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Assessing the Ne Cessity of Enterprise Change

Assessing the Ne Cessity of Enterprise Change

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INT. J. CO MPUTER INTEGRATED MANUFACTURING, 1 998, VO L. 11, NO .

5, 430 ± 44 7

Asse ssin g th e n e ce ssity of e n te rprise ch an ge : pre -fe asibility an d fe asibility studie s in e n te rprise in te gration
GREGORY UPPINGTON and PETER BERNUS

Ab stract. Th e article pre se nts a proce ss m ode l of the le ast formalize d ph ase of e nte rprise change , in wh ich m anagem e nt an d all othe r intere sted partie s identify a ne ed for ch an ge, asse ss what change m e thod ology is ade qu ate to handle that change and m ake pre parations for e nacting that change proce ss. Th is proc ess is inten de d to be e m be dd e d in a com p le te e n te rprise e n gin e e rin g / e n te rprise in te gration me thodology. Th e aim has be e n to give a m ore de tailed accou nt of the first ph ase of e nte rprise in te gration, called the `ide ntification’ phase of the e nterprise life-cycle . A top le ve l of the m ethodology’ s proc ess is prese nte d as a se ries of IDEF0 diagram s and their com panion e xplanations, alth ou gh future ve rsion s m ay be deve loped in m ore elaborate language s ( e .g. CIMO SA m ode lling con structs) . Th e original aim to deve lop this part of th e m ethodology was for the m e thod to be especially suitable for the se rvice in dustry; it h as bee n foun d that the re was no ne ed to be service in dustry specific on this leve l an d th at con sideration s app lied e qu ally to se rvice and manufacturin g.

1. In tro d u c tio n Initial plan n ing ph ase s of an y chan ge m an age m e n t p r oc e ss ar e g r e atly e n h an c e d with so lid foun dations an d ide n tification of wh e th e r ch an ge is ne ce ssary, wh at is to chan ge , a c le ar m e th od sh owin g how an d wh e re ch an ge will occur an d the poten tial e ffe cts of such ch an ge ( Min k et al. 1993 , Han dy 1985 ) . Re sultin g from the ide n tificatio n that ch an ge can be n e fit an e n te rprise or th at ch an ge is n e ce ssary for th e e n terprise to re tain its com pe titive advan tage , th e c hoice of th e tran sition m e th od is th e on e m an age m e n t ofte n finds to be the m ost difficult. It is th is ch oice wh ich will ofte n de te rm in e th e future succe ss of an e n te rprise .

Au thors: Gre gory Uppin gton an d Pe te r Bern u s, Griffith Unive rsity, Sch ool of Com p utin g an d In form ation Te chn ology, Nath an 4111, Q LD, Australia. 0951-192 X / 98 $12.00

To un de rstan d th e se le c tion proce ss of a ch an ge m e thodology for an e n te rprise with in a ce rtain in dustry se c tor e n tails th e c on sid e r ation of a n um be r of con ce rn s in two are as. First: tacit n otion s, con ce pts, re quire m e n ts an d ide als of th e chan ge m e th odology. Secon d: the targe t e nte rprise , th e n e c e ssity for ch an ge an d th e strate gic m an ag e m e nt proce ss of such ch an ge . Th e followin g pape r in dicate s th ose con side ration s m an age m e nt will face wh e n discussin g or e nac ting organ ization al c h an ge . Th e in form ation c on tain e d with in this pap e r is ge n e ric across in dustry se ctors, with ce rtain re quire d conte xtu al alte ration s an d is con side re d to be ap plicable to an y chan ge e ffort. Th e te xt is organ ize d to re pre se nt wh at activitie s will occur at e ach stage of th e ch an ge proce ss Ð from the initial discussion of the valid ity an d viability of ch an ge to th e final de cision an d `sign -off’ to e nlist th e m ost ap propriate organ ization al ch an ge m e thodology an d im ple m e nt th e ch an ge proce ss. Th e pap e r is aim e d at e stablish in g an organ ization al proce ss m ode l. The m od e l will allow for `an in te grate d inform ation , m an ufac turin g [ or se rvice ] an d h um an re lation s arch ite cture ope ratin g as an ove rall syste m s re spon sive to th e hum an an d e con om ic e n viron m e nt at all le ve ls’ ( William s 1994 a) . This m ode l d raws pre dom in an tly up on th e Purdu e En te rprise Re fe re n ce Archite c ture ( PERA) ( William s 1994b ) with wh ich m an ag e rs can se le c t or com bine in divid ual m e thods as propose d in th e lite ratu re . Furth e rm ore , th e m ode l is pre sen te d in such a way that th e proce dure doe sn’ t be com e pre scriptive or ove rwh e lm ing. For th is we have se le cte d a fun ction al re pre se n tation of th e proce sse s in volve d, wh e re upon it is at th e strate gic m an age r’ s discre tion in wh ich succe ssion th e de scribe d ac tivitie s are p e rfor m e d as lon g as th e ir logical con n e ctions are re spe cte d. As such, th is pap e r de ve lops th e proce sses/ activitie s th at m an age m e n t can follow to ide n tify th e busine ss

Ó

1998 Taylor & Francis Ltd

Assessing the n ecessity of en terprise chan ge

431

Figure 1. Th e thre e stage proce ss of Maste r Plan deve lopm ent ( EBE Ide ntification is shown as the first stage ) . ( IS: Initiating Spon sor, PC: Proje ct Ch am pion , FSIT: Fe asibility Stud y Inve stigatory Te am ) .

e n tity that ne e ds ch an ge an d to ide n tify th e natu re of chan ge . In PERA an d GERAM ( Be rn us an d Ne m e s 1996 ) th is ph ase is calle d th e `Ide n tification Laye r’ of th e e n te rprise life -cycle . Re quire m e n ts of this laye r ( ph ase ) have be e n form ulate d base d on the `Guide to Maste r Plan n in g for En te rprise Inge tration ( EI) Program m e s’ Ð or `Pu rdue Guide ’ for sh ort Ð ( se c. 2, William s 19 94a) . Th e au die n ce for th is pape r ran ge s from the CEO to th e Te chn ical Spe c ialist ( in -h ouse or con sultan t) : th ose stake holde rs wh o will be m ajor playe rs in the ch an ge m e thodology are ide ntifie d by th e ir role in th e ch an ge proc e ss ( such as In itiatin g Spon sor, Proje ct Ch am pion , Fe asibility Study In ve stigatory Te am , an d EI Ste e ring Com m itte e m e m be rs) . Th e Purdue Guide assum e s that th e `In itiating Spon sor’ an d `Proje ct Ch am pion ’ toge th e r have all inform ation availab le to start a m aste r plan n in g proce ss, th e re fore no so-calle d as-is an alysis is n e e de d in th is initial phase of e n te rprise in te gration. O the r m e th odologie s, e .g. GRAI-GIM ( Doum e in gts et al. 1995) assum e that th e dire c tion of ch an ge n e e ds to be de te rm in e d as part of th e m e thodological ste ps, usin g an as-is an alysis ste p. Alth ough th e se two m e th odologie s are se e m in gly con tradictory from th is re gard , we have ge n e ralize d an d de taile d a m e thodology for the initial ph ase of EI ( he re in pre se n ted) th e re by e xte n ding its ap plicability to situations wh e re th e dire ction of ch an ge m ust be de te rm in e d, to justify the propose d ch an ge to com pan y m an age m e n t ( or th at m an ag e m e nt can justify th is chan ge for th e m se lve s) . In th e light of the m e thodology pre sen te d in th is pap e r the m e thodological ste ps of the Purdue Guide an d those of GRAI-GIM are suitab ly spe cialize d case s, an d are by n o m e an s in con trad iction in philosoph y.

Thus, inte rpre ted in the con te xt of th e he re pre se n te d ch an ge asse ssm e n t m e th odology the re spe ctive in itial ph ase s of the Purdue Guide an d of GRAI-GIM can ( an d are ) plugge d-in at suitab le points ( in fact se le cte d by th e ch an ge in itiating pe rson ne l) . Th e Purdue En terprise Re fe re n ce Arch ite cture , a de taile d En te rprise En gin e e ring m e thodology calls th e top e n te rprise life -cycle the `ide n tification phase ’ or laye r ( th e te rm s laye r an d ph ase are use d in te rch an ge ably in this article in wh ich an En te rprise Bu sine ss En tity ( EBE) is ap propriate ly ide n tified as the targe t for 1 ch an ge ( see figu re 1, A1: Ide ntify EBE) . Th e m e thodology de taile d he re in inve stigate s th e valid ity an d viability of the in te nde d chan ge proce ss for th e or gan izatio n to e n su r e th at it m ain tain s its c om pe titive ad van tage both durin g an d afte r th e ch an ge proce ss. Section 2 `EBE Ide n tification Ð Pre Fe asibility Study’ , outlin e s th e initial ide ntification of th e be n e fits of an e n te rprise in te gratio n program m e , th e proce ss of ide n tification of th e EBE, an d th e proce ss of gain in g m an ag e m e n t com m itm e n t for the succe ssive `EBE Ide n tification Ð Fe asibility Stud y’ ( figu re 2) .

1

It is n ot pre de te rm in e d wh at sh ould be th e size an d e xte n t of an EBE; it can be th e e n tire organ isation or an y p art of it th at m an age m e n t wan t to conside r as a coope ratin g but auto n om ous u n it. Typically, an EBE m ay be a wh ole busin e ss u n it re sp onsib le for a typ e of product, p roduct group or se rvice . Th is busin e ss u n it m ay be situate d at a give n location, or distribute d with in a re gion or wo rldwid e . The b e st way to d e line ate th e EBE is by c onsid e rin g th e se rvice th e EBE give s to th e m arke t. All activitie s wh ich are con side re d by m an age m e n t to be c ore ( strate gic ) ac tivitie s in th e p rovision of th e above se rvice are ide ally h an dled with in th e EBE. O th e r ac tivitie s wh ich are n ot core are e ith e r d one in se p arate EBEs of th e sam e e n te rp rise or are p e rform e d by outside con tractors. In th is way an e n te rprise of an y size can be consid e re d an EBE, com p re h e n sive ly m an agin g all ac tivitie s th at are n e e d e d in th e value ch ain of its p roducts, an d wh ich activitie s are carried out in in te r-e n te rp rise or in tra-e n te rp rise coope ration ( be twe e n EBEs) .

