Inter-Organizational Systems Implementation - Essay Example

Running Head: INTER-ORGANIZATIONAL SYSTEMS IMPLEMENTATION Leadership Skills Lecturer: Presentation Based on your own experience, what are some of the complexities of measuring ROI in an inter-organizational systems implementation? Please provide examples from your organization or an organization you are familiar.  The involvement of many decision makers in inter-organizational systems implementation presents complexity in measuring ROI. The complexity occurs due to the fact that uncertainty hinders the choice of the method to use for the measurements while more risks are added to the process. This is experienced as a result of the diversity of the views that are incorporated in the decision making process as well as the influence of the varied loyalty among the partner organizations. When some partners do not avail essential information for use in the measurement of ROI, the process becomes more complex. This is an issue that mainly affects the inter-organizational systems whose returns are not quantifiable (Jones and Price, 2004). The human resources involved in data collection may not be competent in some organizations. The inconsistency of data in different partners is a major drawback for the process of ROI measurement. On the other hand, the complex models applied in the measurement and the formulas in some cases are puzzling to the human resources, thereby making it impossible to come up with perfect results. This problem occurs due to lack of user friendly methods of measuring ROI. Garware Polyester Ltd. is among the organizations that have failed in the measurement of ROI in inter-organizational systems implementation. In this case, the problem was the fact that information systems provide both tangible and intangible benefits, and it impossible to accurately provide data for the intangible gains (Parr and Shanks, 2000). References Jones, M.C. and Price, R.L. (2004), “Organizational knowledge sharing in ERP implementation: lessons from industry”. Journal of Organizational and End User Computing, Vol. 16(1), pp. 21-40. Parr, A. and Shanks, G. (2000), “A model of ERP project implementation”, Journal of Information Technology, Vol. 15 No. 4, pp. 289-303. 2. What are the major services offered by IS service providers in the customization of inter-organizational IS implementations? Please provide examples from your organization or an organization you are familiar.  Customization involves setting up of the new software in the organizations so that the parameters so that they can match the requirements of the business. In an inter-organizational IS implementation, the presence of the IS service provider is important to ensure that the systems are user friendly. After customization that requires highly specialized skills, the IS providers, for example Allied Learning Solutions presents the users of the IS with software that assists them in learning (Nebraska and Fox, 2003). This is important in ensuring that the human resources in the organizations are well-versed with the new system. The IS providers offer essential tutorial services fro the organizations to ensure that there is a clear definition regarding the IS and the requirements of the business. Before purchasing the IS, the providers inform the organizations regarding the choice of the right system to help them in the selection of the right ERP software. Moreover, the service providers ensure that significant controls for the ERP projects are developed to prevent the users from repeated customization without setting up the right priorities for the solutions that are needed by the organization (Bassellier & Benbasat, 2004). The IS providers help in identifying and trimming down the solutions that can be acquired from the system as well as minimizing the customization the IS. References Bassellier, G., & Benbasat, I. (2004). “Business competence of information technology professionals: Conceptual development and influence on IT-business partnerships”. MIS Quarterly, 28(4), 673.  Nebraska, NE. and Fox, P. (2003), “The art of ERP done right”, Computerworld, Vol. 37(20), pp. 22-3. 1. What three characteristics are most common in failed ERP implementations? Please provide examples from your organization or an organization you are familiar.  Failures in the ERP implementations are characterized by various aspects such as complexity, which makes it difficult to implement them. Such projects tend to be prolonged and take long periods of time. They are usually expensive and the organizations may incur unnecessary expenditures on them. On the other hand, failed ERP projects usually necessitate the entire inter-organizational departments to change the normal operations to make the ERP project work. In essence, the project needs to be customized to fit in the inter-organizational operations and not the vise versa (Bernroider and Koch, 2001). For example, the Hershey Foods ERP project failed after 21/2 years of implementation, costing the company 112 million dollars due to the complexity of the system. It required the organizational operations to be changed for the project to work. Failed ERP projects are also characterized by the presence of users who are inadequately trained to use the information systems. Such users demonstrate confusion in the ERP application and the projects are customized to the extent that they do not serve their purpose in the organization. Such projects fail to produce the desired output even though the organizations sacrifice substantial resources to acquire them which such as in the case of American LaFrance (ALF). Blackburn and Stokes (2000) observe that it is important to ensure that the project users are informed regarding the project’s application and that they gain a first hand experience in its application. The right language needs to be used to ensure that users are not confused. The management in failed projects has a characteristic of being negligent in regard to supporting