Main Characteristics and Challenges in Information Systems - Case Study Example

An ERP Story: Case Analysis Part A Main characteristics and challenges identified by Jean Roberge Jean Roberge identified a number of challenges in information systems as well as business processes which would be faced during the project implementation. He also identified the desired characteristics of the project and its deliverables. One of the biggest challenges was the incompatibility of various applications and systems in the current scenario. Various applications were based on different underlying technologies and were not working at full efficiency. Therefore, he acknowledged that the project should enable standardization and simplification of information systems. Another big challenge was regarding the data definitions and standardization among the three member companies and their systems. The project should enable consistency in data. Also the data should be available to everyone on a real time basis unlike current situation. A big challenge was also identified in non-standardization of interfaces for different applications and companies. Similar interfaces were desired for all systems as a result of the project. This would enable rotation of employees and easier knowledge transition. A major desired characteristic of the project was to ensure that the accounting and financial systems of the 3 companies are in sync and there is minimal manual intervention and control. There is also a need to make the human resource management processes more efficient by realizing economies of scale and leverage the individual capabilities of the 3 companies to the advantage of the whole group. Another characteristic of the project would be to create a uniform sales and marketing environment for the 3 companies and to leverage the use of internet and social media. 2. Other considerable characteristics or challenges Jean Roberge has identified his challenges and characteristics in mainly 2 areas which are obviously very important. However, he seems to have neglected challenges in a very important area which is People Management. In such a huge ERP project, the implementation would change the entire way in which people are going to work. Therefore, the required change in the mindset of the people is a big challenge (Wong et. al.). It has been found through different researches that 60-90% of ERP projects fail and the single biggest cause of their failure is inefficient people management (Wong et. al.,3). Therefore, a desired characteristic of the project should be to have training and counseling sessions for people to enable a smooth transition. These sessions would also enable them to overcome their apprehensions regarding lay-offs and job-cuts. Another challenge which should be considered is data migration. Migration from old systems to new systems especially in case of huge historical data could be a big challenge and can take days or weeks to accomplish. Part B 1. Key points in the consultants’ presentation The consultants need to sell their ideas in a convincing way to Jean Roberge. The starting point in their presentation must be the problem or the situation in front of them. This part would depict the current situation and the desired situation after implementation. This should be followed by a Detailed Gap Analysis and the steps required in bridging those gaps. Thereafter, the consultants should focus on the pros and cons of the ABC package. They must compare the package with other alternatives also mentioning the advantages and disadvantages of ABC over those packages. The focus should then shift towards project ingredients such as desired resources, Project Leader, Team structure, timelines and budgets. This part should also discuss about the scope, assumptions and key deliverables of the project. Then the key challenges and risks which would be faced in the project have to be discussed. These challenges would address various areas such as information systems, business processes, people issues, technology risks, operational risks, financial risks and so on. The required strategies to mitigate them have also to be defined. Finally, the key success criteria and the value proposition to Jean Roberge have to be mentioned. This is one of the most critical parts of the presentation and must be thought about carefully. 2. Review of Curriculum Vitaes and Recommendations Going through Curriculum Vitae (CV) of Mr. A, he has been in a managerial role for a long time and has the maximum overall experience among the 3 candidates. He is well equipped in IT skills for ABC implementation and also has the project management skills required as project leader. In addition, he has also an expertise in Business Process Re-engineering which is what an ERP project essentially is. Mr. B has 9 years of experience and he is a senior consultant. His most favorable point is his experience in the insurance industry in the past. He has been involved in ABC package implementations but generally in Assistant rather than in leading roles. Mr. C has a working knowledge of ABC package but has not been involved in detailed implementation. She is an expert in Accounting and Procurement modules of the ABC package. She has also got experience as project manager but limited to certain work areas of ABC package. After reviewing the three CVs, it can be concluded that Mr. A has the most relevant credentials for the position of Project Leader for this ERP project. He has been a project leader for quite some time. He has both technical as well as managerial skills required for the job. He also seems to be the most promising candidate in order to fulfill the criteria mentioned by Jean. Therefore, it is recommended that Jean recruits Mr. A as the Project Leader. Part C 1. Situation Analysis and Causes of Difficulties In the given situation, everybody is in a state of dissatisfaction. The biggest cause of the situation is that the technical details have taken over the real project objectives. The project leader is too focused on proper IT implementation but pays least attention to people management issues. Secondly, the communication has been very poor. People feel that the project is something which has been thrust upon them. They seem to be afraid of the anticipated changes as a result of the implementation. The project is not taking into account their personal considerations as well. Thirdly, there is no coordination between the functional departments who feel isolated from the project. The project seems to be driven by IT only. There is a lack of a joint body to address the problems. Fourthly, the distribution of work has been improper. People are being made to do monotonous work in which they find no value. 2. Solutions to the problems The biggest solution to these problems is to form a Joint Steering committee for the project which has representatives from various functional departments. Any decision must be taken with the consent of the committee and the problems must be mutually solved. The committee must be a headed by a senior executive such as a COO or CIO of the firm. Jean Roberge could very well take this role. Another change is required in communication. People must be communicated the results of this implementation effectively. Every person must be able to know what is in the project for him/her. The nervousness of employees regarding the changes work methods and lay-offs must be soothed. Thirdly trainings must be arranged for a smooth transition from old systems to new systems. These should be both technical as well as managerial. Part D 1. Key success factors of the project The most important success factor has been the involvement of cross functional teams and managers. In these teams, each problem is discussed methodologically. The second success factor is efficient project management. The current progress of the project is being regularly tracked against planned schedules and budgets. The third success factor is interaction and coordination between team members. Special orientation meetings have been arranged to encourage the same. The fourth success factor is user training. Special sessions have been arranged with the users in order to inform them about the features and benefits of the new system. Lastly, the users have been given greater empowerment so that they decide their needs themselves and give suggestions to implement the same. Hence, their confidence in the success of the project has enhanced. Works Cited Wong, Chau, Scarbrough, and Davison. Critical Failure Factors in ERP Implementation, 2005 Read More