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Information System Strategy and Development – Assignment

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  • "Information System Strategy and Development – Assignment 1 – TRANSGAS Case Study4.5. Data migrationThe last important step before the successful implementation of ERP is the migration or transferof existing data from the current system to the new ER..

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  • "Information System Strategy and Development – Assignment 1 – TRANSGAS Case Study4.5. Data migrationThe last important step before the successful implementation of ERP is the migration or transferof existing data from the current system to the new ERP. Migration requires proper planning andanalysis. The data that is to be copied must be identified, the time of migration must be decidedand the data templates must be generated. 5. Factors of FailureThere are several factors that can be identified as the major causes of the failure of ERP. Thefollowing sections will discuss some of them briefly. 5.1. Idealistic anticipationsAnticipating idealistic behavior of the ERP system can sometimes lead to the failure of ERP.Hershey Foods Corporation made this mistake and relied entirely on the new system. There musthave been a miscalculation of timing, resources and other factors while implementing the ERP.The management of the company did not realize the fact that these systems are complex andneed complete knowledge and understanding (Hawari, et al, 2010, pp. 135-160). 5.2. Poor managementThe lack of knowledge and understanding of the management with regard to the scope of theERP can lead to the failure of ERP. After a smooth implementation process, lack ofunderstanding may cause the failure of ERP. The industry analyst of Hershey Foods blamed theproject management for the failure of their ERP.5.3. Wrong TimingImplementing the ERP in the peak season may cause the failure of these information systems.Hersey Foods did the same and the results were poor. This is because there isn’t enough time forthe organization to resolve the issues and problems with the system in the peak season. If thecompany planned to implement the ERP system during normal season and before Halloweenthen they would have been able to manage time to solve the problems concerned with the newsystem. So the time Hershey chose to implement the ERP system might have caused the failure(Gargeya, et al, 2005, pp. 501-502). 8 | P a g e Information System Strategy and Development – Assignment 1 – TRANSGAS Case Study5.4. Big Bang ApproachWith the intention of completing the ERP implementation quick and in one go, Hershey FoodsCorporation decided for a Big Bang approach. Unlike phased approach, the big bang approachmerges all the system together for quick processing without any testing. Whereas, phasedapproach helps in identifying exact mistakes by performing every task thoroughly. Hershey’sidea of Big Bang was excellent but the company failed to rectify the flaws related to the newsystem. This may have caused difficulties in entering new data and performing systemsoperations properly.5.5. Issues with Compatibility Compatibility is the major issue that has been causing lot of difficulties during the ERPimplementation. The business processes of a company do not necessarily match with the newsystem’s features which brings undesirable outcomes to the implementation process. As wealready mentioned that the employees were unable to enter data in the new system and thecompany was facing problems with the flow of data from the old system to the new one. Thisclarifies that the mismatch of some technical components were causing significant blunders inthe business processes of Hershey Foods Corporation (Barker, et al, 2003, pp. 43-49).5.6. Inadequate Training of EmployeesProper training and better knowledge is the crucial component of any ERP implementation. Theemployees including the management people are required to have enough training beforeperforming any implementation process. In the case of Hershey Foods Corporation, thepersonnel performing the implementation task might not have been trained properly. Since theproper training and knowledge were inadequate, the company failed to recognize errors and bugsappeared during the implementation process. On the other hand, the employees of the companywere working under a lot of pressure since it occurred during the peak season of Halloween. Sothe misunderstanding of the scope might have directed the company to improperly plan theimplementation, which could have resulted in failure.5.7. Inadequate TestingWhen the schedules are on track, organizations tend to reduce depth of the testing cycles. Thetesting of ERP project is not only making sure that software works correctly. Testing process willascertain if the system meets the business needs and produces the output you need or any gaps inthe processing or reporting. Reducing testing may not only omit defects, but also it definitelyincreases the risk of missing important components or functions of the ERP system9 | P a g e Information System Strategy and Development – Assignment 1 – TRANSGAS Case Study6. Introduction to Data WarehousingToday, Information technology is not only continuously dealing with large amounts of data andinformation. The data is stored as information that can be used to perform optimization, controlfunctions and judgmental executive functions within the company. Therefore, a detailed analysisof the data and information becomes essential as the organizations expand.Data warehousing referring to the process of collecting and storing information of your businessprocess and customers on each interact with the organization. Data mining is referring to thetechnique of obtaining constructive data using the modeling tools as stated in Data warehouseframe. Data warehousing and mining tools and techniques have driven the organizations intonew dimension of customer relationship and potential business opportunity where organizationscan achieve a aggressive edge over other competitors.7. Advantages and Disadvantages of Data WarehousingThere are several advantages and disadvantages of implementing Data Warehousing for theorganization and some of them are list in the below tableAdvantages DisadvantagesIncrease data consistency High maintenance costAdditional details about data Possible under utilization of dataLower computation cost Difficult to accommodate structural changesBuilding single source of data Data access channels could create securitythreatsEnd user access to wide verity of data Table 28. Data Warehousing Implementation Data must be collected from every stage and combined with the other information to betransformed into useful information for decision making. . The Data warehouse should beoptimized and structured to aid the decision making process for the management. The Data warehouse implementation project involves 5 phases starting with data cleansing,followed by data modeling, data warehousing, data mining which will end up with customercentric knowledge that can be used for centralized decision making. In parallel, the changemanagement process will be executed to make the senior management and the managersunderstand the strategic benefits of implementing this data warehousing project.10 | P a g e "

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