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G. Uppin gton an d P. Bern us particular atten tion to the initial stage s of an y strate gy form ation ( Min k et al. 199 3, Han dy 1985 ) . Th is is ofte n con side re d part of th e proje ct con ce ption or in itiation ph ase an d form s th e foundation for proce e din g e ve n ts. With in th e e nte rprise in te gration fram e work the re e xists a ne e d to in ve stigate th e valid ity an d viability of th e inte nde d ch an ge proce ss to m ain tain com pe titive ad van tage both during an d afte r the EI proc e ss. For th e purpose of th is pape r, we h ave broke n the proje c t in itiation phase in to two m ajor com pon e n ts: th e Pre Fe asibility Study ( PFS) an d th e Fe asibility Study ( FS) . It is im portan t to re cogn ize that th e se proce sse s are e ssen tially differe n t an d e qually im portan t. Th is se ction d e als with th e first of th e se p roc e sse s Ð th e Pre Fe asibility Study. In sm all proje cts, m an y of the activitie s outlin e d h e re m ay be un de rtake n as part of the Fe asibility study. Howe ve r, for large an d com ple x organ izations ( e .g. a m ultin ational h otel chain ) it is e ssen tial that th e valu e of the in te nde d proce ss be e stablish e d be fore re source s are allocate d to m ore costly e xe rcise s like fe asibility studie s. As a conse qu e n ce , the PFS outline d in th is pap e r is prim arily unde rtaken to in itiate the proce ss an d to e stablish its like ly contribution to th e organ ization ’ s com pe titive advan tage . Th e pre -fe asibility study is carrie d out to de te rm ine :

Se ction 3 `EBE Ide ntification Ð Fe asibility Study’ utilises the in form ation an d findin gs from the Pre Fe asibility Study ( PFS) . Th is se ction cove rs the EBE e n viron m e n tal an alysis ( subje ctive an alysis) , th e EBE corporate ap praisal ( obje ctive an alysis) , an d an EBE TO -BE sce n ario form ulation ( th e initial EBE vision) an d e valu ation via a Fe asibility Study ( FS) to de te rm in e th e viability an d validity of th is sce nario. Furthe rm ore , guide lin e s for th e Maste r Plan n ing proce ss are propose d an d an EI Plan nin g Te am ( PT) is form e d. Th e ide ntification ph ase of the e nte rprise life -cycle is com ple te d with th e e stablish m e n t of th e in itial EI program m e ( th is latter is n ot discusse d in de tail in th e pre se n t pap e r) . Th e m e th odology h as be e n trie d in its n e w form on two case stu die s. O n e in th e Globe m an 21 con sortium ( of wh ich th e re sults are at th e m om e n t proprie tary m ate rial) , an d the secon d involve s th e se rvice in dustry ap plie d to a sm all proprie tary e n te rprise Ð wh e re it tran spire d the m e th odology he lpe d ide n tify a n e w busin e ss in th e fie ld of tourism in re m ote Australia an d was able to e fficie ntly h e lp form ulate the basic busin e ss strate gy as we ll as gu ide inform ation gath e rin g for th e e stablish m e n t of th e busin e ss in a ve ry e fficie n t m an n e r ( th e tim e sche dule took ap proxim ate ly th re e we e ks) .

·
2. EBE id e n tif icatio n Ð p re -f e asib ility stu d y Give n the incre asin g size an d com ple xity of m ode rn organ isation s, it is be com in g m ore im portan t to pay

·

Th e organ isation ’ s curre nt statu s qu o ( h ow it is curre n tly ope rating in te rm s of m arke t force s, com pe titive position, e tc.) . Wh e the r the re is a ne e d for th e organ ization to unde rgo a ch an ge proce ss.

Figure 2. Th e three stage proce ss of En te rprise Bu sine ss En tity ( EBE) Ide ntification.

Assessing the n ecessity of en terprise chan ge

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· · · ·

Wh e the r th e re is a viable opportun ity with in th e organ ization to succe ssfully im ple m e n t a ch an ge proce ss. Th e obje ctive s an d r e sourc e s of th e c h an ge proce ss. How to be st ach ie ve succe ssful be ne fits from th is ch an ge proce ss by way of e xam ining th e ap propriate ch an ge m e thodologie s, an d Wh e re th e m ost approp riate c han ge m e thodology could be e n acte d within th e organ ization .

As a con seque nce , the followin g five -stage proce ss con stitutes th e PFS ( see A11 , figu re 3) .

· · · · ·

In ve stigate Proje ct ( A111 ) . Ex am in e EI Me th odologie s ( A112 ) . Con duct PFS ( Rap id An alysis) ( A113 ) . De te rm ine Viability of Un de rtakin g EI ( A1 14) , an d Se e k Fin al Ap proval for Spe cific EBE Fe asibility Study ( A11 5) .

Th e activitie s de scribe d he re are not on e -off, or proje ct like: com pan y m an age m e n t contin uously ke e p pe rform ing such asse ssm e n ts as liste d he re . Man y ide as of possible ch an ge will progre ss to som e stage , only to be sh e lve d or stoppe d altoge the r, an d on ly som e will m atu re to th e stage of im ple m e n tation . Th us m an age m e nt pe rform s ch an ge m an age m e n t unde r the in flue n ce of pre se n t e nviron m e n tal factors an d in th e aware n e ss of past ch an ge h istorie s of th e com pan y or case studie s of othe r com pan ie s.

2.2. In v estigate Project (A111) Th e m ain un de rlyin g purpose of `A11 1 Inve stigate Proje c t’ is for an In itiatin g Spon sor an d Proje c t Ch am pion ( se e be low) to de term in e th e e nte rprise in te gration activity will con tribute to th e organ ization ’ s com pe titive ad van tage . Th is inve stigation in volve s th e ide ntification ( or se lfide n tification) of a Proje ct Ch am pion ( PC) an d an In itiating Spon sor ( IS) wh o re spe ctive ly are pe rson n e l 2 wh o toge th e r are able to re cognize wh e n strate gic c han ge is re quire d an d in stigate the c han ge program m e . Th e IS spon sors the first ste ps ( PFS an d FS) of th e ch an ge e ffort an d is assu m e d to be in a m an age m e nt position wh o h as a vision for the future . The se pe rson n e l m ust h ave an in itial un de rstan ding of th e organ ization, an d h ave ce rtain abilitie s an d kn owle dge to discuss issue s such as th ose re gard in g te chn ical an d hum an proce sse s, organ ization al ch an ge proce sse s an d e con om ic con side rations. With in th is activity, the valu e ( n e ce ssity) of un de rtakin g chan ge with in the organ ization is ide ntifie d, i.e . th e IS an d PC will in ve stigate th e pe rce ive d ne e d for ch an ge in th e e nte rprise. This pe rce ive d ne e d for ch an ge is to be align e d with th e organ ization’ s strate gy for gain in g or re tain ing com pe titive ad van tage . Th e IS an d PC ide n tify at a high le ve l th e natu re of the ch an ge th e y se e as re quire d with in th e e nte rprise, by lookin g at bu sin ess goals, performan ce in dicators ( Lu ce rtini et al. 199 5) , cu rren t strategic reports, in ternal bu sin ess au dits, e tc. A list of prop e rtie s on e m igh t wish th e En terprise to have m ay be form ulate d ( a h igh le ve l vision) , with in itial ide as of how to ach ie ve th ose prope rties que stion in g h ow can valu e be ad de d to curre n t busin e ss proce sses ( Mose n g an d Bre drup 1993 in Rolstadas 1995) . Give n th is h igh le ve l vision, the IS an d PC ide n tify an d sele ct from the possible form al an d inform al

2.1. Depth of AS-IS an alysis Both the pre -fe asibility study an d feasibility study con duct an alyse s wh ich would be term e d by lite rature an `AS-IS an alysis’ . Both such an alyse s are , h owe ve r, lim ite d to the prag m atic ne e ds of the subse que n t ph ase of th e chan ge proce ss an d of th e pe rson n e l in volve d. Th e re are m an y de bate s about th e pros an d con s of con ductin g an AS-IS an alysis prior to the de signin g of a fu tur e TO -BE sce n ar io ( Han d y 1 985) . Th e vie w ad opte d in this pap e r is th at for an y m an age r to act on th e c u rre n t situatio n of th e e n te rp rise , it is m an datory to h ave an unde rstan din g of the curre nt state of affairs ( Rolstadas 1995) . Howe ve r, an y AS-IS an alysis th at is in c or porate d with in th is d e taile d m e thodology is prag m atically drive n Ð on ly that de pth of AS-IS an alysis is pe rform e d `up-front’ of wh ich th e re sult is ne ce ssary to take in form e d de cisions in th e chan ge proce ss. Cle arly th e re fore th e ne e d to un de rtake an alysis is n ot obje ctive ly de te rm ine d but rath e r is de pe nde n t on the n e e d of th e in volve d m an age m e n t an d te chn ical pe rson ne l to un de rstan d th e pre se n t situation of the e nte rprise . Note also, th at the AS-IS an alysis for th e ide ntification of th e n ature an d place of ch an ge is distin ctly diffe re nt from AS-IS an alysis un de rtake n late r in th e chan ge proce ss, afte r th e ne w plan n e d TO -BE state of th e e n te rprise h as be e n de signe d. Th is latte r is carrie d out for th e sake of tran sition plan n in g ( such as an alysis is, for e xam ple , propose d in the Purdue Guide for Maste r Plan nin g) .

2

The d e scription is to be in te rp re te d with th e u n d e rstan d in g th at in a c om pany m an y sp onsors/ cham p ions m ay ope rate at an y one tim e ; we de sc ribe th e p ro ce ss of chan ge from th e point of vie w of one of th e se .

434

G. Uppin gton an d P. Bern us

Figure 3. Th e Com pon e nts of a Pre -Fe asibility Study.

availab le m e thodologie s for m an ag ing ch an ge proce sse s. Th e valu e of an EI program m e sh ould be re affirm e d th rough com parison with othe r ch an ge obje ctive s. Th e IS an d PC propose an d se le ct th e m ost ap propriate m e th od to con trol th e ch an ge proce ss within th e organ ization in the con te xt of th e e n tire e n te rprise , not just at a local le ve l. It is im portan t to h arm on ize th e EI proce ss with th e ge n e ral strate gic cycle s of m an age m e nt re vie w so th at th e EI activities are con duc ive to th e organ izational m ission , vision s an d value s an d also to th e curre nt position ing within th e in dustry sector an d com pe titive m arke t. Th e usual type of de cision that n e e ds to be take n at th is poin t is wh e the r the typ e of ch an ge pe rce ive d as ne ce ssary is of in cre m e ntal n ature ( i.e . has local e ffe ct on ly Ð in wh ich case th e ch an ge falls in to th e re alm of con tin uous im prove m e n t an d a corre spon ding m e th odology could be followe d) or is strate gic in natu re ( in wh ich case th e ch an ge proce ss could follow an EI program m e m e th odology) .

