Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval...
-
Upload
truongcong -
Category
Documents
-
view
224 -
download
3
Transcript of Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval...
![Page 1: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/1.jpg)
5/19/2016 1
Reproduction Prohibited without Prior Authorization from the Author
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
The Ohio State University
Primary Research in Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Research Review and Findings
Supply Chain Execution Research Report
Jim Hendrickson, Professor, Fisher College of Business, The Ohio State University
![Page 2: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/2.jpg)
5/19/2016 2
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
About the Author
Jim Hendrickson
Jim Hendrickson has over 30 years’ experience in leadership, business, and technology in the defense and aerospace, retail, supply chain, banking and finance, and software industries. He has worked in turn-around situations as well as high growth businesses and has been involved in a number of early and mid-stage companies as a consultant, advisor, and strategist to help them achieve growth objectives.
Over the last 20 years, in roles such as Vice President of Product Management and Senior Vice President of Corporate Development at Sterling Commerce he helped develop and launch one of the first B2B Integration Platforms, the first Omni-Channel Commerce platform, and helped re-invent EDI networks from traditional transaction networks to integrated cloud-based B2Bi capabilities. More recently, he developed one of the first integrated solutions for Multi-Carrier Parcel and “Ship-from-Store” as the General Manager of Logistics Software Solutions at Pitney Bowes Corporation.
Currently, he is a Senior Lecturer / Professor in the Marketing and Logistics Department of the Fisher College of Business at The Ohio State University focusing on logistics, sustainability, and supply chain. He is also is a founding Partners of Nexus Partners, a boutique consulting firm providing a mix of strategy and tactical business and technology support and solutions to clients. He regularly speaks and writes on global supply chain management, technology, and global strategy to a wide range of audiences.
Hendrickson began his career as a commissioned officer in the United States Army where he served as a medical services officer attaining the rank of Captain. He holds a BBA in Business / Computer Science from Belmont University in Nashville, TN, completed his Army ROTC at Vanderbilt University and Masters of Science in Management from National Louis University of Evanston, IL
![Page 3: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/3.jpg)
5/19/2016 3
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Table of Contents
• Introduction 1
• Research Respondents and Demographics 4
• Part I: Evaluation Criteria 5
• Part II: Supply Chain Execution Value 10
• Part III: Business Case and Approval Process 16
• Conclusion: Evaluating the Study Hypothesis 25
• List of Figures 32
• References 33
Contents Page
![Page 4: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/4.jpg)
5/19/2016 4
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Introduction
The use of technology as a catalyst for business, while not new, is relatively young compared to business itself. In fact, the supply chain concept itself is a new innovation of business. The term Supply Chain Management dates back to the early 1980’s as businesses began to see the need to integrate key business processes between the company and the supplier. Technology as a key enabler of this notion evolved in a slightly lagging but parallel path. EDI (Electronic Data Interchange) as a standard rose in the late 1970’s and throughout the 1980’s as businesses sought to share order files and similar “documents” between them electronically. As the complexity of supply chains have increased over time initially in a more national / regional sense and now as a global environment, technology has continued to evolve to help businesses work to manage this complexity. In tracing this evolution since around 1990, technology, along with supply chain complexity, have gone through several transformation and eras as depicted in Figure 1.
It started in 1990’s with changes in consumer buying and the ERP driving an evolution in business. Most recognize three factors in this evolution. The first was the recognition by businesses that their existing supply chains were becoming too complex to handle using traditional approaches. Interestingly, it was likely the rise of the consumer choice through micro-marketing, product selection growth, mass advertising techniques, etc. that appears to have driven this complexity. The second was the evolution of technology enabling broader computing resources to decentralized “users”. The creation of client-server technology, for instance, when combined with the proliferation of desktop computers in business created a new opportunity to leverage system technology. And finally, there was a focused development on expertise in these systems, primarily through the “Big 5” consulting firms that created armies of implementation experts to help business plan and installthese systems.
1
Supply Chain Management “Eras”
Technology / System “Eras”
1990’s 2000’s 2010’s
• Make to Stock Production• Increased Consumer Selection• Large increase in Finished Goods
Inventories• Increase in Global Manufacturing• Heavy use of Warehousing and
traditional distribution• Traditional Store Retail Model
The Rise of Consumer ChoiceConsumer Specialization The New Global Consumer
Client / Server Computing Services Computing Platform App/Cloud Services Platform
ERP ERA B2B Integration ERA Supply Chain Execution ERA• ERP as a core business technology• Large and Mega Enterprises• Focused on Inside the Four Walls• Metrics Driven by Internal
Performance Numbers• Desktop as User Interface• Mainframe or “Big Iron” Servers
• Make to Stock / Just In Time• Increased Consumer Demands• Transportation Reduces Inventory
Requirements• Expanded Global Manufacturing• Movement away from
Warehousing to Distribution• Hybrid of Retail / eCommerce
• ERP as corporate technology• ERP moves to the middle market• Focus shifts to outside four walls
(B2B Integration / Multi-enterprise)• Metrics Driven by Channels• SCE = (WMS, TMS, Order)• Desktop, Laptop, Virtualized Servers
• Just In Time / Make to Stock• Increased Consumer Specialization• Global Transportation Enables
Markets and Inventory Timing• Integrated Global Manufacturing• Heavy use of Intermodal and
Cross-Dock distribution• Omni-Channel Commerce
• ERP for internal core processes• ERP moves to the Cloud and Small• Focus Shifts to Globally Integrated• Metrics Driven by Omni-Channel• Rise of SCV and Real-time Mgmt.• SCE = Integrated Best of Breed• SCE delivered in SaaS / Cloud
Figure 1: Eras of Supply Chain Management
![Page 5: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/5.jpg)
5/19/2016 5
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Introduction - ContinuedIn the early 1990’s most companies were inventing the approaches that were used to plan and install
these systems as they gained experience from actual implementation work. It was an expensive proposition of trial and error punctuated by one of the first major lawsuits of the era in 1998 involving FoxMeyer Drug, the fifth largest drug wholesaler in the country, suing SAP and Anderson Consulting after going into bankruptcy in 1996 suggesting, in part, that the bankruptcy came as a result of poor planning and implementation of the ERP system1. At the same time, studies like the Chaos Report (1995) by the Standish Group2 in the US and The OASIG Study (1995) by OASIG2 in the UK found that, in their view, the majority of all IT projects often resulted in consistent levels of failure.
From this, new techniques were developed including an approach referred to as “Packaged Enabled Re-engineering” (PER). PER was an improvement over previous approaches as it sought to adapt the end user to the system and its existing capabilities with some configuration for preferences rather than require the system to be adapted to the end user through expensive and time consuming custom development. A discipline of design referred to as business process reengineering, or BPR, would drive these engagements. Studies in 1995 and 1997 by Grover, Jeong, Kettinger, and Teng (1995)3 and Gunasekaran and Ichimura (1997)4 found that using the techniques of BPR as part of a PER approach improve the ultimate success of enterprise systems projects. This approach has become more common over the last decade as companies seek to get the advantage of enterprise systems while reducing the potential risk of failure.
In the early 2000’s, supply chains became more complex given a new era of consumers driving choice rather than simply being given choices. The value of increasing the use of “just-in-time” manufacturing styles to reduce inventory carrying costs drove new requirements to engage with suppliers and buyers on a more direct level. The creation of Business to Business Integration (B2Bi) became a key driver in enabling the cross-industry, or multi-enterprise infrastructure needed to enable advanced manufacturing and advanced distribution techniques like cross-docking deliveries to avoid holding stock.
