a. What aspects of BI have been employed in this case example?

The first aspect of Dow Corning’s Business Intelligence strategy was the implementation of a basic ERP backbone, which began in 1995, this was known as R/3. The purpose of R/3 was to integrate a number of legacy systems running on mainframes.

The second aspect was the use of SAP’s Business Information Warehouse (BW) to use the Strategic Enterprise Management Tools that come with it by consolidating internal and external information.

b. What would you expect to be the challenges facing the development of a BI approach for such a large organisation?

Some challenges can include:

1. Cross-organisational collaboration – Business Intelligence is not limited solely to just information within the different departments of the organisation, the organisation needs to integrate information about  many external factors such as customers, competition, market conditions, vendors, partners etc. This is not a small task and is made larger by the size of the company.

2. Availability of skilled team members – Since business intelligence requires collaboration from all facets of the organisation it requires more than just IT staff to be implemented correctly. Also the implementation requires team members with good experience with delivering business process models for evaluating decision alternatives.

3. Evolution of BI – Business Intelligence is used to provide data that will be turned into information that will be turned into actions. Because the actions that management wish to implement are always changing, than BI is constantly changing, this means that BI is not just a once off event.

c. Would Dow Corning be a suitable candidate for a shared services approach using an ASP? Justify and argue your answer

Following on from the previous week develop a rough outline of your presentation. Post this rough outline to your blog.

Introduction

Software as a Service

Argument 1

Argument 2

Argument 3

Conclusion

Post an entry to your blog that answers the following questions:

1. What was the most difficult assessment item you completed so far in COIS12073 this term?

Definitely the most difficult assessment item for this course was item 3 – the written paper

2. What was difficult about it and how would you suggest it could be improved?

Initially the sheer size of the assessment was quite daunting, plus the aspect of making a recommendation for a multi-nation company. Another aspect that was difficult was the trying to derive what system Cisco actually had, after finding more and more information it became apparent that I was going to be making a recommendation about a system that has most likely been reviewed several times and was looking at a very advance ERP system for a very large company. Probably a suggestion would be an imaginary company, but try to cover as much information as necessary, any information that is lacking can be given as assumptions by the student but must be stated in the assignment.

3. If you could provide three (3) pieces of advice to a student who will be doing this course next term what would they be?

1. Time management – take the time to ensure that you can work on the subject and assessment

2. Make sure you know your argument before you start writing your paper. You may find halfway through writing the paper that you could make a better argument if you chose the other side.

3. Proof read your work before submitting it, sure you may wish to get rid of it now, but it may have all the necessary information and compelling arguments, but it wont be very good if the reader has difficulty reading it.

4. How will you be able to use this knowledge/these skills in your future career?

As someone who works in IT support in an accounting firm, it is very useful to understand the way that enterprise systems work and streamline the entire business. I will also be able to take the knowledge that I have gained about both ERP systems and the alternatives when making recommendations to the business about future business applications and processes and how these systems will be able to interact and connect. I can comfortably label my current employers system as a Best of Breed system with a number of non-integrated databases.

External factors that may affect the how and when an ERP goes live can be both numerous and varied in how they affect the project. Some of these examples are:

Staff turnover

Like any business, staff turnover is a common problem and with this comes the task of hiring new staff and training them in the use of new systems, this can be problematic due to the issue of training the new staff to use a system that will soon become obsolete and then retraining. The may not become a major issue though, unless a staff member with extensive knowledge of a specific module process leaves and new staff in turn need to learn. This can also create problems with both testing and conversion.

Economy

With every business, they are affected by the amount of money they can generate and this can be dictated by the current state of the economy. Like with the current Global Financial Crisis, many businesses found themselves picking up the pieces of their businesses and having to make hard decisions about the current state of the business. This may even result in the project not just being delayed but even abandoned altogether.

Vendor Problems

With the implementation of the ERP system, the support and expertise of the ERP vendor is critical to the success of the project, but again they are also affected by things such as staff turnover and the economy. Another factor that may affect the project is if the vendor was to be taken over, such as when PeopleSoft was taken over by Oracle, this could result in the product being changed or delays due to corporate restructuring

Natural Events

Natural events can affect everything and this too can be applied to the time at which an ERP project goes live, an Earthquake, Flood or Cyclone could easily cause damage to buildings and even the computer systems themselves, not to mention the damage or problems with the staff. This can easily delay any project.

