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8/8/2019 THE ENTERPRISE SYSTEMS IMPLEMENTATION: AN INTEGRATIVE FRAMEWORK
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THE ENTERPRISE SYSTEMS
IMPLEMENTATION:
AN INTEGRATIVE FRAMEWORK
By:Deepali Khanna ( 09609019)
Ankit Goyal (09609025)
Nitin Maheshwari (06503866)
8/8/2019 THE ENTERPRISE SYSTEMS IMPLEMENTATION: AN INTEGRATIVE FRAMEWORK
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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
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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
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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.
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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.
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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.
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Questions
Thank You
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