Week Nine

If the ERP is not able to achieve the strategic objectives of the organisation, then there is little benefit in implementing the system as the cost-benefit requirement will not be realised (Jang et al 2009).  Faced with an ERP that does not match the business processes of the ERP, the organisation does have the option to change their business processes or modify the ERP  (Buonanno et al 2005). Both options can be risky, complex and expensive (Buonanno et al 2005). If these elements cannot be achieved then the organisation should not seek to pursue ERP. If the required components are not present for the facilitation of the implementation of ERP, then it is not a wise strategy to implement ERP (Jang et al 2009). The research by Jang et al (2009) suggests that unless there is alignment, or a willingness to achieve alignment, then the implementation of ERP should be avoided.

In making the decision, Jang et al (2009) advises that the business should consider the factors of the internal and external strategies of the business, the perceived IT advantage and the size of the company. Making an incorrect decision can have significant negative effects on the organisation (Verville et al 2005). If the ERP is unable to meet the requirements of the business then there is little point in the pursuit of the implementation of ERP (Verville et al 2005).

Evaluation

The most difficult assessment item was the business case study of CQU.

It was difficult because it required the application of knowledge to a specific situation. There is no need to improve the assignment as it was the difficulty that provided the benefit in having to synthesise the information.

The first piece of advice is to manage your time. The concepts and the content is very challenging and to be able to manage the requirements it is necessary to allocate large blocks of time.

The second piece of advice is to communicate problems and issues that you might have before they escalate out of control. The lecturer is very helpful and supportive and has a genuine desire to help you succeed. But they can’t read your mind. Speak up early.

The third piece of advice is to break up the tasks that are required and set times during the week to do the readings, do the research, write the drafts and make the required postings.

I will look towards participating in a time management course in order to imporve my skills in this area.

 

Reference

Buonanno, G, Faverio, P, Rigni, F, Ravarini, A, Sciuto, D & Tagliavini M 2005, ‘Factors affecting ERP system adoption: a comparative analysis between SMEs and large companies’, Journal of Enterprise Information Management, vol. 18, no. 4, pp. 384 – 426.

Jang, W, Lin, C & Pan, M 2009, ‘Business strategies and the adoption of ERP: Evidence from Taiwan’s communications industry’, Journal of Manufacturing Technology Management, vol. 20, no. 8, pp. 1084 – 1098.

Verville, J, Bernadas, C & Halingten, A 2005, ‘So you’re thinking of buying an ERP? Ten critical factors for successful acquisitions’, Journal of Enterprise Information Management, vol. 18, no. 6, pp. 665 – 677.

 

Week Eight

A project manager shoud have the following skills and attributes:

A project manager must exhibit seven characteristics according to Hoffer et. al. (2002). The project manager must have leadership and management skills, be able to work closely with the clients, capable of solving problems, can manage conflict, a good team manager and a good risk and change manager (Hoffer et.al. 2002, p. 65).

Key to successful project management is the need to be able to motivate and organise people into teams (Lewis 2004, p. 72). It is through the marshalling of resources against an agreed to time frame that is the key driver of project success (Lewis 2004, p. 19). Successful project outcomes result from the project manager persuading other people of the importance of the deadlines of the project (Lewis 2004, p. 21). To do this requires the project manager to be a good listener; supportive of people’s needs; a team builder and capable of delegating (Lewis 2004, p. 22).

Leadership is important in project management as it is necessary to monitor the team’s progress towards the deliverables and goals of the project and to make key decisions to keep the project on track (Gray and Larson 2003, p. 318). Changes in direction are often necessary and for these changes to be successful it is necessary that the project manager show leadership qualities. It is the role of the leader to guide team members in the right direction and to motivate them (Kotter 1996). This, along with excellent communication skills, is the role of the leader that Kotter (1996) sees as being central to successful leadership. Leadership is an important factor in successful change management (Kotter 1996) and variations in project direction due to changing variables requires that a project manager is able to show leadership (Kotter 1996).

