IT Challenges in Integrating a Subsidiary: ETI Global and ETI UK

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INTEGRATING A SUBSIDIARY WITH
IT CHALLENGES

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
Question 1....................................................................................................................................................2
1(a) Identify the specific elements and the critical assumptions using the LFA table given?.................2
1(b) what are the risks and their impact linked to the critical assumptions identified in your LFA?......4
Question 2....................................................................................................................................................6
2(a) what type of CRM would you suggest implementing and why?.....................................................6
2(b) would you implement the same type of CRM at ETI UK, why?.....................................................7
Conclusion...................................................................................................................................................9
References..................................................................................................................................................10

Introduction
The organization faces several IT challenges especially when they are integrating with subsidiary. Since
every organization is unique in its functioning and has priorities, this will not be placed in specific order.
In the present case, the organization ETI Global is facing the several challenges in acquiring the
subsidiary ETI UK to raise the production capability. The major issues can be related to new technology,
big data, cloud computing, BYOD, virtualization, shadow IT, energy efficiency, user systems, creating
value, interoperability, boomers and social networking. From the case study it is also shown that the ETI
UK is already facing the IT disruption as it is at the last stage and due to this it is important to determine
challenges more rather than founding the opportunities in acquiring subsidiary.
In the present study, the report will show replacement project at ETI UK for the information system
with giving up the two critical assumptions by applying logical framework analysis along with
indicating the risk and impact connected with the replacement project. In the next part, the study will
give information about the customer relationship management (CRM) and given recommendation to the
ETI UK for implementing the suitable CRM to manage their sales, service and marketing automation.
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Question 1
1(a) Identify the specific elements and the critical assumptions using the LFA table given?
Customers and users are becoming more demanding for the products on the systems and mobile devices.
It is only possible through communicating essentially of the one IT system with another due to lack of
interoperability. IT Systems of ETI UK shall require sending and receiving the information that is
compatible on all the IT systems of organization. Open applications and the devices developed on open
standards are the future way. The ETI UK development initiatives shall concentrate on system itself
along with knowing how the systems work with another. On this concern, at the most basic level, IT
developers shall avoid proprietary architecture and consider only open architecture and approaches that
communicate easily with one another.
As the organization lacks in interoperability of IT production systems and there is also absence of proper
accounting system and due to this it is important to replace the entire IT system with ERP system. ERP
means enterprise resource planning that supports in coordinating all the resources, activities and
information required to finish the business processes. ERP is the integrated software modules and
gathers the data from all the divisions of firm to fill the information in accounts and other activities of
internal business (Nwankpa, 2015). In this the need of information to the department will not arise as the
information entered in one procedure will be quickly offered to the next procedure.
Enterprise resource planning will be developed around thousands of pre-specified business processes
that show the best practices.
 Finance or accounting: account payable, general ledger and many more
 Manufacturing or production: shipping, purchasing and many more
 Human resources: payroll, personnel administration and many more
 Marketing or sales: billing, order processing, sales planning
ERP in relation to finance or accounting will be implemented through ERP planning that starts from
selecting the system functions, mapping the business processes to software processes and then using the
software configurations tables for customizing the services of ETI UK. This system collects the large
information in the centralized database for all the four departments mentioned above. There is different
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software present in ERP and all the ERP software offers basic functions such as logistics, accounting,
financial management, manufacturing, inventory, procurement and sales and selling management
(Jagoda et.al. 2017). The most common preferred ERP software is SAP. Hence, it can be said that old IT
system shall be replaced with the ERP system which will fulfill the needs of the ETI UK.
The below LFA table is presented:-
From the above table, it can be seen that organization interoperability can be improved in the production
environment through placing the ERP system in ETI UK. This system will solve the problem of
accounting activities as well. Before implementation of the project of replacement, it is important that
the IT manager shall get the approval from the top management. In the next, the team shall be interested
and the software which is to be in place shall be affordable by the organization (Simmonds et.al. 2018).
On this account, the resources should also be available at adequate quantity at right time then only
objectives will be met. The user can use the system and operational cost can also be reduced. While, it is
only possible when logical framework analysis moves according to the demand of the IT management to
complete the project.
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Elements Critical assumptions
Finality: Improves interoperability
within IT systems is seen
Objectives: ERP system in place From objectives to finality: if system
user is using the system
If system integration improves and
operation cost effectiveness is seen
Deliverables: proper allocation of roles and
responsibilities of team
From deliverables to objectives:
If resources are sufficient and adequate
If software are used at right time
Resources: human resource, system and
services of the external IT people
important in undertaking the activities
From resources to deliverables:
If employees and IT team are interested
If price of the software is stable
For resources: If organization approves
the project

1(b) what are the risks and their impact linked to the critical assumptions identified in your LFA?