With the advent of the Internet and its use in eCommerce, new models of the supply chain began to emerge. The need for specialization outside of the traditional ERP became apparent as businesses struggled to manage and deliver across multiple channels of commerce straining the traditional linear delivery models. New specialized automation was needed at multiple levels of the supply chain leading to the creation and launch of Warehouse Management Systems (WMS), Transportation Management Systems (TMS), and new commerce based order management systems. These new systems were generally categorized as Supply Chain Execution Systems. Since around 2010, globalization has increased with the need for a greater focus on global relationships, the management of real-time global events that drive supply chain disruption and the criticality of new dimensions like sustainable sourcing and supplier diversity. Throughout these eras, new systems and techniques have been developed to help justify, deploy, and manage the IT acquisition of systems. Along with them were improved techniques to plan, execute, and manage projects.
We have seen incremental improvement from the 1990’s in terms of project success but projects are still complex initiatives with the purpose of driving business value and high return on investment. The 2013 Chaos Manifesto by the Standish Group5 found that while in 1995 about 16.2% of projects were successful, in 2013, that number was 39% with another 43% being completed but “challenged”. Challenged projects suffered from late projects 74% of the time and budget overruns occurred 59% of the time. A Gartner survey in 2012, found that somewhere between 72% and 80% were considered successful over a two year period with the key factor being the size of the project.
We are at a cross roads. The need for technology to drive cost savings, new business models and global management continues unabated while we still struggle to achieve the full value of these initiatives. In this research, we will seek to understand the impact of the processes used to create, justify, and approve these kinds of project on the potential success or challenge with projects after approval. To do this, we will develop a framework that describes the practices required to define a successful solution and then test that framework against today’s project initiation and approval processes.
2
![Page 6: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/6.jpg)
5/19/2016 6
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Research On Business Cases and Approval Processes
Given the criticality of business to be able to quickly and effectively adopt Supply Chain Execution (SEC) technology, understanding the approach business takes to define, evaluate, and acquire SCE systems is a practical matter for research. This research study was conducted in three phases:
Phase 1: Research Review / Criteria
In Phase 1 of the research, we reviewed previous work on the development of the business case, the approval process and the dynamics involved in justifying an enterprise technology solution. In evaluating previous scholarly research, we were able to develop a current state model of practices used in companies along with an understanding of the basic approaches used in developing and justifying technology.
Phase 2: Primary Research
In Phase 2 of the research, we developed primary research instruments that were used as both as an interviewing tool and as a primary research survey tool. The instruments were comprehensive enough to evaluate the current state of the practices learned in Phase 1 and to interpret them quantitatively and qualitatively against supply chain execution system acquisitions. As part of this stage, we were able to reach a strong cross section of industries, positions, and levels of experience. We evaluated the results and found a strong correlation of p < 0.05 (n=42) throughout the responses across industries, levels, and years of experience. In evaluating the total cycle time of interviews and surveys, we gathered responses over about 47 hours across 42 respondents.
Phase 3: Interpretation of Results
In Phase three we have interpreted the results into this study document where we evaluate the data against a basic framework of Supply Chain Execution System of five criteria that, when taken together, create sufficient odds of success that a system will be well described, contain value to the business, have high odds of success of completing on time and at budget, and have the appropriate support to achieve the long term goals. At the end of the study, we interpret the findings against a series of practices that were also gleaned from research and interviews. These practices represent approaches to overcome the weaknesses we found in the process and approaches in industry today.
Research Deliverable Layout
The research and findings in this document are laid out in three sections:
Part I: Evaluation Criteria - the first part of this document we will discuss the basic criteria for a Supply Chain Execution system and discuss the framework by which we evaluate the business case and approval processes
Part II: Supply Chain Execution Value - In Part two of the document we will evaluate criteria from the framework to determine the value of Supply Chain Execution in today’s business environment.
Part III: Business Case / Approval Process - In Part three, we evaluate the development of the business case and the approval process today based on the survey findings and evaluate that against the practices identified in the framework
3
![Page 7: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/7.jpg)
5/19/2016 7
Reproduction Prohibited without Prior Authorization from the Author
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
The Ohio State University
Primary Research in Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Research Respondents and Demographics
Evaluation of the Respondent Pool
By Industry, Company Size, Position Level and Years of Experience
4
![Page 8: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/8.jpg)
5/19/2016 8
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
To evaluate the business case development and approval processes for Supply Chain Execution, we sought to develop a respondent pool that provided a cross section of experiences across industries. We also sought a diversity of levels within organizations. Experience base was also critical opting to try and build a base of longer experienced professionals to be able to capture more response depth and diversity. Below are the core demographics. We were able to achieve reasonable diversity to provide a range of responses. We have not specifically correlated any responses directly to industry criteria given the sample size but would expect to be able to do this in future research. The findings are below (Figures 2-5)
Research Respondents and Demographics
Evaluation of Respondent Pool
5
26%
24%
17%17%
15%
Primary Industries
Retail
Manufacturing
Transportation
Supply Chain Services
Supply ChainConsulting
25%
19%
22%22%
13%
Position Level
CxO
SVP/EVP
VP
Director
Associate
23%
23%
23%
31%
Annual Revenue
< $100M
$100M - $499M
$500M - $999M
$ > 1B
9%
32%
59%
Experience Level
< Ten Years
Ten to 20Years
> 20 Years
Figure 2 Primary Industries Figure 3 Position Level
Figure 4: Annual Revenue Figure 5: Experience Level
![Page 9: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/9.jpg)
5/19/2016 9
Reproduction Prohibited without Prior Authorization from the Author
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
The Ohio State University
Primary Research in Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Part I: Evaluation Criteria
Evaluation of Previous Research
Development of a Framework for System Selection for Supply Chain Execution Systems
6
![Page 10: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/10.jpg)
5/19/2016 10
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Part I: Evaluation Criteria
Companies purchase automated systems for specific purposes with high expectations of returns. Since the beginning of the ERP Era, successful completion of complex systems implementation have been challenging. While there is significant research on how to execute and implement projects to make them more successful, there is limited research today in understanding the process and business case development in a way that allows companies to evaluate their corporate processes and behaviors to improve the situation. In this section, we will review literature appropriate to the development of the business and the approval process. From this research, we discuss the framework that was used in developing and evaluating the survey results.
Introduction
7
In evaluating previous studies, we focused on understanding the issues related to how and why companies decide they need technology to help them solve a business problem as well as how they described the approval processes as either formal or informal. We also looked at how IT systems, especially applications, are generally justified in terms of utility and value. In addition, we looked for research that discussed investment based decision making that would be consistent with making a strategic decision for the acquisition of Supply Chain Execution technology. Below are three highlights that underscore the foundation of the findings:
In “A Model for Investment Justification in Information Technology Projects”, Gunesekaran, Love, Rahimi, and Miele identified a model for investment justification that includes Strategic Considerations like support of top management and alignment to strategy, Tactical and Operational Considerations which are more technical and business functional requirements, Tangible Considerations such as budget, ROI, and investment priorities, and Intangibles that include “soft factors” which are value drivers that are not easily quantified.
In “Maximizing ROI from Technology, Quinn and Aschenbrand, focus on three key drivers of ROI benefit as Asset Utilization, Efficiency, and Customer Response. They discuss specific obstacles in the process as well as time to break even. They also listed the systems with highest level of return as being 1st, the TMS system, 2nd Inventory Management solutions, 3rd Demand Forecasting, 4th, Warehouse Management, and 5th Procurement solutions.
In “How Company’s Make Good Decisions: Mckinsey Global Survey Results”, Garbuio, Lavallo, and Viguerieidentified that many decisions regarding new infrastructure and systems are made outside of the traditional planning cycle. They found that good decisions require good discussion, i.e. one person making the decision is usually a poor approach. They also found that a formal decision process lead to good decisions and outcomes. They found that financial accountability, including the use of an ROI mechanism as critical to driving that accountability. They linked good decisions to discussions where the participants had a stake in the process, had the skills to evaluate the decision and that decisions should be made transparently and aligned to the corporate strategy. Finally, they found that while politics may get a bad name, it depends on the situation. Particularly bad decisions are made when the executives are more concerned about their individual outcomes rather than the organization.
Armed with this information, we are able to develop a simple model to evaluate the business case and approval process along with the criteria required to make good decisions about Supply Chain Execution systems.