Hence, leadership becomes more important as the level of risk and uncertainty increases in a project (Gray and Larson 2003, p. 318). Leadership is required if there is a breakdown in communication, changes in scope or unexpected contingencies (Lockitt 2007). A good leader must be able to recognise the need for leadership and be able to articulate a new vision in a manner that motivates the members of the project team.

A project manager does not need to know the requiremenst of every software package and product as these can be researched.

References

Gray, CF & Larson, EW 2003, Project management: the managerial process, McGraw-Hill Irwin, Boston.

Hoffer, JA, George, J & Valiachi, J 2002, Modern Systems Analysis and Design, 3^rd edn, Pearson Education, USA.

Kotter, JP 1996,  Leading Change, Harvard Business School Publishing, Massachusetts.

Lewis, JP 2004, Team-based Project Management, Beard Books, Washington.

Lockitt, B, 2007, Putting the Q into quality project management, Centre for Excellence in Leadership, London.

Week Seven

The issue of reports after the implementation of a new ERP system is very important. The function of an ES is to collect and present timely information to managers (Hitt et al 2002). Research by Brazel et al (2008) found that the introduction of an ERP acted to improve the timeliness of reports. The failure to deliver reports when and where they are needed suggest that there has been a failing in the design of the system from a user’s perspective. This suggests that the modifcation of the ERP system to user needs has not occurred.

Often because the data that is being processed is so voluminous, the preparation and delivery of reports can be limited. This problem will become apparent when management require information that they are required to make decisions on (All 2012). This problem can be exasperated by the continued reliance on transactional reports or reports that do not present information in a manner that makes the deciphering of information difficult (All 2012). If the system is designed properly then there is nothing to prevent the delivery of reports in a timely manner and with the required information.  The solution must deliver true real time reporting.

Executive Summary

This report looks at the option for CQU to adopt SaaS. The report looks at the current ERP system of CQU and recognises  that the current approach has limited benefits for the organisation apart from in-house control. The primary disadvantages of the current system is its lack of integration and the high costs that are involved. The direction of resources toward the maintenance of the ERP  does absorb resources that CQU might direct towards the delivery of improved services to students.

The report overviews the escalating phenomenon of SaaS. The overview identifies that the system provides CQU with cost benefits, an integrated system, the capacity for seamless and continuous upgrading and the opportunity to direct energies towards the production of new educational products and the delivery of educational services.

The report recommends that CQU adopts SaaS. 

Introduction

This report assesses the implementation of SaaS within CQU. The report provides a brief background on the issue. An overview of the in-house enterprise system is provided. This is followed by an extensive exploration of SaaS. The report looks at the benefits and  risks associated with SaaS. Based upon the evaluation, the report recommends that CQU should adopt SaaS.

Reference List

All, A 2012, ‘Making ERP reporting more useful’, Enteprise Apps Today, viewed August 20 2012, http://www.enterpriseappstoday.com/erp/making-erp-reporting-more-useful.html.

Brazel, JF & Dang, L 2008, ‘The effect of ERP system implementations on the management of earnings and eanings release dates’, Journal of Information Systems, vol. 22, no. 2, pp. 1 – 21.

Hitt, LM, Wu, DJ & Zhou, X. 2002. ‘Investment in enterprise resource planning: Business impact and productivity measures’, Journal of Management Information Systems, vol. 19, no. 1, pp. 71–98.

Week 6

Stuff-Up.Org has developed its own legacy system and is looking to introduce an Enterprise System. They are required to consider an external product. The core issue will be the capability of the ES to be able to integrate systems that have been developed in-house and that are likley to have no equal outside of the organisation.  This will require a high degree of customisation which will increase the costs significantly (Nah et al 2001). There is likely to be significant resistance to the introduction of the system due to the legacy systems. This increases the potential of shadow systems which can be detrimental for integration (Gosain 2004).

