This report analyses the implementation of enterprise systems in The Jackson Laboratory for improving the production processes of mice for medical research. It discusses the challenges faced by the organization, the nature of the enterprise system adopted, and the success of the implementation.
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Running head: ANALYSIS OF ENTERPRISE SYSTEMS ANALYSIS OF ENTERPRISE SYSTEMS Name of the Student Name of the University Author Note
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1ANALYSIS OF ENTERPRISE SYSTEMS Executive Summary This report is based on the analysis of the case study of The Jackson Laboratory related to the implementation of technologies for the purpose of improving the production processes of mice for medical research. The various applications that were formulated by The Jackson Laboratory using the modern technologies are analysed in the report in detail. The other majorpointsofdiscussionaretheissuesthatarefacedbytheorganizationinthe implementation and integration of modern technologies. The assessment of the effects of integration of technologies on the revenues of the company is a major part of the report. The discussion is concluded by stating that the implementation of technologies has helped The Jackson Laboratory in gaining its revenues.
2ANALYSIS OF ENTERPRISE SYSTEMS Table of Contents Introduction....................................................................................................................3 Problems that are faced by the organization in the industry..........................................3 Nature of the enterprise system that has been adopted by the company........................5 Difficulties faced by the company in adopting the new system.....................................6 Analysis of success of the enterprise system.................................................................7 Conclusion....................................................................................................................10 References....................................................................................................................11
3ANALYSIS OF ENTERPRISE SYSTEMS Introduction The Jackson Laboratory is an independent non-profit institution which is dedicated towards contributing to a future that can provide better health care based on unique genetic makeup for the individuals. The organization has an employee based of 2100 members in the operations of the institute which is located in Farmimgton, Connecticut. The major mission of the laboratory is to discover precise solutions that can be used for the treatment for various types of diseases and the empowerment of global biomedical community. The laboratory is also a major source for various types of mice that are defined in a genetic manner. The institution is the source of the world based on 8000 strains of genetically defined mice (CFO. 2018).Themajorareasofresearchwheretheorganizationhasitsoperationsare, development or reproductive biology, immunology, neurobiology, metabolic diseases and the various neurobehavioral diseases. The Jackson Laboratory is mainly recognised by IRS as public charity. The revenues of the organization are mainly gained from the sale of the various materials and the services and support that is provided by the government (CFO. 2018). The report will be mainly based on the case study related to the implementation of an enterprise system. The issues and challenges that have been faced by the organization during the implementation of enterprise system will also be analysed in the report. Problems that are faced by the organization in the industry The challenges that have been faced by Jackson laboratory during the implementation of the installation of the new ERP system is defined by the CFO of the organization Lee Wilbur. The CFO has explained that the problems that are caused by people or employees of the organizations can affect the operations in the same manner as the flaws that have occurred in the technologies. The lack of people in the information technology industry and the
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4ANALYSIS OF ENTERPRISE SYSTEMS untested systems can cause major issues related to the cost related overruns and the delay in projects as well. This can further threaten the reputation of the company and the relations with the customers. The experts have thereby said that the project costs related to the implementation of IT projects and ERP systems can exceed beyond the actual limits during the actual implementation process (Al-Ghofaili and Al-Mashari 2014). The integrators of the system mainly prefer to quote less for the project during the initial phase and further the prices are increased as the project proceeds further. These integrators work on an open-ended basis and are not provided with any fixed fees. The example of Gladwyne project that has been provided in the case study depicts that the cost of the entire project was initially estimated at $7.8 million initially and further the costs increased to $19.9 billion dollars as the project proceeded. The open-ended contracts are thereby faced by the high increase of costs that are related to the completion of the project (Aloini et al. 2016). On the other hand, in case of projects that have fixed fees the buyer and providers also show high levels of competitiveness. The buyer tries to achieve high levels of customization and the providers try to get out of the situation by providing them with the services that have already been decided previously. The Jackson Laboratory has also faced many issues during the implementation process of the mouse-development related functions into the ERP systems of the company. The mouse-development functions needed to be integrated into the existing ERP systems of the organization. The problems that were faced by the company were mainly related to the employees and the internal management of human resource based systems rather than the suppliers of the software (Asprion, Schneider and Grimberg 2018). The organization is known to be quite lean about the choice of employees and they select the best lot for working in the company. The major functions that are performed by the lab include, obtaining the grants, production of research based resources and providing administrative support. The
5ANALYSIS OF ENTERPRISE SYSTEMS employees thereby need to perform all these jobs and further take part in the implementation of the ERP systems. The levels of expertise that is gained by the organization is high and the depth of the employees is a lot. The low amount of staffing has helped the organization in investing the amount on the implementation of ERP systems. The budget that has been set by the institute based on the amounts of costs related to hardware, software, training and consulting has been maintained successfully by the organization (Bokovec, Damij and Rajkovič 2015). The ERP project that has been discussed in the case study was launched in the year 1999 and had taken more than six months for the completion of the entire procedure. The issues were being faced by the organization in the process was thereby related to the lack of the expertise of employees about the functions of the ERP system. The costs that were related to training the employees about the usage of the integrated ERP systems is a major issue that has been faced by the company. The organization had faced a technological challenge in the implementation of the new systems (Bradford, Earp and Grabski 2014). The process of the manufacture of mice were to be integrated in the ERP systems that is already operating within the organization. The OPM or Oracle Process Manufacturing systems have been implemented by Jackson Laboratory to integrate the required processes. However, according to the CEO this system was not suitable for the manufacture related operations of the Jackson Laboratory. This system is mainly implemented in the organizations which mix variousingredientstomanufacturetheproducts.Ontheotherhand,theprocessof manufacturing of the Jackson Laboratory is evolving in nature and the said system of ERP is not suitable (Dietz 2014). Nature of the enterprise system that has been adopted by the company The ERP system that was being implemented by Jackson was Oracle 11i which can help the organization in improving the production of mice. The integration of this production system within the entire ERP system that is already operating in the organization. The Oracle