Supply Problems

With the implementation of the new ERP system, new hardware is needed to add to the system, if the distributors are late or stock cannot be supplied then the project may be delayed until an alternative distributor or alternative hardware can be found

Each of these problems can easily be outside of the Project Managers control but, proper contingency plans can be implemented to ensure that some slack time is given to the project in the case of such occurrences. For example, if a vendor has issues with supplying hardware, it is always good practice to have another supplier as a second preference.

Have a look at assignment 5Search the web or go to some other source to find some hints and tips on giving presentations. Post to your blog what you think was the most helpful and why.

I found a good article on this webpage http://www.quicksprout.com/2007/09/01/10-tips-for-a-killer-presentation/

I found this article useful because it made the presentation seem like it would be fun. It covered the normal tips of make eye contact and and not to overuse your visuals, but one of the tips was to actually make the audience laugh, because this makes the audience pay attention. I thought that this was actually a very good point, a comedian is a public speaker and unless they aren’t funny, you often remember what they say. He does mention that the objective is to educate, but laughter is a good tool to use.

It still makes sense for a non-manufacturing company to adopt an ERP system, because ERP systems are designed to incorporate all aspects of the business, it is not primarily geared towards manufacturing and also many ERP systems are designed to appeal to a specific industry, so ERP for a Financial and Accounting industry may not have any manufacturing aspects of the ERP.

1. b. Have manufacturing systems been the basis for all ERP systems?

No, although manufacturing systems were the basis for the original ERP systems, ERP systems are not purely designed around manufacturing anymore. Due to the diversity of the industries that ERP systems are involved with there are various different types of ERP and as stated previously, a manufacturing part of the system may not be necessary.

2. Gather information about the best practices, which are associated with the Production Planning and Materials Management modules within and ERP package.

1. a. What are the best practices that you have discovered

1. b. How is the ERP system with Production and Materials Management modules superior to a non-integrate Manufacturing  system (i.e., where the Financial Systems and MRP systems are separate).

1. c. What information for decision making does the integrated system provide?

3. The Production Planning and Materials Management modules within ERP have interfaces to other modules, including Human Resources, Sales and Distribution, and Financial Accounting. Describe these interfaces.

These interfaces come from integration of the materials management subsystem with the the subsystems of the ones mentioned above.

Human Resources -

Sales and Distribution – When a purchase Requisition is created, it is assigned to the sales order

Financial Accounting – Purchasing maintains vendor data which are defined jointly with Financial Accounting

The purpose of phase 2 (prototyping and simulation) is to get users familiar with the new system, gain an understanding of how the new system will work and also go over any possible issues or changes that will need to be actioned, whether they be in the software of in the business procedures. This phase is intended basically to ensure that when the system is ready to be implented into the business users are aware of what to expect in terms of how to use it and what it will achieve for them, if users are reluctant to get involved with this phase then it can lead to a lot of problems later down the track with the overall satisfaction and performance of the system.

The main aspects of phase 2 include:

• creating a prototype to of the program within the company to use with the end-users
• getting users from various sections and levels of the business to test the system
• show users how the software will work and gain understanding of system
• evaluate any issues that arise that may require modification to the software
• evaluate any issues that arise that may require modification to the current business’ practices
• allow management to gain understanding and implement necessary security to the system

As you can see, the users play a major role in the success of this phase and if users are reluctant to participate, then the information, changes and understanding that would be gained from this phase would be greatly diminished and it would have a negative impact on all parties involved.

Some problems and risks that could arise from user reluctance could include:

• Users may not understand the new system and gain a negative opinion of the system regardless of results
• Lack of understanding may also result in mistakes in data or system errors due to users
• The software may not perform all neccessary tasks of the business
• System may be under utilised due to lack of understanding by users
• The software may not match current business practices that were not changed when system was implemented
• Proper data security was not implemented meaning that users have access to confidential or unneccessary data
• Lack of security may also result in further problems with users performing tasks that they should not be allowed to creating further data integrity issues, such as data being deleted and incorrect data entry procedures.

