Thursday, November 11, 2004

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.

1 Comments:

At 6:37 AM, Anonymous Anonymous said...

We actually had to bring back the consultants on this project. The critical path you identified was something they ignored, costing us a few thousand dollars in extra fees. Where were you??

 

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