6ANALYSIS OF ENTERPRISE SYSTEMS Process Management or OPM system will be implemented within the processes of the organization. This ERP system will help in increasing the speed of the production of mice for the usage in various universities (Galy and Sauceda 2014). Difficulties faced by the company in adopting the new system The organization however had to face an array of problems in the implementation of the ERP systems. Training was the most important issue that was creating immense pressure on the employees and the organization as well. The company has a strong level of expertise, however, the employees are not trained enough to use the newly implemented systems in an effective manner. The employees are under pressure because they need to complete the tasks that are related to their routine and further take part in the implementation process of ERP. The training related costs have therefore created pressure on the revenues and profitability of the organization (Ha and Ahn 2014). The geographical location of the organization had also contributed to the costs related pressure that was being faced by Jackson. The organization first planned to spend extra amounts for the purpose of bringing some trainers to the island of Bar Habor. The management of the lab thereby decided to fly in the trainer on the island rather than sending the employees for off-island courses. The total amount spent by the organization on the entire process was however much higher as compared the costs that were estimated initially. The high costs of the implementation of the system and the costs that are related to bringing the employees on the site has been a major tension for the management of the organization. However, it was important to train the employees regarding the different aspects of the process. This will enable them to perform the various tasks with the ERP system in an efficient manner (Haddara and Elragal 2015). Another major problem that was being faced by Jackson was the technological challenge that they were facing related to the raising of mice within the facilities. The raising
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7ANALYSIS OF ENTERPRISE SYSTEMS process of the mice needs to be based on the advanced and generic needs that are a part of the research. These demands based on the entire research process does not fit within the new systemofOracleProcessManagementorOPMthatisbeingimplementedbythe organization. Jackson thereby formulated a team for the purpose of providing an out-of-the- box solution to the problem. The organization would not be able to use the ERP system if the issue was not solved in a proper manner (Haddara 2018). However, Jackson was able to implement the new system based on ERP into the entire system of the company. some changes were further made in the entire system which had led to the implementation of the software which was not actually made for the said purpose and it was integrated into existing system of The Jackson. This step helped in the successful implementation of the ERP system in the various processes of the Jackson (Huber et al. 2016). Analysis of success of the enterprise system The process of implementation was completed successfully with the active help that was given by the management. The risks were minimized with the help of various actions that were taken by the members of the management. The type of contract that was made by the management with Oracle was based fixed fees rather the time and materials type. This type of contract was made by the company in an attempt to gain the surety from the ERP based organization regarding the completion of the entire process of implementation within the given time and fees. The idea was mainly based on protecting the organization from the uncertainties that they need to face during the implementation based process that is followed by them (Koch and Mitteregger 2016). The risk assessment based functions that have been performed by various organizations thereby depict that the IT projects need to be bound with the help of surety bonds so that the organization is able to control the costs that are made on these projects by the organizations. The controlling of the entire costs related to the project was important for the successful operations of the organization and its sustainability in the
8ANALYSIS OF ENTERPRISE SYSTEMS market. The contract that was signed by the organization ultimately covered the materials, time and all the other expenses that were related to the successful completion of the project (Kulkarni et al. 2015). The company was however unable to get a contract that was totally based on the fixed costs from the software producing company named Oracle. The lack of entire fixed prices thereby left the contract related to surety bond untenable in nature. The fixed-price based agreement has been provided with benchmarks which was needed to be framed before the entire agreement was done. The negotiation based process was quite difficult and was a huge mess for the successful operations of the company. The vice president of the Oracle Group in Boston had thereby responded that contingency is quite common in the implementation processes in the IT industry (Meyr, Wagner and Rohde 2015). The negotiations that are related to the fixed-price based contracts are quite complex in nature and need to provide clearer definition of the responsibilities and roles between the serviceprovidersandtheclientsofthecompany.TheERPsystemswerehowever implemented even after the various issues that were faced by the Jackson Group during the actual formation of the contract. The first part of the ERP project was performed at the start of the month of February. This part thereby included management of the production capacity, the general-ledger functions, accounts receivable, and the various purchase process of the manufacturing materials (Mittelstädt et al. 2015). The second part of the first phase of the implementation process started in the month of April. This phase consisted of the accounting process of various research grants that were received by the organization. The second phase started in the month of June which included the human resources, the distribution of the labour, the payroll of the organization and information that was involved in filling the grant. The brand new module that was created by Oracle was thereby used by Jackson for the improvement of its different processes. The order management procedure was also created by the organization in the second phase of the entire ERP management process (Nwankpa 2015).
