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    ERP / IT Strategy Guidelines
    ERP / IT Strategy Guidelines
    ERP / IT Strategy Guidelines
    Ebook179 pages2 hours

    ERP / IT Strategy Guidelines

    By Johannes Schwab

    3.5/5

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    About this ebook

    Information technology has developed into one of the most important success factors in achieving company objectives. This book concentrates on answers to this question and describes the most effective way to a customized IT strategy which has been derived from the company strategy.

    Solutions give rise to several frequently asked questions:
    - How useful is an IT strategy?
    - Does an IT strategy not only make sense for larger corporations?
    - What would it cost?
    - What are the advantages?
    - How do I start a strategy project best?
    - Do I entrust external consultants?
    - Should company executives be involved?
    - Is there a proved and tested model?
    - Would the strategy actually be used practically?
    - How do I have assurance?
    - Why are IT strategies still seldom found?
    - What organizational entities are affected?
    - Does an ERP strategy replace a process analysis?
    - How do ERP and IT strategies collude?

    The answers to these questions are summarized in structured guidelines which support company specific strategy development. The procedure model can be applied to the entire IT system as well as to the business processes within an ERP system.

    This book provides a basis for preparation and development of a planned strategy project which assists facilitators and project leaders during the project. In addition, it explains procedures and goals of an ERP / IT strategy to contributors from management and IT.
    LanguageEnglish
    PublisherXinXii
    Release dateMar 19, 2012
    ISBN9783200018020
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    Book preview

    ERP / IT Strategy Guidelines - Johannes Schwab

    ERP / IT 

    Strategy Guidelines

    Procedure Model for Development

    of an ERP / IT Strategy

    Johannes Schwab, MBA

    I M P R I N T

    Copyright, Design and Reproduction:

    Schwab Consult GmbH & Co KG

    Josefstädter Straße 43-45/1

    1080 Vienna

    Tel.: +43 1 994 9595

    Fax: +43 1 994 9009

    office@schwab.cc

    www.schwab.cc

    Commercial Register Number: FN 302197 h

    Vienna Commercial Court

    All rights reserved, especially partial reproduction.