Previous Research / Studies
![Page 11: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/11.jpg)
5/19/2016 11
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
8
We used the following criteria to understand the relative and perceptive value of Supply Chain Execution related systems and capabilities in industry today and the process to approve them.
The five criteria that must be met to gain approval and acceptance of a new system:
• The System must have a perceived and justifiable need
• The System must have specific and definable utility
• The System must be able to be described in terms of quantifiable value
• There must be a recognition of the potential of the system to succeed both in implementation and in providing the business case value
• The system must be able to be evaluated impartially based upon its utility and value to the business
Further, as we developed the survey instrument specifically around the use of the business case and the approval process, we took into account past research to evaluate the current state of the following. We developed a hypothesis of a high value business case to test and developed methods to understand the approval process in terms of its ability to be a catalyst or a barrier to decision making.
The Business Case Hypothesis
• The Business case should be understandable by the decision making authority in terms of the description of the need, the value it will provide, and the context of its use
• The business case should describe the system technology but not to the point of being overly technical. A highly technical description of the system will likely have a tendency to create confusion or irritation with the process.
• The business case should have business drivers that describe the ultimate business value of the system. This should include quantifiable and non-quantifiable aspects to provide a full picture of value.
• The business case value should be well defined in terms of some kind of return calculation and should have an understandable time to “break even”, i.e. an easily understood point where the investment and value are at zero. We hypothesize that a perceived faster break even will likely yield a higher approval rate for a project
• A business case must have some formal return on investment. Our hypothesis is that most companies would likely use the Return on Investment (ROI) calculation. We tested for a three and five year ROI to determine preference. While we did not make a specific hypothesis, one area of future testing could be to determine if a project that details a five year ROI has a higher approval rate or has a higher level of success than a three year ROI.
• The business case should have a formal implementation plan that uses a phased approach to track its success as well as manage and mitigate risk. The hypothesis suggests that single phase, long time horizon approaches would be approved much less often than multiple short time phased approaches.
• The business case should describe budgetary changes that will take place to support the ROI. Our hypothesis is many respondents may agree with this but that it will not be a common practice.
Part I: Evaluation Criteria (Cont.)
![Page 12: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/12.jpg)
5/19/2016 12
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
9
The Approval Process – In order to develop an understanding of the business approval process, we define
five hypothetical “climates” that are exhibited in a company with a formal or informal process. We asked
respondents the degree to which they have encountered any or all of these climates and have them rank
them. By doing this, we believe we will begin to baseline these behavioral climates within business. We
refer to the five “climates” as “Approval Styles” defined as follows:
• Bureaucratic – “Turn the process into a marathon; approval goes to those who are relentless”.
This style is characterized by many different gates of approval and a bias by senior leadership to
be the core decision makers. The typical outcome is that approval happens only at very senior
levels with very long cycle times.
• Authoritarian – “What the approver wants the approver gets”. This style is characterized by a
strong approval authority that has specific authority within their domain, often involving profit /
loss accountability. While there are likely approvals required to get to this person, once there,
this person decides on their own to allow the project to move forward or not.
• Intimidating – “What part of ‘NO’ didn’t you understand?”. This style is characterized by a hostile
approval culture. The culture is usually centered on an individual or an organizational culture of
intimidation. This style typically has a low number of projects that are brought forward by those
outside of the approvers “circle”.
• Political – “What’s in it for me and mine?”. This style is characterized by an acute focus on the
individual department or division of the executive. Most of the motivation in the organization is
centered around the performance at the group level rather than the greater organization. As
such, the environment relies on extensive relationships and “allies” to be able to effectively gain
approval for systems and projects.
• Collaborative – “What’s the right thing to do?”. This style is characterized by a culture of cross
functional cooperation and transparency where the approval process is considered a necessary
vetting process to understand the needs and impacts of a given need across a broader, well
understood strategy and portfolio. Often, these environment provide transparency of the
process, the approval expectations and have a regular set of times for submission, discussion,
approval, etc.
• Encouraging – “We play small ball but we come to win; singles and doubles turn into runs”. This
style is characterized by a culture that tends to focus on incremental movement at a faster pace
to achieve broader strategic goals. This is not to say that strategic investments are not made.
Typically strategic investments come from many smaller successful investments. It is also
characterized by one of the following; Continuous Improvement, “Plan, Do, Check Act”
approaches, or rapid cycle time trial and error approaches. These environments may not have a
well documented process opting instead for delegated decision on all but the largest investments.
Part I: Evaluation Criteria (Cont.)
![Page 13: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/13.jpg)
5/19/2016 13
Reproduction Prohibited without Prior Authorization from the Author
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
The Ohio State University
Primary Research in Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Part II: Supply Chain Execution Value
Evaluating System Value
Understanding the Value of Supply Chain Execution Systems in Today’s Global Environment
10
![Page 14: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/14.jpg)
5/19/2016 14
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
11
Many companies engaged in businesses that drive the physical supply chain have made significant
investments over time in core business technology. The largest investment has typically been in the ERP
system. While a key part of the framework we evaluated involves the basic criteria that research suggests
shows system value, our primary research probed further. In addition to the perception of value of a
specific Supply Chain Execution system, we wanted to understand that value in context of the ERP. It could
be that respondents found the systems valuable, but did not find them desirable if the company already
had a well implemented ERP system. Beyond that, we wanted to understand how respondents gauged the
potential value of these systems in two categories: Business Value / Cost Savings. Business Value, in this
case, is defined as direct value from the system that enables the business to better manage the complexity
of customers and suppliers in the supply chain. Cost Savings is defined as capabilities that can specifically
reduce the cost of the function the system is developed to manage. For our purposes, Business Value was
ranked higher primarily because it dealt with reducing the complexity of the supply chain which also
resulted in cost savings whereas cost savings was specific to one kind of value. Through this section, we
were able to evaluate four of the five criteria:
• The System must have a perceived and justifiable need
• The System must have specific and definable utility
• The System must be able to be described in terms of quantifiable value
• There must be a recognition of the potential of the system to succeed both in
implementation and providing the business case value
To baseline the general concept of value, we first asked respondents to rate the value of a given
system in terms of its importance allowing for answers ranging from Critical to Not Needed on a
five point scale. We then looked at the responses of Critical or Important, i.e. a rank of 1 or 2 on
the five scale. From our findings, the ERP, WMS, and TMS were all identified as very significant
with Omni-Channel and Cross-Channel (Core eCommerce) along with Supply Chain Visibility /
Control Towers being identified as important (Figure 6)
Part II: Supply Chain Execution Value
0%
50%
100% 89%
72%67%
53%46%
40%
25%
8%6%
Percentage Indicating System was Critical / Very Important
Figure 6: General System Criticality
![Page 15: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/15.jpg)
5/19/2016 15
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
12
Next, we asked respondents to determine their level of agreement with the following statement: “Does the ERP system have enough features and capabilities to be the only system required to manage today’s complex supply chains?”. A high level of agreement would suggest the ERP stands alone as the system needed and other systems would not be required and a low level of agreement would suggest the ERP needs other systems that provide more specialized value in addition to the ERP itself. Our research found a very high level of disagreement with the statement with 86% of respondents either completely disagreeing or disagreeing with the statement. (Figure 7)
Part II: Supply Chain Execution Value
Figure 7: ERP as the only required system
6% 3% 6%
46%40%
Percentage of Agreement / Disagreement
Completely Agree
Agree
Neither Agree / Disagree
Disagree
Completely Disagree
We also asked which functions needed increased specialization which translated into specific system needs. The respondents could choose from five responses ranging from Critical (1) through Not Needed (5). When asked this way, Transportation Management, Warehouse Management and Supply Chain Visibility (SCV throughout includes Real-Time Event Management and Control Tower capabilities) were identified as the top 3 with Omni-Channel, Cross-Channel (identified with core eCommerce) and Retail Store Operations being above 50%. (Figure 8)
0%
50%
100%
46%37%
60%46%
40%37%
46%46%
20%
23%20%
20%
Percentage Indicating System was Critical / Very Important
Crtitical
Important
92%83%
80%69%
60%57%
Figure 8 System Criticality (As Extension of ERP)
![Page 16: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/16.jpg)
5/19/2016 16
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
13
By understanding the independent perception of need and the importance of a system to provide greater specialization outside of the ERP we are able to create a core baseline of importance. We also need to understand relative value. Even with importance, if the value of system is not significant in terms of supporting the management of supply chain complexity to enable business strategy or as a cost savings mechanism to reduce business cost so the savings can be applied elsewhere, there is low odds the system would be approved and adopted. We asked respondents to rate Supply Chain Execution systems on their relative value to Business, i.e. managing supply chain complexity as a primary factor versus cost savings. In addition, respondents could choose neither indicating the system would be of marginal value in both circumstances. Transportation Management, Warehouse Management and Omni-Channel Management all scored well for Business Value while several other categories showed value as cost savers. Only the use of RFID as a replacement for Bar Coding systems in the warehouse showed a trend toward questionable value (Table 1).
