TDEI 13
Technical solutions, strategic perspectives
and organisational considerations
Özgün Imre
[email protected]
EIS-IE Linköping University
2015-09-16
Agenda
•  Project Presentations
•  Reflection on Qlikview
2
• 
Lee, J., Siau, K. & Hong, S., 2003. Enterprise integration with ERP and
EAI. Communications of the ACM, 46(2), pp.54–60.
• 
Markus, M. Lynne; Cornelis Tanis and Paul C. van Fenema (2000)
Multisite ERP implementations. Communications of the ACM, Vol. 43,
No. 4 pp. 42-46.
• 
Jones, M.C., Cline, M. & Ryan, S., 2006. Exploring knowledge sharing
in ERP implementation: an organizational culture framework. Decision
Support Systems, 41(2), pp.411–434.
Qlikview
•  Does it work for any kind of organization?
•  How does it enable/hinder an organisation?
•  How does it affect the governance of an organization?
3
ERP vs EAI
•  So far we talked about ERP system, but we might have other
solutions
•  ERP focuses on internal integration, and EAI promises
external focus.
•  Enterprise integration should enable the organsiation to
become agile and flexible.
•  “continuously monitor market demand; quickly respondby
providing new products, services and information;quickly
introduce new technologies; and quicklymodify business
methods.” (Nagel and Dave 1991, cited in Lee et al 2003, 56)
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•  ERP was thought to benefit from production process change,
however most benefits come from standardised business
proceeses, stable databases and less complex data
management.
•  Costly implementation that might result either in BPR or
modifying the ERP
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EAI
•  However, perhaps you are happy with the system you already
have, so why change it?
•  Enterprise Application Integration might be a solution
•  EAI serves as a bridge between different applications
•  EAI promises a business oriented approach rather than the
technical one of ERP
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•  However, EAIs are also long term investments, it takes time
•  The business and IT people should be working together
•  The business processes needs to be mapped
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aspect of integration. The biggest challenge
may be the behavioral integration.
A Comparison (1)
commerce,
and busis
(B2B)
any opporve EAI into
market.
terms such
siness Intend Internet
Integration
created in
EAI seeks
vities at the
s
level
nies such as
8
(a) ERP Approach:
Push-oriented
Bottom-up
Standard Business Process
Internalization
Externalization
Lee et al. 2003, 59
Figure 3. Enterprise
integration.
differe
enterp
Bot
sume a
Organization Business Process
time to
system
to take
Externalization
ment.
the ado
busine
Internalization
enable
gration
object
thereb
tralized business strategy while EAI
(b) EAI Approach:
Pull-oriented
Top-down
integration.
onship management, and
, by integrating different
including Java, HTML,
tralized business strategy while EAI naturally accommodates decentralized business processes. Although
EAI still requires time for mapping business processes,
there is no tremendous time-consuming work for
A Comparison
(2) processes such as
implementing
standard business
ERP software into organizations. Clearly, ERP implementation requires the reengineering of a business
process prior to the adoption of ERP; however, EAI
pushorgaERP
EAI
ndard
esses.
Degree of BPR
Medium/Low
High/Medium
m-up
Technical
Integration Method
Process Mapping
Process Integration
mentaImplementation Period
Medium
Long
mental
Degree of Resistance
Low
High
duals
Behavioral
Business Process
Decentralized
Centralized
annot
Internalization Period
Short
Long
l and
es for
ut are Table 2. Characteristics implementation enforces business-mapping processes
of ERP and EAI in
t the
technical and to EAI architecture. Table 2 shows the summary of
behavioral ERP and EAI characteristics from two different
siness
perspectives.
push
perspectives.
et al. 2003, 59
d to generate a significant LeeBoth
ERP and EAI vendors have recognized mar9
Strategy and ERP
•  Strategy and technical and organizational solutions are more
interconnected than we first assume.
•  Today we live in the information economy, thus we must be
more aware of the issues.
•  Information economy is based on the premise of networks and
thus we are increasingly affected by actors we have no
influence on, and sometimes, have no business with.