These issues can combine and can create even larger problems that could effectively ruin the indegrity of both the database and the business.

When making an informed decision about ERP adoption and selection, than the obvious answer would be that no, you would require full understanding of the problem.

The reason for this is because this is an Enterprise System and will be implemented with the purpose of ensuring that the enterprise as a whole is able to get better results from the system. A full understanding would be required to ensure that first; the problem can be solved with the adoption of an ERP system and second; that the ERP system that is selected is covers all the requirements for the business.

Common sense would tell you that simply if you dont know the problem how can you find a solution? No company is going to upgrade a system just because they felt like it, there is always a motivating force. That motivating force is the problem and that problem requires a solution.

The decision to adopt an ERP system is not one that is taken lightly and is definitely not the only option available, it may not even be appropriate. Before deciding to adopt an ERP system, the business would need to assess whether it would be both neccessary and justifiable. If the compnay does not know the problem then they may just be making the situation worse by choosing an ERP system in the first place over an alternative.

When selecting an ERP system that will suit the business, a common recommendation in the selection process is to form a committee of various members of the business from different sections. This committee is then tasked with the job of tabulating a list of product requirements that should be looked for when selecting and adopting an ERP system. This would mean that each section would have a chance to cover where they believe the current system is failing (or succeeding) and what these sections would like the new system or have or not to have. The purpose of this is to ensure that every part of the business is heard and does not feel left out of the process, which allows everyone to voice their opinions. This would mean that at some point the original problem would most likely have been covered more than once in some form or another, allowing the decision makers to gain an informed opinion of what the new system will need to incorporate in order to ensure that the correct and most appropriate software package is selected.

It is also recommended that when implementing an ERP system it is best for the business to adopt the ERP vendor’s business practices rather then have the vendor edit the software, (which would result in various other issues) this could actually result in the original problem becoming irrelevant for whatever reason due to the current business practices and the way the current systems were designed.  Even because of this, the decision makers would still require a good understanding of the problem that led to the decision to search for a new system, because the last thing the business needs is for the same problem to reoccur.

Examples of events that could trigger an alternation in a work plan may include:

1. staff shortages ie staff are ill or unavailable
2. IT damage – data becomes corrupt or hardware fails and needs to be repaired
3. overly aggressive schedule – the schedule was too aggressive and tasks are taking longer then planned
4. new additions to the plan – tasks are added to the workplan

The consequences of such events occuring are mainly related to time and money. If a workplan needs to be altered and there is a deadline that needs to be met then other tasks may need to be rushed or may need to wait longer. If tasks are rushed then there may not be the same level of care or detail that may have been provided if the project was given the oringally planned amount of time.

The benefits that and ERP would provide to Windgate Electric would be:

1. faster information response time –  with a centralised database and compatible databases, information can be retrieved from anywhere in real-time
2. increased interaction across the enterprise – this will also lead to more interaction within the organisation as each section will be able to see how the other sections are going
3. improved order managment/order cycle – accounts are able so see when stock arrives and leaves manufacturing meaning people are paid correctly and on time
4. improved interaction with customers – customers are would be able to recieve impformation more promptly
5. improved on-time delivery
6. reduced direct operating costs
7. lowered inventory levels – due to better stock management inventories can be lowered and ordered as necessary which lowers costs

Another alternative to an ERP is a best of breed solution, this is a way if developing an indiviual packages to such the enterprise. This can be useful there is less reliance on one sole piece of software and less leverage to one particular company. Also installation of the packages can be stagered and installed at different stages to lower disruption. This can also be a less costly method depending on the software and also means that only software that is wanted is purchased.

The first thing to consider when looking at the prospect of an ERP is that there is 99.9% chance that whatever you look at will not cover absolutely everything that you are looking for. If an organisation did not have business processes that matched with any commercially available ERP, this does not meant that the decision to adopt an ERP is an obvious no.

The main purpose of a ERP is to streamline business processes from start to finish, the idea is that the ERP will increase productivity and throughput. If an organisation’s business processes do not match, the first question to ask is; are the current business processes effective enough?