Part II: Supply Chain Execution Value
In terms of overall importance and value a few system begin to emerge as having a combination of need and potential value. Table 2 below summarizes the findings in terms of the systems that respondents indicate are the most importance, especially when considering the need to support specialization around the ERP system and in terms of their overall value to the organization when ordered by the Business Value.
Respondents Ratings
Type of Project / Business Case Scenario
TMSOmni-
Channel*WMS
SCE Control Towers
Parcel Mgmt
RFID for Tracking
RFID Whse
Level of Value ProvidedBusiness Value = Impacting critical business drivers (complexity, scale, customer experience and Cost
Savings, etc.) Cost Reducing Value = Cost Savings as Primary
Business Value 81% 69% 53% 41% 11% 6% 0%
Cost Reducing Value 19% 31% 47% 53% 80% 75% 58%
Marginal / Little Value 0% 0% 0% 6% 9% 20% 42%
Strong Overall Utility Cost Driven Utility Marginal
Table 1: System Value by Category
SystemsGeneral
ValueValue with
ERPBusiness Value
Transportation Management System 63% 92% 81%
Omni-Channel* 53% 69% 69%
Warehouse Management 72% 80% 53%
SCE Real-Time SCV / Control Towers 40% 83% 41%
Table 2: Summarized Value: General and with ERP
* After initial evaluation, we found Omni-Channel Commerce and eCommerce to be used interchangeably. As a result we used Omni-Channel for evaluation purposes
![Page 17: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/17.jpg)
5/19/2016 17
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
14
With an understanding of the importance and value of a Supply Chain Execution system, the last core criteria of value is return. Trying to evaluate the average return on investment (ROI) of a given system or category is well beyond the scope of this study and would likely encompass it’s own entire set of work. That said, we used the notion of time to break even as a general character of overall value of a system. The notion is that if a system can meet a break-even in a relatively short time it would be in a position where the core costs and benefits are in zero base point. This is an indicator of both reduced risk and greater value potential on a more traditional ROI level. We used the time to break even as a key measure of gross value. Table 3 summaries the respondents view of time to break even across system categories. All products showed a median time to break even as below two years. Both TMS and Parcel Management were rated as having break even points at or below 1 year suggesting a stronger potential business case than other systems. It is interesting that both of these systems deal foundationally with the shipping costs which have become a larger percentage of the total supply chain spend due to eCommerce, globalization, and the emphasis on reducing inventory by using transportation as “rolling inventory”. As a result, companies without these systems would likely be at a competitive disadvantage compared to those with the systems. Other systems, like WMS, may be more proliferated or require more hard investment to get a greater return. Supply Chain Visibility / Control Towers typically require a broader implementation across many facets of the supply chain to tie together real-time data to evaluate for disruptions etc., which would drive a larger investment and take more time to achieve value. Finally, with RFID, the broader question of general adoption for tracking purposes may be somewhat segregated from the broader tracking that happens in SCV while RFID for warehousing to replace bar code technology likely suffers from a difficult set of value drivers in replacing technology that already meets most standards of efficiency
Part II: Supply Chain Execution Value
Table 3: Time to break even by system category
Respondents Ratings WMS TMSOmni-
Channel
SCV / Control Tower
Parcel Mgmt.
RFID for Tracking
RFID for Whse.
Time to Break Even Time until the costs of the solution and implementation equal the benefits
Less Than 6 Months 0% 22% 0% 0% 6% 0% 0%
6 Months to 1 Year 14% 42% 19% 22% 39% 8% 0%
1 Year to 18 Months 31% 25% 17% 22% 53% 42% 47%
18 Months to 2 Years 39% 8% 31% 36% 3% 39% 25%
Greater than 2 Years 17% 3% 33% 19% 0% 11% 28%
Median Point 18 Mo < 1 Yr. <2 Yrs. 18 Mo+ 1 Yr. 18 Mo 18 Mo. +
![Page 18: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/18.jpg)
5/19/2016 18
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
15
Based on the previous criteria and results, we can form a composite picture of the value of Supply Chain Execution systems today in business. We do this by combining the evaluation factors of Importance as a system to provide additional specialization outside of the ERP, the system value with an emphasis on the combined value of business and cost savings, and the expectation of break even point. We create a three tiered ranking factor based on the cluster analysis based on respondent results and then apply a five to one rating where five is the highest. Table 4 provides the results of this ranking. We can interpret the results based on a risk managed approach where we define the Top Systems being in the top 20% of the ranking, Qualified Systems being at the 60% to 80% of the ranking and Non-Qualified Systems being below the 60% ranking. Applying this risk factor further isolates the systems for the highest level of importance, value, and potential success. Based on this ranking, the Top and Qualified Systems are:
TOP SYSTEMS (Rank 12 or Higher) QUALIFIED SYSTEMS (Rank 9 – 12)
• Transportation Management Systems
• Warehouse Management Systems
Part II: Supply Chain Execution Value
Table 4: Overall Supply Chain Execution Value Rankings
Respondents Ratings
Supply Chain Execution System*
TMS WMSParcel Mgmt.
OmniChannel
SCV / SC Control Tower
RFID for
TMS
RFID for
WMS
Importance ( 5 = Max, 1 = Min)
Tier I - (> 70% Critical/Important) 5 5
Tier II - (Tier + Valuable > 70 3 3 3 3
Tier III - All Others 1
System Value ( 5 = Max, 1 = Min)
Tier I - Business > 60 Plus Combined Bus/Cost > 80%
5 5
Tier II - Combined Bus/Cost => 90%
4 3 3
Tier III – Cost Savings < 90 2 1
Break Even Time ( 5 = Best, 1 = Low)
Tier I - < 1 Year is > than 60% 5
Tier II - < 2 Years is > 80% 4 4.5 3 3
Tier II - < 2 Years is > 50% 2 1
Total Value (15 = Highest, 3 = Lowest)
15 13 10.5 10.0 9 8 3
• Omni-Channel Systems
• Parcel Management Systems
• Supply Chain Visibility / SC Control Towers
![Page 19: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/19.jpg)
5/19/2016 19
Reproduction Prohibited without Prior Authorization from the Author
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
The Ohio State University
Primary Research in Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
Part III: Business Case / Approval Process
Evaluating the Business Case and Process of Approval
Understanding the Impact of the Business Case and Approval Process on SCE Systems Acquisition
16
![Page 20: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/20.jpg)
5/19/2016 20
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
17
In Part II, we evaluated the relative value of Supply Chain Execution solutions across different categories
of systems to better understand elements of business value, cost saving value, and the odds of success of
project being approved and successfully implemented. Understanding the value a system would bring to the
business is a critical factor in understanding the desirability such a system would have to that business. It
does not, however, evaluate the implications of the internal processes used to achieve that approval or the
actual justification document itself.
