Recognizing The Existing Departmental Roles And Responsibilities

Published Date: 02 Nov 2017

Abstract

We have researched at the Clean Co Lanka (Pvt) Ltd and analyzed the main functionalities of each and every department. Individual members carried out their researches independently in different departments. After analyzing each member’s findings, we could identify that each and every department of the Drive green has some drawbacks. Basically we found out most of the major processes of individual departments are being carried using manual systems. Inefficient workflow between departments and high expenditure on office rental and infrastructure are some other issues we have identified. The suggested strategy for Drive green is implementing an ERP system.

It has been identified by following suggested strategy the company would be able to reduce costs. In the meantime, this strategy will enhance the job satisfaction of employee by making a work from home environment for employees while uplifting the efficiency and productivity of Clean Co Lanka (Pvt) Ltd.

Recognizing the Existing Departmental Roles and Responsibilities

Six main departments are in operation at the CleanCo Lanka (Pvt) Ltd. The following describes each and every department’s contribution for the company briefly.

Marketing & Sales Department

Marketing department is the second biggest department of CleanCo Lanka (Pvt) Ltd. This department tries to catch up its target audience in various kinds of methods. They are looking to expand their Market to urban areas as well as rural areas within the country. There for marketing department should be able to handle the work load when their marked is expanded. This department helps to maintain the profit margin within the organization.

Finance & Accounts Department

All financial management tasks including preparation of employee salaries, issuing money for purchases/maintenance, paying all bills, maintenance of company accounts and tax files, making annual reports (Loss profit) and supporting the top management in making strategic decision are major tasks associated with this department. Accounts Department use Quickbook accounting software which allows users to manage a variety of financial records, including sales receipts, payments, tax forms, financial invoices and inventory records.

Operation Department

Operation department is the department which controls every operation within all service centers. If something happens within 92 centers, Operation department sends Faxes and E-mails to relevant branch and analyze the problem. Every operation recites are received to each division via email or fax, then by the particular division will send the acknowledgment to the department.

The main process involved in Green test service providing and responsible departments who are performing those activities with Drivgreen Company are described below in Business Process Mapping (BPM) diagram.

Figure :- BPM Diagram

HR Department

All recruitment and trainings for the company is done by Head office’s HR department. Publishing Advertisements when vacancies are available, conducting interviews and recruiting suitable employees are done by the HR staff of the company. In addition HR department plays a main role in preparing employees’ salaries by sending verified attendance reports to the Accounts department. Other major tasks which are being done by the HR department are management of employee personal records, attendance and leave management, welfare and benefits management, service appraisal management.

IT Department

This is also another important department to the CleanCo Lanka (Pvt) Ltd. This department has a big responsibility about vehicle emission testing programmer and they have to concern about its technological barriers. Every time department has to concern about new technological improvement to increase the company efficiency.

Problem Justification

Marketing Department

Most of the processes of Sales department are done without any proper structure. The main issue is Sales department is unable to track any accurate information regarding company sub branches when they are in different parts of the country (92 centers)

Some identified issues are as follows:

Drivers and relevant authority may cheat the company by giving wrong information about the mileages

Drivers and relevant authority may cheat the company by giving wrong information about the diesel usage

Drivers and relevant authority can easily replace vehicle parts.

Company vehicle can be used for unofficial/private work

The main issue at the marketing department is the high staff maintenance costs and also the agreements and pricing all are doing by Excel sheets and manual. In addition this department has more expenses on telephone charges, electricity charges, postage, stationary charges, travelling costs, food and refreshment charges and water bills.

Department doesn’t have any proper structure to catch up its target audience. Ex: Laugh Eco use raffle draw and give more prizes to heir consumers every month. But Drivegreen doesn't have many strategies to achieve its target.

Operation Department

Every operations within the company is done by using a In-house built application and it has some kind of drawbacks

Manual backups need to be taken each week

High risk of losing data

No proper data analysis and decision making mechanism

Further, high staff allocation for the operation department causes resources sharing and moral problems. Operation department’s out-dated confirmation capturing mechanism (Like sending PDF, sending faxes, calling and getting confirmation etc.) is also inefficient.