    E-Book-Production and -Distribution

    www.xinxii.com

    Translation: Kathryn Crotzer

    1. Edition, January 2010

    ISBN 978-3-200-01802-0

    Table of Contents

    1 Preface

    2 Introduction

    2.1 Academic Background

    2.2 The Author

    2.3 Structure and Contents

    2.4 Concept ERP, IT & Technical Terminology

    2.5 Areas of Application

    3 General

    3.1 The Business World and Data Processing

    3.2 Why Strategic IT Planning?

    3.3 History – The Development of the Concept Strategy

    3.4 The Development of Strategic Management Understanding

    3.4.1 The Connection between Process Management and ERP / IT Strategies

    3.5 Development of IT in Strategic Management

    3.6 Definitions of Strategy

    4 Overview

    4.1 Concept of Strategic IT Planning

    4.2 Significance of IT Strategies for SMBs

    4.2.1 Definition SMB

    4.2.2 Survey Results

    4.2.2.1 SMB Participant Survey

    4.2.2.2 Level of Awareness: IT Strategy

    4.2.2.3 Modernity and Interest

    4.2.2.4 External Consulting for SMBs

    4.2.2.5 Application of Strategic Planning

    4.2.2.6 Application of Strategic IT Planning

    4.2.2.7 Responsibility for IT Strategy

    4.2.2.8 Strategy Dependence

    4.2.2.9 Competitive Advantage with IT Strategy

    4.2.3 Summary of the SMB Survey

    4.3 What Does an ERP / IT Strategy Yield?

    4.3.1 Upper Management

    4.3.2 IT Management

    4.3.3 The Right ERP / IT Strategy

    4.3.4 Why are the „Right" ERP / IT Strategies Seldom Used?

    4.4 Architecture Model of Information Infrastructure

    4.5 IT Controlling Process

    4.6 IT Goals

    4.6.1 Factual and Formal Goals

    4.6.2 Goals and Goal Types

    4.6.3 Formal Goals

    4.6.3.1 Process Quality

    4.6.3.2 Product Quality

    4.7 Goal Research

    4.7.1 Empirical Goal Research

    4.7.2 Theoretical Goal Research

    4.8 Goal Relationships

    4.9 The Four Strategy Types

    4.9.1 Momentum Strategy

    4.9.2 Aggressive Strategy

    4.9.3 Moderate Strategy

    4.9.4 Defensive or Destructive Strategy

    4.9.5 Differentiation of the Strategy Types

    4.10 Methodology, Approaches and Strategies

    4.10.1 Process Model: Phase Goals and Methodology Approaches

    4.10.2 Methodology Approaches and their Use in ERP / IT Strategy Development

    4.10.2.1 Usable Methodology Approaches in ERP / IT Strategy Development

    4.10.2.1.1 Current State Approach

    4.10.2.1.2 Consensus Oriented Approach

    4.10.2.1.3 Outside In / Inside Out Approach

    4.10.2.1.4 Prototype Oriented Approach

    4.10.2.1.5 Target State Oriented Approach

    4.10.2.1.6 System Approach

    4.10.2.2 Non Usable Methodology Approaches for ERP / IT Strategies

    4.10.2.2.1 Approach between Logical and Physical Model

    4.10.2.2.2 Model Creating Approach

    4.10.2.2.3 Object Oriented Approach

    4.10.3 Systematic Thinking in the Methodology of Information Management

    5 Procedure Model for Developing an ERP / IT Strategy

    5.1 Overview

    5.1.1 Methodology for ERP / IT Strategy Project

    5.1.2 Project Steps

    5.1.3 Costs to be Expected

    5.1.4 Project Preparation

    5.1.5 Diagram - Overview

    5.1.6 Diagram – Detailed Overview

    5.2 IT Diagnostics

    5.2.1 Reduced IT Diagnostics in the scope of ERP / IT Strategy Development

    5.3 Situational Analysis

    5.3.1 Potential of Information Functions

    5.3.2 Strategic Company Objectives

    5.3.3 Competitive Strategies

    5.3.4 Analysis of Stakeholders

    5.3.5 Further Factors

    5.3.6 Documents and Final Analysis

    5.4 Goal Planning

    5.4.1 IT Goals

    5.4.2 Formal Goals

    5.4.3 Description of Formal Goals

    5.4.3.1 Upgradeability

    5.4.3.2 Transferability/ Portability

    5.4.3.3 Modularity

    5.4.3.4 Acceptance

    5.4.3.5 Reliability

    5.4.3.6 Task Orientation

    5.4.3.7 Security

    5.4.3.8 Testability

    5.4.3.9 Changeability

    5.4.3.10 Usability

    5.4.3.11 Availability

    5.4.3.12 Comprehensibility

    5.4.3.13 Productivity

    5.4.3.14 Effectiveness

    5.4.3.15 Profitability

    5.4.4 The Four Strategy Types

    5.4.5 Identification of the Strategic Objectives

    5.4.5.1 Expected, Possible Strategic Objectives

    5.4.5.2 Possible Strategic Objectives and their Positioning and Dependency

    5.4.5.3 Amount of Expected Strategic Objectives

    5.4.6 IT Model

    5.4.7 Summary Goal Planning - Entire Goal Planning Process

    5.5 Strategy Development

    5.5.1 ERP / IT Strategy Structure

    5.5.2 Description of Strategic Objectives

    5.5.2.1 Architecture Management

    5.5.2.2 User Orientation

    5.5.2.3 Supply Management

    5.5.2.4 Inventory and Life Cycle Management

    5.5.2.5 Controlling

    5.5.2.6 Enterprise Resource Planning – ERP

    5.5.2.7 Independent ERP Strategy