In Part III, we evaluate the business case document and the approval processes that are evident
in business today. From previous research we have identified a standard set of criteria required for
business to identify value in a system. Several of these criteria go beyond just understanding the
business value of a solution. They include the justification of that value in terms of perceived value,
quantifiable value, and definable utility. In addition, the criteria strongly suggests the need to
evaluate the potential of success in terms of the implementation of the system to achieve the value.
It is through the development of the business case and the associated process of achieving approval
that the value of system is put to the test.
We will evaluate this environment by first understanding the likelihood of a consistent process
being evident in the company. Next, we’ll look at the approval process style to understand which
styles are the most prevalent in business today. Finally, we will look at the business case itself in
terms of information that is consistently provided to approval authorities and how that criteria
hinders or helps in the process.
We will conclude with a scenario based view of the business case, approval process and climate
along with some basic analysis of the impacts and outcomes from these scenarios.
To begin, we asked respondents if a formal approval process exists in the company based on the
company size. As identified in figure 9, most companies above $500m in revenue have some kind of
formal process and about half of companies $100 - $499 have a formal process.
Part III: Business Case and Approval Process
Figure 9: Presence of an approval process by company size
0%
50%
100%
< Than $99 M$100M to $499M
$500M to $999M$1B and above
6% 43% 60%
23%
9%20%
66%
Percentage Indicating A Formal Process Existed for Business Case and Project Approval
51%
80% 89%
6%
![Page 21: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/21.jpg)
5/19/2016 21
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
18
In our study, we identified the most common styles used in organizations as part of their
approval processes. There is research, Berry (2002)8, and Leidner and Kaywork (2006)9 that shows
the approval process has dependencies on corporate values and culture. This is an area with very
little research to date and an area that will be expanded upon in future work. In this study, we
show this perspective by applying the decision making styles based on three factors:
1. The size of the “Bubble” – The prevalence of an individual approval style is represented by the
relative size of the shaded circle which it represents
2. Level of Consensus Required – The goal of consensus is typically to ensure all key stakeholders
are engaged in the decision process to ensure the project is effectively vetted and the best
decision is made. We evaluate consensus by evaluating the collaborative nature of the
engagement versus the isolation or exclusion factors that inhibit collaborations.
3. Level of Organizational Trust / Empowerment – Trust and empowerment are another key factor
of culture and corporate values. Low levels of trust tend to isolate decision making to
predominately senior authorities where higher levels of trust tend to enable delegation of
authority in making decisions.
Figure 10 shows the Bureaucratic, Authoritarian, and Political styles as the most prevalent in
decision making bodies.
Part III: Business Case and Approval Process
Figure 10: Distribution of Approval Styles
Intimidating
Bureaucratic
AuthoritarianPolitical
Organizational Trust / Empowerment
Individual / Dept.“Us vs. Them”
Cross FunctionalEmpowerment
Cross DepartmentAlliances
Collaborative
Encouraging
Isolated
Collaborative
Selective
Co
nse
nsu
s
![Page 22: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/22.jpg)
5/19/2016 22
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
19
The presence of the Bureaucratic, Authoritarian, and Political styles as the more dominant
styles suggests that project approval is more of a selling activity than simply a discussion or
explanation of a project on its own merits. Factors like competing projects, decision bias,
individual personal agendas and corporate pressure all become factors to consider when
approaching the approval process.
While not a specific scope of the study, there are practices and approaches gleaned from the
interviews that will apply to selling the project. These will be discussed in Part IV: Toward Better
Practices. In addition, research related to solutions selling is appropriate as we align the content
and use of the business case, the content that is used to show the solution value, with the actual
approach needed to successfully navigate the approval process. Sharma, Iyer, and Evanschitzy,10
provide a solution selling model that applies to the process of gaining approval for high technology
Supply Chain Execution systems. There are parallels to the concept of a high technology firm and
the approval of high technology Supply Chain Execution systems:
• High technology firms face (factors relevant to this research):
• Rapid pace of technological change
• Rapid technological obsolescence
• Disruptive Competition
• Competing industry standards
• Product Complexity
• Complex Buying Decisions
• In a similar way, organizations faced with approving a Supply Chain Execution system also have
these issues with a different context to their decisions. This context will most commonly come
in the form of an objection to the acquisition based on the following:
• Rapid pace of technological change – “Will this system meet my needs today and will it
evolve to meet my needs in the future”? Similarly, “Is this the ‘best’ system or is there a
better one coming soon”?
• Rapid technological obsolescence – “How long will this system really last? How new and
proven is it”? “Will I get caught in a “dead end” solution”?
• Disruptive Competition – “Will this system help me compete or could it be a detractor to
my ability to compete”?
• Competing Industry Standards – “Will this system work and integrate with all my other
systems and partner’s systems”?
Part III: Business Case and Approval Process
![Page 23: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/23.jpg)
5/19/2016 23
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
20
• Product Complexity – “How difficult will this system be to use and integrate? Is the
training extensive”? “How quickly will it began to work well within the enterprise”?
• Complex Buying Decisions – “The investment in this solution is large and there are only so
many dollars that can go around. Making a mistake on this will have serious implications
to our business”.
Evaluating the business case document as a selling document involves three things. First, we
understand from previous research which sections tend to drive the approval decision making.
Second, we must evaluate the respondents view of the individual sections of the business case
document and their value. Third, we need to understand how often those sections are present in
the business case. In evaluating the business case, we asked respondents to evaluate the value of
an individual item in the business case along with it’s criticality in being present for approval. We
then asked how often the respondent found that item was present enabling us to evaluate the
business case efficiency based on the makeup of the business case itself. Table 5 reflects the
respondents view of the items and their need along with the practice and presence of these items
in reality. From the respondents we confirm a number of things including the importance of the
Project Description (a description of the general purpose and need of the solution along with how
it will be used), Solution Description (a description of the system solution including its basic
components and usage, and Key Value Drivers (a set of value descriptors that define a) why the
system matters and b) the categories and benefits that will be derived from the system) are all
critical to the success of the business case. Similarly, a project plan (implementation plan) and
some kind of ROI (either 3 or 5 year) are viewed as required.
Part III: Business Case and Approval Process
Table 5: Business Case Content Requirements with Evaluation of its Presence in Actual Documentation
Perspective
Business Case Items for Inclusion or Exclusion in a Business Case
Project Description
Solution Description
Key Value Drivers
Technical Spec
Project Plan (Detailed)
3 Year ROI
Review
5 Year ROI
Review
Budget Impact / Budgets Set
Required 100% 80% 71% 9% 69% 54% 46% 54%
Value Added 0% 20% 29% 14% 31% 31% 26% 20%
Nice to Have 0% 0% 0% 31% 0% 14% 23% 26%
Creates Confusion
0% 0% 0% 31% 0% 0% 6% 0%
Should Not Be In Document
0% 0% 0% 14% 0% 0% 0% 0%
% of Time It is In Document
(Always / Almost Always)
86% 77% 14% 71% 54% 54% 0% 12%
![Page 24: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/24.jpg)
5/19/2016 24
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
21
Most also found that the submission of budget that showed the impact to the business and the
future changes would be either required or valuable as a tool of accountability. The main area of
disagreement in the respondents view was the inclusion of a technical specification. 45% of the
respondents found that this level of detail would create confusion or should not be put into the
document in general. At the same time, almost one third (31%) found it could be a nice to have
addition. Only 23% felt it should be required. This disparity, we believe, underscores the cross
purposes of the business case as a communication and information mechanism versus a selling
tool that requires the business case be tailored more to the audience which is usually not oriented
to understanding the technology but the value.
The critical findings were related to the presence of the business elements identified, especially
those identified as being required for approval. Of particular note are the value drivers. While
71% of respondents indicated it as a requirement for approval, only 14% of respondents indicated
it was typically in the document. When confronting the business case as a selling document, this
appears to be a major stumbling block to gaining approval, especially in the Authoritarian,
Bureaucratic, and Political environments where the lack of value would be seen as a simple reason
to deny the project.
