![Page 1: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/1.jpg)
The Relation between BPR and ERP Systems: A Failed Project
David Paper, Kenneth B.Tingey, Wai Mok
Chapter XI
![Page 2: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/2.jpg)
Executive Summary
Vicro Communications (pseudonym) Reenginering its basic business processes With the aid of data-centric enterprise Relying completely on the software Software might increase:
Information sharing Process efficiency Standardization of IT Data mining /warehousing capabilities
![Page 3: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/3.jpg)
Executive Summary Management made no attempt to: Rethink existing processes before
implementation of the software Obtain feedback from employees familiar with
existing business or legacy systems For Vicro, reengineering effort failed even
after investing hundreds of millions of dollars Software is currently being phased out
![Page 4: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/4.jpg)
Background International provider of products and services
that help companies communicate through print and digital technologies
Leading supplier of document formatted info.,print outsourcing and and data based marketing
Vicro designs, manufactures and delivers business communication products, services and solutions to customers
![Page 5: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/5.jpg)
Background
Operates over 100 warehousing facilities Nearly 14000 employees serving 47
countries 2.45 bil in 1999 and 2.26 bil in 2000
revenue Provides consulting, proj. management,
reenginering and distribution of high volume, customized communications to its clients
Latest print and digital technologies Market leader in managing critical business
communications
![Page 6: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/6.jpg)
Setting the Stage A conservative organization It doesn’t embrace “bleeding edge” tech. Wants to deploy proven tech. that will help
satisfy and exceed customer requests and expectations
Experimented with business process reengineering(BPR)
![Page 7: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/7.jpg)
Literature BPR as a savior of underperforming
organizations BPR as next revolution in performance via
process improvement and process change Flawed BPR strategy:
Inappropriate use of consultants Workforce tied to old technologies Failure to invest in training Legacy system out of control
![Page 8: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/8.jpg)
Case description Virco Communications under-performing BPR efforts would be facilitated by data-
centric enterprise software Vicro chose 30 years software Legacy systems were never considered Stakeholders wanted to complement BPR with
IT Vicro made no attempt to align business
propcess changes with business objectives
![Page 9: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/9.jpg)
Data Analysis
Formal and Informal Interviews
Common Patterns /Themes General Theme : Breakthrough technology in the BPR process
![Page 10: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/10.jpg)
Data AnalysisInterview Use of Computers Use of HPT (High Profile Technology)
Manufacturing systems Project ManagerRon Dickerson
![Page 11: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/11.jpg)
Technology Usage
PCs and Mainframes Data Collection Storage Reporting Communication Data-Centric problem solving
![Page 12: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/12.jpg)
Process Improvement
Relationship between BPR and Technology No Design for new processes Not Redesigning existing processes No match between enterprise software and
best practices
![Page 13: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/13.jpg)
HPT AdoptionHPT was not flexible enoughMismatching the existing processesLegacy systems are still in placeHPT doubled the activityHPT was not user friendly20 modules in HPTHPT was not customizable
![Page 14: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/14.jpg)
CEO Mandate HPT forced everyone to use a standardNo real experience with BPR Invest Much NO RESULTNo look at the state of the existing processes
Change of Leadership
![Page 15: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/15.jpg)
Enterprise IntegrationHPT did nothing to facilitate enterprise integration.
Invest on HPT instead of Rethinking the business
![Page 16: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/16.jpg)
Resistance to change HPT was forced No punishment No one have the power to tell what to do Pontificating that HPT will be the standard HPT was so inflexible
Account payable (AP)
![Page 17: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/17.jpg)
Current Challenges Top management had no plan! Top management delegated BPR Top management trusted the software vendor Not involving people and resistance to change Forcing “Best Practices”
![Page 18: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/18.jpg)
Current Situation JUST AP
MOST EXPENSIVE280$ million
Complete Failure!
![Page 19: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/19.jpg)
Contribution to BPR literature Super Themes
Immersion Technology usage, HPT adoption
Fluidity Responsiveness, Effectiveness, Knowledge sharing &
capture Top management support
![Page 20: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/20.jpg)
Summary See if processes and systems are fluid
Obtain feedback Communicate to management Main reason for failure Business processes are not streamlined Forced HPT
![Page 21: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/21.jpg)
Developing an Information System Solution
Define and Understand the Problem
Develop Alternative Solutions
Choose the Best Solution
Implement the Solution
Systems Analysis
![Page 22: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/22.jpg)
Strategies for Acquiring IT Applications
Options for Obtaining Information Systems
Build your own Outsourcing
![Page 23: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/23.jpg)
The Systems Development Lifecycle
Systems Investigation
Systems Analysis
Systems Design
Systems Implementation
Systems Maintenance
![Page 24: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/24.jpg)
Discussion If you were the first CEO, what would you do
to prevent failure? In your opinion what was the main reason for
project failure?
![Page 25: The Relation between BPR and ERP Systems: A Failed Project David Paper, Kenneth B.Tingey, Wai Mok Chapter XI](https://reader035.vdocuments.net/reader035/viewer/2022062516/56649e4c5503460f94b40a8c/html5/thumbnails/25.jpg)