Creating Business Value and Undertaking Strategic Transformations with Enterprise Systems: Towards a Framework

8/8/2019 Creating Business Value and Undertaking Strategic Transformations with Enterprise Systems: Towards a Framework

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By:By:Vishal Singh (09609067)Vishal Singh (09609067)Neha Sharma (09609027)Neha Sharma (09609027)Md. Sharik Ahmad (06502912)Md. Sharik Ahmad (06502912)

Creating Business Value and Undertaking Strategic

Transformations with Enterprise Systems:Towards a Framework

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Enterprise Systems: Towards a Framework


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I NTRODUCT I ONI NTRODUCT I ONEnterprise Systems (ES) have become an integral part of mostly all

business ranging from small to large scale and of large local andmultinational firms.

ES is basically a large scale, packaged, software system that is used tostreamline and integrate all business processes of a firm to enhanceinformation and knowledge level within the firm as well as to the supplychain partners and other stakeholders.

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NEED OF ESNEED OF ESES has seen to provide error free and faster transaction processing , timelyaccess and better quality information exchange when implemented properly

by the firm.

It implies as-good-as-possible correspondence between the model and

modelled reality. In this case, models should understand how to align business objectives with necessary changes and transformations of IT/ISinfrastructure.

The implementation of ES properly requires investment of millions of

dollars and huge amount of human effort and time to facilitate the firmachieve business value.




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BUS I NESS VALUE OF ESBUS I NESS VALUE OF ES

In the aggressive, competitive and dynamic business environment thefocus is on to get an edge in terms of Business Transformation byaligning people, processes and technology leading to developing strategyand structure by the firm to enable its long term survival by creating

business value to adapt to the market and sustain as well as attractcustomers.

ES has helped the firms in achieving their business objectives in such ascenario by continuous enhancement and equipment of these softwaresolutions to contend better in the marketplace.

The adaptation of such a solution is a huge task for the firms consideringthe fact how to facilitate such strategic business transformations andhence, create business value.




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I nnovation Enabled by Adopting Enterprise SystemsI nnovation Enabled by Adopting Enterprise SystemsThe adoption of Enterprise Systems enables the firm to innovate

along the following dimensions (Bhattacharya and Seddon 2009):

Product/Service: This can be accomplished by introducing a new Product/Service or revamping an existing product/service by a)using information and analytics gained fromERP/CRM Systems, i.e., by Informate (b) integrating the organization with the partners of its value chain, backward or forward using ERP based EAI tools ,i.e., by Integrate.

Process : This can be accomplished by creating new processes/wholly redesigningexisting processes, i.e., by Optimize. This can be in the following fields a)operational/back-end processes by using the so-called best practices of the ReferenceModels in such ERP Systems, (b) front-end/customer-service processes by implementingthe marketing-sales-service cycle of CRM systems.

Market : It can be done by (a) Market penetration, i.e., selling additional quantities of existing products/services or cross-selling to existing customers by the use of thecustomer analytics capabilities of CRM systems, i.e., by Informate (b) Market

development, i.e., selling existing products/services to new/prospective customers or market retention in times of threats by rivals/ new entrants by improved marketing processes like campaign management using CRM systems, i.e., Optimize.

Alliances : This can be accomplished by the means of mergers,acquisitions,consolidations, joint ventures for strategic purposes enabled by integration of data and process frameworks enabled by ERP between the acquirer and the acquired ,i.e.,

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Transforming the Business: Strategy Realized orTransforming the Business: Strategy Realized or

Strategy ReshapedStrategy Reshapedy This process next delves into the proposition that the adoption of

Enterprise Systems enables strategic business transformation : byeither realizing the existing strategy or reshaping the strategy of theadopting organization

y However, it is acknowledged that there could be several other factorsthat have to be favourable for successful realization of the strategy or reshaping it. These could be range from business/economic cycles,legislation changes, political situations/stability, and responses bycompetitors. These most definitely affect the strategic transformationsof organizations but are beyond the control of the firm.

y

The process then shows that whatever the path taken (i.e. operationalexcellence and/or innovation), the organization needs to continue theexecution of that path for a given timeframe. This is essentiallyexecuting the existing strategy of the organization enabled by theadoption of the systems This is done with an aim to realize theexisting strategy of the organization.




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EXPECTED CONTR I BUT I ONS OF THEEXPECTED CONTR I BUT I ONS OF THEPROPOSED STUDYPROPOSED STUDY

y This study will be significant relevance to the management of largeorganizations as well as academics in the area of Management andInformation, to appreciate how they can create business value andtransform their business by investing in Enterprise Systems, so that they

can compete better in the market.

y This study also provides holistic theoretical framework of business valuecreation and strategic business transformation.

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Cont..Cont..

y Provides whether Enterprise Systems enable firms with :Capability to optimise, informate, integrate.Operational excellence.

y Provides whether the adoption of Enterprise Systems enables

Innovation in the adopting firm, along one or more of the four dimensions.

New strategic opportunities for the firms to pursue.Business transformations by realizing strategy and/or revising or shapingof the strategy of the firm.




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Proposed Research DesignProposed Research Designy Study tells about how to use Information system effectively to attain

organizational objectives in the contemporary world and effective use of technology for the improvement of the organizations.

y Also the better utilization of Information Technology in organizations for gaining higher business benefits, both within the firm and in the wider marketor industry.

Choice Of Site:y Large firms with at least $500 million plus annual revenuey

Successfully gone-live with ERP and/or CRM from any leading vendor namely SAP, Oracle.y Post shakedown phase i.e. 6-12 months after a major releasey Any industry in any part of the world.Choice of Subjectsy Business Managers from functional areas such as Operations, Marketing,

Human Resources.y Technology Managers, Project Managers , CIO associated with the ERP and or

CRM implementation.




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ConclusionConclusion

y This research actually focuses on both the contemporary business world aswell as academia in the fields of IT and management.

y The work introduces that how business value can be created using a

technology called enterprise system and how these can be utilized byorganization to achieve their mission.y In this paper a holistic framework was developed to understand the

capabilities of Enterprise Systems




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THANK YOU



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Creating Business Value and Undertaking Strategic Transformations with Enterprise Systems: Towards a Framework