BISY2005/ISY2005 Enterprise Systems Implementation Case Study: Qantas

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This report examines the enterprise systems implementation undertaken by Qantas Airways, focusing on the adoption of an ERP system. It begins with an introduction to enterprise systems, highlighting their role in integrating various business functions. The report then describes the nature of the enterprise systems adopted by Qantas, including the selection and implementation process, with a focus on the move from Oracle E-Business Suite 11i to a new edition, supported by Tata Consultancy Services (TCS). A detailed analysis of the difficulties Qantas faced during the implementation is provided, including challenges related to data management, integration, and employee adoption. The report also assesses the success of the ERP adoption, considering factors such as improved agility, simplification of IT services, and the reduction of operational complexities. The report highlights the importance of aligning IT infrastructure with business goals and the impact of these changes on the company's operations. The conclusion summarizes the key findings, emphasizing the importance of strategic planning and effective management in successful enterprise system implementations. The report also references several academic sources to support its findings.
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Running head: ENTERPRISE SYSTEMS IMPLEMENTATION
ENTERPRISE SYSTEMS IMPLEMENTATION
Name of the Student
Name of the University
Author Note
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1ENTERPRISE SYSTEMS IMPLEMENTATION
Table of Contents
Introduction....................................................................................................................2
Description of the nature of the Enterprise Systems that the organisation adopted and
the process by which it was selected and implemented.............................................................2
Explanation and analysis any difficulties the organisation may have faced in adopting
the system...................................................................................................................................3
Assessment of how successful the adoption of the Enterprise Systems was.................6
Conclusion......................................................................................................................8
References......................................................................................................................9
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2ENTERPRISE SYSTEMS IMPLEMENTATION
Introduction
As discussed by Ahmad, Ibrahim and Garba (2015), the organizations have previously
used diverse types of information systems that are mainly used to serve the different business
functions that include, marketing, sales, manufacturing and production in a separate manner.
The levels of disparity that exist in the different business functions were not able to support
the information sharing process in an effective manner. The managers mainly face high levels
of difficulty base on the ways by which fragmented data can be collected based on the
separate systems that are a part of the organizational operations (Ali and Miller 2017). A
single and integrated system that is developed by the organizations in order to manage the
different business functions. These systems can also be termed as enterprise system. The
enterprise system is also termed as the enterprise resource planning or ERP is considered to
be a cross-functional information based system that is able to provide organization-wide
integration and coordination of different key business processes (Altamony et al. 2016). The
process of enterprise resource planning based systems are able the ways by which the
resources can be used by the organizations. The report will be based on the study of a
company that has implemented the enterprise systems in order to maintain the business
functions and the resources as well (Appelbaum et al. 2017). The nature of the Enterprise
systems that are adopted by the organizations will also be examined in the report in detail.
The firm that has been taken into consideration for study is Qantas Airways that has recently
implemented Enterprise Resource Planning or ERP process (Ann Sykes 2015).
Description of the nature of the Enterprise Systems that the organisation adopted and
the process by which it was selected and implemented
Qantas Airways is the flag carrier based organization of Australia that currently
operates the largest fleet of airlines. The flights that are operated by the firm are based on
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3ENTERPRISE SYSTEMS IMPLEMENTATION
diverse international destinations and the international flights as well. The airlines
organization is mainly based in Sydney, in the suburb of Mascot. The main hub of the
organization is located in Sydney Airport. The firm has been able to gain more than 60% of
the total shares in the industry (Qantas.com 2019).
Qantas Airways is the largest airline based organization that has implemented a
private cloud-based and integrated IT related service that is able to affect an agile as well as
flexible ERP platform that offers a single point based on effective contact. The businesses
that operate in the modern business environment have started facing major levels of
challenges. The global airline based organizations have to manage different activities that
include, business partnerships and the ticket billings as well (Qantas.com 2019). The
financial modelling and maintenance of operations of the organizations are considered to be a
significant part of the operations that are performed in an effective manner. The need based
on proper management of data has led to the proper implementation of downstream and
upstream ERP based system. The technological implementations in the organization have
been able to play a key role in the proper growth of the organizational processes (Qantas.com
2019).
