Best of breed IT strategy: an alternative to enterprise resource planning systems

Abstract - Enterprise Resource Planning (ERP) software has become the dominant strategic platform for supporting enterprise-wide business processes. However, single vendor ERP software systems have been criticised for not meeting specific organisation and industry requirements. An alternative approach ‘Best of Breed (BoB)’, integrates components of software from multiple standard package vendors, and in some cases custom components. The objective is to develop enterprise systems that are more closely aligned with the requirements of an organisation. Although this approach may not be common at present it is likely to grow in importance due to business needs and technology advances such as the componentisation of ERP software. A case study analysis of a BoB implementation at a global entertainment's company is used as a platform for the discussion of the issues associated with this strategy and a comparison is made with the single vendor ERP alternative. The analysis centres on the complexity of implementation, the differences in the levels of functionality and business fit and the maintenance requirements.

IT consumerization and its effects on IT business value, IT capabilities, and the IT function

IT consumerization is both a major opportunity and significant challenge for organizations. However, IS research has hardly discussed the implications for IT management so far. In this paper we address this topic by empirically identifying organizational themes for IT consumerization and conceptually exploring the direct and indirect effects on the business value of IT, IT capabilities, and the IT function. More specifically, based on two case studies, we identify eight organizational themes: consumer IT strategy, policy development and responsibilities, consideration of private life of employees, user involvement into IT-related processes, individualization, updated IT infrastructure, end user support, and data and system security. The contributions of this paper are: (1) the identification of organizational themes for IT consumerization; (2) the proposed effects on the business value of IT, IT capabilities and the IT function, and; (3) combining empirical insights into IT consumerization with managerial theories in the IS discipline.

Aligning business and IT from multi-level learning perspectives

Business and IT alignment is increasingly acknowledged as a key for organisational performance. However, alignment research lack to mechanisms that enable for on-going process with multi-level effects. Multi-level learning allows on-going effectiveness through development of the organisation and improved quality of business and IT strategies. In particular, exploration and exploitation enable effective process of alignment across dynamic multi-level of learning. Hence, this paper proposes a conceptual framework that links multi-level learning and business-IT strategy through the concept of exploration and exploitation, which considers short-term and long-term alignment together to address the challenges of strategic alignment faced in sustaining organisational performance.

Towards a better understanding of how effective IT governance leads to business value : a literature review and future research directions

This paper reviews the existing literature on IT governance to assess whether IT governance has contributed to delivering business value from IT and if so, how. The conducted literature review has shown the scarce number of studies that focus on why and how effective IT governance may lead to business value. By using a structured literature review analysis, the paper has offered a number of insights to the topic of IT governance: a) provided a systematic definition of effective IT governance based on a multi-dimensional framework, b) listed benefits of effective IT governance, and c) identified mechanisms that lead effective IT governance to those benefits. This paper takes a step towards addressing the ‘why’ and ‘how’ knowledge gaps by synthesising the fragmented knowledge to provide the best that is known about the subject and to identify future research directions.

A vállalati informatika szerepe a versenyképesség alakításában a pénzügyi és gazdasági válság időszakában (Corporate IT in shaping the competitiveness of the Hungarian enterprises in the financial and economic crisis)