First it is ne ce ssary to study th e EI m e thodologie s, th e ir ce ntral an d ge n e ric be n e fits ide ntifyin g up-to-date EI guide lin e s an d stan dard s. Se con d, it is ne ce ssary to ide n tify th ose be n e fits th at e n te rprise in te gration can prov ide for th e spe cific organ ization com pare d to wh at th e IS an d PC propose e n te rprise in tegration to prov ide for the organ ization. Naturally followin g is th e de ve lopm e n t of an action plan for a PFS ( spe cifically the Rap id An alysis) wh ich in dicate s:

· · · ·

the purpose of th e PFS in th e particular e nte rprise, i.e . wh at it sh ould e xam ine ; the re quire d re rsource s for the PFS; the re quire d le ve ls of com m itm e nts for th e PFS; the con tin uing PFS sche dule .

Th is action plan on ly n e e d s to be agre e d upon by th e IS an d PC with out wid e circulation of this plan , be cau se th e le ve l of un ce rtain ty about the ne e d an d discre tion of ch an ge is still ve ry h igh .

2.3. Examin e EI methodologies (A11 2) Th is activity ide n tifie s the ge ne ric be n e fits th at e n te rprise in te gration can bring to an organ ization an d sh ould be un de rtake n in ligh t of e n te rprise inte gration stan dard s an d within th e conte xt of h ow th e organ ization is e xp e cted to re act to suc h ch an ge .

2.4. Con du ct rapid an alysis (A11 3) Th e rap id an alysis com pon e n t con ce rn s th re e m ain obje ctive s. Th e first obje ctive com prise s a h igh le ve l re vie w of th e curre nt status of the organ ization ( AS-IS) . Th is in form ation th at sh ould be re adily availab le in th e

Assessing the n ecessity of en terprise chan ge organ ization . With in th is activity, the IS an d PC re vie w th e cu rre n t bu sin e ss an d m arke tin g strate gie s to re affirm how the organ ization curre ntly ope rate s with in th e c om p e titive m ar ke t an d wh at is its c u r r e n t com pe titive position. A brie f SWO T an alysis ( De alty 1992 , Hill an d We stbrook 1997 ) of the organ ization is con du c te d to d e te rm in e an y sign ifican t pote n tial im pacts or opportun itie s within this m arket with re spe ct to th e h igh le ve l vision an d con cre te obje ctive s of EI in 3 th e sele cte d EBS. Th e in dustry e xpe c tations ( tre n ds) are also re vie we d to asce rtain organ ization al dire ction. T h e IS an d PC n ow n e e d to d e lin e ate th e Pe rform an ce Indicators ( PI) for th e organ ization an d for the give n in dustry sector, th e se h e lp th e re c ogn ition of the Pe rform an ce Drive rs ( PD) for th e organ ization ( an d in dustry se ctor) . ( Th e pe rform an ce drive rs can loose ly be lin ke d to de te rm in e Critical Suc ce ss Factors for the organ ization ) . Th e se con d obje ctive is to e stablish th e dire ction of e n te rprise in te gration with in th e conte xt of th e organ ization ( A11 32) . Th is is done by ide ntifyin g th e EBEs of th e organ ization , an d pote n tial opportun itie s that m ay be e xp loite d by m an ag e m e n t th rough EI activitie s. Th is will sh ow th e IS an d PC wh e r e th e re al boun darie s of th e organ ization are ( as th e re m ay be EBEs in the valu e ch ain wh ich are e xte rnal to th e organ ization ) , an d de fin e th e e xte n t an d scope of EBEs op e ratin g with in th e organ ization ( as we ll as th e intan gible lin ks an d construc ts be twe e n EBEs) . Th e scope of an EBE m ay be ide ntifie d by lookin g at th e products of an EBE an d re late d activitie s in a m atrix form . Th e actual valu e s of the e arlie r de te rm ine d pe rform an c e in dicators an d pe rform an ce drive rs for e ach EBE are also re vie we d, i.e . the m e asu re s th at allow th e asse ssm e n t of th e curre n t position of th e EBE with in th e give n e n te rprise an d e n viron m e n t ( Lu ce rtin i et al. 1995 ) , an d the unde rlyin g m e asu re s th at de te rm in e th e pe rform an ce of the EBE. Th is allows m an age m e n t to e licit th ose activitie s wh ich are of prim e im portan ce in th e fulfillm e n t of th e organ ization al m ission ( in oth e r words, m an ag e m e n t will m ake e xp licit th e key issue s th at n e e d solution in th e EI proce ss) . As e ach EBE is de sign e d to contribute to th e wh ole of th e organ ization al m ission, the IS an d PC re vie w th e strate gic dire ction an d ope ratin g policie s for e ac h EBE to de te rm ine wh e th e r th e EBEs are actually ope rating con du cive ly to th e c urre n t organ ization al m isison , vision an d valu e s. From th e above in form ation an d knowle dge , the IS an d PC sh all be able to obtain a pic ture of th e organ ization ’ s curre n t pe rform an ce an d

435

se e h ow it re late s to the pote n tial be ne fits of an e n te rprise in te gration program m e . Th e asse ssm e n t of th e EBEs m ay in clude ( without a de taile d an alysis, i.e . pure ly base d on the pre se n t un de rstan din g of the IS an d PC) the n otion of m atu rity ( Pau lk et al. 1993 ) . Th e third obje ctive for this section is to pre pare a re port outlin in g th e Rapid An alysis fin dings ( from A1131 an d A113 2) with re fe re n ce to the be n e fits EI can brin g to the organ ization ( A1133 ) . Th e Rapid An alysis Re port is pre pare d for uppe rle ve l m an age m e n t re vie w. Th is re port is de sign e d to e n han ce th e com ple te n e ss of curre n t strate gic docum e ntation. It collate s all m ate rial an d fin dings into on e docum e n t an d in dicate s the followin g in form ation .

· · · · · · · ·

How the organ ization is curre n tly pe rform ing with in th e give n industry se ctor. Wh at drive s the pe rform an ce of th e organ ization . Wh at are the curre n t busin e ss an d m arketing strate gie s. Wh at are the e xp e cte d in dustry tre n ds. A list of th e organ ization ’ s EBEs. Th e pe rform an ce indicators an d drive rs for e ach EBE, th e organ ization as a wh ole an d th e in dustry se c tor. Th e pe rce ive d m atu rity of th e EBS. Th e e xistin g strate gic dire ction an d e n com passing policie s for e ach ide n tified EBE.

Th e Rapid An alysis Re port will in dicate to m an age m e n t th e c u rre n t statu s of th e organ ization , th e e xp e c te d fu tu r e tre n d s ( wh ic h will n e e d to be ad dre ssed) , an d if the re are an y EBEs wh ich are e ith e r:

· · ·

not pe rform ing we ll. have the pote ntial to pe rform be tter ( e con om ically an d ope rationally) . have de viate d from th e ir original m ission ( ide ntifie d with a de viation from contributin g to th e organ ization al m ission ) con se que n tly re quirin g ch an ge ( in cludin g th e form ation of n e w EBEs) .

Th e m ain th e m e of th is an alysis is for the IS an d PC to re vie w th e organ ization’ s pe rform an ce subje ctive ly an d to the n con trast th e ir pe rce ption s with obje ctive in form ation such as the pe rform an ce indicators.

2.5. Determin e v iability of u n dertakin g EI feasibility stu dy (A114 ) For an e nte rprise in tegration proje ct to be succe ssfully im p le m e n te d, th e re m ust be c on se n sus an d com m itm e n t from all in tere ste d stake h olde rs. Howe ve r,

3

We stre ss th at a SWO T an alysis sh ould always be relative to th e in te n de d concrete obje ctive s Ð with out th e se SWO T an alysis is a p ointle ss activity.

436

G. Uppin gton an d P. Bern us 2.6. Seek approv al for specific EBE feasibility study (A11 5) Th is activity involve s gain ing organ ization al an d in divid ual m an age m e n t ap proval ( in th e ligh t of th e FS guide line s) for con ductin g fe asibility studie s with in spe cific EBEs. It m ay be valu able to provid e the de tails of the se guide line s to all organ izational staff poten tially affe cte d by th e EI proce ss. Th is e xe rcise sh ould play a part in p r om otin g e m p loye e in vo lve m e n t in th e c h an ge proce ss an d subse que n tly re duce th e le ve l of cultural re sistan ce . Depe nding upon th e cultural situation an d con te xt, approval for the FS m ay or m ay n ot h ave to be sough t from oth e r uppe r-le ve l m an age m e n t ( e .g. it m ay be done un de r th e au spic e s of the IS an d the m an age r of th e se le cte d EBE) . It can be se e n th at th e FS is sim ilar to the PFS with e ach succe ssive ph ase buildin g on the findin gs an d in form ation of th e pre vious phase s. Th e activitie s with in th e FS utilise th e fin din gs from th e PFS, allowin g th e FSIT to obtain inform ation qu ickly as th e focus of in ve stigation is m ore de fine d.