The chartering phase requires the involvement of the CEO and the presentation of a business case (Nah et al 2001). Top management support of the project is essential (Nah et al 2001). The evaluation of the ERP system requires a broader range of stakeholders than merely the IT department (Nah et al 2001). The orientation of the enterprise system will be dependent upon the needs of the stakeholders and should not be only viewed from the perspective of the IT department.

There is the concern that the system wll be assessed only from the viewpoint of the IT department and fail to consider the needs of wider users. These users will ultimately determine the success of the system and need to be included in the evaluation of the products. The apporach that is adopted is too narrow.

Reference List

Gosain, S 2004, ‘Enterprise information systems as objects and carriers of institutional forces: the new iron cage?’, Journal of the Association for Infiormation Systems, vol. 5, pp. 151 – 182.

Nah, FF, Lau, J & Kuang, J 2001, ‘Critical factors for successful implementation of enterpise systems’, Business Process Management Journal, vol. 7, no. 3, pp. 285 – 296.

Conclusion for Assessment Item 3

This report recommends that CQU adopts SaaS. SaaS provides CQU with the opportunity to create an integrated system which can incorporate the required elements of the legacy system (Accenture 2011).   It has the capability to lower the costs that CQU pays for its ERP system. It provides greater agility and creates the opportunity for CQU to direct its attention to developing educational resources and improving the range of services provided. Given that CQU has a system  that is costly, is slow to respond to changes, drains the educational focus of the organisation, lacks integration and creates a high level of disruption when it is upgraded.

The use of SaaS will provide the benefits of being able to provide a more integrated system where the software is upgraded on a regular and seamless manner. The costs will be less and support staff will be outsourced. SaaS provides CQU with the opportunity to focus on developing educational resources and services for the students. The level of risk can be mitigated through a service agreement that can contain security systems. Issues regarding legacy systems can be addressed through the migration process into the SaaS. Given the level of adoption that is occurring with SaaS, CQU needs to avail of the benefits provided by SaaS.

Report Layout

Introduction

Description of the organisation – identification of the key issue – adopt the position that the function should be outsourced in order for CQU to focus on its core strengths.

Main Body

Management Decision Problem: Continue with current system or outsource

Issues with curent system

• cost of upgrades
• lack of integration
• high support costs

Issues with implementation of new system

• cost
• training
• reconfiguration of business processes

Benefits

• Reduced costs
• High level of integration
• Regular upgrades
• User driven

Week Five

The major rule that is associated with implementing an ERP system is not to customise it. The risks with customisation are that changes in one area can have a flow through effect into other areas. Regression testing is required which can be extensive, costly and not fool proof. Customisation delays the system going live which can cost the company and cause heightened resistance from end-users. Customisation is likely to void vendor agreements and this will mean that the vendor may be unwilling to correct problems. Upgrades to the ERP system will mean that the customised solutions will need to be reimplemented. This can be costly where there are continued upgrades. Change in personnel can make these implementations difficult. In short customisation creates excessive additional costs.

Reference

http://navigateintosuccess.com/blog/top-7-reasons-why-to-avoid-much-customization

Week Four

The maintenance and improvement of ERP systems is important. It is important that there is a process for the receipt of user requests and resulting improvement to the system in order to take account of these needs (Ng et al 2002). The challenge is being able to meet the needs of multiple users (Ng et al 2002). This suggests that there is an ongoing continual process of upgrading in response to user needs (Ng et al 2002). The integration  of user needs is important in order to inform the vendor of the upgrade needs (Worrell 2007).

Changes to an ERP system might be required due to changes in the strategic direction of the organisation or the organisation’s processes.  Consideration must be given to which elements are essential for requiring change to the ERP system (Salmeron and Lopez 2010). Prioiritisation is important (Salmeron and Lopez 2010). The manner in which changes are made must be selected carefully. Any upgrades need to be assessed to determine the impact on the organisation.

Reference List

Ng, CSP, Gable, GG and Chan, T 2002, ‘An ERP-client benefit-oriented maintenance taxonomy’, The Journal of Systems and Software, vol. 64, no. 2, pp. 87-109.