A cikk az informatika és a versenyképesség kapcsolatát vizsgálja. A Budapesti Corvinus Egyetem Versenyképesség Kutatási Programjának korábbi felmérései óta számos új technológia bukkant fel, illetve hazánkat is elérte a világméretű pénzügyi és gazdasági válság hatása. E kihívások tükrében érdemesnek tűnt újra megvizsgálni az információtechnológia (IT) szerepét a versenyképesség alakításában. / === / In this paper the relationship between information technology (IT) and competitiveness is tackled. Since the authors’ previous surveys within their Competitiveness Research Program several new technologies have emerged, and the influence of the word wide financial and economic crisis has reached Hungary as well. In the face of these challenges it is worth reexamining the role of IT in shaping the competitive position of companies. The structure of the paper is as follows. A brief theoretical introduction is provided before their research questionsare presented. After that, the paper contains an analysis on selected fields of the corporate IT function, namely IT infrastructure, IT applications, IT management and IT strategy. Based on this, conclusions are made both at the end of the main parts, and in the final section of the paper. As far as the final conclusions are concerned, the majority of respondents do not regard IT today as a source of sustainable or contestable competitive advantage, though the dominant opinion underlines that IT is a strategic necessity. Besides this, their research results suggest a kind of association between corporate performance and the maturity level of the IT function. However, even the best performing companies are not prepared yet to effectively respond to their own prediction that forecasts the strengthening role of IT as a competitive factor.

Aligning business and IT strategies in multi-business organizations

The alignment of business and information technology (IT) strategies is an important and enduring theoretical challenge for the information systems discipline, remaining a top issue in practice over the past 20 years. Multi-business organizations (MBOs) present a particular alignment challenge because business strategies are developed at the corporate level, within individual strategic business units and across the corporate investment cycle. In contrast, the extant literature implicitly assumes that IT strategy is aligned with a single business strategy at a single point in time. This paper draws on resource-based theory and path dependence to model functional, structural, and temporal IT strategic alignment in MBOs. Drawing on Makadok's theory of profit, we show how each form of alignment creates value through the three strategic drivers of competence, governance, and flexibility, respectively. We illustrate the model with examples from a case study on the Commonwealth Bank of Australia. We also explore the model's implications for existing IT alignment models, providing alternative theoretical explanations for how IT alignment creates value.

An accessible method for teaching doctors about death certification

The World Health Organization recommends that data on mortality in its member countries are collected utilising the Medical Certificate of Cause of Death published in the instruction volume of the ICD-10. However, investment in health information processes necessary to promote the use of this certificate and improve mortality information is lacking in many countries. An appeal for support to make improvements has been launched through the Health Metrics Network’s MOVE-IT strategy (Monitoring of Vital Events – Information Technology) [World Health Organization, 2011]. Despite this international spotlight on the need for capture of mortality data and in the use of the ICD-10 to code the data reported on such certificates, there is little cohesion in the way that certifiers of deaths receive instruction in how to complete the death certificate, which is the main source document for mortality statistics. Complete and accurate documentation of the immediate, underlying and contributory causes of death of the decedent on the death certificate is a requirement to produce standardised statistical information and to the ability to produce cause-specific mortality statistics that can be compared between populations and across time. This paper reports on a research project conducted to determine the efficacy and accessibility of the certification module of the WHO’s newly-developed web based training tool for coders and certifiers of deaths. Involving a population of medical students from the Fiji School of Medicine and a pre and post research design, the study entailed completion of death certificates based on vignettes before and after access to the training tool. The ability of the participants to complete the death certificates and analysis of the completeness and specificity of the ICD-10 coding of the reported causes of death were used to measure the effect of the students’ learning from the training tool. The quality of death certificate completion was assessed using a Quality Index before and after the participants accessed the training tool. In addition, the views of the participants about accessibility and use of the training tool were elicited using a supplementary questionnaire. The results of the study demonstrated improvement in the ability of the participants to complete death certificates completely and accurately according to best practice. The training tool was viewed very positively and its implementation in the curriculum for medical students was encouraged. Participants also recommended that interactive discussions to examine the certification exercises would be an advantage.

