Hillman Group, Avnet and Quaker Chemical - Assignment Example

Hillman Group, Avnet, and Quaker Chemical What are the business benefits of business intelligence deployments such as those implemented by Avnet and Quaker Chemical? Your answer must explain the roles that data and business processes play in achieving those benefits. According to the Information systems Theory, information systems are meant to enhance the operations of a business, while also supporting the management and key decision-making within the organization (OBrien, 2003:72). In this respect, the benefits of business intelligence deployments are many for an organization, since they can improve the operations and business processes, by providing essential information regarding the areas of weaknesses in such business processes (Tichenor, 2013:n.p.). Further, the implementation of BI can support the restructuring of a business management, while also enhancing the decision-making process of the business, through ensuring that essential information for business decision making is available (Simon, 1959:258). However, the benefits realizable from the implementation of BI highly depend on how well the business intelligence has been implemented and integrated in the business processes of the organizations. Therefore, one of the major benefits of business intelligence deployments is the transformation of the customer service processes (March, 1994:33). This benefit arises from the proper implementation and integration of the BI into the normal business processes of an organization. In this respect, the BI is applied towards generating important information regarding the customers, such as their frequent products or service needs, as well as their pattern of payments (Choudhury & Sampler:26). This way, the sales representative are able to interact with the customers on the basis of such full knowledge, and are therefore able to determine which products they can recommend to the customers, as well as knowing what credit level to grant to different customers, based on their previous payment behaviors (Levinson, 2006:n.p.). For example, Quaker Chemical used its BI system to collect accounting information in relation to sales and customers payments, which eventually enabled the company to proactively deal with the late payment and the non-payment problems it was previously experiencing (Case:n.d.:2). In addition, the customer service process is improved by the BI through giving the sales people, who have direct contact with the customers, important information regarding the possible future changes in the product or service offering of the company (Lang, 2011:n.p.). This way, the sales representative manages to access information regarding new products or services that are on the offing and the possible products that will be phased out, making it possible for them to advice the customers accordingly. The Strength Theory of Teamwork provides that for a team to effectively achieve its goals, it has to continuously work on improvements throughout the teamwork process (Simon, 1959:102). However, improvements on the teamwork process can only be attained through the existence of relevant information to the team. Therefore, the other benefit of business intelligence deployment is improved teamwork efficiency, due to the provision of relevant information that enables the team to collaborate effectively (Tichenor, 2013:n.p.). This is achieved through ensuring that BI is not only applied to generate reports, but that it is also applied towards providing essential information regarding the business process. Such fundamental information could range from the product history, to the accounting and payment information. This way, it is possible for the workforce to determine the products of the company that are doing well in the market and the ones that are lagging behind (Tichenor, 2013:n.p.). Consequently, the workforce can work together on such information to improve the products or the processes, and the way that such products are delivered into the market. For example, Avnet ensured the success of BI implementation through taking it further than just mere report generation, and using the same to generate data for the salespeople to be incorporated into their day-today workflows and interactions with customers (Case:n.d.:2). Thus, the implementation of BI makes it possible for the workforce to access information and work on it as a team, thus promoting teamwork (Kitchen, 2010:n.p.). According to the Theory of Administrative Behavior, the specificity of goal formulation by the management of an organization contributes to rational behavior within the organization (Choudhury & Sampler, 1997:42). Therefore, the full benefits of BI implementation can only be realized through specific BI targets. Thus, the other benefit of business intelligence deployments is improved sales and revenue generation for an organization, which then improves on the overall organizational performance and profitability. This is achieved through ensuring that the implementation of BI does not target general business operations, but is specifically targeted towards a certain function of the business, which is capable of impacting on the revenues directly (Case:n.d.:2). In this respect, by specifically targeting the BI implementation towards the sales function, it is possible for the business to establish the major hurdles that are affecting the efficiency of the business sales, and thus devise alternative sales procedures that will increase the sales of the organization, and increase its revenues (Choudhury & Sampler, 1997:34). 2. What are the main challenges to the change of mindset required to extendbusiness intelligence tools beyond being mere reporting tools? Explain whatstrategies companies can use to overcome them. The application of the BI as an important tool for the improvement of the business performance beyond just mere reporting is faced by various challenges. First, lack of adequate understanding of the business processes is a major impediment to the effective implementation of the BI (Kitchen, 2010:n.p.). This is because, under a situation where the management and the workforce is not well informed regarding the operational processes of the businesses, the BI can only be implemented partially, to the level that the management and the workforce understands, thus leaving a gap for effective exploitation of the BI benefits (March, 1994:21). The Theory of Administrative Behavior provides that it is through the specificity of the goals of an organization as formulated by the management, that rational behavior within the organization is cultivated (Choudhury & Sampler, 1997:42). In this respect, where the goals are not specific, then it becomes difficult to cultivate rational behavior amongst the workforce. This difficulty is contributed by the lack of sufficient information regarding the business processes, which then hinders the