Implications of Enterprise Resource Planning in the Abu Dhabi Police Department - Essay Example

Implications of ERP in the Abu Dhabi Police Department Enterprise Resource Planning (ERP) is the process of planning out all the resources in an organization so as to maximize the utilization of these resources for the benefit of the organization (Monk & Wagner, 2009). ERP systems combine the key business processes of a firm into a single software system so information flows smoothly throughout the organization, facilitating coordination, decision-making and efficiency. ERP software is based on a suit of combined software modules and a common database repository. This database collects the data from and feeds this data into sub-systems that facilitate a company’s internal business processes. These subsystems and the information they contain include: • Manufacturing & Production: materials, manufacturing processes, production schedules, shipment dates, purchases, production capacity, manufacturing projects, quality control • Human resources: hours worked, payroll, labor cost, time and attendance, job skills, training • Finance & Accounting: accounts receivable/payable, revenue, cash on hand, customer credit • Sales & Marketing: sales forecasts, price changes, orders, return requests • Supply Chain Management: purchasing, supplier scheduling, inventory management, claim processing, supply chain planning • Project management: activity management, time and expense, costing, billing, performance units • Customer relationship management: service, commissions, customer contact and call center support, sales and marketing • Access control: management of user privileges for various processes • Data services: various "self-service" interfaces for customers, suppliers, and/or employees Traditional financial performance metrics provide information about the past performance of an organization but are not particularly suited for predicting future performance. By taking into account factors other than financial ones, the management of a company can convert the company’s strategy into practically achievable goals and assess how well the strategic plan is being carried out. An organization has to devise strategies and do careful planning before implementing ERP techniques. ERP helps to reduce costs and enhance the quality (efficiency) of working time. ERP techniques help maximize the value of technological advancements and align their utilization to the goals of the organization. For example, ERP enables a manager in the Sales Department to answer a customer query immediately by seeing the real-time status of the customer’s product delivery, which would not have been possible otherwise. ERP techniques have facilitated organizations’ ability to do away with tedious and time-consuming processes (Ptak & Schrgenheim,2003).Enterprise software is built around a large number of predefined business practices based on best practices. Best practices are the most successful solutions or methods of solving problems an organization uses for regularly and effectively achieving business goals. Enterprise systems help increase efficiency and help mangers make better decisions by providing them updated information from throughout the firm. It also helps form a more ‘customer-driven’ organization by facilitating faster responses to customer queries and requests for information. A variety of factors, such as globalization, rapid innovation, deregulation and technological advances, increasing competition and dynamic changes in the market, have forced many organizations to rethink how they can gain competitive advantage over other companies (Dehning & Stratopoulos,2003). Factors such as reducing costs, improving and developing innovative products and processes and improving quality and productivity are all central to gaining competitive advantage. As such, all aspects of the organization must work cohesively to maximize the company’s performance ( Kavanagh & Miranda, 2005). This research paper analyzes the implications of implementing an ERP System in the Abu Dhabi Police Department (ADPD) (www.abudhabi.ae) . The paper first reviews related literature in order to explain the basic concept and evolution of ERP and then moves on to describe the steps taken by the Abu Dhabi government and police department to implement ERP. Critical success factors that relate to the implementation related issues of ERP at ADPD. The current performance related factors (Critical Success Factors) are as follows: (a) Efficiency – Efficiency of the workforce increases when ERP measures are introduced (b) HRM related functions- The HRM function of the organization is subject to a qualitative shift in which the ADPD might benefit from well trained employees (c) Quality improvement- Quality improvement measures such as six sigma and Total Quality Management would come in to effect (d) Supply chain management- Supply chain management of the organization would experience a boost in respect of cost, production and quality enhancement The ADPD has had special attention from high-level leadership and management in the government since its establishment in 1957. The police force holds a special position among the police forces of all Emirates because Abu Dhabi is the capital and the largest Emirate in the UAE. The emergence of new technologies has also resulted in positive response from the ADPD, and its officials have shown interest in adopting new technology to enhance their operations. Over the last few decades, the ADPD has taken several steps that clearly indicate the awareness and intentions of the department to implement ERP. In taking a major step towards the implementation (Nah, Zuckweiler & Lau, 2003) of ERP, the ADPD has installed an advanced database system to integrate all the data related to crimes, citizens’ particulars and other related information. This integrated data allows them to keep track of more data with greater accessibility. The ADPD has also installed the Compstat System, a computer comparison statistics program through which new technologies are introduced to the department. Through the tools and applications of this system, the ADPD is now equipped with state-of-the-art information technology that has significantly increased their efficiency in detecting and controlling criminal activities. The ADPD is the first police department in the Arab countries to adopt this latest technology to enhance their performance through easy access to integrated data (Wieder & Peter, 2006). Adoption of the eye scan system is another important step taken by the ADPD. The ADPD General Headquarters decided to implement a private system for eye scans in all deportation centres and at all of the country’s land, sea