HR Department

The following issues have been identified at the HR Department.

Most of the processes are manual (Attendance records management, Employee Personal Information management) and inefficient.

A large Manual Personal File system is being maintained by the HR department and handling that manual personal file system is more time consuming.

Need more space and dedicated staff to maintain personal files.

Less security for personal data as there is no personal data back up

Cannot track employees’ personal details and other necessary figures (attendance, leave, promotion, training) quickly.

Inefficient information transferring/sharing between HR department and other departments

Accounts Department

QuickBooks is the main software which is being used by Drive green’s Accounts Department for finance Management. Accounts Department is experiencing some issues with that software as follows:

Updating the data file fails

There may be problems when upgrading QuickBooks from one version to the next version

QuickBooks run slowly in multi-user mode

QuickBooks doesn't come with a fixed-asset section.

CleanCo Lanka (Pvt) Ltd. has 92 branches excluding the Head office. The QuickBooks software is not interconnected among the branches. And also in the particular branch there are several processes. They also not interconnected with Accounts department. Because of this the account department faces a lot of inconvenience to do their work on time.

Proposed Strategies for Drivegreen

Setting up a technological enhancement; ERP (Enterprise Resource Planning) solution including other applications as per the requirements of each department of the CleanCo Lanka (Pvt) Ltd.

Interconnect all the work station into the ERP and centralized it.

After conducting a research at the CleanCo Lanka (Pvt) Ltd., it has been identified that the company have many overheads. In addition, most of the processes in different department are run on manual systems. As solution to cut down unnecessary expenditures and make more revenue, an ERP system has been suggested to overcome the problems in CleanCo Lanka (Pvt) Ltd.

With the implementation of new strategy the company’s culture would be transformed into a different one. Finally this ICT strategy will bring maximum ROI to the company by reducing expenditures on office space and infrastructure, welfare, transport and salary bills.

The Role of Consensus in Effective Information Management

A common goal or common concept is an essential and contemporary need when driving organizations in to better future states where competitive advantage can achieve. The consensus decision making process will assist organizations to reduce costs involve with decision making process by speeding up and providing greater efficiency through variety of central argument’s integration.

Strategic Alignment

Right Time

Right People

Right InformationStrategic alignment is used to align organization division’s strategic objectives and staff members into a line with the overall organization’s business objectives.

The strategic alignment process requires right information (accurate), right time and right people in order to achieve the benefits of alignment process. To accomplish this task an ERP would be a best solution where all company processes are aligned into centralized location.

Figure :- Strategic Alignment

Alignment between business strategies and ERPs is a way to improve business performance and business value. ERP distributes a broad set of integrated and cross-functional business processes which will lead to improve alignment of strategies and operations.

The ERP involvement with strategic alignment can identify as follows.

Manage enterprise in accordance with strategy and plans, accessing the right information in real time to identify concerns early

Follow opportunities proactively

Attain corporate objectives by aligning workforce and organizational strategies

Find the best people and influence their talent in the right job at the right time

The Drivegreen can achieve following benefits through Strategic Alignment process.

Support flexibility and the ability to change and assess the impact of changing strategic plans

Clearing strategy to all internal external stakeholders by indicating roles and responsibilities

To achieve competitive advantage

Focusing team efforts and department processes towards common goals

Improve employee motivation by clearly indicating their contribute to the results as a whole

Reduce redundant project activities by helping to avoid conflicting outcomes which will take away barriers that may hinder the path to success

Identifying the efficient use of scarce resources in order to increase the speed of execution

ERP (Enterprise Resource Planning)

In the modern world, most of the business industries step into new innovations or technologies to achieve greater benefits and competitive advantage by minimising operational costs.

ERP (Enterprise Resource Planning) is one of a popular technology improvement that enhances the position of an organization by increasing the efficiency in operations.