as the le ve l of inve stigation de scribe d in se c. 2 is m ain ly e xp loratory ( fact-findin g) , the e m phasis of the pre se n t activity ( A1 14) is to de term in e the viability of e nte ring th e ne xt ph ase Ð the fe asibility study. Th is activity is th e re fore con duc te d by the IS an d PC, still at a h igh le ve l, de te rm in in g the dire ction for th e e n suin g FS, base d on the re sults of th e Rapid An alysis wh ich de te rm in e s th ose EBEs wh ich offer opportun itie s for im prove m e n t through the EI proce ss. Th is stage will give dire ction for th e FS an d will de te rm in e ne ce ssary fundin g le ve ls, re source com m itm e nts an d sch e dule s. Th e IS an d PC re vie w th e fin din gs from th e Rapid An alysis ( wh ic h is th e h e art of th e PFS) h avin g e xam in e d EI m e th od ologie s ( A112) an d the be n e fits of EI, possible or con cre te EI obje ctive s an d goals for th e organ ization , e tc. Th e list of pote n tial EBEs is inve stigate d to de cide wh e th e r th e re is an EBE on wh ich an EI proc e ss is to be c on duc te d an d to de te rm in e th e m ost prom isin g choice . Th is de te rm in ation is m ad e by con side rin g a n um be r of factors, such as th e e xpe cte d valu e ad de d by EI, th e availab ility of re source s for the FS, the tim in g of com pan y tran sform ation s, re quire d le ve ls of com m itm e n t for the FS, th e availab ility of ne ce ssary skills to do th e FS, an d ove rall m an age m e n t obje ctive s to be re alise d by th e com ple tion of th e FS. O nce it is de cide d th at the re will be be n e fit from th e EI proce ss, m an age m e n t ch oose wh ich of th e EBEs will be in ve stigate d in m ore de tail in th e FS an d de te rm in e th e c on strain ts ope ratin g up on th at in ve stigation . Com m itm e n t to th e ch an ge proce ss from th e m an age m e nt of the ch ose n EBE ( an d th ose th at in te ract with it) will be gain e d as part of this activity to re duce pote n tial political proble m s. Th e IS an d PC sh ould e nsure satisfactory pe rson ne l are availab le for th e Fe asibility Study In ve stigatory Te am ( FSIT) to be form e d from th ose pe rson ne l wh o are usually re spon sible for policy-m akin g in th e EBE. Th e size of th e FSIT sh ould be sm all, e .g. thre e pe ople for an inve stigation pe riod of two to thre e we e ks. In th e sele ction of the se pe ople , on ce could draw on pote n tial m e m be rs of th e 4 latter to be e stablishe d Ste e rin g Com m ittee ( SC) . Guide lin e s for the FS are drawn up e stablishing th e obje ctive s, re quire d fundin g, re quire d re source s an d le ve ls of com m itm e n t an d a proje ct sche dule is also con structe d. Th e se are th e n passe d to oth e r m an age m e nt wh ose com m itm e n t is re quire d an d n e ce ssary for th e succe ssful com ple tion of the fe asibility study.

3. EBE id e n tif icatio n Ð

f e asib ility stu d y

O n ce th e pre -fe asibility study h as shown th at the re e xists a poten tial gain to be de rive d from ch an ge with in an EBE an d EI is th e m ost approp riate m e thodology for ch an ge , a fe asibility study is carrie d out outlin in g in m ore de tail the im pacts an d be ne fits to flow from EI. The FS is con ducte d at the in divid ual EBE le ve l so as to e n sure a gre ate r le ve l of spe cificity. Man ag e m e n t m ay de cide to con duc t m ore th an on e fe asibility study in paralle l. Th is pap e r de scribe s th e proce ss of h ow on e feasibility study is carrie d out for on e EBE se le cte d by m an age m e n t on the basis of th e PFS findin gs. Th e am oun t of re vie w an d in ve stigation within this ph ase de pe nds upon th e IS an d PC’ s un de rstandin g of th e curre n t `AS-IS’ situation . Mu ch of the in form ation to be e luc idate d m ay be alre ad y availab le in re ce n t com pan y studie s, strate gic busin e ss re ports an d othe r docum e n tation wh ich allows th e tasks to the n be `collate , com ple te an d brin g up to date ’ th e alre ad y availab le in form ation . Th e obje ctive of th e feasibility study is as follows.

· ·

4

Note th at th e Feasibility Stu d y m ay sh e d som e d e taile d AS-IS an alysis, wh ich wou ld re quire ad ditional e ffort by m e m bers train e d in th e utilise d an alysis m e th o d.

·

De te rm ine the e n viron m e ntal influe nce s on th e EBE. High ligh t an d characte rise dom ain s of activity, an d with in the se dom ain s th e ope ratin g proce dure s an d proce sse s of th e EBE. Re vie w th e curre n t strategic dire ction an d policie s of th e EBE an d subsequ e n tly de ve lop a n um be r of

Assessing the n ecessity of en terprise chan ge diffe re n t sce narios, sh owin g th e m ost ap propriate an d de sirable TO -BE EBE form s. Evalu ate th e costs an d be n e fits to be gain e d from e ach such tran sform ation proce ss. Nom in ate th e tran sition obje ctive s of e ach form . Deve lop gu ide line s for use wh e n th e Plan n ing Te am are de signin g th e future form of the EBE an d are plan n ing th e actual tran sition proce sse s to th at form .

437

· ·

· · ·

De cision to carry on with the de ve lopm e n t of an EBE Maste r Plan ( A126) . An ad ditional activity ( if n e ce ssary) is th e train ing of the FSIT m e m be rs in th e EI m e th odology ( A1 27) .

3.1. EBE en v iron men tal appraisal (A121 ) Th e m ain purpose of this activity is for th e FSIT to pin poin t th e curre n t e n viron m e n tal in flue n ce s ac ting u pon th e EBE. Th e e valu ation of e ac h of th e se e n viron m e ntal factors should include a state m e nt of e xp e cte d future tre n ds wh ich assist in the gu idan ce of th e de ve lopm e n t of future strate gie s an d vision s. With in th is stage the FSIT

Th e FS will be con ducted unde r th e guidan ce of th e IS an d PC, by th e FSIT. Th e le ad e r of th e FSIT could be re portin g to the IS. Th e fe asibility study ( A12) is divid e d in to six m ajor stage s ( figu re 4) .

· · · · ·

Ap praisal of EBE En viron m e nt ( A121) . Ap praisal of EBE Corporate En viron m e n t ( A1 22) . Deve lopm e n t of EBE TO -BE Sce narios ( A12 3) . Evalu ation of TO -BE EBE Alte rn ative s ( A1 24) . Provision of Guide line s for th e Maste r Plan n ing Proce ss ( A125) .

· ·

re vie ws the m arke t within wh ich the EBE ope rate s; re vie ws th e com pe titive force s im pactin g on th e EBE. For inte gration to m ake th e be st use of th e organ ization’ s re source s, m an age m e n t m ust have

Figure 4. Stages of the Feasibility Stud y.

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G. Uppin gton an d P. Bern us a th orough un de rstan ding of th e ir com pe titive e nvironm e n t. It is th e natu re an d struc ture of th e ch osen in dustry ( an d h ow th e organ ization de als with the se) that indire ctly de te rm in e s the profitability of the orgain ization . Profitability is stron gly in flue n c e d by h ow th e organ ization ope rate s with in th e five com pe titive force s ( Porte r 1980, 5 1985 ) ; re vie ws th e curre n t use of tech n ology within th e 6 EBE re lative to te ch nology use in th e com pe titive e nvironm e n t to ide n tify de ficie n cie s, ne e d for m od e rn isation , or e xpe c te d fu tur e n e e d for ch an ge in th is re gard ; con ducts an e con om ic an alysis to asc e rtain th e pe rform an ce p osition of th e EBE with in th e e con om ic e nviro nm e nt in wh ich the EBE is actin g; con ducts a gove rn m e nt ( political) an alysis to show th e curre n t le gislative an d taxation constraints th e EBE ope rate s with in . Th e first part of th is activity in clude s an ide n tification of the EBE’ s curre n t dom ain s of activity ( A122 1) . The se con d step is a re vie w of th e se dom ain s ( A122 2) . Muc h of th is re vie w is sim ply de tailing the fin din gs of th e PFS, with th e vie w of n ow fin d in g c on c re te obje ctive s for ch an ge in the in ve stigate d dom ain . A re vie w of th e dom ain s follows. ( 1) Th e FSIT de fine the boun darie s of ope ration of the se dom ain s de lin e atin g th e tan gible an d intan gible lin ks be twe e n th e EBE un de r in ve stigation an d oth e r EBEs as we ll as am on g th e dom ain s ide ntified ( e .g. points of in te raction , e xisting re lationsh ips an d an y sign ifican t in flue n ce s de e m e d im portan t by th e FSIT) . For e ach dom ain , its busin e ss proce ss sh ould also be liste d at a h igh le ve l. ( 2) Th e FSIT ide n tify th e busine ss goals an d critical succe ss factors for th e EBE an d its dom ain s. For e ach dom ain , th e FSIT sh ou ld ide n tify th e inte rn al or e xte rnal com pe titive force s im pacting upon it, an d the com pe titive stre n gth th e dom ain curre n tly has, as we ll as th e com pe titive stre n gth th e dom ain should have . ( 3) Th e FSIT asse ss the EBE th rough th e ch aracte rization of e ach dom ain an d, se parate ly, e ach busin e ss proce ss within th e se dom ain s ( Rolstadas 1995 , Bu ssle r 19 95) . Th e re sult will be a table th at state s the m ost im portan t obse rvation s of th e FSIT re gar din g th e curre nt state of the EBE an d its dom ain s, sh owin g FSIT opinion s re gar ding:

·

· ·

Th e last activity with in this se ction is to conduct a social an alysis of curre n t social e xp e c tation s im pacting 7 th e EBE, an d h um an re source s, work-force availab ility an d culture .

3.2. EBE corporate appraisal (A122) Th e purpose of a corporate ap praisal is to in ve stigate th e in te rn al factors affe ctin g th e curre n t pe rform an c e of th e EBE. Th e purpose of this activity ( A122 ) can be sum m arize d as ide n tifyin g the dom ain s of activity of th e EBE, wh at proce sse s are im portan t with in th e se dom ain s, wh at is the curre n t situation within th e dom ain s of the activity, an d fin ally, con trastin g th e curre n t pe rce ive d m ission, vision an d valu e s with th e findin gs.

· · · · ·

the de cision / m an ag e m e n t structure ; in form ation an d m ate rial flows ( i.e . th e ir in te rface s, con trol an d oth e r re le van t prop e rtie s) ; 8 e con om ic pe rform an ce ; 9 hum an re source fun ction ality; an d othe r proble m atic are as.

5

Porte r’ s Five Com p e titive Forces are : e xistin g in dustry rivalry, p ote n tial e n tran ts, supp liers, buyers, an d substitu te s. Man age m e n t m u st consid e r th e collective stre n gth s of th e se five forc e s at th e local an d global le vel in orde r to ge n e rate e ffe c tive c om pe titive strate gie s. With such in form ation , m an age m e n t are bette r able to form ulate d e c isions assistin g th e organ ization in re ac h in g its objec tive s. 6 Wh at typ e s of te chn ology th e EBE is curre n tly u sin g, e .g. sp e cific typ e s of food te ch n ology, in form ation te c h n ology. Exam p le in th e H ospitality In d u stry, it is a substantial asp e c t of te chn ology th at it is e m p loye d to facilitate e fficie n t an d e ffe ctive custom e r ± e m p loye e in te raction in atte m p tin g to raise th e quality of se rvice ( O lse n et al. 1992) . 7 Exam p le accordin g to th e h ost c ountry an d clien t c ultu re Ð th e social e xp e ctation s are in trin sically imp ortan t in th e p re -se lec tion p roce ss th at c lie n ts cond uct in th e com parsion of h ospitality e n te rprise s wh ose se rvices th e y in te n d to use. Knowle d ge of h ost coun try an d clien t culture assists in appraising th e n e e ds an d e xpe ctation s of p re se n t an d fu tu re custom e rs, wh ich fac ilitate s th e de ve lo pm e n t of a good im age of th e organization. Con tin ual m ain te n an ce of th is n otion of im age will assist th e organization in ach ie vin g its obje ctive s.