Beyond enterprise resource planning projects : Innovative strategies for competitive advantage

ABSTRACT A rapidly changing business environment and legacy IT problems has resulted in many organisations implementing standard package solutions. This 'common systems' approach establishes a common IT and business process infrastructure within organisations and its increasing dominance raises several important strategic issues. These are to what extent do common systems impose common business processes and management systems on competing firms, and what is the source of competitive advantage if the majority of firms employ almost identical information systems and business processes? A theoretical framework based on research into legacy systems and earlier IT strategy literature is used to analyse three case studies in the manufacturing, chemical and IT industries. It is shown that the organisations are treating common systems as the core of their organisations' abilities to manage business transactions. To achieve competitive advantage they are clothing these common systems with information systems designed to capture information about competitors, customers and suppliers, and to provide a basis for sharing knowledge within the organisation and ultimately with economic partners. The importance of these approaches to other organisations and industries is analysed and an attempt is made at outlining the strategic options open to firms beyond the implementation of common business systems.

Action learning through the use of enterprise resource planning system in construction management

Although information communication technology (ICT) tool is long regard as very useful in today’s engineering, architectural and construction management, organizations cannot just only simply operate based upon its origin, but also requires the on-going observation, controlling measures, monitoring aids, adding features and fine-tuning actions to such tool before the desirable outcome can be achieved. However, it is a very common phenomenon that organizations purchase the licensed “off-the-shelf-software” ICT package and customize it to suit their own requirements. Due to the incapability and inefficiency of such software and customization, the possible result is making such tool becomes not user-friendly and obsolete.

The purpose of this paper therefore, as part of the doctoral research, is to review and report those actions taken by a construction organization to enhance the performance of its Enterprise Resource Planning (ERP) system upon launching it since December 2002. Such actions include: improving data inputting method; removing the transition bottleneck; introducing crystallization function; revising the organization’s “Delegation and Limits of Authority”; publishing the “League Table” amongst users; integrating the 3D Modeling into the system and adopting the “Resources Requirement Planning”.

Whilst the ultimate goals of this system are well beyond the time limit of the research project, an obvious interim result, achieved by this case studied organization, was winning a landmark project worth HK$5 billion after the ERP system was functioned effectively. The experience and success of this organization can be borrowed by those companies which are planning to adopt information technology (IT) strategy and use ICT tool in the architectural management system.

Action research : the use of enterprise resource planning system in construction engineering and project management

Although information communication technology (ICT) is long regard as very useful tool in today’s construction engineering and project management environment, organizations must not only operate based upon its original setting, but also requires on-going observation, additional features and fine is a very common phenomenon that organizations purchase the licensed “off their own business need. Due to the incapability of such software and inefficient customization, the possible result is making that ICT tool not user-friendly and sometimes the whole system becomes obsolete.

The purpose of this paper is to review and report those action organization to enhance the performance of its Enterprise Resource Planning (ERP) system launched in December 2002. Such actions include: improving data inputting method; removing the tran the organization’s “Delegation and Limits of Authority”; publishing the “League Table” amongst users; integrating the 3D Mode into the system and upgrading hardware.

Whilst the ultimate goals of such system are well beyond the time limit of this research study, an obvious interim result, achieved by this case studied organization, was winning a landmark project worth US$500 million after the ERP system was functioned prope and effectively. Their experience and success becomes an exemplar which can be borrowed by those companies, from managerial perspectives and as a roadmap, planning to adopt information technology (IT) strategy and use ICT tool in the construction engineering and project management framework. Singapore, where public housing provisions have been a major concern of their citizens as the building stock gets older.

A estratégia geral de tecnologia da informação da administração pública federal sob a ótica de seus gestores

O estudo tem por escopo analisar a percepção dos gestores públicos sobre a estratégia geral de tecnologia da informação (TI) formulada pelo Ministério do Planejamento, Orçamento e Gestão (MPOG) para a Administração Pública Federal, e que mudanças foram por esta determinada na estrutura das organizações públicas. A investigação compreendeu a análise de dados qualitativos, mediante a realização de entrevistas junto aos gestores públicos que atuam em órgãos setoriais na implantação direta das ações de TI. O foco principal foi a avaliação do aprimoramento quali-quantitativo dos recursos humanos na área de TI, considerando uma gestão democrática, participativa, transparente e ética, com base em processos de discussão e na promoção da cidadania. Constatou-se que, mesmo após mais de 02 (dois) anos de sua criação, a estratégia geral de TI foi insuficiente em promover um modelo de descentralização, com delegação de poderes, atribuições e responsabilidades para os escalões inferiores, não tendo sido possível perceber qualquer flexibilização organizacional orientada pelo comprometimento da gestão pública com processos democráticos vinculados ao interesse social.