For the Drivegreen Company the ERP will integrate the following department’s functionalities by replacing obsolete system.

Figure :- ERP Involvement with Drivegreen

The Company can achieve following major benefits by implementing technology related enhancement like ERP.

Business Growth

The ERP will assist Drivegreen Company to handle larger and more sophisticated operations and functions. The centralized approach provides by ERP will increase the growth of the company while reducing additional expenditures and increasing efficiency within operations.

Increase efficiency

ERP can improve the efficiency of Drivegreen Company by providing integrated, automated, improved decision making and effective collaboration.

Integration

The ERP will integrate the all operations and functions into a centralized single information source in order to disseminate real-time information over the Company when required. The Drivegreen will able to minimise manual data entry, save time, reduce inaccuracy of data, errors and provide reliable, coherent data.

Automation

The current manual processes can automate using ERP solution through minimising duplicating and data redundancy. The Automation can use to reduce staffing levels (costs) or divert staff to other actions.

Decision making

The Business Intelligence (BI) tools available on ERP will help the management of Drivegreen Company to make accurate decisions while preventing manual processes needed to produce reports. Dashboards, Scorecards, Ad hoc reports are some of the reporting tools used by ERP.

Collaboration

The ERP will assist to create better connection with consumers and partners in a more efficient and cost-effective manner when handling end-to-end processes. Enhanced and quicker responses can be delivered for consumers and partners with the use of ERP.

Business Benefit for Each Managerial Level

Figure :- ERP Benefits for Managers

We have investigated all departments of Drivegreen Company and how their income can be enhanced by adding benefits from proposed Enterprise Resource Planning (ERP) solution.

Figure :- Revenue and Expenditures

Total Income and Expenses Avg.

Figure :- Total Income and Expenses

Drivegreen Company’s Total Monthly Income is nearly Rs. 156,914,422.00 and Total Expense Monthly Nearly Rs.69, 880,481.00. Therefore for a month per there total income yearly is nearly Rs.1, 882,973,064 and Total expense per year Rs. 838, 565, 773. According to the proposed strategy the current income and expenditures would be changed in a considerable amount in future.

Cost Benefit Analysis for ERP Implementation Process

Costs (Initial Investment-Year 0)

Annual Cost (Rs.)

ERP license cost

10,849,610

Customizing

3,000,000

ERP implementation cost

1,000,000

Operational Costs

Trainings

150,000

Maintenance

2,386,912

Non-Recurring Costs

Travel and other related costs of development and installation

10,000,000

Recurring Costs

Training

100,000

Total Costs

54,973,044

Note:- The above mention cost evaluations are in accordance with Drivegreen’s IT department cost estimations

Benefits (Year 1)

Amount (Rs.)

Non-Recurring Benefits

Intangible

Increased Collaboration &

Coordination

1,100,000

Improved administrative and

operational effectiveness

825,000

Improved storage and

retrieval techniques

50,000

Tangible

Minimised paper cost

25,000

Recurring Benefits

Intangible

Increased Productivity

955,000

Space occupancy

20,000

Improved Security

190,000

Direct support

services/Online

Customer support

370,000

Total Benefits

10,280,000

Table :- Cost Benefit Analysis

NPV Calculation

While implementing ERP solution it has an initial investment, company should be able to cover up this initial investment as soon as possible. For this implementation the NPV financial analysis method is used to calculate costs of for ERP project.

Discount rate is 12%

Figure :- NPV

According to the NPV calculation Payback Period is = 8 years

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Cost

24,946,878

2,386,912

2,386,912

2,386,912

2,386,912

2,386,912

2,386,912

2,386,912

2,386,912

Benefit

0

5,000,000

7,000,000

10,000,000

14,000,000

19,000,000

25,000,000

32,000,000

40,000,000

Table :- Cost, Benefit for Eight Years

Figure :- Cost Benefit Variation

ROI (Return on investment) Calculation

This is calculated by subtracting the project costs from the benefits and then dividing by costs.