the staff in the application of the project. Failed ERP projects are also characterized by the inability to cope with the risks that occur in the implementation of process. Organizations are exposed to such risks when they are likely to incur losses after changing their manner of operation. For example, the performance of the employees may be affected when they are compelled to learn a totally different system of working from what they are used to. On the other hand, a failed project is characterized by the management having to drop an entire project instead of establishing a solution Boston, MA, (Bernroider and Koch, 2001). The ERP project may completely fail to work, for example the Hershey Foods failed in accomplishment of the organizational objectives due to delays in shipment. References Blackburn, R. and Stokes, D. (2000), “Breaking down the barriers: using focus groups to research small and medium sized enterprises”, International Small Business Journal, Vol. 19(1), pp. 44-67. Boston, MA, Bernroider, E. and Koch, S. (2001), “ERP selection process in midsize and large organizations”, Business Process Management Journal, Vol. 7(3), pp. 251-7. 2. What are three commonly used software modules in ERP systems? Please provide examples from your organization or an organization you are familiar.  The logistics module is significant in helping organizations to develop a schedule of activities to facilitate the daily organizational activities. The ERP module helps organizations to keep track of the activities involving contracts, thereby maintaining effectiveness in buying and selling. Moreover, it helps the organization to effectively calculate the expenditures incurred in the procurement processes. The control panels for products is provided, which enables the organization to maintain control in regard to the quantities being developed in the organization and those that it is issuing. In general, an organization is capable of dealing with all the tasks that involve logistics (Davenport, 1998). Microsoft Dynamics® AX is one of the ERPs that are used by many organizations such as The Supreme Group for efficiency in their operations. The accounting module is significant in maintaining reliable records regarding the organizational accounts. This module is informative in the sense that it provides the management with essential information concerning the manner in which the company finances are being obtained as well as how they are utilized. In general it provides quick references regarding the organizational cash flows, which is significant for the management in decision making, such as the development of budgets. Development of all financial statements is possible through the application of this module. The human resources module is significant in the management of information regarding the employees. It helps in placing information regarding the career plans and the organizational structure in terms of organizational management. Information regarding the organizational employees as well as their duties and responsibilities is easily accessible through the module. SAP R/3 is the ERP software that is widely used by organizations such as IDS Scheer AG (Zairi, 2003). References Davenport, T.H. (1998). “Putting the enterprise into the enterprise system”, Harvard Business Review, Vol. 76(4), pp. 121-31. Zairi, M. (2003). “Enterprise resource planning: a taxonomy of critical factors”, European Journal of Operational Research, Vol. 146(2), pp. 352-64. 3. What are three common international issues in inter-organizational ERP implementations? Please provide examples from your organization or an organization you are familiar.  Implementation of the inter-organizational ERP projects is faced with several issues that need attention at the beginning. For example, software development is a field that is continuously advancing, with new software being developed necessitating the phasing out of the old projects. The issue of software migration needs to be analyzed in the beginning of the ERP project to ascertain that there is a possibility of phasing out without affecting the inter-organizational performance (Biehl, 2007). The projects are faced with issues of incompatibility or difficulties in phasing out. In most cases, organizations suffer major drawbacks that hinder performance when they are not flexible enough for new changes to be easily adopted. In other words, Fedorowicz et al. (2004) argue that the current ERP projects may not be fit for future systems, such as the software migration problem that Sun Java Enterprise System is facing. The return on investment sometimes diminishes as issues concerned with leveraging the ERP outlay arise as a result of failures in knowledge transfer when training is carried out after implementation has already began. Organizations are usually faced with issues of lack of understanding in regard to the occurrences in the project phase. This becomes a major problem to the inter-organizational ERP implementation especially when the human resources do not posses enough experience in terms of the application of the system. On the other hand, Sarker and Sarker (2000) argue that many organizations fail to realize the significance of the inter-organizational ERP implementation due to the fact that the benefits can only be realized later on after implementation. This is a major issue since it results some organizations being resistant to the implementation. References Biehl, M. (2007). Success factors for implementing global information systems. Communications of the ACM, 50(1), 53-58.  Fedorowicz, J., Ulric, J.G., Usoff, C. and Hachey, G. (2004). “Twelve tips for successfully integrating enterprise systems across the curriculum”, Journal of Information Systems Education, Vol. 15(3), pp. 235-44. Sarker, S. and Sarker, S. (2000). “Implementation failure of an integrated software package: a case study from the Far East’’, Annals of Cases in IT Applications and Management, Vol. 2, pp. 169-86. Read More