Salmeron, JL and Lopez, C 2010, ‘A multicriteria approach for risks assessment in ERP maintenance’, Journal of Systems and Software, vol. 83, no. 10, pp. 1941 – 1953.

Worrell, J 2007, ‘An investigation of the effects of ERP post-implementation support structure on ERP/business unit fit’, Proceedings of the 13th Americas Conference on Information Systems, Keystone, Colorado, USA.

Week 3 article

Gulla, U & Gupta, MP 2011, ‘Deciding the level of information systems outsourcing: Proposing a framework and validation with three Indian banks’, Journal of Enterprise Information Management, vol. 25, no. 1, pp. 28 – 59.

The article seeks to develop a framework for deciding what elements of an organisation should be outsourced. This arises from the identification that there are many problems associated with outsourcing. In order to develop the decision making framework, Gulla and Gupta (2011) consulted with bank executives in India and industry experts. From the feedback provided by the survey, Gulla and Gupta (2011) identified that outsourcing decisions are dependent upon many factors.

Outsourcing allows a business to focus on its core services and products. Complete outsourcing can can remove the problems that a company might face with security and IS expertise. The risk is the organisation may become overreliant on one vendor reducing the effectiveness of the system. Low outsourcing can create resource issues for the organisation and reduce the performance level of its enterprise systems.

Week 3

Normally, the implementation of a new ERP system is accompanied with considerable change. This can involve redesigning work processes and procedures (Allen 2008). Often the changes in culture and business practices can be significant (Allen 2008).  This change should not ignore the legacy systems (Venugopal and Rao 2011).

In a case study of an implementation of a new ERP system in an Indian corporation, one of the key sources of resistance of adopting the new system was the comparison with the legacy system (Venugopal and Rao 2011). In the research conducted by Venugopal and Rao (2011), benefit was had from the incorporation of legacy systems into the new ERP system.

The impact of this is that the full benefits of the ERP system may not be realised as the business processes have not been modified. The success of an ERP system is dependent on the fit between the ERP system and the business processes (Law and Ngai 2007). This often requires a redesign of the business processes (Law and Ngai 2007). Failure to redesign business processes can result in the failure of the ERP system to deliver the results. This is not a requirement where the ERP system is redesigned to accommodate the current businesses processes (Law and Ngai 2007). The problem is that this approach can be very expensive and create problems with the operation of the ERP (Law and Ngai 2007). It therefore appears that business process improvement is an important precursor to ERP implementation.

Reference

Allen, LE 2008, ‘Where good ERP implementations go bad: a case for continuity’, Business Process Management Journal, vol. 14, no. 3, pp. 327 – 337.

Law, CCH & Ngai, EWT 2007, ‘An investigation of the relationships betwen organisational factors, business process improvement and ERP success’, Benchmarking: An International Journal, vol. 14, no. 3, pp. 387 – 406.

Venugopal, C & Rao, KS 2011, ‘Learning from a failed ERP implementation: a case study research’, International Journal of Managing Projects in Business, vol. 4, no. 4, pp. 596 – 615.

Week 2 – Article

Olson, DL 2007, ‘Evaluation of ERP outsourcing’, Computers & Operations Research, vol. 34, no. 12, pp. 3715 – 3724.

The article by Olson (2007) explores the pros and cons of outsourcing ERP. Using a literature review, Olson (2007) found that the advantages of outsourcing were lower levels of capital expenditure, lower costs, increased flexibility and agility, improved service levels, access to skilled personnel, the opportunity to focus on the core business and to access the latest technologies, reduced potential for infrastructure failure and the opportunity to manage workloads.

This disadvantages are security and privacy issues, the risk associated with the dependence on a third party, costs of migration, availability and performance issues, the potential to increase risk associated with important systems and the potential mismatch of culture (Olson 2007).

The article uses data from two researchers in the United States and Sweden and analyses the data using multiple criteria analysis.  The article seeks to provide a framework of the factors that should be considered when outsourcing and can therefore assist in evaluating the decision facing the organisation.