Figure :- ROI

FORECAST

Eight Years

Installation Year (Year 0)

Before Implementation

Figure :- Forecast

Revenue

Expenses

The above chart shows the income and expenses of Drivegreen Company, before implementing the proposed strategy and after implementing ERP solution. The expenses were nearly Rs. 69,880,481.00 and after implementing the expenses will be increased by Rs.24, 946,878.00 during the implementation year.

After 5 years the income will be increased as well the amount which was spent for implementing the new system will be covered. The net profit also will be increased by 105% after 5 years.

ERP Implementation

Strategic Plan

The main intention of this phase is identifying and ensuring whether new technology (ERP) meets the strategic objectives of the Drivegreen Company.

Figure :- Objectives

According to the strategic objectives of the Drivegreen Company, introducing latest innovations, technology and solutions to provide speedy and accurate service is a vital need. In order to accomplish this strategic objective, an ERP would be the best solution where lots of advantages can gain for Company within next coming years.

Readiness Assessment

The strengths and weaknesses of the Drivegreen Company should be assessed in order to carry out ERP program.

Technical Readiness

The hardware and software requirements need to be set up when installing an ERP solution is considered in this phase.

Figure :- Initial Investment

Staff

Drivegreen find it hard to release technical staff for their day-today operational responsibilities and obligations to complete project work and participate in the general training needed for an ERP. Providing "backfill" IT resources for day-to-day operations can help free some staff members to dedicate the time needed on the ERP project.

Leadership Readiness

The current management of the Drivegreen Company doesn't have enough experience in managing a project the size of an ERP implementation. Because of that offering training in leadership and project management prior to the beginning of the project is an essential requirement to prevent project failure.

Prepare for Vendor Selection

There are number of ERP solution providers in the industry. Selecting one ERP provider would be a critical task without identifying the software requirements in the Drivegreen Company. In order to identify the best matching ERP vendor the Company can undertake following steps.

List all software requirements for ERP

Identify and understand current business practices

The functions that are carried within five departments are varied from one to another. Before selecting a vendor, current processes that should be automated and enhanced or new processes that need to be added should clearly identify and listed explicitly. Documenting current business processes and business policies will help in vendor selection phase to compare vendor features with current business processes.

Select ERP Vendors

Vendor selection Expert

Currently the Drivegreen has well qualified and experienced IT staff who handle day-to-day Company operations. The Company doesn’t require an expert or outside guider for the vendor selection process because the IT staff has enough knowledge and skills for selecting an ERP vendor. The software requirements for the new system can easily identify and understood by staff than any selection expert because they has the best knowledge and experience about processes that running currently and processes that need to be automated and integrated through an ERP.

ERP Provider

Currently there are number of ERP providers in the industry. Following are the leading ERP solution providers.

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Figure :- SAP, ORACLE and DYNAMICS Comparison

An SAP implementation can be challenging, complex, and a drain on Drivegreen resources. The flexibility, power, and broad scope of SAP’s functionality can create unexpected organizational challenges to the Company. Company needs to be carefully managed during the design, implementation, and integration of the SAP software package.

In Oracle, although the high potential business benefits of the software, an Oracle implementation can be challenging and complex to the Drivegreen. The flexibility, power, and broad scope of the Oracle’s ERP functionality can create unique challenges that need to be carefully managed during system design, implementation and integration.

Selecting the right Microsoft Dynamics ERP package is only the beginning of successfully leveraging all that Microsoft Dynamics offers. Microsoft Dynamics implementations help clients leverage the flexibility, power, and broad scope of the Microsoft ERP software offering. And also company doesn't want to waste much time for the implementation. After implementing process, it will give the massive output to the company as well as consumers.

ERP Implementer

Although the ERP vendor provides technical and functional training and consulting services necessary to get their software working at Drivegreen Company, selecting a local firm that specialize only in supplying the consulting and training to implement the software would be the best solution as it will reduce expenditures.

