ERP RIO continued

Streamlining business processes via ERP systems has been of great benefits to companies no matter how big or small. This has led to reduced costs and has been able to provide a bird’s eye view of operations as a whole. Companies such as PeopleSoft, SAP and Baan have been on the forefront of this business process streamlining applications. They help companies make more effective decisions on a corporate wide basis. This id due in large to the aggregation and consolidation of all reports thereby outputting this data in to not only meaningful but also useful information. By diligently following the standard steps needed to implementing an ERP system, a company can potentially unlock the keys to more cost effective decision making techniques. On the contrary, by deploying an ERP system without the due processes to be followed might require a serious disaster recovery plan coupled with solid company insurance to cover potential losses.
Furthermore, a solid sensitive analysis plan that is comprehensive enough to include all facets of operations will greatly pave the way for a solid ERP system implementation.
Notwithstanding, lack of responsibility on the part of business units or a lack of dedication on the part of key members of the deployment team can adversely affect an implementation plan at the execution stage. There are risks involved with the deployment of an ERP system, especially with success in mind. From budgeting to stakeholders to a solid leadership, recognizing these pitfalls greatly reduces risks.

Return on Investment (ROI) MUST be taken into consideration when implementing an ERP plan. Consolidation, integration and streamlining could be reasons why some companies deploy ERP systems with not a lot of emphasis on Return on Investment. Nevertheless, ROI is still taken into consideration. It may take some companies a longer period say a year, two, or maybe more to fully get an ERP system running. Costs associated with this may be very high and Return on Investment may take a few years to set in. ERP changes the way business processes are done and getting this message across, integrating systems, training and consultation costs which may be the biggest cost have to be carefully planned and glitches in the processes should be anticipated for successful deployment. A successful deployment will be the platform and set the stage for future e-commerce systems. Although ROI may require the company to change its business model, payback may often take some time.

Business Process Redesign in Travel management in an SAP R/3 upgrade project

Case Study
Schallert, Marit PhD. – Queensland University of Technology, Australia
Australian Computer Services Agency - CSA
This is an electronic book that goes into detail about how organizations aim to reduce and control their travel costs by the utilization of integrated computer systems. Systems such as the enterprise system SAP R/3 and implementation of travel management integration enterprise solutions.
The Australian Corporate Services Agency (CSA) is a jointly owned company by two Queensland government departments. It is the result of a merger of the service departments of the two government departments into a separate organizational entity. This was based on the belief that shared services can greatly improve the value and enhance the productivity of support functions.
Moreover, since a business approach has to be taken into consideration when integrating Enterprise Resource Planning Systems, CSA’s mission statement greatly reflects that approach. Thus, the mission statement is to “Professionally deliver quality corporate services for government.”

The System:
CSA implemented a centralized Enterprise Resource Planning system with real time system support coupled with complete data visibility on all levels of the organization. The SAP R/3 system was selected for this task because it also reflected the mission statement. Coupled with the above, CSA’s clients also use the SAP R/3 system.
Moreover, CSA had to manage several legacy systems prior to the deployment of the new SAP R/3 system which to a great extent substituted the old legacy systems. Notwithstanding, there still remains the Asset Management Information System which has been partly Integrated with the SAP R/3 system.
Since system integration streamlines business processes and Information Technology will greatly improve service delivery. This way, data will be captured in an early point and converted into meaningful information. Data information need to be easily accessible, this can be achieved via integration.
As the example shows at the end of the case, the previous system gave then all the information, however since there was no integration, they simply could not develop meaningful information and make accurate forecasts. They also could not trace travel documents, expenses and customer information. However with the new system, streamlined information makes the whole process seamless.
Notwithstanding, the Asset Management Information System is basically an in – house inventory management system. It contains information on owned and leased assets separated by asset fleet, type, make, model, location, and business area. It also performs additional tasks to include fuel card management, fuel expenses and fuel inventory control. Vehicular hiring, provision and invoice validation of all vehicles for business travels on all 2000 vehicles managed by the agency.
It should however be noted that there has been an organization wide high resistance to fully replace this system! Since the Asset Management Information System - AMIS is not fully integrated into the SAP R/3 system, functionality in those areas not integrated will still cause conflicts and redundancy in those areas. Consequently resulting in a major upgrade planned for the near future. With resistance from some quarters in the organization, it is clearly evident that the issue or problem of acceptability of IT projects raises its ugly head again. When people are comfortable with a system that helps perform their daily tasks, migrating or having to learn a new system is always problematic. This happens with most IT projects. It should however be noted that most Enterprise Resource Planning projects are always organization wide, thereby more or less requiring everyone in the organization to either upgrade or learn a new system.
Conclusively, we can see how an Enterprise Resource Planning System can greatly improve lead time, eliminate redundancy and greatly streamline the business process. However, we also have to take into consideration the issue of acceptability, support, compatibility and costs of implementing an Enterprise Resource Planning application. The e-book greatly shed light on the specificity of the systems as to functionality and integration without elaborate use of terms, numbers and IT jargon.