9ANALYSIS OF ENTERPRISE SYSTEMS The organization had to face numerous issues before the implementation of new ERP systems for the management of the production of mice to supply to various educational institutions. The ERP management system was implemented in the organization in the year 2000 which further led to the increase in the production of the institution. The 21stcentury thereby marked the era of large-scale implementation of science in the organization. The organization thereby started receiving funds for the development of mouse models related to neurological diseases. The organization has been able to further expand its operations beyond the Bar Harbor based campus where it had its operations (Nwankpa 2018). In the year 2011, the Jackson Laboratory for Genmic Medicine was created when a bond was approved to bring the operations of the organization within the school campus in Farmington. The genome centre was formed in the year 2014 which provided high level of analysis and sequencing based activities in the campus. The company further made advancements in the research based fields for the purpose of understanding the personalized medicine facilities. The mouse strain of NSG that was developed by the Jackson Group will play a critical role in the personalized medicine formation of the institution (Poba-Nzaou et al. 2014). The Jackson Laboratory has thereby entered the field of production of the genomic medicines. The establishment of the lab in Connecticut is thereby bringing together the researchers of JAX. The state of the art facilities that have been created by the organization in various areas have affected the reputation of the organization in the industry. The research will be able to establish the organization as a leader in the world of genomic medicine and a strong participant in the transnational process of research (Seethamraju 2015). The Jackson Laboratory has been able to succeed in various fields after the operations of the ERP system and the expansion of its facilities to many other areas in the world. The organization had received an award of 12.5 million dollars for the Ellsworth expansion related activities that have been performed by them. The organization had received a grant of
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10ANALYSIS OF ENTERPRISE SYSTEMS 12.5 million dollars from the Maine Technology Institute in the year 2018. The grant will therefore affect the formation of mouse production unit of the organization. The second phase of the production unit will be formed in Ellsworth (The Jackson Laboratory.org 2018). The organization has become a leader in the production of mice and is further planning for the expansion of its facilities to improve speed and quality of the production of mice in the industry. The Mice that are produced by Jackson Labs are used by more than 25,000 labs in more 60 countries of the world. These are used for the purpose of the identification of treatments, conducting researches and seeking cures for the various human diseases (Yen et al. 2015). The organization is expected to expand to such an extent in the next few years so that more than 300 high quality full time jobs can be created in Ellsworth and 120 jobs will be created in Bar Harbor which is base of the organization. The grants provided to the organization keep on expanding as the partnerships are created with other technology based organizations. Conclusion The report can be concluded by stating that the implementation process of the ERP systems are quite complex for some of the organizations. The organization which has been taken into consideration for research in this report is involved in quite complex and sensitive type of work process. This has further complicated the entire implementation based functions of the ERP system in the organization. The Jackson Laboratory has faced many issues when the ERP systems were being implemented in the organizational processes. This has further led to the successful implementation of the system under the strict supervision of the management. Further, the employees are trained in a proper manner to use the systems so that they can provide benefits to the company. The organization had further created its own position in the country and has shown great prospects related to fast growth in the future as well.