Plan the Implementation

A project plan should create in order to carry out implementation process successfully. This plan might include following elements.

Scope document

This document will cover the areas of project objectives, rationale, budget and duration. By creating such document, Drivegreen can manage ERP implementation within a predefined and organized framework.

Schedule

The project schedule should create to maintain ERP implementation in proper way. Tasks that need to be carried out, responsible persons, task dependencies should include in the schedule.

Project Budget

This document should include ERP costs for Drivegreen Company like licence cost, training, consulting, staff allocating, equipment, other supporting software etc.

Risk Analysis

This is an important phase where project failure is getting prevented. Identify potential risks, their impact and nature of occurring will help to prevent and face implementation risks successfully.

Change impact analysis

This will help to minimise the resistance of Drivegreen employees which can arise to the change caused by introducing new software application.

Scope management process

This process will help to manage and apply the changes that can arise during the implementation phase.

Training plan

This kind of plan will help to manage functional training, end-user trainings, management trainings, leadership skills developments trainings that should be carry out in order to implement software application.

Status reports

These types of reports are important as they provide current statues of ongoing project. This can include progress against budget, progress against schedule etc.

Implement the ERP Solution

This is the most arduous stage which takes long duration to carry out. The success or the failure of the new solution is depending on the performance of this stage. According to the Moore and Whiting (2006) in order to carry out best ERP implementation, the Drivegreen can focus on following areas.

Good communication

Manage stakeholder expectations

Adequate staffing

Sufficient budget

Good project management

Functional ownership of the project

Relationship with technology partners

Post Implementation Assessment

This phase will carry out creating lessons learned reports and understanding the ways of improving software features. After implementing ERP solution the Drivegreen Company should carry out lessons learned sessions to measure the success of new application and also the places that went wrong or couldn’t bring expected outcomes during the implementation.

ERP Involvement with Drivegreen’s Organizational Change

An introduction of massive technology improvement like ERP packages to organizations will cause serious changes in organizational operations, employee behaviours and organizational culture. "Compared with traditional and comparative simplistic IT changes, the adoption of ERP systems usually involves radical organizational change as it is often associated with fundamental organizational improvement that cut across functional and organizational boundaries, such as business process reengineering" (Kwahk, 2006)

Figure :- ERP Impact for Change

ERP Modules and Organization Hierarchy

Source: IBIMA Publishing (2011)

The above diagram illustrates the ERP functional module distribution over organizational levels in a Company. According to the diagram implementing ERP would create changes in whole company by affecting operations handle much all three levels.

Changes Occur in Strategic Level

Decision making

With the ERP system, Board of Directors in Drivegreen Company will able to make accurate and analytic decisions which will help to gain competitive advantage over the competitor. Real-time data availability, integration and data accuracy features in ERP system will robotically lead to better decision making process across Drivegreen Company.

Time saving

As ERP consists with centralized database, the managers can access information very quickly rather than seeking information in every department. The relationships and patterns among data can identify easily because all information are stored in one centralized location. Strong, analytical reporting system in ERP will help to analyze the statistics/ numbers etc in real-time, across all the departments without wasting time.

Determining strategic objectives

Board of Directors in Drivegreen Company will be able to determine strategic objectives for next coming years by analysing the reliable and real-time information provided ERP system. Although defining of the objectives cannot be done by the ERP system, this will help in measuring the parameters associated with the strategic objectives.

Skill development

One of the most important factors for successful ERP implantation is finding top-notch people to perform leadership roles. In order to accomplish this task Drivegreen’s Board of Directors has to improve their skills with new technology as they are the responsible people for giving clear idea to rest of employees about the new technology improvement.

Changes Occur in Tactical and Operational Levels

Cost reduction

The ERP would create changes for Drivegreen Company by reducing operational and administrative costs. The operational costs will get reduced through process automation, increased effectiveness, employee responsibilities and skills. The administrative costs will get reduced as ERP would take more control to cross-functional processes for service providing, finance, human resources, marketing and also by serving a real-time, broad view of the business for faster and more effective strategic decision-making.

