Managing Organizational change and CONCLUSION………………………PAGE 8
- Business process reengineering (BPR)……………………………
- Eis implementation to maintain technical details…………………
- Supply chain………………………………………………………
CONCLUSION………………………………………………………………
REFRENCES………………………………………………………………..PAGE 9
INTRODUCTION
Dyson has been well established and enjoying its presence in all the geographical regions of the world, containing strong and innovative image of its British ness. Dyson decided to take major overhauling of its infrastructure to enhance its efficiency in terms of cost reduction and sales growth. Dyson is now focussing on the procurement of ERP software which put to gather all the departments and their functions on to a single computer system which will fulfil their specific needs. The people of sales marketing, IT and finance will have their own computer but under ERP they will be able to share information easily. The report is focussing on main issues like current data, information knowledge management and core processes at Dyson.
The feasibility of ERP implementation is determined by analysing TELOS and CBA at Dyson. Economic feasibility brings out NPV, IRR and pay back methods among seen generic method.
In the process of implementation of ERP IT investment which require transformation, involves the insecurity in accessing the tangible and intangible advantages. Successful ERP implementation allows uniform communication across the organization (Musaji, 2002).
This report explains Big –Bang function and process oriented approaches in implementing an Enterprise system and illustrate the stages of implementing an Enterprise system .Implementation an EIS is a complex and dynamic activity .Dyson has to undergo implementing an EIS as dividing the process into segment may lead to the loss of an understanding of the whole /which is more than the sum of parts. There are three generic methodology, Big –Bang, modular –integration and process orientating implementation.
In BPR it mainly focus on the changes in the technical and behavioural level due to the implementation of new system. Change management involves the conscious attempt to control or atleast to influence the change that is going to happen to the organization (Elearn, 2005). It leads to Radical restructring of business processes and with the help of management systems to enhance the performance of the organization (Oakland, 2003). In the large scale change the organization’s culture goals and leadership may all change altogather (Sims, 2002). The discussion comes up with the fundamental nature of usage of the system in the organization current activities. Finally the report explains the possible ways to improve supply chain management in the process of implementation of new system .It focuses the impacts on supply chain both forward and backward supply chain.
Organizing and managing key resources of Data, information and Knowledge
All the organizations have the capacity to retrieve information through various sources like internet and information systems. Dyson scrutinize data, information and knowledge within the organization through various sources.
Current Data at Dyson:
An enterprise system can not perform efficiently without appropriate data (Ake et al., 2004). The key elements of current data at Dyson are as follows:
- Core processes within the organization.
- Employees training details.
- Details of domestic home appliances.
- Details of their customers and suppliers.
- Details of their branches and locations across the globe.
Dyson manage separate record of all the details and use different sources to maintain data. Dyson gets information for records mainly from customers, suppliers, Government and share holders. At Dyson management of data is not as sufficient as it should be, as different departments using different data base system to store data. Some times same data being stored repeatedly by different departments as they do not have integrated data management system.
Current information:
When any raw data is being processed it becomes information. When data is collected by some one due to any reason it becomes information for others. Information helps to take decision at management, operational and organizational level to attain and sustain competitive advantage. Employees should be able to access information to perform every day business activity. Top management decision making takes place by summarising evaluated data. Dyson requires a competent MIS to improve the flow of the information.
Current knowledge:
Knowledge management consist of various elements used by companies to identify, Create, represent and transfer knowledge to use it again. Designing a portal to increase knowledge sharing is an act of knowledge management (Mcelroy, 2003). Knowledge management system basically facilitates the flow of knowledge from a specific point to its destination. So we can say data, information and knowledge can be called as concentric value activities. For instance marketing manager at Dyson access current year figures of marketing then that data becomes knowledge for top management.
Core processes at Dyson:
At Dyson core processes means HR, finance and operations. To maintain innovation and quality of its products, Dyson always try to find out the ways to develop and enhance the performance. Top management should have solid grip on all core processes (Despres, 2000).
High level information needs:
Dyson needs high level information in future. Higher level information needs leads to change (Albers, 2005 ). The high level information needs means that Dyson have to focus on following key areas:
- Improved functions of core processes.
- Better transformed model to improve the employees understanding
- An automated system which enables them to operate across the world for its business process.
Feasibility of implementing an Enterprise resource planning system
To implement ERP at Dyson can lead to higher cost. But Dyson are committed to develop global ERP software for their company. It will help them to take immediate decisions about their business activity. Due to new ERP system it will help Dyson to operate at low cost and enables them to remain competitive in the market. While implementing feasibility of ERP in an organization there are several issues which should be tackled systematically (Bruch and Vinnichenko, 2007 ). Different stages of implementing ERP system are as follows:
- Pre evaluation screening
- Evaluation
- Project planning
- Gap analysis
- Reengineering
- Training to be conducted
- Testing
- Post implementation
Following are the four main stages of feasibility study:
Technical feasibility:
At Dyson their technical centres technical staff, implementation of ERP system requires knowledge about its specific life cycle stages. Among the technical staff most senior one will be the suitable person, in the process of working out the implementing process (GAP). By upgrading communication system office is the main factor, which helps in the process of successfully implementing the system.
