Enterprise Systems. Assessing and managing the benefits of enterprise systems: the business manager s perspective. Group members: Rick Dennis Simon

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Rudolf George
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1 Enterprise Systems Assessing and managing the benefits of enterprise systems: the business manager s perspective Group members: Rick Dennis Simon 1

2 Goal of the paper What benefits organizations achieve by investing in enterprise systems? 2

3 5 different benefits dimensions Operational Managerial Strategic IT-Infrastructure Organizational 3

4 Relevance of Enterprise Systems Enterprise system software market: $20 billion Goal: support business processes & information flows Including ERP, CRM, SCM & PLC most important ERP Manage financial, manufacturing, distribution and human resources 4

5 Defining Criteria for the assessment of Enterprise Systems 5

6 Stage 1: Developing the framework for classifying benefits from enterprise systems Understanding the features offered by ES. Search the popular press and vendor websites to gain a general understanding of features offered by ES, reasons why they adopt ES, problems caused by ES. 6

7 Stage 2: review academic literature on IT evaluation and success, identify benefit dimensions relevant to ES useand propose ES benefit framework. 7

8 The different dimensions from stage 2 Operational dimension: Operational activities process day-to-day activities that involve acquiring and consuming resources. Managerail dimension: Business management activities involve allocation and control of the firm s resources, monitoring of operations and supporting of business strategic decisions. Strategic dimension: activities involved in long-range planning regarding high-level decisions, such as business merging and acquisition, marketing competition, product planning, customer retention and capital sourcing. IT-infrastructure: consists of sharable and reusable IT resources that provide a foundation for present and future business applications. Organizational benefits: Organizational benefits arise when the use of an ES benefits an organization in terms of focus, cohesion, learning and execution of its chosen strategies. 8

9 Stage 3: select confirm and analyse web cases. Visited ES vendor websites for customer case studies. Reviewed these cases and selected eligible stories Verified reliability of cases by contacting project managers in a convenience sample of 18 cases in Australia and a randomly selected sample of 16 cases in US, Singapore and Taiwan Used a spreadsheet to summarize, for each case, information about country, industry, user size (if available), modules installed, implementation stages and benefits achieved by the five categories. Analysed benefit differences among industries, vendors and firm sizes. Assembled case benefits according to the dimensions in the framework in Table 2 9

10 Stage 4: Produce a consolidated ES benefit framework In this final stage of benefit framework construction, the three detailed lists of benefits from step 3.6 were consolidated into one list and grouped into subcategories The result of stage 4 was that the ES benefit framework from Table 2 was expanded and enhanced with detailed descriptions. 10

11 Comments on the overall analysis Comment 1: Validity of the framework verified. Comment 2: More benefits were found especially in increased infrastructure capability to extend systems to new applications or to support new strategies. Comment 3: Most organisations seem to expect a long-term return on the investment in their systems. Expected longevity is probably because they are implemented as a base for extension and expansion. 11

12 How the framework is been used in the organization? Background : Before1994, 4 organizations Government(electricity and gas producing) Problem: Privatized utility companies Information system is poor need advanced information system. What ES they are using? In 2000, 4 organizations had been using their new system for at least three years (3 for SAP and 1 for people soft.) 12

13 How to assess their ES? This framework is used to guide managers to estimate their assessment of past, current and future benefit. 13

14 Come out the Summary of ES benefits 14

15 Perceived net benefit graphs 15

16 Conclusion: The goal 1.To provide a comprehensive list of ES benefit suitable for used by business manager. 2. After using the methods, are you satisfied with your ES? 3.What kinds of ES can use these methods? customer relations management supply chain management e-procurement e-marketplace workflow management. 16

PG CERTIFICATE IN INFORMATION TECHNOLOGY MANAGEMENT (CASME&T)

PG CERTIFICATE IN INFORMATION TECHNOLOGY MANAGEMENT (CASME&T) Program Duration: 6 Months (The admission for this course is valid for 1 year only) Eligibility: Graduate of any University plus 3 years of relevant managerial or professional work experience or 3 years