Changes in culture

Currently Drivegreen employees are familiar with information technology and systems. Computers and information systems are not completely new things for them. Therefore organizational culture and physical environment will not be drastically affected as introducing

Changes in attitudes towards the work

The attitudes can change in both negatively and positively. Some employees can resent the new way of performing work after ERP implementation and will reduce the desertion of work. On the other hand, some employees will like their new job tasks, increased responsibilities and efficiency in work. But the negative impression would change with the time as employees learned to use the program in more efficient ways.

Operational efficiency

ERP will automate the functions and increase the effectiveness among organization operations by provides high collaboration and flexibility.

Enhance time management

The ERP will save time by reducing data redundancy and duplication by providing centralized database approach.

Productivity increase

ERP provides tools that encourage employees to be their best. When employees are at their best, they become more productive, effective and supply to the overall success of the company.

Skill development

When a new innovation like an ERP was introduced, employees have to move with new technology. Therefore they have to learn, train about new system and that will make changes in skills of employees positively.

Increase responsibility

Sometimes employees will have to conscientious in their work as mistakes would affect the work of other employees much more than previous to the introduction of ERP.

Employee work load

Although ERP will replace some tasks of employees, due to the ongoing learning and training process the effect of the ERP implementation will also increase work load. But over a time the work load become less burdensome with trainings and knowledge sharing.

Team working

According to a survey carried out by Collegiate Project Services (2010) the importance of team work to a successful ERP implementation is 83%. The team work concept is also related for Drivegreen Company when avoiding risks of ERP failure. The employees will be asked to work on teams in order to accomplish large project easier and more effective.

Change Management Strategy

A change management strategy is an essential requirement for Drivegreen Company in order to achieve the benefits of implementing a technology improvement like ERP. "Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level" (Rouse 2010). Therefore it is important to ensure whether that individuals gain necessary support and guidance to face organizational large-scale change successfully.

The John Paul Kottter’s Eight Steps to Change Model provides broad knowledge of change management for organizations in order to achieve the success of any approach which leads to a change.

Figure :- Kottor’s Eight Steps for Change

The Drivegreen can follow up above steps in sequent order to attain the advantages of implementing information technology improvements like ERP.

Figure :- Step One

To establish a sense of urgency within Drivegreen Company the above methods can be used. By analysing competitor’s position managers can identify strengths and weaknesses of the competitor in order to prioritize issues which urgently requires to be enhanced within the Drivegreen relation to the competitor.

Meetings and conferences will be great solutions to establish an urgency within employees as communication is one of effective method for passing the message of change.

Figure :- Creating Sense of Urgency

By conducting surveys like providing questionnaires would help to gather quantitative and qualitative information in order to identify the weaknesses in current Drivegreen processes.

Figure :- Step Two

The coalition members who would be appointed as team members will be the employees who are working in the Drivegreen every department should appoint project champions to guide each department’s employees. By creating agreements, the coalition members can lead their work according to a certain scope by structuring team in a more effective way to attain successful change. The main intention of coalition team is guide all other employees towards a successful change without any failures.

Figure :- Step Three

Firstly the proposed change should be well understood by coalition members as they will mainly responsible for establishing desired change within Drivegreen Company. After understanding the proposed solution a clear, focused, effective vision can be created to assist change attempt. The vision that creates to achieve proposed change should summarize all future strategies, motivate employees and manage operations efficiently. Once the vision has been established, the ways of achieving vision should be declared.

Figure :- Step Four

The created vision should communicate thoroughly among Drivegreen employees because most of the time the greater resistance comes from employees when introducing innovations like an ERP. To communicate the core value of vision the general methods can be used like e-mails, meetings, news, newsletters etc. The new vision should be communicated anywhere and everywhere in hour-by-hour operations to provide deeper idea for the company workforce.

