Info 6 anot+®
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Operations & Digital Business Nicolas van Zeebroeck Master in Business Engineering – 2014-2015 [email protected]
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Transcript of Info 6 anot+®
Operations & Digital Business
Nicolas van ZeebroeckMaster in Business Engineering – 2014-2015
Today’s underlying issues
• Cost�and�implementation�of�an�Enterprise�IT�solution• Managing�a�large�IT�project• Managing�organisational�change• Definition�and�measures�of�IT�success• Strategic�alignment
GESTS482�– Operations�and�Digital�Business�– N.�van�Zeebroeck�– 2014Ͳ2015 2
Framing the�challenge…
• Median�cost�of�an�ERP�solution:�$20�million• $4�million�in�hardware�and�software�
(accounted�for�as�investment)• $16�million�in�project�management,�
consulting,�training,�organisational�change�(accounted�for�as�expenses)
• Sometimes�huge�disasters:• Bombardier:�$130�Mio�(and�failed)• Levi’s:�planned�$5�Mio,�lost�$200�Mio
• To�keep�in�mind:• The�vast�majority�of�IT�implementation�costs�
never�shows�up�in�statistics�of�IT�investments• Complementary�organisational�change�4x�
more�costly�than�IT
GESTS482�– Operations�and�Digital�Business�– N.�van�Zeebroeck�– 2014Ͳ2015 3
A. Sedik
Here we are talking about EIT implementation, so we implementing EIT software and not any software in this cases is an ERP solution.Such solution cost at the median like 20m$
A. Sedik
When we invest in such a project, 20% are going on our BS in investment but it is only 20%. 80% of the cost of such IT solution is directly going to the I/S: P&L. So when (c) are succeeding in such things, it is directly going to their goodwill
A�preliminary note
• Solutions�to�case�studies can never beposted on�any support• Part�of�the�license terms
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A. Sedik
Which integration and challenges; this table says that we have ≠ stages of internal and external organization. Here we ill talk about internal integration! We can do it at 2 level, at the organizational level and at the functional level! At the operational, we will integrate the ≠ stages in the primary activity/value chain. In this case, we need to integrate a bit of both! So what is this model saying? because there are ≠ dimension that actually help us in the process, it will find out the things that going to be the strongest barriers we are going to face in the process and the degree of effort that we can expect and what are the potential benefit that we can expect by integrating at this level! For ex they say us that the main barrier for integration at the operational level is going to be SGD (we have diff entities, SILO organization that are highly specialized and if they are specialized they will have ≠ objectives, divergences in their goals..). Huge barrier because people are not aligned! When people are too specialized, they look in ≠ directions! The table says us that the effort required to do it are big, but the benefits are huge!
Which integration and�challenges?
Source:�Barki et�Pinsonneault (2005)
A. Sedik
dont need to read it
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PO: if we integrate they will be necesserly changes in the roles and responsabilities, people who used to be landlords in dprt, wille become for ex simple responsible of a little team..
Which integration and�challenges?
• Which returns to�internal integration?• Productivity of�production�processes• Superior�competitiveness• Reduction of�production�and�inventory
costs• Less mistakes,�more�coordination• Better visibility over�production�and�
inventory costs
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PostͲmortem�of�phase�I:�vision
• Organisational transformation�projects�require�clear�vision,well�communicated�to�employees• Vision�should�provide�clear�view�of�future�state�of�the�organisation,�its�goals,�
processes,�and�supporting�systems
• Vision�must�be�goalͲoriented
• Vision�should�strengthen�the�organisational sense�of�direction�and�improve�the�decisionͲmaking�process
• Action�plan�describes�stages�required�to�realise the�vision
• Actions�should�be�aligned�with�vision�goals
• As�project�evolves,�vision�refinement�process�should�be�undertaken
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How�to�measure�success?• System�quality
• Is�the�system�usable�and�reliable?• Information�quality
• Is�the�data�model�clear and�standardized?• Are�the�data�consistent�and�accurate?
• Usage• Is�the�system�actually used?• Is�the�use�of�the�new�system�controlled and�incentivized?
• User�satisfaction• How�satisfied are�the�users with the�new�system?
• Individual impact• How�does the�system�affect�individual performance?
• Organizational impact• How�does the�system�affect�the�overall performance�of�the�
organization?
Source:�DeLone &�McLean�(2003)
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A. Sedik
either yes it is good or not.. But it is not enough! But the point here is what other criteria
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or they contnue using the old system?
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are they happy with the new system?
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6 criteria!
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like moodle? is it really reliable or trash when we use it?
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does it foster the individual performance?
How�to�measure success?
Source:�DeLone &�McLean�(1993)
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A. Sedik
There is a way to organize those 6 package as a chain.. System and info qty should axctually be the main thing in use and user satis. If people use the system and the qty of info is good. Then it will impact on individua and (à) impact!this framework was proposed 20 years ago!
A�model�of�strategic�alignment
Source:�Henderson�&�Venkatraman (1993)
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A. Sedik
Where does it all start? Sometimes it start with IT, but it was not the case here! When we look between the 2 phases, the IT is just a little player here.. the important thing was the process behind,..
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What we want to achieve, composed of 3 things, the scope, our distinctive competententcies (what can we do) and the goverance. And those 3 thing need to be consistant!
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the same for the IT!
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how do we take decisions?
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Those are 2 // world, the business and the IT one
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The lower part, is what we call the infrastructure. At the business infrastructure we have the as in IT, we have the admin infra, process (deliver services,..) and we have skill (workforce within the (O)!
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In IT infrastructure we have the IT archi (xhat we studied), processes and the IT skills(people wotking in IT drt). This how our ressources are organized and working together.
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So we now have 2 types of matrix, the upper part the strategy and down we have the infrastructure and ressources! and on the left side busines and right the IT
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But the ? is to how to make sure that business strategy is aligned with ITstrategy? Or how to be sure that the business stratecgy is aligned with the (o) infrastructure?
A�model�of�strategic�alignment
Source:�Henderson�&�Venkatraman (1993)
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A. Sedik
In bombardier how did we start? from the business strategy, and what was it? the vision, we wanted lower cost, more integrated.. From there where did we go?they first decided to change the (o) first and then we can implement the IT: they first moved to the (o) infrastructure(phase 2).. And finaly they moved to the IT infrastructure! But is not the only way possible! There are other way to act!
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We need to answer for each of those questions! who is the driver? here it started from the BS. And then what do you ask from the top mgt? The top mgt is responsible for formulating the strategy.. And then what do we expect fro the CIO? he will be the implementor!
Enterprise IT Implementation
Key take-aways
IT�Implementation:�Key�takeͲaways
• EIT�implementations�=�organisational transformation projects• Global�vision�is�critical• Anticipating�organisational change�is�paramount
• Managing�project�resources• Support�v.�Development�tradeͲoff
• Different�dimensions�in�the�evaluation�of�an�IT�project• System�quality,�data�quality,�actual�use,�user�satisfaction,�individual�impact,�
organisational impact• Very�common�to�focus�exclusively�on�the�latter• Successful�project�does�not�mean�easy�to�execute
• Strategic�alignment�process• Who�is�in�the�driver’s�seat?• What�is�the�role�of�IT?
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Your assignments
Assignments on�IT�Implementation
• Apply�the�DeLone &�McLean�(2003)�framework�of�IT�success• Provide�evidence�from�the�case�of�success�or�shortcomings�on�each�of�the�6�
dimensions
• Read�the�articles• Bloom,�Sadun,�Van�Rennen Ͳ Americans�do�IT�better• DeLone,�McLean�ͲModel�of�Information�Systems�Success
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