Explanation and analysis any difficulties the organisation may have faced in adopting
the system
As discussed by Bansal and Agarwal (2015), the organization had faced major stages
of challenges that are based on the proper implementation of the operations that have been
performed in an effective manner. The ticket billings and the different partnerships that have
been made by the business have been able to play an important role in implementation of
ERP systems. The management of the huge volumes of data are considered to be an
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important activity that can help in the proper operations of the organization (Chang et al.
2015).
According to Chofreh, Goni and Klemeš (2018), the process of ERP implementation
of the organization is considered to be quite complex for Qantas Airways in order to manage
the challenges that are faced by the organization. The ERP based systems that have been
implemented by the organization have been able to support Qantas Airways and its
worldwide operations as well. The ERP systems have been able to integrate different factors
that are able to affect the organizational operations (Chofreh et al. 2016). The airlines
organization has been able to recognise that it needs to upgrade from the usage of Oracle E-
Business Suite 11i to the next edition. The organization has been provided with huge number
of options that are mainly based on the methods by which the systems can be improved in an
effective manner (Marabelli and Newell 2019).
As discussed by Murphy, Lyytinen and Somers (2016), the organization that has been
contacted in order to offer the best levels of services based on implementation of ERP
systems that have been designed by TCS or Tata Consultancy Services. The three major goals
that have been set by the organization in order to uphold the processes along with the proper
collaboration with TCS are,
Leveraging the new functionalities in R12 in order to boost the agility levels
of business and IT, performance and levels of flexibility in order to develop
the levels of user experience as well.
The proper simplification of the platform.
Consolidation of the IT services that are a part of the single platform which is
able to boost the quality of services that are provided by the organization
(Qantas.com 2019).
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5ENTERPRISE SYSTEMS IMPLEMENTATION
As discussed by Shao, Feng and Hu (2016), a new challenge has however been
introduced in the process of organizational operations with the help of the ERP systems. The
approach that is mainly involved by the firm is based on the methods by which data can be
analysed by the management of Qantas Airways. TCS has taken the accountability to develop
the opportunities that are provided to the organization in order to improve the levels of
performance. The integration of the levels of ERPs that have been developed by the
organization along with TCS is able to provide high levels risks and uncertainties as well
(Shen, Chen and Wang 2016). The ERP based upgrade that has been implemented by the
organization with the help of TCS had taken place in the year 2012. The organization also
went live with the development of a new enterprise suite (Soja and Soja 2017).
The software-as-a-service (SaaS) platform has been hosted in an effective way with
the help of Macquarie Telecom (MT) as the private cloud. The software has been able to
consolidate in an effective manner with the ERP modules of Oracle that are based on the
different aspects of the business that include, procurement, projects, financials, human
resources and supply chain. The expectations and goals that have been set by the company
are able to play a major role in the development of different operations (Tarhini et al. 2015).
The proper streamlining of different organizational activities is considered to be a vital part of
the ways by which need to oversee the patches and upgrades can be reduced. The flexible and
highly agile platform that has been developed by the company is considered to be an
important factor that can have an influence on the speed of operations (Tian and Xu 2015).
As discussed by Turetken, Ondracek and IJsselsteijn (2019), the evolving and
restructuring of the activities of the organization mainly require the shifts on technology from
the set of the applications or the modules. The private cloud related platform is a new method
for Qantas Airways in order to uphold its processes in the highly competitive airlines industry
(VORONKOVA et al. 2017). The organization has been able to upgrade the ERP systems
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with the help of support that is provided by the partners. The increase in levels of
functionality of ERP systems is considered to be an important part of the ways by which
complexity levels of the management can be reduced (Upadhye, Deshmukh and Garg 2016).
The E-Business Suite that has been implemented by the organization has been able to play a
key part in appropriate growth of the operations of Qantas Airways. The methods by which
Qantas aims at increasing the functionality levels of the ERP based platform of the
organization has also been successful in reducing the complexity levels of the management.