and airway exits. Through this system, photographs of the iris of every person who comes and goes from the state are taken, and the picture is then encrypted into symbols. Through this system, ADPD is able to identify the people who make up the daily traffic into and out of the country, even if some people have had eye surgeries since the original picture was taken or wear contact lenses or coloured lenses. The eye scan system has been regarded as a hygienic system of keeping the records because it is free from radiation effects and can make 5 million comparisons per second. In 2009, the ADPD took a step towards the adaptation of new technology when it started using a high-tech system for real-time translation during the process of interrogation. Major police stations in Abu Dhabi are now equipped with the Polycom video-conferencing system, which connects the inspectors and investigators present in the police station to a team of translators. This step allows police to conduct timely investigations in the multicultural and multilingual society of Abu Dhabi, where the police interrogate people of all cultures and languages. The implementation of Polycom media solution is a positive move by the ADPD to express their commitment and determination to the adaptation of enhanced means of conducting their operations and to integrate cutting-edge technologies to improve their performance in a variety of functions When first implementing ERP at the ADPD, it is necessary to identify the core group of people that would be primarily involved in identifying the current processes and then the improved set of processes that would use prescribed ERP tools and techniques. It is necessary for the core group to review the standard ERP flowcharts for each environment that may be applicable to the operations in the organization, so it is vital that the core group have a basic understanding of ERP tools and techniques in order to contribute meaningfully to the creation of a valid ERP Blueprint for the department. Within the department there may be different process paths for different services or operating divisions, so each process path has to be defined individually because different tools or techniques may be needed for each one. The ERP Advisor serves as the facilitator during the creation of this outline, and during this exercise the advisor develops a clear and comprehensive understanding of the organization’s operations. Before implementing an ERP system, the department must ensure that an adequate computer network is available (Schnabel & Aubert, 2009). A temporary training area including at least two workstations connected to the network and to a printer should also be set up to ensure that the learning process is as efficient as possible. The new system will need organization-specific information in order to test the Future Flowchart business processes; data from the organization’s legacy system may be electronically converted or manually entered into the novel system. Vital members of the core group and the ERP Advisor should simulate all the activities defined by the Future Flowchart using the new ERP software tools in order to ensure that the tools work as anticipated. Metrics should also be identified for measuring anticipated improvements in specific areas. As the expected result is confirmed for each business process, the ERP tool, procedure and ownership is documented in the ERP Blueprint so that, once each process has been tested and confirmed, the ERP Blueprint will identify the individual owners of each process. These operators can then be trained on the activities that are relevant to their specific areas of responsibility, followed by other users of the system. Only when the system is completely functional and the users are trained is it time to begin using the new system (Spathis, & Constanides, 2003). One of the main disadvantages to this technology is that, at present, only large companies can take advantage of the benefits that are offered by this technology. A number of studies have shown that the biggest challenges organizations face when trying to implement ERP concerns investment, so the Abu Dhabi government would incur a large cost to develop this system . The workers have to be trained continually on how to use it and the organization must continue to ensure that the integrity of the data is protected. There is no doubt that ERP has a number of limitations, the first of which is that the success of the system depends completely on how the workers use it. This means they have to be properly trained. A number of companies have attempted to save money by reducing the cost of training and thus have not been able to gain the maximum advantage of implementing the new ERPs. Even if the Abu Dhabi government has sufficient money to implement ERP, they may not be able to successfully utilize it if they do not invest in training their workers on the process of using it. Another problem with ERP is that it is difficult to customize. The ADPD would not be able to use ERP effectively “right out of the box” because it must first be customized according to their needs, and this process can be both expensive and tedious. Even when an organization alters the system to fit its needs, it is limited in what the system can do. The impact of ERP on the role of managers at the ABDP or on the general public is best be studied when the subject is analyzed right from the implementation stage (Wallace & Kremzar, 2001). ERP will have a strong influence on the organization process itself because it is involved in deciding major issues for employees, the general public and other stakeholders. The roles of some employees at the ADPD would change significantly if ERP were implemented, and these changes will naturally bring about resistance. The job tenure and job type of an employee will influence his or her attitude towards the ERP system; newer employees and managers are likely to have a more favourable attitude towards the ERP system, while older employees and employees in certain categories of the force are likely to be more doubtful about its advantages. These reactions are completely normal, as those who have achieved success under one system are naturally skeptical of a new system, but the fact that resistant reactions are normal does not obviate the need to address them. ERP has an impact right from its implementation (Hong & Kim, 2002). Initially, it helps the members in the ADPD to arrive at agreement after a detailed and deliberate discussion. It provides restructuring that would not have otherwise occurred in organizations such as the ADPD by sticking to traditional and conventional ways of operation. ERP provides an opportunity for the ADPD because they will