Th e FSIT should not be lim ite d in its con side ration s Ð the obse rvations m ay span e ach or an y asp e ct of th e EBE, its dom ain s, an d busine ss proce sses such as liste d in th e e xam ple sh own in table 1 or in th e followin g subse ction s.

8

To ide n tify ( p ossibly th rough a Valu e Ch ain An alysis ( Porte r 1985) ) th e c ontribution to th e valu e p rodu ce d or cost in curre d to th e product of th e EBE/ d om ain / proce ss an d to id e n tify th e re source usage ( possibly th rough usin g RO I or re source utilisation charts) . 9 It is im portant for m an age m e n t to se e wh e th e r th e EBE h as all th e n e cessary busin e ss fu n ctions prese n t th at sh o uld be c ontribu tin g to its products or se rvices.

Assessing the n ecessity of en terprise chan ge
Table 1. EBE obse rvations ( Le ge nd; 4 Good, 5 Bad, ? m ay ne ed im prove m e nt) . Inform ation and m ate rial Econ om ic flows pe rform ance

439

Dom ains of activity Quoting / Bidding Service Strategic m arket planning Su p p ort Man agemen t Strategic m anage m ent Quality m anage m en t Fin ancial an d e con omic m anagem e nt Research and developmen t Prod uct deve lopm ent Te chnological de ve lopm e nt In ternal services Hum an resource s m anagem e nt Te chnological de ve lopm e nt Mainte nance

De cisional/ m anage m ent structure

Functionality

Pre se nt, Not Pre se nt and not n ece ssary, O the r n ece ssary ne cessary pre se nt

· · · · · · · · ·
4 4 4 4 4 ? 4 ? ? 4 ? 4

5 5 5

· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

4 4 5 4

4 4

? ?

? 4

4

? ?

4 4

4 4

4 5

4 5

4

4

5

4

5

4

4

Th is se cond ste p ( re sultin g in a table like table 1) allows th e FSIT to de cide wh e th e r th e AS-IS situation is cle arly un de rstood , an d re sults-in th e de cision on wh e re to ( an d not to) und e rtake a m ore th orough AS-IS an alysis. Note th at an AS-IS an alysis m ay have two obje ctive s, to obtain : ( 1) A m ode l re fle ctin g the curre n t state of affairs in the an alyse d e n te rprise dom ain ; re sultin g in a de e pe r un de rstan din g by m e m be rs of th e FSIT of th e ir own e n te rprise . ( 2) For th e FSIT to gain e xp e rtise in h ow to use e n te rprise m ode llin g for th e ir an alysis of th e busin e ss dom ain s. If the FSIT is in e xpe rie n ce d in m ode llin g an d an alysis, the n th e se cond gain alone is worth th e e ffort. As a re sult th e FSIT will se e the valu e of ap plyin g an alysis an d m ode llin g in the subseque nt EI Maste r Plan n in g proce ss. Th e y will also gain som e proficie ncy in applyin g an alysis m e th ods to the particular busin e ss dom ain . It m ay h ap pe n th at th e FSIT re alise : the curre n t dom ain is in such a bad state ( 5 ) th at m ore AS-IS an alysis is not like ly to con tribute to an y im prove m e nt. In th is case th e AS-IS an alysis m ay be aban don e d but th e

opportun ity of train in g on th e AS-IS an alysis m ust be re place d by an oth e r form of train ing ( e .g. th rough th e study of e xisting te xtbook m ode ls) . If th e FSIT e xp e cts im prove m e n t of th e dom ain to be ach ie ve d or is un ce rtain in its ch aracterization ( ? in table 1) , an AS-IS an alysis is pe rform e d. If the dom ain is judge d pe rform in g to the satisfaction of all partie s ( 4 in table 1) the re is n o ne e d for AS-IS an alysis ( or ch an ge ) in th at dom ain . Eve ry such AS-IS an alysis re sults in a re pre se n tation of th e dom ain wh ich is th e n asse sse d on its own righ t ( e .g. are the re an y struc tural proble m s, m issing links, qualitative or quan titative de ficie nc ie s e tc?) an d com pare d to oth e r sim ilar dom ain s of oth e r e n te rprise s, usin g be nc hm arking te ch nique s. 3.2.1 . Rev iew of decision al / man agemen t structu re. To com ple te this type of AS-IS an alysis, th e FSIT sh ould re vie w th e de c ision an d m an ag e m e n t stru c tu re ( c on trol h ie rarch ie s) of th e EBE an d its dom ain s for wh ich an AS-IS an alysis was de e m e d n e ce ssary. Th e an alysis will ide n tify th e e xisting ch ain s of au thority an d span s of con trol wh ich affe ct th e com m un ication an d in form ation chan ne ls with in an d be twe e n th e dom ain s an d ide n tify th e de cisional ce n tre s an d de cision al role s with in the dom ain s as we ll as th e ir con n e ction s. A GRAI-grid ( Doum e ingts et al. 1995 , MacIntosh an d Carrie 1995, Be rnus et al. 19 96) m ay be use d in th is

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G. Uppin gton an d P. Bern us to m e asu re the pe rform an c e of th e dom ain . Th e pe rform an ce crite ria sh ould be e valu ate d to asse ss th e ir valid ity as the y are ope n for custom ization accordin g to th e dom ain ; i.e . not all pe rform an ce indicators/ c rite ria are ap plicable in all dom ain s. If th e pe rform an ce crite ria are n ot be ing m e t, it in dicate s th e dom ain m ay re quire chan ge . A use ful way of de rivin g e conom ic pe rform an ce in dicators ( an d ide ntifyin g pe rform an ce drive rs) is for th e FSIT to cre ate an Activity Base d Costin g ( ABC) m ode l of th e in ve stigate d dom ain or proce ss ( Lu ce rtin i et al. 19 95) . Th e ABC m ode l could e ithe r be se parate ly cre ate d or as an e xte n sion to fun ction an d re source m ode ls ( e .g. CIMO SA) cre ate d as part of th e in form ation an d m ate rial flow an alysis. Th e de ve lop m e nt of a ne w pe rform an ce m e asu re m e nt system is of course n ot th e task of th e FSIT; it could be done by the Maste r Plan n ing te am as part of th e EI Program m e . To su m m ar ize , e ith e r th e r e are p e rfo rm an c e in dicators, wh ich can be used to be n ch m ark the EBE ag ain st com pe titors an d e xpe cte d tre n ds ( in wh ich case be n ch m arkin g is use d to asse ss th e ne e d for ch an ge ) , or th e re are n o pe rform an ce indic ators ( or th e re e xist on ly partially de ve lope d one s) Ð in wh ich case th e ne e d to de ve lop the se is part of th e task of th e e n suin g m aste r plan n in g proce ss. 3.2.4 . Rev iew of hu man resou rce fu n ction ality. Th e h um an re source fun ction ality is re vie we d from th e point of vie w of th e hum an re source structure , fun ction an d role s ( Cu rtis et al. 1995) showin g how the dom ain ope rate s at th e le ve l of th e orgaization al actor Ð i.e . th e in divid ual in the organ ization ( as th e re m ay be a n um be r of h um an -ce n tre d p rod uction an d se rvice p roc e sse s) . Note th at e ve n th ough a sim ilar typ e of an alysis h as be e n carrie d out for h um an m an ag e m e nt role s in th e first ste p ( de cision al m ode l) , th is an alysis looks at th e in divid ual in th e se rvice / production proce ss. In this step, th e FSIT sh ould conside r h olistic asp e cts as we ll as the h um an re source , as it ofte n h ap p e n s th at u n e xp lain e d ( i.e . n ot m ode lle d or quan tifie d ) ch aracte ristics of th e h u m an re sou rse in flu e n c e th e se rvic e / p r od u c tion . We argu e th at pe rson ality an d m an age m e n t in tuition should n ot be disre gard e d in a m isgu ide d que st for quan tifyin g e ve ry d e c ision . Sh ou ld th e qu an tifie d asp e c ts an d th e in tuitive asp e cts of the an alysis be in con flict, th is activity will she d light to proble m s th at ne e d to be con fron te d. 3.2.5 . Su mmary of AS-IS an alysis. It is e xp e cte d th at the se an alyse s will fill in the gap s in the un de rstan din g of th e curre n t AS-IS situation with in the EBE ( th e re will be n o