Economic feasibility:
Net Present Value - NPV:
Formula for net present value is
NPV = summation [(i=0 toT) (Bi - Ci)/ (i times of (1+d))]
Where we intend to calculate the NPV for i’the period in future T = until period.B and C denote Benefit and Cost respectively and d is the discount factor.
Higher value of NPV suggests that more suitable specific project. Discount factor is one of the main controlling factors in NPV analysis. It can help Dyson to identify the factors which influence decision making process.
Legal feasibility:
Once Dyson takes the decision to implement SAP, it is vendor’s responsibility to provide tailored solution in case of any trouble in the system and gives legal certification according to their strategies. Like Dyson is not duplicating the software, yes it is legal feasible to implement ERP.
Operating feasibility:
When Dyson implement ERP system then they need to train their employees so they can operate the system effectively and in case of any problem, they should be able to cope with it. Basic training activities for users like sign in and sign out, And how to access related information from the system (Sheikh and Sheikh, 2002). Employees should be able to perform any task successfully, while transferring information from one end to the other.
ERP methodologies directly related with the goals and cost saving measures (Stahl, 2006). Three different methodologies can be used to implement successful ERS. Which are as follows:
Big bang approach:
Big bang approach tells us how to implement ERP system in a cost effective way. Under big bang approach the whole system implemented at once (O'Leary, 2000). It means simply replace the old system and put the whole data onto the new system. It is highly risky approach. Organizations try to decrease their cost by adopting that approach.
Modular approach:
Under modular approach implementation of ERP is doing each task as part of the organization and it provides a visualization and prioritization methodology (Kapp,. et al 2001) . This system allows feed backs and might be suitable for the big organizations like Dyson.
Process oriented approach:
At Dyson the process is cross functional e.g. sales is directly related to R&D. it means one department’s functions are totally different from others. According to this approach we can apply this system on cross functions of any department. Process oriented approach is really suitable for Dyson.
Managing organizational changes
Successful change management requires far more than the understanding of network analysis, risk management and budgetary control ( Paton and Mccalman, 2008)
The key issues while implementing change management process are being considered as follows:
Resistance from staff:
It is highly possible that existing employees of the company will strongly act against the change. And will try to resist whatever it takes to stop that change management process.
Aggression:
Unhappy employees can prove havoc in the process of ERP implementation (Ferran and Salim, 2008). Employees do not like the new system, so few of them can try to put deliberately wrong entries into the system. Which can disrupt the whole system and it can result in staff turning aggressively towards the system.
Projections:
Lack of knowledge and training among employee about the new system will result in difficulties in performing their activities. In that scenario employees will start projecting that new system is very difficult.
Avoidance:
Insufficient knowledge about the new system, employees start processing data in their own way. Because they do not want to be the part of learning cycle, they try to avoid new stuff and techniques.
Training staff:
One of the most important tasks in the process of managing successfully EIS is the training of staff as it is useless to install integrated system where employees do not have any clue what it is all about. To train people at middle level management, it should be done by giving the responsibility to some one who used to be the part of successful ERP implementation (Sheldon, 2005).
Business process reengineering (BPR):
BPR helps in Radical restructuring of all business processes to minimize waste and improve quality (Ayers, 2006 ).
The change management includes following key elements:
- transformed work process and procedure
- Improved user friendly screen interface
- Enhanced training in business process and communication.
It is impossible for employees to understand ramification of their actions without proper training. ES repeatedly fail because employees do not know how to use the system and carry out their business task under new system. The above initiatives will help to improve staff understanding in the transformed business model. And involves the employees in the process of implementing which enables them to change their behaviour towards work.
EIS implementation—to maintain the technical details:
Change in system input:
It is most likely that staff would not understand the ramification of the system input. The employee takes the new system as a threat to their job security. At Dyson without having bad impacts on the employees they could easily conserve resources by using change management. It is important under new system that input and all consulting resources should be fixed properly.
Change in system configuration/format of information:
It has emerged that more money should be spend on technical issues, like software configuration and data conversion. It is one of the key roles of change management to provide proper training. And build broad based communication for the successful implementation of enterprise system.
Supply chain management:
Supply chain management is the implementation of a supply chain orientation across suppliers and customers (Mentzer, 2001). Dyson are required to focus on developing the mechanism to address key business issues like customer demand, cost issues, globalization and technology. Customers has raised their expectations for value added services and expecting more efficient and reliable services in a short period of time. The implementation of ERP system will allow Dyson to meet customers demand in short period of time by following just in time (JIT) delivery of production when its needed by eliminating waste ( Baily et al., 2005). A flexible set of services offering which is according to current business practices are required to meet dynamic international customers.
Conclusions:
Dyson being large scale manufacturing organization and operating across the globe need a strong enterprise system. Although the implementation of ES is highly expensive but the benefit which includes automation and globalizations activities in supply chain are more than the expenditures. It is worth considering the flexibility it offers in information management and fulfilling its future needs. However communication can be a problem in functional and cross functional process, which can result in failure of ES implementation. At Dyson they needs some one technically experienced and continually monitor the activity and noting the requirements for change. An efficient cost based analysis effective MIS, implementation of an ERP would help Dyson to remain competitive and to achieve its objectives across the globe.
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