realize the advantages of modifying outdated processes. All this occurs in the implementation process since this is the time the seeds sown are shaped. The impact of ERP on managers is also notable because it fosters productive interactions and tends to bring about healthy relationships among departments which would otherwise have remained isolated. The problems of co-ordination encountered by each department can be made known to the organization so it can arrive at a better means of conducting group discussions. As a result, it is necessary to study the impact of ERP on all departments of the ADPD, rather than to restrict it to issues like how ERP will impact the maintenance of the criminal database. The ERP consultant can recognize the shortcomings in ADPD process and guide the department to develop better procedures. ERP can facilitate the ADPD’s ability to adapt and adjust to change right from the implementation process (Gargeya & Brady, 2005). ERP can also open the door for job opportunities to those the department hires during the implementation process. Many of these employees may be retained on permanent employment rolls once ERP is fully functional in the organization, giving employment to IT professionals in the country. These employees would be able to update the ERP modules and continue serving the ADPD Police department in terms of enhancing user interfaces with ERP applications (Yusuf, Gunasekaran & Abthorpe, 2004). ERP has directly and indirectly helped to redefine functions in the ADPD. Anything that people want to know about the police department is available at the click of a mouse, rather than relying on the Department of Internal Communications for every single bit of information. The general public no longer has to go through getting permission and following strict procedures to access the information they need. IT has helped eliminate the need to ask questions like how ERP impacts the maintenance of the criminal database because ERP has given more freedom, responsibility and authority to the individual employees at the ADPD (David & Hall, 2006). Each employee becomes more knowledgeable of his/her tasks while ERP provides the ability and confidence to perform those tasks individually and successfully. Above all, it has resulted in transparency and accountability as the duties of employees become totally independent and ERP does away with the interdepartmental dependence in gathering information. This has resulted in facilitating the process of handling and answering queries from the general public and the UAE government. ERP software integrates processes across departments onto a single enterprise-wide information system. The major advantages of ERP are better coordination across functional departments and increased efficiency in handling matters of the ADPD (Chiat, Koh & Ching, 2004). Integration is a vital aspect of ERP systems as integration of the ADPD’s processes facilitates communication and the distribution of information, resulting in a marked increase in productivity, speed and performance. The main goal of an ERP system is to integrate data and processes from all functional divisions of an organization and bring it together for effortless access and structured workflow. This integration is generally achieved by developing a single database repository that exchanges information with multiple software applications to providing different divisions of a firm with statistics and information (Chang She-I, Gable & Smythe, 2000). The implementation of an ERP system establishes backbone data warehouses and provides better accessibility to data so management can have up-to-date access to information for decision-making (Ziaee, Fathian & Sadjadi,2006). For example HRM and quality management related success factors are increasingly being influenced by a higher level of ERP integration though the system change requirements might demand even a process of reengineering that involves not only the IT related functional variabilities but also some changes to the management hierarchy. However, ERP software can also help track the actual costs of activities. ERP software systems facilitate the resource planning segment of strategic planning, which is a deliberate set of steps that identifies needs and resources; defines a target audience and a set of objectives and goals; plans and designs coordinated strategies with evidence of success; logically connects these strategies to needs, assets, and desired outcomes; and measures and evaluate the process and outcomes. Actually, resource planning has been the weakest link in ERP practice because of the complexity of strategic planning and the lack of adequate integration with Decision Support Systems (DSS). Before the ERP model came about, each department in the ADPD had its own isolated software application, none of which interfaced with any other system. Such an isolated framework could not coordinate the inter-departmental processes, so it had a negative impact on productivity, speed and performance of the overall organization (Grabot & Mayere,2008).This resulted in many problems, including lack of coordination, incomplete understanding of how the enterprise functioned, incompatible exchange standards, and unproductive decisions. Implementing a comprehensive ERP system across the organization led to improved performance, standardized information exchange formats, global decision optimization, workflow synchronization, a complete overview of how the enterprise functions, speed enhancement and much more. ERP also resulted in use of power’s markedly increasing in the department because of the change management associated with ERP implementation (Willis & Hillary, 2002). The increased use of power could also be attributed to a strategic shift in the organizations position that led to decentralization and delegation, which increased the autonomy of the departmental heads and managers. Managers at the middle level had access to significantly more privileged information. While the necessity for maintaining informal relationships in order to discharging official duties remained nearly same for senior and middle level managers and heads, lower-level managers felt that the necessity for maintaining informal relationships to discharge their official duties has reduced (Miranda & Kavanagh, 2002). Specialization, formalization and standardization also increased at the department, so ERP implementation had a significant effect on managers’ jobs and the structure of the organization. REFERENCES 1. Chang, She-I, Gable, G & Smythe, E 2000 ‘, A Delphi examination of public sector ERP implementation issues’, International Conference on Information Systems. 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