an alysis. Base d on th is asse ssm e nt, th e FSIT can `m ap’ the curre n t EBE’ s organ ization on to a GRAI-grid, lab e llin g th e EBE’ s or gan ization al un its ( pe op le / groups) with `role s’ in th is m ap. This an alysis n orm ally allows for th e ide ntification of proble m poin ts, e .g. th e FSIT can , th rough this an alysis, ide n tify n on-con tributin g role s, c on flictin g role s, in c on siste n t de cision al fram e works, e tc. An alysin g th e de cision m ode l of th e pre se n t EBE ( dom ain of activity) allows the FSIT to an swe r part of th e que stions of th e People Cap ability Maturity Mode l ( PCMM) ( Cu rtis et al. 1995 ) . A PCMM is a m ode l de scribing various le ve ls of organ izational m aturity re gard in g how it m an age s its h um an re source s. Furth e r an swe rs to th e PCMM can be de rive d from th e fun ctionality an alysis be low an d from th e e n viron m e n tal an alysis A1216. 3.2.2. Rev iew of in formation an d material flows. Th e FSIT ide n tify th e inform ation an d m ate rial flows with in an d be twe e n th e dom ain s of activity to sh ow ( from a logical vie w) th e ir in terface s. Th e re are two typ ical proble m typ e s th at can be pinn e d down in th is an alysis ste p: ( 1) Th e inte rfac e s ( in form ation an d m ate rial flow) with in the an alyse d EBE an d dom ain are n ot we ll de fin e d ( e .g. inform ation an d m ate rial flow are n ot coordin ate d, the data an d m ate rial e xchan ge is base d on ad hoc m e thods, e tc.) . ( 2) Th e in te rfac e s are d e fin e d , bu t d ata an d m ate rial e xch an ge is ine fficie n t ( e .g. due to too m an y proce ss ste ps, bottle n e cks, in e fficie n t tech n ology, e tc.) . Th e ide ntificatio n of th e se proble m s can be don e th rough : ( 1) qualitative inform ation an d m ate rial flow m ode ls of th e dom ain ( e .g. IDEF0, Data Flow Diagram s, CIMO SA fun ctions an d in form ation vie ws ( Ve rnad at 1995) , Pe tri Ne ts, En tity re lationsh ip- or O bje ct-orien te d sch e m ata) ; ( 2) quan titative an alysis ( m ostly ach ie vable th rough sim ulation m ode llin g) to ch aracte rize th e in form ation an d m ate rial flow in the dom ain ( e .g. usin g CIMO SA, Tim e d Pe tri Ne ts, GPSS/ SIMSCRIPT, GERT / Q GERT, e tc) . 3.2.3. Rev iew of econ omic performan ce. Th e FSIT re vie w th e e conom ic pe rform an ce of e ach dom ain of activity for wh ich an AS-IS an alysis was de e m e d ne ce ssary. Th e FSIT sh ould ide n tify if th e r e e x ists p e r form an c e indic ators an d corre spondin g crite ria at all to m e asure th e pe rform an ce of th e dom ain . If no such crite ria e xists, th e n the FSIT m ust de ve lop pe rform an ce crite ria

Assessing the n ecessity of en terprise chan ge que stion m arks `?’ in table 1) . If a m ore de taile d AS-IS an alysis is re quire d , the FSIT re vie w in m ore de pth th ose ite m s ide ntifie d with a que stion m ark `?’ in th e pre vious activity. Th e fin dings from th e se inve stigation s an d re vie ws can now be contraste d with the curre n tly pe rce ive d 10 m ission , vision an d valu e s of th e EBE ( A1224 ) to id e n tify th ose proce sse s wh ich d o n ot c on tribute toward s com pe titive ad van tage or the pe rform an ce of wh ich is n ot to the de sire d le ve l. Th e FSIT also ide n tify th ose dom ain s of busin e ss activity wh ich should h ave cle arly de fin e d pe rform an ce in dicators, but do n ot h ave th e m ( note : th is is not always achie vable ) . O n th e p re se n t c orporate ap p raisal le ve l it is de sirable to ide n tify n ot on ly th e proble m pe rform an ce indic ators but also th e proble m drive rs. Th is is so, be cau se it is th ose dom ain s of activity ( or proce sse s with in th ose d om ain s) th at n e e d c h an g e wh ic h e n com pass th e pe rform an ce drive rs at fault. In th ose e n te rprises wh ich alre ad y do have we ll de fin e d proce sse s, th e corporate appraisal could un ve il th e proce sse s with the pe rform an ce drive rs that cau se con ce rn. Th us con ducting an an alysis h e re h as th e pote n tial to ide ntify a re lative ly sm alle r are a that n e e ds chan ge . It sh ould be ke pt in m in d th at sign ifican t pe rform an c e drive rs m ay be outside of th e give n 11 dom ain . Howe ve r, th e e nte rprise m ay n ot be at th e le ve l of m atu rity of `ope ratin g we ll de fin e d proce sse s’ ( Pau lk et al. 1993 ) in wh ich case the `too de e p’ an alysis of th e pre sen t situ ation m ay n ot prom ise m uch an d th e chan ge should be dire cted to `de fining proc e sse s’ as a priority in the ch an ge proc e ss. A valid re ason for un de rtakin g an EI program m e m ay be to bring the EBE from one le ve l of m atu rity to th e n e xt ( Pau lk et al. 19 93) . It will th e n be up to th e m aste r plan ning team to e nsure th at the pe rform an ce drive rs with significan t im pact on pe rform an c e in dicators of the EBE be com e con trollable in the TO -BE state of th e EBE. Th is allows n ot on ly th e ide n tification of poten tial are as of im prove m e n t but also th e ability to re c ognize `non -valu e -ad ding’ proce sse s as an organ ization profits from succe ssful com pe tition an d e fficie n t utilization of re source s ( Sage r 1990 ) ( n ote: the e m ph asis h e re is to re cogn ise an y proble m s, con tradiction s, m issing de tails e tc., n ot to solve th e m ) . Im portan tly though , it is n ot ad vise d to take a dogm atic vie w of valu e ad din g, valu e can be ad de d in form of the product or in form of

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cre atin g future capability wh e re th e con sum e r of th e prod uct is th e future e n te rprise . Th is su bse c tion gave d e tails of th e c orp orate ap praisal. Th e re sult of th is ap praisal allows th e FSIT to cle arly see if th e re is an y strate gic gap be twe e n th e curre n t practice s an d th e pe rce ive d curre nt ope rational m ission, visio n an d valu e s ( Howe 1986) . Th e re sult will th e n be used to dire ct th e ch an ge with in th e EBE.

3.3. Develop EBE TO-BE scen arios (A123 ) Th e ce ntral com pone n t of this activity involve s th e de ve lopm e n t of alte rn ative EBE TO -BE sce narios. A n um be r of TO -BE sce narios ( future de sire d state s) can be de ve lope d to facilitate var ious ide ntifie d opportun ities an d to allow for the e valuation of strate gic alte rn ative s. Th is activity in volve s the ide n tification of sign ifican t opportun itie s ( Gasse r an d Majch rzak 1995 ) for EBE ch an ge ( incorporating the high le ve l vision wh ich was th e drive r be hin d th e PFS) . Th e opportun itie s for ch an ge are m ad e e xp lic it th rough the e n viron m e ntal an d corporate asse ssm e n ts Ð A12 1 ( if tre n ds or fore casts in dicate ch an ge is re quire d ) , an d A1 22 ( if strate gic gaps are ap pare nt) . Th e activity re quire s th e re cognition of an y con strain ts to EBE c h an ge proce ss ( soc ial e xp e ctation s, le gislative con strain ts, e tc.) an d con clude s with th e ge n e ration of alte rn ative EBE TO -BE sce n arios.

3.4. Ev alu ate EBE altern ativ es (A124 ) Each EBE TO -BE sce n ario is e valu ate d as to its viability re gar ding its costs an d be n e fits an d im ple m e n tability in the give n organ ization al con text. Th is e valu ation will use th e re sults of th e e nvironm e ntal an d corporate ap praisals Ð i.e . doe s the known EI m e th odology han dle the typ e of ch an ge re quire d an d is th e m e thod im ple m e ntable in the organ ization ? Ð an d a fe w oth e r spe cific in flue nc in g factors tre ate d be low. Th e activity be gins with a cost/ be n e fits an alysis ( A124 1) for e ach de sire d EBE TO -BE sce n ario to asse ss th e costs of un de rtaking EI with in the EBE in vie w of th e ide n tifie d be n e fits. Th e FSIT also an alyse th e im m e diate e n viron m e ntal variab le s ( A124 2) of th e EBE, to fin d out wh e th e r the y will influe n ce the se le ction of the m ost ap propriate EBE TO -BE, as follows.

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If ap p licable. Th is in dicate s strate gic in stability for th e e n te rprise.

Th e FSIT con side r th e cau se s an d le ve ls of syn e rgy an d cohe sion th rough out an d be twe e n inte racting busine ss dom ain s. Th e FSIT sh ould con side r th e curre n t situation as we ll as th e structure inh e re n t

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G. Uppin gton an d P. Bern us in the EBE TO -BE sce n ario. Exam ple , if c han ge is n e e de d in one dom ain `D’ , h ow will th is e ffe ct othe r dom ain s, an d will the se oth e r dom ain s be able to absorb the re sulting ch an ge e ffe cts, such as th e ir usual way of in teraction with th e dom ain `D’ , Such conside ration usually re sults in an e scalation of th e chan ge proce ss to dom ain s ne ighbouring th e on e th at is fun dam e n tally alte re d. The re sult will sh ow th e FSIT the scope of ch an ge that th e FBE should go th rough . Th e FSIT trie s to ide n tify in te rn al social fun ction s to un de rstand th e con strain ts an d lim itation s th at influe n ce an d dictate a succe ssful EBE ch an ge proce ss ( e .g. Ciborra 1984 , Brodwin an d Bourge ois 19 91 in O lse n et al. 199 2, Alte r 199 2, Be rgquist 1993 , Hasan an d Ch e un g 19 93) . Th e FSIT ide ntify th e powe r an d political con structs ( base d on th e m an ag e m e nt an d de cision structure ) as an alyse d in A12 221 to se e how the se in flue nce the daily work practice s in th e organ ization as th e y m ay im pact on th e succe ssful ch an ge proce ss ( Morgan 1986 , Valle n an d Valle n 1991 , O lsen et al. 1992 , Walsh am 1993 ) . Th e positive an d ne gative e ffe cts of th e possible ch an ge sce n arios on th e powe r culture of th e organ ization are ide ntifie d. Th e FSIT sh ould be able to te ll, by the e nd of the activity, wh at force s will support an d wh at force s will oppose th e ch an ge an d wh y. An an alysis is in clude d of th e group dyn am ics an d organ ization al le ade rsh ip issue s wh ich m ust be allowe d for as th e y m ay im pac t on the succe ssfu l ch an ge proce ss ( e .g. Pfe ffe r 1981 , Fran z an d Ro be y 1987) . Th e FSIT sh ou ld id e n tify th e p e rson n e l, wh o th rou gh le ad e r sh ip qualitie s would carry th e ch an ge proce ss ( both te ch nical an d m an age rial le ad e rsh ip is to be ide n tifie d) . If ce rtain qu alitie s are not pre sen t, th is n e e ds to be cle arly state d. For th e sele cte d sce n ario, the FSIT should ide n tify a first-c ut se t of tran sition re quire m e n ts an d obje ctive s. The tran sition ( EBE TO -BE) re quire m e nts an d obje ctive s are form ulate d to m e e t A121 ( EBE En vironm e n tal Appraisal) an d A12 2 ( EBE Corporate App raisal) fin din gs. The se tran sition obje ctive s will be utilised late r in d e fin in g th e EBE TO -BE in th e Maste r Plan n in g proce ss. Th e FSIT could colle ct in on e docum e nt the EBE Tran sition obje ctive s an d se le cte d EBE TO -BE sce narios, th is will form a se ction of the FS Re port ( se e A1 25) . The docum e n t will de scribe th e followin g.

