mics - assignment a

8/8/2019 MICS - Assignment A

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CREATING BUSINESS VALUE AND

UNDERTAKINGSTRATEGIC TRANSFORMATIONS WITH

ENTERPRISE SYSTEMS:

TOWARDS A FRAMEWORK

Presented by: Jyoti Arora

Vikramaditya Shukla

Sayantan Nandi

MICS Assignment - A


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Abstract

The paper tries to look into the adoption of Enterprise-

Systemsto go beyond being a mere IT platform;

To analyze potential for creating business value and

enabling strategic transformations in the firms thatimplement them;

Proposing a holistic framework to explain the above;

Suggesting how this framework is intended to be

validated with empirical evidence;

And explain contributions of the research to academia

and industry.

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Introduction

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Doubts??

Putting these systems in place involve investments of

millions of dollars and significant periods of time

and human effort, is it really worth it?.

Also now focus has shifted from how to get

Enterprise Systems up and running as an IT

platformto

how to realize the promised benefits from these

systems after adoption.



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Business Transformation

Business Transformation: to align people, processesand technology intimately to the strategy of the

organization, and to develop new strategies.



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The IT advantage

InformationTechnology, has thepotential to play a

significant role in suchinitiatives.

Adopting EnterpriseSystems have recentlybecome the best betfor adopting firms.

Led to the growth of

Large, MNs, blue-chipConsulting firms to carryout business

transformation.

Also all Vendors ofEnterprise systems

claims to enhance andequip their software tomeet business objectives

at all times.



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But are the tall claims of Vendors &

Consultants really true and do Enterprisesystems actually add value to the business?

Leading to the research questions



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a) enablecreation of

business value

b) facilitatestrategic businesstransformations?

How can the adoption of Enterprise Systems in

large organizations??8


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Proposed Framework



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A. Process Model

To discuss the process or the how of the above

phenomenon.

This part of the framework looks at the adoption of

Enterprise Systems as an ongoing process, and not a

one-off project.

The Various steps of the model are:



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(a). Corporate/Business strategy framed

The process described in the framework can be said

to begin with a clearly defined corporate/ business

strategy for an organization.

The underlying functional-level strategies that are

of key importance here are the Operational,

Marketing and Growth Strategy of theorganization.



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(b). Invest in ES

The strategy drives (among other investments) the

adoption of Enterprise Systems.

There can, and almost always will be, initiatives

other than the adoption of Enterprise Systems that

are driven by the strategy, such as employee

development and rewards restructuring, buildingorganizational culture and so on.



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(c). ES in Place

The process shows that investment in Enterprise

Systems leads to the Enterprise System being set up

in the organization and this could be as a result of

initial implementation, enhancements, additional

components, upgrades and so on.



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(d). Use ES as a platform

With the Enterprise Systems in place, the organizations should use

this System as a platform to do the following:


Integrate: harmonize the data andprocesses within the organization as

well as beyond the boundaries.

Optimize: standardize theprocesses by aligning them with

best practices or modify/ enhanceprocesses.

Informate: provide access to realtime data and the capability to

analyse the internal organizationalperformance; and aid decision-

making.


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Transformation199/28/2010 Enterprise Systems - Creating Business Value & Undertaking Strategic Transformation


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(e). Operational excellence enabled by

adopting Enterprise Systems

Core Operational Benefits: benefits such as Reduction in

Cycle Time , Cost reduction, Quality Improvement ,Customer satisfaction, lower inventory levels.

Infrastructural Benefits: benefits such as IT maintenancecosts reduction, reduction in data entry errors, flexible ITinfrastructure, cheaper upgrades creating Business Value

Managerial Benefits: better control on operatingprocesses and hence making better decisions, thus

increasing operating margins.

Operational excellence is achieved by organizations via

benefits :



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(f). Innovation enabled by adopting

Enterprise Systems

Product/Service

Process

Market

Alliances

The adoption of Enterprise Systems enables the firm

to innovate along the following dimensions:



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(g). New Strategic Opportunities enabled

by Enterprise Systems

Determine profitdrivers , grouped by

business units, to come

up with a newcorporate strategy;

Leverage a baseplatform with built-inprocesses for multi-

country accounting andreporting to framegrowth strategy by

going global;

Shifting to a low-pricestrategy enabled by

dramatic improvementin process efficiency

from an optimisedplatform; and so on.



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(h), (i), (j), (k)

These processes shows that with the execution of ES-

enabled operations and ES- enabled Innovation,

Operational Excellence is achieved and Innovation

is undertaken by the organization.



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(l). Continue Execution

The process then shows that whatever the path

taken (i.e. operational excellence and/or

innovation), the organization needs to continue the

execution of that path for a given timeframe.

This is essentially executing the existing strategy of

the organization enabled by the adoption of thesystems.



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(m). Strategy Realised

Strategy is realized by the benefits that enable

the firm to be in a position to compete better and

grow as a firm.

Strategy is realized by executing the ES- enabled

operations and/or innovation for a given period.



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(n). Identify & Assess

On the other hand, identification of new strategic

opportunities can be done with the capability

provided by the ES platform



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(o). Strategy Reshaped

When the strategy is reshaped, the process

feedbacks into itself to lead to more investments

(like additional components, upgrades etc.) on the

Enterprise System as well as other initiatives takento execute this reshaped strategy.



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This framework attempts to identify the role of

Enterprise Systems as a particular form ofinformation technology in shaping the business

strategy with Enterprise Systems-enabled innovation

as the driver.



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B. Variance Model

This seeks to explain the causal relationship

between some of the constructs of the framework.

The discussion in the process model above also

leads to the development of the following

hypothesis:



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Hypothesis A

The more that adopting firms have used their

Enterprise Systems to integrate, the greater the level

of operational excellence



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Hypothesis B


Enterprise Systems to, optimise, the greater the level

of operational excellence



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Hypothesis C


Enterprise Systems to informate, the greater the

level of operational excellence



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Hypothesis D


Enterprise Systems to integrate, the greater their

capability to undertake Innovation



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Hypothesis E


Enterprise Systems to optimise, the greater their




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Hypothesis F


Enterprise Systems to informate,the greater their




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The framework proposes the different possibilities

organizations can avail by adopting the EnterpriseSystems to achieve business benefits & to transform

themselves, with a goal to better execute their

existing strategy or reshape their strategies for

success.



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EXPECTED CONTRIBUTIONS OF THE

PROPOSED STUDY

Results of this study will be of significant relevance to themanagement of large organizations who have adopted orcontemplating to adopt Enterprise Systems, to appreciatehow they can create business value and transform their

business by investing in Enterprise Systems.



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(Contd.)

Provide a new holistic theoretical framework onhow the adoption of Enterprise Systems canenable business value creation and strategic

business transformation in large firms.



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(Contd.)

Provideadditional

evidence ofwhether theadoption of

EnterpriseSystems

enable firmswith

a.)capability tooptimise, informate,integrate

b.)operationalexcellence



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Conclusion

The paper discussed a key topic of interest to both

the contemporary business world as well as

academia in the fields of IT and management. The

work introduces a new perspective into how business

value can be created using a technology called

Enterprise Systems and how this technology can be

used to enable strategic transformation of the

organization .



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Please go ahead with your queries

Thanks a Bunch!

mics - assignment a

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