Uma abordagem para promover o alinhamento entre a estratégia de negócio e a tecnologia de informação

Currently with the increase in complexity in doing business, organizations are seeking information systems that help to quickly respond to new demands in the processes of production of products and services. An information system is no longer just a support tool and has become an integral part of doing business. However, in spite of significant technological evolution in recent years, information systems that support business do not respond efficiently to the constant alterations that occur in many organizations. One of the main problems faced by information systems currently is the lack of strategic alignment between business strategy and information technology. The concept of strategic alignment can be defined as a way between business strategies and objectives and the strategies, objectives and functions of information technology in such as way as to contribute to the increase in competitivity of the organization over time. Strategic alignment together with strategic planning are important management instruments. Approaches for operationalizing this alignment are being developed currently but are still in their initial stages due to the fact that it is a relatively new concept in the literature. Another point that needs to be taken into consideration during the strategic alignment is the question of trackability between the business elements and IT. Trackability (Tracking) is necessary for example when one wishes to know exactly which goal defined in the business strategy was left out or not accepted due to a modification made in the IT strategy. Very few proposals present concrete ways supported by software systems in order to obtain strategic alignement while taking into consideration this trackability. Therefore the objective of this work is to propose the creation of a strategic alignment process supported by a software system which is capable of permitting trackability between the organizational objectives and the business processes based on formalization standards defined through a model oriented approach

The Influence of Enterprise Systems on Business and Information Technology

Business strategy is important to all organizations. Nearly all Fortune 500 firms are implementing Enterprise Resource Planning (ERP) systems to improve the execution of their business strategy and to improve integration with its information technology (IT) strategy. Successful implementation of these multi-million dollar software systems are requiring new emphasis on change management and on Business and IT strategic alignment. This paper examines business and IT strategic alignment and seeks to explore whether an ERP implementation can drive business process reengineering and business and IT strategic alignment. An overview of business strategy and strategic alignment are followed by an analysis of ERP. The “As-Is/To-Be” process model is then presented and explained as a simple, but vital tool for improving business strategy, strategic alignment, and ERP implementation success.

Exploring the World's Largest ERP Implementation: the Role of ERP in Strategic Alignment

As one of the largest and most complex organizations in the world, the Department of Defense (DoD) faces many challenges in solving its well-documented financial and related business operations and system problems. The DoD is in the process of implementing modern multifunction enterprise resource planning (ERP) systems to replace many of its outdated legacy systems. This paper explores the ERP implementations of the DoD and seeks to determine the impact of the ERP implementations on the alignment of the DoD’s business and IT strategy. A brief overview of the alignment literature and background on ERP are followed by case study analysis of the DoD ERP development and current implementation status. Lastly, the paper explores the current successes and failures of the ERP implementation and the impact on the DoD’s goal of strategic alignment.

Overloading truck traffic study and strategy to minimise it

Overloaded truck traffic is a significant problem on highways around the world. Developing countries in particular, overloaded truck traffic causes large amounts of unexpected expenditure in terms of road maintenance because of premature pavement damage. Overloaded truck traffic is a common phenomenon in developing countries, because of inefficient road management and monitoring systems. According to the available literature, many developing countries are facing the same problem, which is economic loss caused by the existence of overloaded trucks in the traffic stream. This paper summarizes the available literature, news reports, journal articles and traffic research regarding overloaded traffic. It examines the issue of overloading and the strategies and legislation used in developed countries.