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Future busin e ss obje ctive s an d plan s for th e EBE TO -BE. Se le cte d EBE TO -BE sce n arios. Future lon g-te rm capital goals of th e EBE TO -BE. Fu ture strate gic dire ction an d polic ie s to be im ple m e nte d in the EI Maste r Plan . Future syste m arch ite cture an d stan dard s of th e EBE TO -BE. EI Maste r Plan ’ s critical succe ss factors ( the se CSFs are those wh ich m ust be re alise d in orde r for the EI Maste r Plan to be succe ssfully com ple te d) . EI Maste r Plan ’ s lon g-term re quire m e n ts.

3.5. Establish gu idelin es for the EI master plan n in g process (A125 ) Th e e stablish m e n t of the gu ide lin e s for the EI Maste r Plan ning proce ss in volve s the pre paration of th e Fe asibility Study Re port, wh ich in clude s th e followin g. ( 1) Th e re sults of th e ap praisal of the EBE e n virom e n t ( A121 ) , the EBE corporate ap praisal ( A122) , th e de ve lopm e n t an d feasibility of a se le cte d EBE TO -BE sce nario, an d th e ide n tification of the EBE tran sition ( A123, A124) . Each of th e se have be e n pre pare d in th e activitie s de scribe d in the pre vious se ction . The re sults will assist in gain in g m an age m e nt com m itm e n t sh owin g th at th e re is a viable an d valid opportun ity for e n te rprise in te gration with in th e organ ization to e n sure it m ain tain s its com pe titive ad van tage as we ll as cap turin g th e organ ization al m ission , obje ctive s, strate gie s, goals, critical succe ss fac tors e tc. ( 2) Con cre te p lan s for an EI Maste r Plan n in g proce ss are e stablishe d, in cludin g the re quire d re source le ve ls, fundin g, m an age m e nt com m itm e nt, an d a pre lim in ary sche dule for Maste r Plan n in g.

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Th is an alysis can be use d to ach ie ve two goals. It can be utilised to re fine th e ide ntification of th e m ost suitable TO -BE sce n ario, an d it can be utilise d to ide n tify th ose factors th at n e e d to be con side re d durin g th e chan ge proce ss. Re sulting from th e above two activitie s ( A1241 an d A1242) th e m ost satisfying EBE TO -BE sce n ario is th e n propose d by the FSIT ( e .g. th e re sults of the cost/ be n e fits an alysis ( A124 1) an d th e EBE e n viron m e ntal variable s an alysis ( A1242 ) m ay show th at e ve n though a ce rtain form of an EBE TO -BE sce n ario is prom ising to be th e m ost be n e ficial in te rm s of costs; th e EBEs culture , structure an d political proce sse s m ay n ot allow for sm ooth transition ) .

Assessing the n ecessity of en terprise chan ge ( 3) Nom ination of the EI Ste e rin g Com m itte e ( SC) wh o sh all ove rse e th e EI Maste r Plan n in g proce ss an d of th e Maste r Plan n in g Te am ( MPT) wh o will carry out the m aste r plan n ing task. Th e n om ination in volve s th e gain in g of m an ag e rial com m itm e n t of th e SC an d MPT m e m be rs, base d on cle arly stated obje ctive s of the Maste r Plan n in g proce ss as de ve lope d above .

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3.6. Seek approv al for specific EBE EI master plan nin g phase (A12 6) Fin al approval for the EI Maste r Plan n in g ph ase is th e n sough t, base d on th e FS Re port. Th is in volve s gain in g organ ization al an d in divid ual EBE m an age m e n t ap proval for conductin g En te rprise Inte gration Maste r Plan n in g upon a spe cific EBE. Th is ap proval sh ould be gain e d in the ligh t of the guide lin e s as provid e d in th e FS Re port ( se e A125) an d is the in itiatin g de cision to com m e n ce th e Maste r Plan nin g. Within this stage , it m ay be valu able to provid e the de tails of the se gu ide lin e s ( d istribute c op ie s of th e FS Re por t) to all organ ization al staff pote n tially affe c te d by th e EI proce ss. As above , th is e xe rcise sh ould play a part in prom oting e m ploye e in volve m e nt in th e chan ge proc e ss an d subseque ntly re duce th e le ve l of cultural re sistan ce . Min tzbe rg ( 199 4, pp. 207 ± 208 ) writes `plan nin g h as ge n e rally garne re d its gre ate st support wh e n con dition s have be e n re lative ly stable ’ . By this state m e nt Min tzbe rg incorporate s th e ide als that `plan nin g works be st wh e n it e xtrap olate s th e pre se n t or de als with incre m e n tal chan ge with in th e e xistin g strate gic pe rspe ctive ’ . Man age m e n t com m itm e nt is the re fore accum ulate d wh e n it is con vin ce d th at the orgain ization can h an dle chan ge , i.e . wh e n m an ag e m e nt se e that e ith e r ( a) th e de sire d state of modu s operan di is n ot `too far’ from th e curre n t state , or ( b) a viable m e thod of tran sition be twe e n state s is availab le .

re lative ly e asy to obtain . A typ ic al e stim ate for the e ffort an d re source s ne e de d would be about 2 to 4 m on ths, wh e re th e Pre -Fe asibility Study is don e in 6 we e ks by th e IS an d PC, taking a few h ours a we e k on be h alf of the IS an d full-tim e for th e PC. The FSIT would th e n com m it 3 or 4 m an age m e n t le ve l participan ts, workin g in a group for 3 to 4 h ours a we e k an d an ad dition al on e day a we e k com m itm e n t for 1.5 to 2 m onth s. Th e tim e spe nt by th e FSIT sh ould in clude som e in itial in form ation session s, h e ld by th e IS an d PC an d the chair of th e FSIT should pre pare in struc tion s an d sch e dule for th e FS for e ach team m e m be r. Th e FSIT th e n writes up its re port ( e stim ate d to take up 1.5 we e ks at th e e nd of th e FS activity) . Be low is a sum m ary of th e re sults of th e `Ide n tification of the EBE’ stage of th e e nte rprise inte gration proce ss.

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4. Co n clu sio n s

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Th e above m e th odology h as be e n de ve lope d in m ore de tail at Griffith Un ive rsity in th e form of a `proce ss m ode l’ for th e purpose s of a dissertation , an d re pre sen te d as a n e twork of fun ctions th at could be un de rtake n by the ch an ge age nts of an e n te rprise . Th is m ode l of in itiating chan ge allows for th e pre re quisite s for th e e stablish m e n t of the initial EI program m e to be satisfied as de scribe d in William s ( 19 94a, se ct. 2.1) . Th e re ade r sh ould note that in m ost re lative ly he alth y organ isation s th e in form ation n e e de d to carry out this ch an ge -initiation proce ss is e ith e r availab le or

· · · ·

Th e op e ratio n of th e organ ization h as be e n asse ssed in te rm s of e xte rn al an d inte rn al force s. A de cision h as be e n m ad e as to th e n e ce ssity of unde rgoing a coord inate d chan ge proce ss e ffe ctin g on e or m ore of th e busin e ss e ntitie s of th e com pan y. Th e m ost ap propriate m e th od for that ch an ge h as be e n de cide d as we ll as the ch an ge m e th ods’ be ne fits, stan dards, e tc. Th e curre nt ( strate gic an d ope ration al) proble m s have be e n highligh te d. Th e organ ization ’ s stre n gth s an d we akn e sse s h ave be e n h igh lighte d. Th e pe rform an ce ind icators an d pe rform an ce drive rs h ave be e n ide ntifie d ( in orde r to m e asu re future succe ss wh ich can be e xp re sse d via im prove m e nt in te rm s of th e pe rform an ce var iable s that are align e d with a give n se t of strate gie s) . Th e dire ction of th e industry sector in wh ich th e organ ization re sts h as be e n asse sse d, as we ll as th e e xp e c te d tre n ds have be e n ide ntifie d. A pre lim in ary EBE TO -BE sce nario has be e n ide n tifie d an d asse sse d subje ctive ly an d obje ctive ly. Pre lim in ary costs an d be n e fits of th e c han ge proce ss h ave be e n asse ssed. Th e organ ization’ s goals, to be im ple m e n te d by EI, have be e n com m un icate d . Th e critical busin e ss an d corporate issue s, strate gie s, an d critical succe ss factors of th e organ ization an d th e EBE have be e n ide n tifie d. Th e skill an d kn owle dge base of the e m ploye e s has be e n asse sse d via th e ir structure , fun ction an d role s. Th e organ ization culture h as be e n asse sse d for its re sistance or acce ptan ce to ch an ge .

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G. Uppin gton an d P. Bern us Th e cultural see d of chan ge vital for ac ce ptan ce an d con sen sus h as be e n ackn owle dge d. Guide lin e s for the m aste r plan n in g proce ss h ave be e n e stablishe d. Man age m e n t e xp e c tation s for the propose d proje ct h ave be e n ide ntifie d. Top m an age m e n t in volve m e nt an d com m itm e n t h as be e n e stablishe d. on par tial ( but in form ative ) data with in c re asin g de fin ition as progre ss is m ade through th e activitie s allowin g for in tra-ph ase an d inte rphase com m un ication s ( wh ich are critical in th e pre lim in ary de sign ph ase s) . Th is le ve l of com m unication allows for the use rs to m ake e xplicit the h idde n re quire m e n ts th at have gon e un notice d ove r tim e , as com pan y pe rson n e l kn ow th e `workarounds’ in th e curre n t AS-IS sce nario Ð with out th e se be ing pe rce ive d or kn own in de tail by m an age m e nt. Con ve rse ly, m an age m e n t goals an d obje ctive s are n ot always lin ke d to activities of th e ope ration al le ve l, th us a sub-optim al com pan y culture is sustaine d. `True an d lastin g ch an ge com e s wh e n th ose in n e r an d hidde n assum ption s ( or be lie fs) an d valu e s are ch an ge d an d th at th is can on ly be ach ie ve d th rough a sh are d u n de rstan din g’ ( Coop e r 1995 in re vie win g Sch e in 1985) . We h ave shown a de taile d m ode l of h ow ch an ge can be in itiate d in an e nte rprise an d how th is proce ss fits in to a large r proce ss calle d En te rprise Inte gration . We h ave starte d from a com p le te e nte rprise life -cycle re fe re nce arch ite cture ( PERA an d GERAM) , con ce n trate d to th e first ide n tification laye r of th e life -cycle , an d produce d a proce ss m ode l of the pe rtin e nt part of th e m e th odology, wh ich could be calle d a m e th odology for chan ge asse ssem e nt. Th e ne e d for such a m ode l is justifie d th rough th e fact th at usual m e thodology h an dbooks e ith e r; ( a) do n ot ope rationalise the activitie s to be carrie d out by m an age m e nt, an d th e re fore are of le ss h e lp than the y could be , or ( b) the way of te xtu al pre se n tation of m e thodologie s le ave s m an y que stions ope n , e spe cially as for the in form ation n e e ds of m e th odological ste ps, an d th e in form ation lin ks be twe e n th e se ste ps ( Ke lle r an d De te ring 1995 ) .

