs are

also a major concern among ES specialists.



11/18

Organizational Impact

A major implication of ES deployment involves

drastic changes in the

Organizational Structure

Business Processes People Of An Organization.

The re-engineering exercise is undertaken with the

aim of achieving the optimization and integration ofbusiness processes according to the softwares

inbuilt best practices.



12/18


13/18

Proposed Integrative Framework For ES Adoption

(Contd.)

Business Requirements

Both current and future business needs, arising mainly from

external competitive pressures, have to be balanced against

various technological, work and organizational constraints.

Product, Vendor And Support Services Evaluation

The phase considers the selection of ES modules that support

critical business functions.

ES packages offers a broad functionality, they certainly exhibit

individual strengths and weaknesses compared to individual

business requirements.9/8/2010 13The Enterprise Systems Implementation : An Integrative Framework


14/18

Proposed Integrative Framework For Es Adoption

Constraints

Technical Constraints: Changesin the IT infrastructure may be

necessary in order to support theES system. IT infrastructure is asupportive IT investment with no

immediate measurable benefits by

its own, but it still needs to beevaluated.

Organizational Constraints:These include the managementstructure, leadership style, the

companys culture, resistance tochange, job security feelings.

.

Human ResourcesConstraints: lack of trained and

educated employees in ESphilosophy represents a serious

constraint.

Financial And TimeConstraints:Any ES projectimplementation should haveadequate financial resources



15/18

Proposed Integrative Framework

For ES Adoption

All-In-One vs. Best-Of-Breed ES Software

Enterprises searching for competitive advantage

have the option of acquiring an all-in-one or a best-

of-breed ES.

All-in-one approach - Multinational Colgate-

Palmolives SAP R/3

The Boeing Commercial Airplane Group has

chosen the best-of-breed ES.



16/18

Conclusion

A large variety of ES core and extended

modules and supporting services are

being offered by established ES vendors

and third party companies.

The decision to acquire an ES and the

adoption process is becoming increasingly

complex in a changing and competitiveenvironment.



17/18

Conclusion Cont

Enterprises pursuing systems integrationshould evaluate and select systems thatcontribute to this goal without of coursesacrificing the functionality of applications

they believe are crucial for their business.

Careful adoption process of vendors,products and services provided isnecessary but the final decision has to be

made considering the amount oforganizational change required for theadoption and the implementation of theselected ES.



18/18

Questions

Thank You


the enterprise systems implementation: an integrative framework

Documents