Similarly the presence of a technical specification being a regular (71%) part of the business
case introduces another convenient way to slow down or deny the project by enabling debate on
technical specifics, with resulting disagreement on the technical specification, rather than an
emphasis on the value and utility of the solution in meeting the business need. The same styles
(Authoritarian, Political and Bureaucratic) would be environments where this kind of conjecture
could be used to slow down or deny the approval.
Finally, from a financial hurdle perspective, the potential of a lack of effective financial
justification is likely a concern. Although 54% of respondents indicated the presence of a 3 year
ROI, the indication that 46% had no ROI and, further, an ROI of five years was never present
suggests that those seeking approval appear to focus on the minimum required for ROI or financial
justification. Similarly, the lack of a meaningful understanding of budget implications (12%
indicated it was there) further suggests this could be another barrier. In Authoritarian, Political,
and Bureaucratic approval styles, the lack of effective financial rigor and justification could result in
increased scrutiny, business case rework, or outright rejection due to unsubstantiated value. This
will be particularly true of approval processes that are driven by approvers from a financial
function.
Part III: Business Case and Approval Process
![Page 25: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/25.jpg)
5/19/2016 25
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
22
The final area of evaluation of the business case and approval process the role of the project
sponsor both in the project and in the approval process. As the approval process is really a selling
process, as the research suggests, the role of the project sponsor as both the key defender of the
project and the primary “seller” is critical. We asked respondents the degree to which they
believed the business sponsor should present the solution to the approval authorities and how
often they find the business sponsor to be the actual person that presents. We also asked, if the
business sponsor was not the presenter, who would be the typical present of this kind of a project
for approval. Figure 11 shows the results of these two questions. There appears to be a significant
mismatch between the actual experience versus the expected or desired behavior in this area.
71%, indicated the business sponsor should always be the presenter, which, when combined with
the 21% who said almost always suggests this is a critical activity to support approval. The
respondents, however, found that in practice, the business sponsor as presenter was not a
foregone conclusion and in fact is more rare than expected. Only 29% found that the business
sponsor was the presenter on an Always or Almost Always basis. Instead 54% found this to occur
Sometimes suggesting there is little established practice or standard for the business sponsor to
actually be the driver of the project and the approval. This appears to put the project at a
significant disadvantage given the objections identified in the research. While some objections can
be addressed by technical sponsors or members, the implication of the impact of disruptive
competition on the sponsor’s business along with the sponsor’s view of complexity making the
case to get approval given scare resources all suggest the need for the business sponsor to be the
foundational driver to ensure approval.
Part III: Business Case and Approval Process
Figure 11: Business Sponsor Involvement
0%
20%
40%
60%
80%
100%
Always Almost Always Sometimes Rarely Never
9%20%
54%
17%0%
71%
21%
0% 0% 0%
Degree to Which the Respondents experienced the Business Sponsor Being the Presenter of the Solution for Approval
Actual
Desired
![Page 26: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/26.jpg)
5/19/2016 26
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
23
We also asked, in lieu of a business sponsor presenting the business case, who would present
the case for approval. Given that it is likely that over 50% of the time someone beside the business
sponsor is presenting, we find this question to be important to provide more context into potential
barriers in the approval process. Figure 12 shows that this person is the IT Leader or Project
Manager always (51%) and almost always (43%). From an implications perspective, this likely
changes the perspective of the project from one of core business value and need, to one of a
technology solution that is likely about the technology first and business value second. This may
help with the approval authorities understanding and evaluating the impacts of technology
obsolesce or pace of change. These two factors, however, would come as a result of the system
itself having high business value rather being ends among themselves.
In summarizing the key findings of this section, we find the following:
1. Companies above $500M (and often above $250M) will have some kind of formal approval
process for larger systems like Supply Chain Execution Systems
2. In terms of the approval process, the most common Approval Styles that were identified
were the Authoritarian, Political, and Bureaucratic styles. This, along with research suggest
the approval process is more of a selling, rather than communication process
3. There appears to be a mismatch that creates approval barriers based on the typical
contents of the business case with lack of effective development of value drivers, the
presence of a technical specification that can cause unnecessary noise in the process and
the lack of strong financial justification
4. The lack of the Business Sponsor as core defender and presenter of the business case for
approval appears to impact approvability. Instead, an IT Leader or Project Manager tends
to be the presenter reducing the impact of business value in favor of technical merits
Part III: Business Case and Approval Process
Figure 12: Presenter when Business Sponsor does not present
0%
20%
40%
60%
80%
100%
Always AlmostAlways
Sometimes Rarely Never
51% 43%
6%0% 0%
Degree to Which the Respondent Experiences an IT Leader or Project Manager as Presenter the Solution for Approval versus some other role
![Page 27: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/27.jpg)
5/19/2016 27
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
24
The Final area of analysis in this section is the overall odds of success of a specific type of
system or project being approved with the subsequent likelihood of success. While not a definitive
indicator of approval, the responses would provide insight into the current state of approval given
all the factors previously identified in this section. Practices that drive better alignment, that
address objections in a more effective way, and that provide a more solid financial justification
would increase these odds above the baseline we hypothesize. By having a baseline, we can
suggest techniques and processes that increases the odds of success for future study as we
approach the implications of the study in Part IV: Better Practices. To do this, we asked
respondents to rate the odds of approval of one of five scenario projects along with their
experience of the odds of success that the solution will meet its business value objectives
(Business Value Drivers). Table 6 provides a view of the approval and odds of success. It is beyond
the scope of this research to specifically correlate a scenario with root cause of success or failure
but the responses are instructive in general. From the respondents we find most respondents
judge medium levels of odds of approval and success of the scenarios with the exception of
“Cutting Edge” technology. There are higher odds of success of approval of a Large System
Upgrade, i.e. ERP upgrade, Supply Chain Execution executed in a Multi-Phased approach, and a
“Me Too” scenario. It is difficult to discern the specific reasons but one would suggest the upgrade
is based on a well known system, the “Me-Too” system is based on late adoption of more proven
technology and the Supply Chain Execution project in multiple phases would reduce odds of failure
by breaking the project into smaller pieces rather than one large phase.
Part III: Business Case and Approval Process
Table 6: Ratings of Odds of Approval and Success
Respondents Ratings
Type of Project / Business Case Scenario
Large System Upgrade
Supply Chain Execution (1 Phase)
Supply Chain Execution
(Multi-Phase)
Cutting Edge Tech (Game Change)
“Me Too” Solution (Late Adoption)
Odds of Approval ERP, EtcWMS, TMS,
etcWMS, TMS,
EtcUntested (Drone, 3D Printing, etc)
ERP, Accounting, Etc
Low 22% 19% 5% 86% 17%
Medium 58% 75% 78% 14% 58%
High 20% 6% 17% 0% 20%
Odds of Solution success On-Time and At Budget Meeting the Business Value Drivers
Low 25% 25% 8% 80% 6%
Medium 75% 75% 81% 20% 78%
High 0% 0% 11% 0% 16%
![Page 28: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/28.jpg)
5/19/2016 28
Reproduction Prohibited without Prior Authorization from the Author
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
The Ohio State University
Primary Research in Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
STUDY CONCLUSION
Testing the Hypotheses
Defining the Key Impacts and Issues in Achieving Success in Acquiring Supply Chain Execution Systems
25
![Page 29: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/29.jpg)
5/19/2016 29
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
26
In this conclusions section we will re-evaluate the value of SCE systems and test the study hypotheses.
Because our testing of Supply Chain Execution value was not included as a hypothesis, we will begin by
summarizing the findings related to system value. In the study we first determined that the general
category of Supply Chain Execution systems is important and relevant to business today, especially when
used as an extension of the ERP system. Beyond this, we evaluated individual categories of systems.
Table 7 provides a summary of that analysis with the top 5 categories ranked in order of combined
importance, value, and time to break even.