· · · ·

Th e `Establish m e n t of the In itial Program m e ’ is re ady to be gin. Th e `Ide n tification of th e EBE’ stage h as con ce n trate d on th e followin g.

· · · · ·

Asse ssin g th e ch an ge m e thodology. Th e com pe titive m arke t an d othe r re le van t force s. Th e re ad in e ss an d am e nability for organ izational an d EBE ch an ge . Th e organ ization al goals an d obje ctive s to be im ple m e n te d by EI. Th e de sire d TO -BE state of th e EBE.

Th e IS an d PC would alre ad y h ave m uch of th e re quire d in form ation as we ll as e con om ic, strate gic, an d an alytic in ve stm e n t justification ( as note d in William s 1994 ) . Th e ide ntification an d se le ction of th e EBE h as be e n m ad e , along with th e nom in ation of poten tial m e m be rs of th e EI Ste e ring Com m itte e an d Maste r Plan n in g Te am . Th e ch an ge asse ssm e n t m e th odology pre se n te d in th is article corre spon ds to the ide ntification laye r of PERA an d GERAM, an d can be applie d to both e xisting an d `gre e n -field’ ope ration s. AS-IS an alysis in th e gre e n field c ase m ay be ap plie d to e arlie r de sign s ( e .g. wh e n a com pan y de cide s to build a ne w plan t) . Th is ch an ge asse ssm e n t m e th odology c an be ap p lie d in m an y diffe re nt industry se ctors, as the pre -fe asibility study an d fe asibility study are not industry spe cific. In fact th e first ve rsion of th e m e th odology was in te nde d to be se rvic e ( h ospitality) in d ustry spe c ific, but as wo rk progre ssed, it tran spire d that the basic proce sse s of chan ge asse ssm e n t are in de e d the sam e in se rvice an d m an ufacturing in dustrie s Ð partly be cau se m ore an d m ore of m an ufacturin g in dustry is in corporatin g se rvice com pon e n ts, wh ile the service in dustry is takin g ove r te ch nologie s trad itionally roote d in m an ufacturin g, an d partly be cause inte gration re quire s in both in dustrie s th e suc ce ssful tre atm e n t of prod uct an d re sou rce m an age m e n t, of co-ordin ation an d of th e h um an organ ization al com pone n t. Ide n tification laye r activitie s m ay be carried out in a ph ase d ap proach to lay good foun dation of th e e n suing m ore de taile d ch an ge proce ss, such as spe cifie d in th e succe ssive e n terprise life -cycle laye rs. The PFS an d FS ide n tify policie s an d re quire m e nts, with de cision s m ad e

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Ap p e nd ix A:

Activity list

A0 De ve lop Maste r Plan A1 Ide n tify EBE A11 Conduct PFS A11 1 Inve stigate Proje c t A11 11 In itial Discussion s A11 12 Ide n tify Valu e of Un de rtakin g Ch an ge A11 13 Ide n tify Possible Me th ods A11 14 Se le ct Most Ap propriate Me th od for ch an ge A11 2 Ex am ine E1 Particulars A11 21 List Ge ne ric Be n e fits of E1 in Give n In dustry A11 22 Ide n tify Cu rre nt En terprise Inte gration Guide line s & Stan dard s

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G. Uppin gton an d P. Bern us A11 23 Ide n tify Possible En terprise Inte gration O bje ctive s A11 24 De te rm in e Goals for En te rprise Inte gration Activities A11 25 De ve lop Action Plan for En te rprise In te gration Pre -Fe asibility Study ( Rap id An alysis) A11 3 Con duct Pre -Fe asibility Study ( Rap id An alysis) A11 31 Exam in e O rgan ization al Status Q uo ( AS-ISÐ high le ve l) A1 1311 Re vie w Cu rre n t Bu sine ss an d Marketin g Strate gie s A1 1312 Conduct SWO T An alysis A1 1313 Conduct Industrial Tre n ds An alysis A1 1314 Re vie w PI an d PD for give n O rgan ization al an d In dustry Se ctor A11 32 De te rm in e Valu e of En terprise Inte gration with in Conte xt-Spe cific EBEs A1 1321 Ide ntify an d List All EBEs A1 1322 Asse ss e ach EBE A1 1323 Ide ntify Ex istin g Strate gic Dire ction an d Policie s for e ach EBE A1 1324 Evalu ate 112, 113 1, 11 32 fin dings A1 1325 Nom inate Pote n tial Ch an ge EBEs A11 33 Pre pare Rap id An alysis Re port A11 4 Dete rm ine Viability of Un de rtakin g En te rprise In te gration A11 41 Evalu ate Pre lim inary Dire ction for Fe asibility Study A1 1411 Re vie w Rap id An alysis Findin gs A1 1412 Evalu ate Alte rnative s for Fe asibility Study ( FS O ption s) A1 1413 De te rm in e Pre lim inary Dire ction for Fe asibility Study A11 42 Establish FS Proposal A1 1421 Se e k Man ag e m e n t Com m itm e n t for Fe asibility Study A1 1422 Se e k O th e r Ne ce ssary Com m itm e nts for Fe asibility Study A1 1423 Se le c tion of Fe asibility Study Inve stigatory Pe rson ne l A11 43 Pre pare Fe asibility Study guide lin e s A1 1431 Docum e n t O bje ctive s of Fe asibility Study A1 1432 Docum e n t re quire d Re source s A1 1433 Docum e n t re quire d Fun din g A1 1434 Docum e n t re quire d Com m itm e nt A1 1435 Docum e n t Sch e dule A11 5 Se e k Fin al Ap proval for Spe c ific EBE Fe asibility Studie s A12 Conduct Fe asibility Study A12 1 EBE En viro nm e ntal Appraisal A12 11 Conduct Marke t An alysis an d Expe c ted Tre nds A12 12 Conduct Com pe tition An alysis an d Exp e cte d Tre n ds A12 13 Conduct Te ch nology An alysis an d Exp e cte d Tre nd s A12 14 Conduct Econ om y An alysis an d Exp e cte d Tre nds A12 15 Conduct Gove rn m e n t An alysis an d Exp e c te d Tre nds A12 151 Con du ct Le gislation An alysis an d Exp e c te d Tre nds A12 152 Con du ct Taxatio n An alysis an d Ex pe cte d Tre n ds A12 16 Con duct Social An alysis an d Exp e cte d Tre nd s A122 EBE Corporate Ap praisal A12 21 Ide n tify EBE Dom ain s of Activity A12 22 Re vie w Dom ain of Activity ( if n e ce ssary) A12 221 Define Boun darie s of ope ration for e ach dom ain A12 222 Re vie w Bu sine ss Goals an d Critical Succe ss Factors A12 223 Ch aracte rize e ach dom ain of activity A12 2231 Asse ss De cision an d Man age m e n t Structure A12 2232 Asse ss Inform ation an d Mate rial Flows A12 2233 Asse ss Econ om ic Pe rform an ce of Dom ain A12 2234 Asse ss Hum an Re source Fun ction ality of Dom ain A12 23 Com ple te AS-IS an alysis ( if re quire d) A12 24 Con trast curre n t Mission , Vision an d Valu e s to A121, A1221 an d A12 22

Assessing the n ecessity of en terprise chan ge A123 De ve lop TO -BE Sce n arios A12 31 Ide n tify Ch an ge O pportun itie s A12 32 Ide n tify Ch an ge Con strain ts A12 33 Ge ne rate Alte rn ative TO -BEs A124 Evalu ate EBE Alte rn ative s A12 41 Con duct Cost/ Be n e fits An alysis A12 411 Se le ct Ap propriate Cost/ Be n e fits Te chn ique for E1 Conte xt A12 412 Con du ct/ O btain Cost/ Be n e fits An alysis on EBE A12 413 Re vie w Re sults of Cost/ Be ne fits An alysis A1 242 Con duct En viron m e n tal Variable s An alysis A12 421 Con du ct Structural An alysis A12 422 Con du ct Cultural An alysis A12 423 Con du ct Powe r an d Political An alysis A12 424 Con du ct O rgan isational Be h aviour An alysis A12 43 Se le ct EBE TO -BE A12 431 Asse ss feasibility of sce n arios in ligh t of e n viron m e n tal variab le s A12 432 Se le ct Most Suitable EBE TO -BE Sce n ario A12 44 Establish EBE Tran sition O bje ctive s A12 441 Ide n tify Future Busin e ss O bje ctive s an d Plan s A12 442 Ide n tify Long-Te rm Cap ital Goals A12 443 Inde nt Strate gic Dire ction an d Policie s to be Im ple m e n te d by E1 Maste r Plan A12 444 Define Future Syste m Arch ite cture an d Stan dard s A12 445 Define Critical Succe ss Factors of EI Maste r Plan A12 446 Define E1 Maste r Plan Lon g-Te rm Re quire m e n ts A125 Establish Guide lin e s for Maste r Plan nin g Proce ss A12 51 Pre pare FS Re port an d Maste r Plan nin g Guide lin e s A12 511 Collate O bje ctive s of Maste r Plan A12 512 Docum e n t re quire d Re source s A12 513 Docum e n t re quire d Fun ding A12 514 Docum e n t re quire d Com m itm e n t A12 515 Docum e n t Maste r Plan Sch e dule A12 52 Cre ate Ste e rin g Com m itte e an d Maste r Plan nin g Te am A12 521 Docum e n t O bje ctive s of EI Ste e ring Com m itte e an d MP te am A12 522 Nom in ate Ste e rin g Com m itte e an d MP Te am Me m be rs A12 523 Se e k Man age m e n t Com m itm e n t A126 Final Approval for Spe cific EBE En te rprise In te gration Maste r Plan ning Ph ase A13 Establish Initial Program m e A2 De ve lop EBE Con ce pt A3 De ve lop EBE De finition

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