Business Intelligent Systems - ABC Case Study

Résumé du document

Managers from ABC company have expressed a lot of their actual problems, which can be all solved by the use of BIS tools. It is thus very easy to say what kind of BIS tool may be used to solve a particular problem.
An EIS software will be the solution to help the managers to have good information about the whole business in real-time, but ABC's core IT backbone has to be put in order first (by the use or not of an ERP software). The Distribution Manager may rely on AI, ERP, and DSS software to process all the orders electronically and rely on a more rational way to select suppliers. The Production Manager actually has problems with planning, and thus DSS can help him do better forecasts by conducting what-if analysis. The Product Design Manager can easily implement a KMS within its department as well as a GSS to help his team share the knowledge and conduct online meetings. Finally, the Marketing Manager can also rely on a KMS to improve the communication, and buy a Data Mining software to better understand the customers' needs.
But all these terms are just concepts, and imply a lot of changes in ABC business processes, as well as reengineering and training. As ABC is a multinational company and grows with Mergers and Acquisitions, a lot of issues can be raised.
For example, should ABC rely on an ERP system as the backbone of its IT infrastructure: how to integrate all the languages and be sure the future firms acquired will easily integrate the new processes? Can we really come with these concepts, just giving some software names to solve the actual problems? It does not seem to be a realistic solution.
Firstly, because every IT investment has to be linked with the company's strategy. But also because implementing such softwares have a long-term impact, so we have to see further the actual implementation issues.
Some of the systems like the KMS can today be easily integrated within some departments, because they will improve the performance of the concerned departments, and will not have a huge impact on the overall business process like an ERP may have.
But the use of others BIS tools require the implementation of an ERP first, or nevertheless, the standardization of some processes across all the departments and subsidiaries. Implementing such a system is not like implementing an off-the-shell software which may be successful in similar companies. In fact, ERP implementation can as well be a success for an organization, as a total failure for another one. And that is why the main job is to evaluate the different ERPs (if an ERP is really needed) that can be implemented in ABC, and from which one the company can leverage a sustainable competitive advantage that links to its business strategy.

Extraits

[...] Experts assume that the evaluation part may take five or six months before selecting an ERP software. Firstly, ABC has to align its investments in IT with its business objectives. What is ABC business strategy? What does ABC want to improve? What are the actual critical factors of its SBUs? And secondly, ABC has to contact vendors given the objectives, select some of them, and try the demonstrations that will able employees to look- and-feel the product, to see if it is user-friendliness, and give ABC some feedbacks about the end-user comfort level. [...]

[...] Here also, the languages ABC need are not taken in charge. Open Source ERP softwares are a cheap solution but they do not have all the features ABC requires like specific languages. Furthermore, the issue is not really about the acquisition price of the software, but what comes after like the training provided to people, the integration issues, and the eventual future upgrades. We also have to notice that these solutions suit better for small and medium size organizations, even if ABC can implement one of them. [...]

[...] It does not seem to be a realistic solution. Firstly, because every IT investment has to be linked with the company's strategy. But also because implementing such softwares have a long-term impact, so we have to see further the actual implementation issues. Some of the systems like the KMS can today be easily integrated within some departments, because they will improve the performance of the concerned departments, and will not have a huge impact on the overall business process like an ERP may have. [...]

[...] Such softwares can be bought by worldwide known vendors like Microsoft and IBM that provide respectively Microsoft Exchange and Lotus Notes. Both softwares have approximately the same functionalities. - Virtual meetings: The way to conduct meetings online is a very good solution to cut costs, because some softwares such as Skype can be downloaded freely on the Internet and allow managers to conduct virtual meetings. But in this case also, a lot of people may be reluctant to adopt this kind of meeting. [...]

[...] We can resume the pros and the cons of the Open Source and the commercial packages: In today's environment, manufacturing companies like ABC are also facing supply-chain issues; and in addition, they also have to integrate their ERP with the supply-chain in order to reduce costs and improve customer satisfaction with better planning (CPFR[3]). That is why, choosing a solution like MySAP will certainly help ABC to make this integration, rather than the Open Source softwares provided. ABC has to see what softwares its suppliers are using. [...]