When comparing importance, relative value, and time to break even the Transportation Management
System is the highest ranking system in the group. This ranking makes sense when evaluating the current
state of the of global supply chain which tends to require advanced levels of transportation and
intermodal management and the priority on lowest cost inventory. Similarly, Warehouse Management
Systems also make sense overall given their role in staging goods in global supply chains and the
importance of managing the total cost of inventory.
Study Conclusion: Hypotheses Testing and Practices
Table 7: Top 5 system categories by overall value
Respondents Ratings
Supply Chain Execution System*
TMS WMSParcel Mgmt.
Omni Channel
SCV / SC Control Tower
Importance ( 5 = Max, 1 = Min)
Tier I - (> 70% Critical/Important) 5 5
Tier II - (Tier + Valuable > 70 3 3 3
System Value ( 5 = Max, 1 = Min)
Tier I - Business > 60 Plus Combined Bus/Cost > 80%
5 5
Tier II - Combined Bus/Cost => 90% 4 3 3
Break even (5 = Min, 1 = Max)
Tier I - < 1 Year is > than 60% 5
Tier II - < 2 Years is > 80% 4 4.5 3
Tier II - < 2 Years is > 50% 2
Total Value (15 = Highest, 3 = Lowest)
15 13 10.5 10 9
SYSTEM VALUE
![Page 30: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/30.jpg)
5/19/2016 30
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
27
Similarly, the relative ranking of Parcel Management and Omni-Channel platforms are valuable given the
overall growth of eCommerce both domestically and globally and their impact on traditional retail hybrid
models, along with the eCommerce and parcel volumes of companies like Amazon and Ali Baba. Their
ranking also may suggest their primary role in B2C versus a mixed role in both B2B and B2C that is apparent
in the Transportation Management and Warehouse Management system.
Finally, the Supply Chain Visibility / Supply Chain Control Tower systems were ranked in a way that
suggests they are of good value but did not particularly rank at a high level in any one category. There may
be several factors at play. First, global supply chains today require advanced levels of visibility, management,
and real-time integration. Systems like TMS, WMS, ERP, Parcel Management, and Omni-Channel all have
elements of real-time tracking and reporting. Supply Chain Visibility as a category is evolving more to a full
real-time monitoring and management of the supply chain and the forces that effect it. Supply Chain Control
Tower functionality also has similar capabilities. Some of the most effective companies in this space,
however, are not well categorized. The author believes this category will gain in value as these newer
generation companies are able to manage real-time monitoring of global suppliers, orders, and
transportation along with external events to evaluate the impact to the supply chain.
In summary, most Supply Chain Execution systems appear to have significant value in the market both as
cost saving platforms and for their utility in solving complex business challenges. Given this, when individuals
are looking at the acquisition of these higher ranked platforms, there are a number of different levels of
value that can that be developed. The most likely, or perhaps the most intuitive levels of value will vary by
the intent and use of the platform. Platforms that were rated highest for business value are likely candidates
to be positioned as a strategic platform. Platforms that ranked lower in business value but high in cost
savings are best positioned for their utility and pure costs savings value. In two instances, we had a mixture
of business and cost savings. We will consider these of “mixed” value. Mixed value systems will likely
require a deeper analysis of the expected use of the system. They may be strategically positioned but more
often may likely have cost savings value over strategic value.
Identifying the category of value and creating a simple approach to classifying and stating that value in
the project or solutions description creates a context that can be used throughout the business case and in
defense of the project during the approval processes. Table 8 provides a set of very general concepts and
themes that can be used as business value and cost saving themes in the Business Case.
Study Conclusion: Hypotheses Testing and Practices
SYSTEM VALUE
![Page 31: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/31.jpg)
5/19/2016 31
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
28
Study Conclusion: Hypotheses Testing and Practices
SYSTEM VALUE
SystemPrimary
ValueCategory
Themes Value Driver Starters
TransportationManagement
BusinessEfficient Growth and Expansion
• Creates Efficient Transportation Lanes for Existing and New Market Growth
• Reduced Rate costs due to competitive rate making / supplier scorecard
• Reduced costs using freight audit and pay reconciliation
Warehouse Management
Mixed*Reduced Operational / Inventory Costs
• Reduced inventory carrying costs through better warehouse management
• Reduced costs of obsolescence and wasted inventory
• Costs based on inventory and facility reductions by applying warehouse optimization techniques
Parcel Management
CostReduced costs of eCommerce Shipping
• Reduced impact of “free shipping” by reducing parcel costs returning creating immediate profit improvement
• Cost savings through multi-carrier rating and shipping rate selection management
• Enabling technology for eCommerce “Ship from Store”
Omni-Channel BusinessEnable the efficiency of new Commerce Markets
• Unifies to one single view of the customer and one view of inventory availability to increase overall eCommerce efficiency
• Reduced inventory and distribution costs by effective intelligent eCommerce order routing
• Enables core store capabilities like “click and collect” and “ship from store” which increases store value and utility
SCV / Control Towers
Mixed*Reduced costs due to increased visibility and management
• Reduces expediting costs due to better order visibility and real-time management
• Is a key enabler of Supplier Scorecard and Benchmark management to drive efficiency in the enterprise
• Strategic enables the development of cross-functional efficiency and management of business disruptions through real-time global supply chain monitoring and response
Table 8: Themes and Value Drivers by system category
* Mixed cases suggest that is likely to have direct cost benefit but could be considered strategic depending on how it is used and what it affects the most
![Page 32: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/32.jpg)
5/19/2016 32
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
29
The final part of the conclusion section is understanding the study findings relative to the initial study
hypotheses to interpret results. The hypotheses were originally created based on an understanding of the
general concept and use of business cases along with their practices in the approval process from previous
research and experience. The notion is that, based on research and experience, if all of the hypotheses
were completely consistent with the findings of the study, then the process in general would have no
significant weaknesses and the question of issues in building business cases and achieving approval would
be unjustified. If the hypotheses, however, showed any specific weakness between it and the practice it
governs, then it would strongly suggest the business case and approval processes were challenged by
factors either outside of the scope of the hypotheses or the actually creation of the business case and
navigation of the approval process. In this section, we will review each hypothesis and provide it a rating of
correctness based on a scale of 1 to 5 where 1 is a hypothesis that is completely reflected in the findings of
the study and a 5 is a hypothesis that is completely contrary to the findings from the study. These will then
be used to provide a general conclusion of the key areas that drive barriers which result in areas that need
additional focus for the Business Case and Approval process to be optimized.
Hypothesis 1: The Business case should be understandable by the decision making authority in terms of
the description of the need, the value it will provide, and the context of its use
• Rating: 3: The business case lacks precision in some areas and has information that may detract from
the overall understanding
• Rationale: Two key findings from the study reinforce the notion that the business case when presented
may not be as understandable as it needs to be by the approving authority:
• The survey found that the presence of Key Value Drivers, while highly desired (71% required, 20%
value Added) was only present in the actual business 14% of the time
• The survey found disparity with the presence and use of a Technical Specification. As mentioned
in the study, the presence of a technical specific of the system may have the impact of moving
the review and discussion away from understanding the business value toward a technical
discussion of a system on technical merits only. This would detract from the understanding of the
approving authority on the value of the system in managing business need and creating value.
Hypothesis 2: The business case should describe the system technology but not to the point of being
overly technical. A highly technical description of the system will likely have a tendency to create
confusion or irritation with the process
• Rating: 2: The business case typically contains a technical specification about 71% of the time
• Rationale: The key findings from the study that drives this rating is related to the expected use of the
technical specification by the respondents compared to its presence in the document:
• As mentioned in Hypothesis 1, the presence of a technical specification versus a simpler approach
to the system, like the solutions description, is potentially misplaced and opens the approval
process to re-evaluating technology aspects that should be solved before that forum.