The implementation of ERP for accounting information recording and to maintain the interoperability
also brings risks and the impacts.
 Software selection is the main activity entitled in ERP system installation. Presently, enterprise
software has own requirements and specifics that might not fit with the issue the organization is
facing right now. Wrong software selection is ERP can impact into big failure and the business
can come at the stake.
 Transformation in business requirement as change in the trends is very adequate in the
environment. The changes really supports in keeping the pace with the competitors and place to
the next level. In that case the ERP software place should be dynamic in nature.
 Compatibility between ERP and new business techniques as no market will take the changes in
the system at the beginning only. It is significant to assure that the ERP software adopted should
be compatible and adhere to business techniques (Harwood, 2017). The reason is when the new
system is in place then the prior one, adoption and adherence rate develop higher.
 Delays in software update generally takes place in organization. Updating the ERP software is
very significant. It is significant to aware that each update shall have additional characters that
make it significant. Software update brings benefits but it also has the risk like it can move above
the budget and updating can bring the organization at loss.
 Software stability is also the risk to be taken in implementing the ERP software. The reason is
high availability various software in the market and due to which it is impossible to select one.
However, there is much software that might not be fit for the ETI UK.
 More the integration points more is risk that means high number creates high chance of risk
failure. The reason is interdependencies and complexities arise. The only thing that IT team can
do is to concentrate on simple and immediate ERP implementation (Ali and Miller, 2017).
 The future state possibilities of ERP system: ignoring the risk is not the good option for the
organization. It is important to check possibilities and capabilities of the processes. Actually,
looking the expectations supports in ensuring the project delivers the outcome, meeting the
productivity objectives and offering efficiency in business.
 No clear vision and poor functioning due to ignorance in ERP solution. As each business has
own specification and requirement, ERP solutions did not include vision. The clear vision shall
be shown to have perfect ERP system.
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 Software limitations as no single software can give all the features. It is significant for the
organization to have requirement check. Easily make the list of requirements and then select the
software (Tian and Xu, 2015).
Additionally, there are many risks that place negative impact on the business. The risks are wrong
choice of vendor, data management risk, requires flexibility, satisfaction with chosen ERP, underrating
time and implementation cost, technical risk, security risk, job risk, improper maintenance plan and time
consuming.
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Question 2
2(a) what type of CRM would you suggest implementing and why?
As ETI UK provides interesting flexibility to develop the custom made simulators, organization needs to
have the use of CRM. In the competitive market of business, the CRM solution can support the business
to communicate with customer’s appropriately. CRM stands for customer relationship management
supports in data analyzing and create the reports whenever needed for the employee. The touch points of
CRM are marketing, distribution partners, customer service centre, sales force, and point of sales and
website of the organization (Laudon and Laudon, 2016). The main purpose of the CRM is to support the
business procedure for acquisition and retention of customers that gives good profits.
CRM process includes four IT factors such as identification of customer profiling, differentiating
individual level analysis, interaction with call centre management and auto response system and finally
the customization related to sales automation and marketing process automation. The three main
functional areas of CRM modules are marketing, sales and customer service & after sales service. CRM
has the links with the other systems also like enterprise resource planning (ERP system).
There are basically three types of CRM that are organizational CRM, collaborative CRM and Analytic
CRM.
Operational CRM supports in streamlining the process of business that includes sales automation,
service automation and marketing automation. The main objective of this CRM type is to collect the
leads, converting them into contact, capturing all needed details and offering services throughout the
lifecycle of the customer.
Analytic CRM supports the top management, sales and assists personnel to identify the convenient way
for serving to customers. It supports the top management to consider the best decisions, marketing
executives for understanding the usefulness of campaign, sales executives to enhance the sales along
with improving the quality of support and building strong relationship with customers. It also helps in
analyzing the customer data through OLAP or data mining etc (Tan, 2018).
Collaborative CRM is sometimes referred as strategic CRM that allows the firm to share the
information related to customers among several business units such as marketing team, technical team
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and sales team. It supports in uniting all the groups to achieve only one objective and considers all the
information for improving the customer service quality to generate loyalty and capture new customers to
raise the sales.
It is recommended to the organizations to use operational CRM as it concentrates on application of
software that supports in incorporating the several sets of information offered on every customer into
one separate file. For instance: it will bring all the information related to the client, it’s buying history
and any prior communication they have done with the organization on single web page so that employee
can offer them more enhanced response and service in future. This type of CRM software solutions
offers a support center to the marketing, sales and customer service departments (Pearson, 2016). It also
supports in sales force automation also that keeps the record of each step of sales process and supporting
the employees to make the activities automatic like making report, calls scheduling and mailings.