specificity in goal formulation, thus hindering the effective implementation of BI within an organization (Lang, 2011:n.p.). The other challenge that faces the effective implementation of the BI is the failure to share information throughout all the levels of the organization. The management of an organization is the body mandated to access full information regarding different aspects of the company (Bakos & Treacy, 1986:108). However, where the management fails to share the same information with the workforce, rather opting to share such information in piecemeal and in incomplete forms, the workforce is relegated to the position of pure information consumers and implementers (Kitchen, 2010:n.p.). This is detrimental for business, considering that it hinders the effective decision-making at the lower level, which could be instrumental in saving the time and resource utilization by the organization, through depending on the management to make even the small decisions. Therefore, the failure by the management to share information efficiently with the workforce hinders the implementation of the BI, considering that such an action triggers a negative reaction to the BI implementation and use, by prompting the workforce to resist the change implementation (Tichenor, 2013:n.p.). Strategies companies can use to overcome challenges affecting BI implementation The most applicable strategy for overcoming the challenges facing the implementation of the BI is to provide a system of full information from the top level management to the lower level of the workforce (OBrien, 2003:51). This way, it becomes possible for the whole organization to work on the BI implementation project as a team, thus dispelling any resistance and encouraging effective information utilization. The other strategy that can be applied to overcome the challenges of BI implementation is making the workforce own up the BI implementation process (Kitchen, 2010:n.p.). This can be enhanced through making the workforce understand the benefits that can be derived from the implementation of BI, both for the organization and for the employees themselves. This way, it becomes easier for the employees to buy-in the BI implementation process, and thus utilize it for the overall good of the organization (March, 1994:39). 3. Both Avnet and Quaker Chemical implemented systems and processes thataffect the practices of their salespeople. In which ways did the salespeoplebenefit from these new implementations and how important was their buy-into the success of these projects? Discuss alternative strategies for companies tofoster adoption of new systems like these. The implementation of BI by both Avnet and Quaker Chemical benefited their sales people through creating a system of cooperation and teamwork, which in return brought about efficiency and high productivity (Case:n.d.:3). This is because; the two companies implemented the BI through disseminating crucial information to their salespeople, who in turn used the same information to enhance their interactions with the customers. In so doing, it was possible for the sales people to make the customers feel appreciated, since they were able to disseminate important information to the customers, which improved the relationship between the sales people and the customers, thus increasing business for companies. For example, the sales people of Avnet were able to determine the likely product that would be phased out and the new once that would be introduced, making it possible for them to inform the customers in advance (Case:n.d.:2).This way, the relationship between the customers and Avnet was improved, and thus its business enhanced. Additionally, the implementation of BI by both Avnet and Quaker Chemical benefited the sales people by making their work easier, since they were no longer working in difficulties of insufficient information regarding the businesses. For example, Quaker Chemical gave its sales people access to accounting information regarding their payments, delays and defaulting rates (Case:n.d.:3). This made it possible for the sales people to be able to devise new ways of addressing the payment challenges. Alternative strategies for companies to foster adoption of new systems like these Making BI skills accessible to the workforce is one of the major strategies that would ensure that BI is implemented effectively within an organization (Bakos & Treacy, 1986:107). This is because, the resistance to change introduction within an organization is motivated by the fear of the change and its consequences (Tichenor, 2013:n.p.). Therefore, by training the workforce on the relevant BI skills, they will be at ease to apply it, making the BI implementation acceptable and successful. The other useful strategy that can be applied by organizations to foster the adoption of new systems like the BI system is financial benefit justification (Kitchen, 2010:n.p.). This strategy requires the management to show the employees the likely financial benefits obtainable from the BI implementation, and the manner in which that will benefit the employees (Kitchen, 2010:n.p.). This strategy makes the employees accept the introduction of the new system and work towards ensuring its success. References Bakos, J. Y. & Treacy, M. E. (1986) ‘Information Technology and Corporate Strategy: A Research Perspective’, MIS Quarterly 10(2), 106-114. Case: ‘Hillman Group, Avnet, and Quaker Chemical; Process Transformation through Business Intelligence Deployments’, 1-3. Choudhury, V. and Sampler, J. L. 1997. Information specificity and environmental scanning: an economic perspective. MIS Q. 21, 1 (Mar. 1997), 25-54. Kitchen, J. (January 14, 2010) ‘Overcoming Todays Toughest BI Challenges’ CMO for Datawatch Corporation. April 11, 2014, from http://www.itbusinessedge.com/cm/community/features/guestopinions/blog/overcoming-todays-toughest-bi-challenges/?cs=38744 Lang, Michael (2011) "Examining Customer Focus in IT Project Management: Findings from Irish and Norwegian case studies," Scandinavian Journal of Information Systems: Vol. 23: Iss. 2, Article 2. Available at: http://aisel.aisnet.org/sjis/vol23/iss2/2 Levinson, M (January 15, 2006) ‘Business Intelligence: Not Just for Bosses Anymore’, CIO Magazine. Retrieved April 11, 2014, from http://www.cio.com.au/article/181675/business_intelligence_just_bosses_any_more/ March, J. G. (1994). "A primer on decision making: how decisions happen", The Free Press, New York. OBrien, J A. (2003). Introduction to information systems: essentials for the e-business enterprise. Boston: McGraw-Hill. Simon, H. A. (1959). "Theories of Decision Making in Economics and Behavioral Science." American Economic Review 49(1): 253-283. Tichenor, M. (September 12th, 2013) ‘4 BI Implementation Challenges and How to Overcome Them’, Logi Analytics. Retrieved April 11, 2014, from http://www.logianalytics.com/blog/4-bi-implementation-challenges-and-how-overcome-them Read More