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12ANALYSIS OF ENTERPRISE SYSTEMS References Al-Ghofaili, A.A. and Al-Mashari, M.A., 2014, August. ERP system adoption traditional ERP systems vs. cloud-based ERP systems. InInnovative Computing Technology (INTECH), 2014 Fourth International Conference on(pp. 135-139). IEEE. Aloini, D., Dulmin, R., Mininno, V. and Spagnesi, A., 2016. Benefits and barriers of social/collaborative ERP systems: a state of the art and research agenda. InStrengthening Information and Control Systems(pp. 171-184). Springer, Cham. Asprion, P.M., Schneider, B. and Grimberg, F., 2018. ERP Systems Towards Digital Transformation. InBusiness Information Systems and Technology 4.0(pp. 15-29). Springer, Cham. Bokovec, K., Damij, T. and Rajkovič, T., 2015. Evaluating ERP Projects with multi-attribute decision support systems.Computers in Industry,73, pp.93-104. Bradford, M., Earp, J.B. and Grabski, S., 2014. Centralized end-to-end identity and access management and ERP systems: A multi-case analysis using the Technology Organization Environment framework.International Journal of Accounting Information Systems,15(2), pp.149-165. CFO.(2018).OfMenandMice:AnERPCaseStudy-.[online]Availableat: http://ww2.cfo.com/technology/2001/03/of-men-and-mice-an-erp-case-study/[Accessed6 May 2018]. Dietz,J.,2014,April.WhyERPsystemswillkeepfailing.InEvaluationofNovel Approaches to Software Engineering (ENASE), 2014 International Conference on(pp. 1-2). IEEE.
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13ANALYSIS OF ENTERPRISE SYSTEMS Galy, E. and Sauceda, M.J., 2014. Post-implementation practices of ERP systems and their relationship to financial performance.Information & Management,51(3), pp.310-319. Ha, Y.M. and Ahn, H.J., 2014. Factors affecting the performance of Enterprise Resource Planning(ERP)systemsinthepost-implementationstage.Behaviour&Information Technology,33(10), pp.1065-1081. Haddara, M. and Elragal, A., 2015. The Readiness of ERP Systems for the Factory of the Future.Procedia Computer Science,64, pp.721-728. Haddara,M.,2018.ERPsystemsselectioninmultinationalenterprises:apractical guide.Determinants of analytics-based managerial decision-making. Huber, M., Zimmermann, S., Rentrop, C. and Felden, C., 2016. The Relation of Shadow Systems and ERP Systems—Insights from a Multiple-Case Study.Systems,4(1), p.11. Koch, S. and Mitteregger, K., 2016. Linking customisation of ERP systems to support effort: an empirical study.Enterprise Information Systems,10(1), pp.81-107. Kulkarni, A., Hegde, N., Sharma, M., Kulkarni, A.A., Hegde, N. and Sharma, M., 2015. Educational ERP systems in the market–a comparative study.International Journal of Innovative Research Science in Technology,1. Meyr, H., Wagner, M. and Rohde, J., 2015. Structure of advanced planning systems. InSupplychainmanagementandadvancedplanning(pp.99-106).Springer,Berlin, Heidelberg. Mittelstädt, V., Brauner, P., Blum, M. and Ziefle, M., 2015. On the visual design of erp systemsthe–roleof informationcomplexity,presentationand humanfactors.Procedia Manufacturing,3, pp.448-455.
14ANALYSIS OF ENTERPRISE SYSTEMS Nwankpa,J.K.,2015.ERPsystemusageandbenefit:Amodelofantecedentsand outcomes.Computers in Human Behavior,45, pp.335-344. Nwankpa, J.K., 2018. ERP Systems Benefit Realization and the Role of ERP-Enabled Application Integration. InEncyclopedia of Information Science and Technology, Fourth Edition(pp. 2953-2964). IGI Global. Poba-Nzaou,P.,Uwizeyemungu,S.,Raymond,L.andParé,G.,2014.Motivations underlying the adoption of ERP systems in healthcare organizations: Insights from online stories.Information Systems Frontiers,16(4), pp.591-605. Seethamraju, R., 2015. Adoption of software as a service (SaaS) enterprise resource planning (ERP)systemsinsmallandmediumsizedenterprises(SMEs).Informationsystems frontiers,17(3), pp.475-492. The Jackson Laboratory.org (2018). [online] Available at: https://www.jax.org/news-and- insights/2018/february/the-jackson-laboratory-receives-millions-for-ellsworth-expansion# [Accessed 6 May 2018]. Yen, H.R., Hu, P.J.H., Hsu, S.H.Y. and Li, E.Y., 2015. A multilevel approach to examine employees’ loyal use of ERP systems in organizations.Journal of Management Information Systems,32(4), pp.144-178.