    5.5.2.7.1 Customer Competence Center

    5.5.2.7.2 Purchasing

    5.5.2.7.3 Sales / CRM

    5.5.2.7.4 Production / SCM

    5.5.2.7.5 Finance / Controlling

    5.5.2.7.6 Business Intelligence

    5.5.2.7.7 Workflow

    5.5.2.7.8 ERP Development

    5.5.2.7.9 ERP Basis

    5.5.2.7.10 Further ERP Strategic Objectives

    5.5.2.8 Development Management

    5.5.2.9 Investment Management

    5.5.2.10 Knowledge Management

    5.5.2.11 Migration Management

    5.5.2.12 Network Management

    5.5.2.13 Organization Management

    5.5.2.14 Outsourcing Strategy

    5.5.2.15 Human Resources

    5.5.2.16 Platform and System Management

    5.5.2.17 Project Management

    5.5.2.18 Process and Workflow Management

    5.5.2.19 Quality Management

    5.5.2.20 Risk Management / Security and Catastrophe Management

    5.5.2.21 Interface and Integration Management

    5.5.2.22 Technology and Innovation Management

    5.5.2.23 Telecommunication Management

    5.5.3 Further Possible Strategic Objectives

    5.5.3.1 Consolidation of Strategic Objectives

    5.5.4 Guidelines for Project Organization as a Strategic Objective

    5.5.4.1 Project Start

    5.5.4.1.1 Project Context Analysis

    5.5.4.1.2 Design of the Project Organization

    5.5.4.1.3 Project Planning

    5.5.4.2 Project Coordination

    5.5.4.3 Project Controlling

    5.5.4.4 Project close-down

    5.5.4.5 Surroundings of the Project Processes

    5.5.5 ERP / IT Strategy Outline

    5.5.5.1 Review ERP / IT Strategy Outline

    5.5.6 ERP / IT Strategy Document

    5.5.6.1 Structure and Arrangement of the ERP / IT Strategy

    5.5.7 Implementation of the ERP / IT Strategy

    5.5.8 Adaptation of the ERP / IT Strategy

    5.5.8.1 Strategic IT Annual Report

    5.6 Strategic Procedure Planning

    5.6.1 Information System Planning and Infrastructure Planning

    5.6.2 Example of Strategic Procedure Planning

    5.6.3 Project Evaluation and Project Prioritization

    5.7 Summary and Closing Words

    List of Figures

    List of Tables

    Sources

    1 Preface

    Technology has become such an integral part of our lives to a point that business is impossible to imagine without it. For decision makers, top managers, information technologists and information and company consultants, the question arises: how can this need be utilized as a success factor?

    This book concentrates on answers to this question and describes the most effective way to a customized IT strategy which has been derived from the company strategy. Solutions give rise to several frequently asked questions:

    Does a company really need an IT or ERP strategy and what advantages would it have? Does an IT strategy not only make sense for larger corporations? What would an efficient strategy cost and should our company pay it? What are the advantages for executives, managers and IT?

    How do I start a strategy project the best? Do I entrust external consultants or can I instruct my internal IT department to complete the project? Can company management delegate an ERP / IT strategy or is it necessary to associate valuable and expensive resources from top managers? Does a proved and tested model for development of an IT strategy already exist? What approaches would therefore be considered?

    Would the strategy actually be used practically? How can I ensure that the invested time and related costs for strategy development will actually be implemented and used correctly? Why are ERP and IT strategies still seldom used?

    What organizational entities apply to the IT strategy? Should the computer science strategy also provide for and include telecommunications?

    Does an ERP strategy replace a process analysis or does an ERP strategy increase the value of ERP implementation? How do ERP and IT strategies collude?

    The answers to these questions are summarized in structured guidelines which support company specific strategy development. The procedure model can be applied to the entire IT system as well as to the business processes within an ERP system.

    This book provides a basis for preparation and development of a planned strategy project which assists facilitators and project leaders during the project. In addition, it explains procedures and goals of an ERP / IT strategy to contributors from management and IT.

    2 Introduction

    Information technology has developed into one of the most important success factors in achieving company objectives. Does your IT strategy account for your company strategy?

    According to university studies¹ there are still only information strategy approaches used in companies and even these are hard to come by. An efficient ERP / IT strategy is a component of the company strategy and is even derived from

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