Study Conclusion: Hypotheses Testing and Practices
HYPOTHESES
![Page 33: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/33.jpg)
5/19/2016 33
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
30
Hypothesis 3: The business case should have business drivers that describe the ultimate business value of
the system. This should include quantifiable and non-quantifiable aspects to provide a full picture of value.
• Rating: 2: While respondents find the important of key value drivers in the document, in reality, these
drivers appear only 14% of the time.
• Rationale: Key Value Drivers do not appear to have the rigor needed to easily navigate the approval
process.
• The survey found that the presence of Key Value Drivers, while highly desired (71% required, 20%
value Added) was only present in the actual business 14% of the time. In terms of describing
business value and drivers, there is no other part of the business case that is effective to do this. The
lack of this as a requirement on a practical level suggests that those seeking approval of Supply Chain
Execution systems not positioning the system as well it needs to be.
Hypothesis 4: The business case value should be well defined in terms of some kind of return calculation and
should have an understandable time to “break even”, i.e. an easily understood point where the investment
and value are at zero. We hypothesize that a perceived faster break even will likely yield a higher approval
rate for a project
• Rating: INCONCLUSIVE: Impacted by presence of the ROI in the Business Case and the correlation of break
even time to business approval odds.
• Rationale: After analysis, we did not test variables significant enough to create a meaningful correlation.
We did test Supply Chain Execution systems in general and evaluated break even points by system category.
If we apply this approach, assuming all SCE systems would have a similar odds of approval, then we do find
that those systems that have a faster break even would appear to meet the higher approval level. We
cannot categorically say this however so we must leave this hypothesis is inconclusive.
Hypothesis 5: A business case must have some formal return on investment. Our hypothesis is that most
companies would likely use the Return on Investment (ROI) calculation.
• Rating: 3: The lack of a consistent presence of an ROI is a significant concern when evaluating the business
case’s efficacy to gain approval.
• Rationale: The ranking of three recognizes that the 3 Year ROI is present over 50% of the time. We did not
probe on the presence of break-even as part of the Business Case although respondents did provide this
information in terms of system value. The broader concern here is the practical sense of the ROI not being
a heavily required and present item when research suggests it is critical to making the approval decision.
Hypothesis 6: The business case should have a formal implementation plan that uses a phased approach to
track its success and manage and mitigate risk.
• Rating: 3: Similar to ROI, the presence of a detailed project plan was evident about 50% of the time.
• Rationale: Research is clear that a detailed plan to implement and gain the value of the system is core to
the approving decision. In fact, Hadley11 goes to significant lengths to describe this in terms of participators
in the process, justifying value based on realistic timelines etc.
Study Conclusion: Hypotheses Testing and Practices
HYPOTHESES
![Page 34: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/34.jpg)
5/19/2016 34
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
31
Hypothesis 7: The business case should describe budgetary changes that will take place to support the ROI.
Our hypothesis is many respondents may agree with this but that it will not be a common practice.
• Rating: 2: Respondents indicated that budgetary documentation was present bout 12% of the time in a
business case.
• Rationale: Over 74% of respondents found that a budgetary impact section of the business should be
required or add significant value. At the same time, and similar to Key Value Drivers, it was identified as
present about 12% of the time. This appears to be a significant mismatch. The causes for this are likely
varied but will typically include concerns about the immediate impact of putting budget change information
in the business, the use of the information by the finance group, and the ultimate accountability that comes
with this. Many cultures are not driven by this level of accountability. Organizational trust, ultimately, is
the likely predictor of the value and appropriate use or misuse of this information.
Table 9 Summarizes the Findings of the hypotheses.
CONCLUSION
From our study, we found clear evidence that Supply Chain Execution systems are valuable in today’s complex
supply chains. Given this value, there is compelling case to leverage this kind of technology to help the
company grow, reduce costs, and increase competitiveness.
At the same time, we find that when looking at the development of the business case and navigating the
approval process, most struggle to effectively present that value of the system in business terms along with
compelling reasons to purchase the system. Some of these issues involve the articulation of the value drivers
and their impact. Other issues involve effectively communicating the execution of the project and calculating
the financial return in a way that aids in the demonstration of strong risk and reward equation making the
system a valuable acquisition decision.
Overcoming these issues requires more direct evaluation of a company’s individual situation. Regardless, in
the conclusion of the study we try to highlight areas where individuals can immediately begin to analyze their
environment for potential opportunities for clarity and improvement.
Study Conclusion: Hypotheses Testing and Practices
HYPOTHESES
Hypothesis Rating Primary Rationale
1: Case is Understandable 3 Lack of Key Value Drivers and Presence of Tech Spec
2: Description of System Technology 2 Presence of Tech Spec and it’s ability to bifurcate
3: Business Drivers (Value Drivers) 2 Low Indication of Presence in Document
4: Break Even and Odds of Approval N/A Inconclusive
5: Formal ROI 3 Present 54% of the time; inconsistent
6: Formal Implementation Plan 3 Present 54% of the time; inconsistent
7: Budget Impacts 2 Rarely present; controversial based on potential use
Table 9: Hypotheses Rating Summary
![Page 35: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/35.jpg)
5/19/2016 35
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
LIST OF FIGURES
Figures.
Figure 1: Eras of Supply Chain Management
Figure 2. Primary Industries
Figure 3. Position Level
Figure 4. Annual Revenue
Figure 5. Experience Level
Figure 6. General System Criticality
Figure 7: ERP as the Only Required System
Figure 8: System Criticality (As Extension of ERP)
Figure 9: Presence of an approval process by company size
Figure 10: Distribution of approval styles
Figure 11: Business Sponsor involvement
Figure 12: Presenter when Business Sponsor does not present
Tables.
Table 1: System value by Category
Table 2: Summarized Value: General and with ERP
Table 3: Time to break even by system category
Table 4: Overall Supply Chain Execution Value Rankings
Table 5: Business Case Content Requirements with Evaluation of its Presence in Actual Documentation
Table 6: Ratings of Odds of Approval and Success
Table 7: Top 5 system categories by overall value
Table 8: Themes and Value Drivers by system category
Table 9: Hypotheses Rating Summary
32
![Page 36: Supply Chain Execution Research Report - Eyefreight · Evaluating the Business Case and Approval Process for Supply Chain Execution Systems ... from Belmont University in Nashville,](https://reader030.fdocuments.net/reader030/viewer/2022020204/5ad9e1397f8b9a6d7e8bf380/html5/thumbnails/36.jpg)
5/19/2016 36
Reproduction Prohibited without Prior Authorization from the Author
The Ohio State University
Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition
REFERENCES
[1] Financial Times, Surveys, September 2, 1998
[2] The OASIG Study (1995)
[3] Grover, V., Jeong, S., Kettinger, W., & Teng, J. (1995). The implementation of business process reengineering. Journal of Management Information Systems, 1(12), 109–144.
[4] Gunasekaran, A., and Ichimura, T. (1997). Business process reengineering: modelling and analysis. International Journal of Production Economics, 50, 65-68.
[5] Standish Group, Chaos Manifesto, 2013
[6] Gunasekaran, A, Love, P., Rahimi F., and Miele, R. A Model for Investment in Investment Justification for IT Projects, International Journal of Information Management 21 (2001) pages 349-364
[7] Quinn, F. and Aschenbrand, J. Maximizing ROI from Technology. Logistics Management. January 2013.
[8] Strategic Measurement. By: Berry, John, Computerworld, 00104841, 7/22/2002, Vol. 36, Issue 30
[9] Leidner, Dorothy and Kayworth, Timothy. A review of culture in information systems Research: Toward a theory of information technology culture conflict. MIS Quarterly v30, n2 (June 2006)
[10] Sharma, Arun, Iyer, Gopalkrishnan, and Evanschitzky, Heiner. Personal Selling of High Technology Products: The Solution-Selling Imperative. Journal of Relationship Marketing, Vol 7(3). 2008
[11] Hadley, Scott. Making the Supply Chain Business Case. Strategic Finance, April. 2004
33