Figure :- Step Five

To understand about barriers, the managers can organize conversations with staff and groups where the problems faced by employees can easily discuss and tracked. If the current organizational structure not suit with desired change vision, the change process will not gain the targeted success as company expected. In order to prevent this issue the structure of the organization should re-aligned with the culture change vision where individuals positions are much focused and considered. By using performance appraisals, managers can monitor contribution of employees towards the operations and based on that they provide incentives, awards and recognitions for well performed employees in order to encourage them for ongoing change. Though new change communicated or spread over within employees if the workforce doesn’t have sufficient knowledge to act on changed vision a greater resistance can occur from employee’s side. In order to prevent this issue Drivegreen can provide education and training regarding ERP technological improvement.

Figure :- Step Six

Implementing a change without having short-term celebrations is extremely risky. The coalition team is responsible for identifying potential enhancements and executes those enhancements with the support of rest of employees. Celebrating wins will help to create morale, motivation and ensure to the Drivegreen community that initial stage of proposed change is successful. These wins should be visible and unambiguous because employees should feel the success of proposed change and to create "can-do "attitude among employees.

Figure :- Step Seven

This section consolidates the initial changes that occurred in departments like HR, Finance, Marketing and IT to a one change process. Applying changes for separate departments would be easy than applying changes for whole organization at once as decentralization priorities are easy to comply. After celebrating wins the employees in the Drivegreen Company will be morally motivated and that enthusiasm can use as tool to introduce new projects, themes, realign organization structure, policies and to remove or apply enhancements for current systems

Figure :- Step Eight

The selected technology enhancement; the ERP can be implemented within Drivegreen’s head office. Next important factor is after implementing ERP the organizational culture would change as whole organization is technologically shifting from one place to another. The managers and team leaders are responsible for convince employees that new state is superior to the old state by communicating success and proving it. To strengthen new norms and values the employees will be rewarded, promoted and salaries would get increased.

Management of Complex CHANGE to Ensure Acceptance & Motivating Users

Change would bring significant advantages for organizations if it is implemented successfully without underestimate the cost. According to the six factors which have been introduced by Dr. Mary Lappit the complex change can be managed effectively by paying equal attention to all these components.

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The organizational change which might occur in Drivegreen Company after introducing new technological improvement- ERP can manage effectively by following above constraints.

Drivegreen should be able to create a Real Change by clearly expressing and communicating its vision and make sure the employees would have the necessary skills and tools to adapt the change. Employees should be motivated by giving incentives such as rewards, promotions and recognition and through an action plan.

Effective Use of Information Assets for Different Sets of Managers in Drivegreen

Information becomes an asset in ERP environment. The managers will use the data provided by ERP for decision making process.

Figure :- Use of Information for Managers

Support Strategic Planning

Part of ERP software systems is intended to support resource planning section of strategic planning.

The head of the each department in CleanCo Lanka (Pvt) Ltd. can get a right idea about each department process.

It clearly clarifies how each process will damage to the current situation or not. After that company top management can get a right idea about future solutions

Facilitate Day-to-Day tasks

ERP systems offer better accessibility to data so that management can have up-to-the-minute access to information for decision making and managerial control. ERP software helps track actual costs of activities and perform activity based costing. Because of that process Company can update its current situation and conditions in a short time period. Management in Drivegreen has quick access to consolidated and meaningful information in form of reports, charts and graphs.

Easy Monitoring

ERP software also helps in digging deep into problematic area via its drill down tools in emission testing reports, and then developing a corrective action plan to weed out the problem. With ERP software it is easy to monitor business improvement plans or corrective action plans on a continual basis by comparing the past drive green records and latest data. ERP systems also help Drivegreen to bring transparency in transactions, accounts and finance as the business information is available to top authorities without any barrier.

Easy access of information

Information in an ERP software is fetched through forms in a predefined and valid format which none can amend on his own. Information once fed is automatically propagated and made available to other areas of business in drive green.

