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Here we are talking about EIT implementation, so we implementing EIT software and not any software in this cases is an ERP solution.Such
solution cost at the median like 20m$
$4 million in hardware and software is only 20%. 80% of the cost of such IT
solution is directly going to the I/S: P&L.
(accounted for as investment)
So when (c) are succeeding in such
$16 million in project management, things, it is directly going to their goodwill
consulting, training, organisational change
(accounted for as expenses)
To keep in mind:
The vast majority of IT implementation costs
never shows up in statistics of IT investments
Complementary organisational change 4x
more costly than IT
A preliminary note
Solutions to case studies can never be
posted on any support
Part of the license terms
Which integration and challenges; this table says that we have stages of
internal and external organization. Here we ill talk about internal integration! We
can do it at 2 level, at the organizational level and at the functional level! At the
operational, we will integrate the stages in the primary activity/value chain. In
this case, we need to integrate a bit of both! So what is this model saying?
because there are dimension that actually help us in the process, it will find
out the things that going to be the strongest barriers we are going to face in the
process and the degree of effort that we can expect and what are the potential
benefit that we can expect by integrating at this level! For ex they say us that
the main barrier for integration at the operational level is going to be SGD (we
have diff entities, SILO organization that are highly specialized and if they are
specialized they will have objectives, divergences in their goals..). Huge
barrier because people are not aligned! When people are too specialized, they
look in directions!
The table says us that the effort required to do it are big, but the benefits are
huge!
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6 criteria!
System quality
Is the system usable and reliable?
Information quality
Usage
Is the system actually used? or they contnue using the old system?
Is the use of the new system controlled and incentivized?
Organizational impact
How does the system affect the overall performance of the
organization? either yes it is good or not.. But it is not enough! But the point here is what other criteria
Source: DeLone & McLean (2003)
GESTS482 Operations and Digital Business N. van Zeebroeck 2014 2015
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Where does it all start? Sometimes it start with IT, but it was not the case here!
When we look between the 2 phases, the IT is just a little player here.. the important thing
was the process behind,..
What we want to
achieve, composed of 3
things, the scope, our
distinctive
competententcies (what
can we do) and the
goverance. And those 3
thing need to be
consistant!
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In bombardier how did we start? from the business strategy, and what was it? the vision, we
wanted lower cost, more integrated.. From there where did we go?they first decided to change
the (o) first and then we can implement the IT: they first moved to the (o) infrastructure(phase
2).. And finaly they moved to the IT infrastructure!
But is not the only way possible! There are other way to act!
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Enterprise IT Implementation
Key take-aways
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Your assignments
Assignments on IT Implementation
Apply the DeLone & McLean (2003) framework of IT success
Provide evidence from the case of success or shortcomings on each of the 6
dimensions
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