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Multisite implementations
•  Where to start?
• 
Strategic level, strategy formula3on: Goals, strategies, and policies Tac3cal level, management control: Strategy implementa3on Opera3ve level, task control: Efficient and effec3ve performance of individual tasks 11
Multisite implementation
•  Most organisations today run in several locations.
•  Historically these might have very different systems. How to
implement an IT solution in such a case?
•  4 levels of confusion
•  business strategy,
•  software configuration,
• 
technical platform,
•  management execution
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Four confusions
•  Business Strategy: BU relationship
•  Total local autonomy
•  Headquarters control only at the financial level
•  Headquarters coordination of operations
•  Network coordination of operations
•  Total centralization
•  Software configuration
•  Single financial/single operation
•  Single financial/multiple operations
•  Multiple financial/single operation
•  Multiple financial/ multiple operations
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Four confusions
•  A combination of a central database and one or more
application servers
•  It is easier and often cheaper to configure ERP systems for
centralized architectures
•  ”Big Bang” deployment
•  Phased rollout
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At this point
•  Where should we use an ERP?
•  Where should we use an EAI?
ERPs provide benefits
•  ERP enables organizations to achieve decision support benefits
such as improved knowledge processing, enhanced decision
making reliability, and better ability to gather corporate evidence
to support the decisions made”
•  “In order for this to occur…organizational knowledge must be
incorporated into an ERP system so that … [it] has a sufficient
underlying knowledge structure to achieve this support.”
•  ” Successful ERP implementation requires organizational groups
to break down barriers to knowledge sharing.”
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Jones et al. 2006
Organisational culture is an integral part of the ERP
implementations
Technical integration is worthless unless you also have behavioral
integration, which is affected by the culture
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Eight dimensions of organizational culture
Stability
Concentrated
Isolation
Hard data
External
Process
Internal
Short term
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Orientation to change
Control, coordination
Orientation to collaboration
Basis of truth, rationality
Motivation
Orientation to work
Orientation and focus
Nature of time horizon
Change
Autonomous decision
Collaboration
Personal experience
Internal
Results
External
Long term
Barriers to change
CULTURAL DIMENSION Orienta3on to change (stability vs. change) Control, coordina3on, and responsibility (concentrated vs. autonomous decision making) Orienta3on to collabora3on (isola3on vs. collabora3on) Basis of truth and ra3onality (hard data vs. personal experience) Mo3va3on (external vs. internal) Orienta3on to work (process vs. results) 19
BARRIER Organiza3onal propensity to maintain status quo carried over to the project team through func3onal organiza3on of the team Organiza3onal hierarchy dis3nc3ons carried over to team Team members more likely to share knowledge among those they are already familiar with Team members prone to discourage sharing of experien3al knowledge Team members prone to compete with one another for bonuses in the organiza3on. Organiza3on put pressure on the team to finish by a given deadline Some remarks
•  Company A and Company D encouraged knowledge sharing
throughout the entire implementation.
•  Company B’s knowledge sharing started out strong, but broke
down later in the implementation.
•  Company C team members felt inhibited to share knowledge
from the start of their implementation
•  Try to read the article to come up with a configuration that
yields the best results
•  But don’t forget things change in time, and with culture and
organisational structure
•  Would we find similar results in Sweden or in India?
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Some remarks contd
•  If you are stuck at one of these cultural dimensions, it doesn’t
mean that you admit defeat.
•  There are ways to change the culture and overcome these
problems
•  Usually there is a pressure to see the results, if possible then
extend the deadline, organise extra meetings to rethink what
doesn’t seem to be working, go back to data.
•  If members are not sharing experiential data, use team building
exercises to enable them to listen to eachother
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Some remarks contd
•  Don’t forget that knowledge sharing doesn’t happen on its own.
•  There are factors that come into play.
•  Aside from these cultural dimensions, others, such as
“leadership, technology, organizational change, and the
evaluation and administration of knowledge management may
also influence knowledge sharing.” can and will influence the
knowledge sharing.
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