There are two options to consider depending on how that question is answered:

1. If the business processes are effective then the business needs to consider whether an ERP will add extra benefit and will need to be tailor made to accomodate for those business processes
2. If the current processes are not effective then the organisation should consider changing its business processes to suit a specific software package

‘Every software package that exists in the market grew out the experience (or opportunity) of a group of people working in a specific business’ (S Lozinsky, 1998). What this means is that ERP software packages are designed with industry best practice in mind, meaning that this is what the industry believes is the most effective business process.

If the organisation believes that their business processes are effective enough and do not want to part with them then the prospect of an ERP will become more expensive both in cost and time. This would mean that the organisation would need to have a specific ERP software package modfied (or even built from scratch) to suit their specific processes, this will take a large amount of time and money and will not be a tested and proven method, so everything about it has high risk.

If the organisation feels that their business processes are not effective then the prospect of an ERP is more appealing, as the most effective way of making an ERP work for the organisation is to make the business processes of the organisation match those of the ERP. This means that the business works with the software, rather then around the software which means less risk as the organisation will be using industry standard business processes.

The major problem with having the IT department as the sole decision maker on whether to adopt an ES and also make the recommendation on what ES to choose will ultimately be the understanding of the needs of every part of the organisation. What is meant by this is that, although the IT department may be able to compare what the new software can offer to the old legacy systems, the IT department may still not have a full understanding of what a particular department may want from their software. It is best for a decision making committee made up of various members from all parts of the organisation to be involved in the decision making process, so that there is a level of understanding of every section of the organisation. This will mean that everyone’s opinion is heard and a fair and accurate account can be given of what each department wants from the software, such as features that are liked and not liked and also features that are missing that may be desired with the new software.

Even if a company is unwilling to change its business process it can still gain value from an ERP. This is because the basic benefits of an ERP will still apply even if the ERP is redesigned to match the businesses unique processes such as integrated systems, common interfaces and real-time information. This can be achieved by negotiating with the software vendor exactly how the ERP needs to operate in order to allign with the businesses current processes. The risks with doing this can be quite high, because you are looking at long periods of time to deal with redisigning the software and implentation and also the costs that would be associated with these additional overheads. Also because this system would be unique it can also pose problems in terms of internal bugs in the system and the support that the vendor will be able to provide, it also poses problems when updating the software, because the updates may need to be tailored to the unique software of the ERP.

Q.6 In recent times, there has been a trend away from total (or vanilla) ERP implementations towards ‘best of breed’ systems. Research this trend and describe how it differs from standard ERP implementations. Contrast the approaches and describe advantages and disadvantages. What are some of the considerations that would affect the decision to use the ERP or best of breed approach?

The difference of a best of breed system is sort of like like choosing a sandwich, you can opt for the premade sandwich with most/less or more ingredients than you want and take out the ingredients you dont want afterwards (ERP), or you can take the option of making your own sandwich with all the ingreients you want to your liking (best of breed).

ERP Pros:

The standard ERP is a complete suite offering the industry best practice solutions that integrate the entire business from entry to exit of a particular product/service all within the one product. This can mean that the entire system can be uniform from manufacturing to supply to sales to management. All data is compatible and easily accesible across the entire system and there is one point of call if there is an issue with software.

ERP Cons:

Since the system is installed across the entire business, there are no other programs that are needed, which means that there is one point of call if there is a problem, this can also be a problem. Once the system is installed across the board you are basically locked in with the vendor, if the software is not what you had hoped for or the vendor has increased the prices for their licensing there isnt much that the business can do other than complain. Switching the entire system can be a daunting and costly task the first time and is not a practice that should be done frequently.

Best of Breed Pros:

A best of breed system can be designed with the business in mind and the business can take time with the implementation of each individual software package. A business can trial software and ensure that it is compatible and capable of integrating with the exisiting software if needed. Also because the software is also not tied together the business has more leverage over the vendor and can switch to another vendor if they feel they are not satisfied with the software.

Best of Breed Cons:

A best of breed system can be more costly to implement due to purchasing indivual programs for each aspect of the business, these inital costs plus the additional costs of licensing, varying hardware and training staff to deal with the various programs can be more costly than the alternative. Programs can have compatability issues, especially when one program is updated and the other program that grabs information from it is unable to find the correct location of the file etc.