Although senior and middle level managers in drive green are required to focus on the growth of team and what if analysis, practically they have to spend most of their time gathering data and preparing reports for the management at frequent intervals.

ERP Benefits Framework for Each Department

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Figure :- Benefits for Departments

Information Delivery to Strategic Managers

Current ERP solutions use various reporting methods to deliver information for its users. Strategic managers can use these types of reports to make long term objectives for companies’ growth by analysing relationships and patterns of available information.

Dashboard

Most of the ERP solutions consist with dashboard reporting facility as it manages and presents information in a way that is easy to read and analyze. Strategic managers find these types of reporting tools are very helpful as comparing current status with previous stratus are easy and convenient that other reporting tools. By analysing past and present information managers can predict and decide the future statues that expected to be get.

Source: InetSoft Technology Corp (2013)

The strategic managers can gain following benefits through dashboard reporting tool

Current progress of the company, strategic objectives and the stage they are at in achieving these strategies

Can monitor operations and forecasts correctly by gathering relevant data in a timely manner

By analysing current data the managers can easily identify the areas that need to be improved or provide more resources or support

Distribute information to optimize decisions, enhance effectiveness and speed up bottom line results

Scorecards

Scorecards in the ERP solutions is one of the best reporting tools which is used for business performance management tool in order to monitor and analyse the current position and condition of an organization through business trends and drivers. The features of the Business Scorecards are listed below.

Distribute in-depth analyses of key areas of business

Monitor company progress quickly and react to performance trends

Track business performance

All automatic and manual measurements are displayed as transactions against time periods

Budget and the actual numbers in the transaction forms can compare both on-line and in real-time

Support for Microsoft® Access, Microsoft SQL Server® and Oracle data dictionaries, or Microsoft Excel® spreadsheets

BalancedScorecard1

Source: Microsoft Inc. (2006)

By monitoring the information displayed via scorecards, managers can determine the position of company within competitive environment. The strategic managers can achieve following benefits through Scorecards.

Replicate and communicate business objectives, strategies and other quantitative data

Summarize company performance data

Estimate company performance with strategies

Track operational performance

These types of reports enable application users to create, view, and save reports that satisfy their individual information analysis requirements. The Abstract tools and services in this reporting doesn’t require user knowledge of the fundamental database schemas or experience in programming and advanced report authoring are required to enable this scenario. This is a self service reporting method which enables users to locate, choose, filter, sort, group, view and format end output using different layouts. The strategic decisions can be made easily by analysing the information displayed on these types of reports along with filtering, sorting, grouping and many more functions.

Ad hoc reports

Conclusion

In strategic level decision making, information plays an important role. In order to identify the importance of information to the strategy, the CleanCo Lanka (Pvt) Limited was selected. Currently there are major drawbacks in the Drivegreen department’s day-to-day operations like duplicating work, data redundancy, less efficiency etc. In order prevent those issues an ERP system was proposed.

The ERP would be a best solution to overcome issues raised in each and every department by aligning strategy into a line with the overall organization’s business objectives. The strategic, tactical, operational level managers and also employees can achieve vast and significant number of benefits by implementing ERP solution. Business Growth, increased efficiency, collaboration, integration and decision making are some of major benefits.

The cost benefit analysis was used to identify the overall costs which are required to implement ERP and the benefits which can attain after implementing ERP. The NPV financial analysis method is used to calculate costs, benefits and also payback time for ERP project.

The implementation of ERP was discussed and the Microsoft Dynamics ERP solution was selected for Drivegreen Company. The introduction of massive technology improvement like ERP packages to Drivegreen will cause serious changes in organizational operations, employee behaviours and organizational culture. To manage this change John Paul Kottter’s Eight Steps to Change Model can be used in order to achieve the success of any approach which leads to a change.

Another approach that can use by Drivegreen to manage change is six factors which have been introduced by Dr. Mary Lappit. The Company will be able to manage complex change effectively by paying equal attention to all important components mentioned in the approach.