2(b) would you implement the same type of CRM at ETI UK, why?
From analyzing the case study of ETI UK, the use of operational CRM shall be done. As there is lack of
flexible production environment the use of this CRM can be done. The organization offers large services
and products and there arises need of having large number of information set so that in future dealing
with the same customers can take place. The organization has nine major clients, for whom they prepare,
deliver and install the simulators for flights; the use of operational CRM type can be useful in this
context. The organization offers training configurations to the organizations and on this concern they
needs the information in relation to client so that training can be given in more convenient manner and it
will also save additional cost and efforts of the ETI UK.
The organization is also making the plan to replace the homemade systems with shelf products off and
this also results into the need of having the operational CRM. It supports in knowing the information
about the customers whether they prefer to have off shelf products or not (Soltani and Navimipour,
2016). The benefit of getting the operational CRM is that custom products are prepared and this CRM
cares better for the customers. The reason is that it offers supports for the variety of business process and
ETI UK can maximize the capability of selling, retaining the customers and marketing in business.
Better sales force automation also supports in operating the sales process automatically. As the
organization will able to include several things in efforts like contact management, performance
management, lead management and account management. As the organization did not have any account
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system, this operational system of CRM will be very supportive. The entries will be done automatically
in the general ledger, accounts receivable, payroll and account payable. The entire sales process will also
be automate for entire organization. The ETI UK also offers services that includes resources and
operational CRM has the ability to make the customer service automation. As this automation type
enables to offer superior services of customers and it will increase retention of customer and enhance the
ability to lose the prospect (Hayley, 2016). These things can involve several features such as case
management, service level management, call management and more. Having of this information and
data available to the customer will enable to serve the customer, determining the most valuable
customer.
Although the ETI UK can give collaborative CRM as it entirely allows the organization to share the data
among the several units of business such as marketing team, sales team, accounts team, support and
technical team. This CRM supports in meeting the services and product range along with giving the
information on training personnel and technical personnel (Nwankpa, 2019). Through this CRM module
information needed by the employee payroll software is also fulfilled. Further, integration of ERP with
operational CRM will also benefit the ETI UK in meeting the requirement of accounting.
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Conclusion
From the above study, it can be concluded that ITV UK had to undergo for the changes in their IT
systems to increase their production and service capabilities. On this concern, several challenges has
been faced which is needed to be implemented by ITV global in acquiring the ITV UK as subsidiary. On
this concern, the study had given the two assumptions along with the risk and the impacts connected
with it. The report had also thrown the light on CRM systems and types to increase customer interaction
and sales. Further, the recommendation to the ITV UK had been given on the use of operational CRM in
their IT systems to collect the information of the customers to offer them best services.
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References
Books and Journals
 Ali, M. and Miller, L., 2017. ERP system implementation in large enterprises–a systematic
literature review. Journal of Enterprise Information Management, 30(4), pp.666-692.
 Harwood, S., 2017. ERP: The implementation cycle. Routledge.
 Hayley, M., 2016. A literature review on CRM–definitions, benefits, components, and
implementation. Australian Journal of Management and Financial Research, 1(1), pp.26-34.
 Jagoda, K. and Samaranayake, P., 2017. An integrated framework for ERP system
Implementation. International Journal of Accounting & Information Management, 25(1), pp.91-
109.
 Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
 Nwankpa, J.K., 2015. ERP system usage and benefit: A model of antecedents and
outcomes. Computers in Human Behavior, 45, pp.335-344.
 Nwankpa, J.K., 2019. ERP Systems Benefit Realization and the Role of ERP-Enabled
Application Integration. In Advanced Methodologies and Technologies in Business Operations
and Management (pp. 802-815). IGI Global.
 Pearson, S., 2016. Building brands directly: creating business value from customer relationships.
Springer.
 Simmonds, D., Tadesse, A. and Murthy, U., 2018. ERP System Implementation and
Sustainability Performance Rating and Reputation.
 Soltani, Z. and Navimipour, N.J., 2016. Customer relationship management mechanisms: A
systematic review of the state of the art literature and recommendations for future
research. Computers in Human Behavior, 61, pp.667-688.
 Tan, P.N., 2018. Introduction to data mining. Pearson Education India.
 Tian, F. and Xu, S.X., 2015. How Do Enterprise Resource Planning Systems Affect Firm Risk?
Post-Implementation Impact. Mis Quarterly, 39(1).
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