The move has also been able to put the IT system of Qantas under the management of its
major partner TCS (Upadhye, Deshmukh and Garg 2016). The ERP based functionality has
been able to play a key part in the methods by which the firm can maintain its operations in
the industry for a long period of time. The effective simplification of the infrastructure based
platform has a major impact on the ways by which Qantas Airways has established its place
in the industry. The legislative patches that have been developed as a part of the formation of
ERP system have been able to play a major part in the proper improvement of the operations
(Shao, Feng and Hu 2016).
As discussed by Turetken, Ondracek and IJsselsteijn (2019), the IT based model that
has been developed by TCS is able to provide support to the leading the technology
publication based highlights. The methods by which Qantas Airways has been able to gain a
leadership place in the airlines industry is based on the development of ERP systems and the
different shift key areas based on IT implementation.
Qantas Airways has faced major IT failures in the process of its operations in the
industry. The failures were mainly based on the high levels of complexities that are based on
the IT infrastructure of the organization. The dysfunctional type of relationship that had been
formed by the management of the organization with the software users are considered to be
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an important part of the operations that have been maintained (Upadhye, Deshmukh and Garg
2016).
As discussed by Murphy, Lyytinen and Somers (2016), the employees of the
organization have also not been able to provide their contribution towards proper
implementation of the ERP based software. The engineers of the organization are able to
affect the process of effective implementation of the ways by which different operations can
be maintained. The poor levels of adoption of the software are also able to influence the
methods by which the software in implemented in order to uphold the levels of operations
(Chofreh, Goni and Klemeš 2018).
Assessment of how successful the adoption of the Enterprise Systems was
The challenges that have been faced by Qantas Airways in the proper management of
high volumes of data have a major impact on the methods by which the firm has maintained
its profitable operations in the industry for a long period of time. The organization has been
highly successful in the proper application of ERPs in different organizational aspects and
operations as well. The complex nature of the ERP systems had been able to affect the
processes of the organization to some extent (Upadhye, Deshmukh and Garg 2016).
However, the proper development of different organizational processes has been based on the
methods by which the speed of processes of Qantas Airways in a positive manner. The
process of effective monitoring of different organizational activities is able to play a key part
in the methods by which the future operations can be maintained for a longer period of time
(VORONKOVA et al. 2017).
The transformational journey that been undertaken by the organization has been based
on the appropriate upgradation of the ERP based platform. The new ERP system that has
been developed by the organization is considered to be quite effective for increasing the
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8ENTERPRISE SYSTEMS IMPLEMENTATION
levels of flexibility and agility that has been maintained. The vendor management process has
been streamlined in an effective way by the significant increase in the levels of IT
administration. The new platform has been able to support the operations of the Qantas
Airways in an active way with the help of its effective services (Shen, Chen and Wang 2016).
The software has been able to fulfil the demands and needs of the employees in an effective
manner due to the levels of support that are offered by the organization and its partners. The
new software had been applied by Qantas Airways in the year 2014 with the implementation
of the budget that has been set by the organization. The levels of flexibility that have been
developed within the firm are able to play a key part in the methods by which Qantas
Airways is able to maintain its operations (Turetken, Ondracek and IJsselsteijn 2019).
According to Chofreh, Goni and Klemeš (2018), the operations management based
issues that have been faced by the organization based on the proper management of flights
and data of the consumers. Inventory management is also an important factor that has been
able to affect the operations of Qantas Airways in the industry. The levels of suitability of the
ERP system are considered to be a vital aspect that is able to affect the operations of the
organizations. The organization does not have to focus on the proper development of the
software (Marabelli and Newell 2019). The core competency of the organization is mainly
related to the methods by which the financial resources can be used in order to provide the
best levels of services to the customers. The benefits and needs of the customers can be taken
into consideration in order to customize the services that can be provided by ERP system that
is implemented by the organization (Bansal and Agarwal 2015). Different parts of the
operations of ERP implementation can customize the ways by which different organizational
aspects can be taken into consideration. The proper management of different organizational
activities in Qantas Airways is possible with the help of effective implementation of the
required activities (Chang et al. 2015). The financial and human resources that are used by
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the organization are managed in an efficient way with the help of proper application of ERP
based systems. The strategic pillars that have been developed by the firm have been able to
affect the ways by which ERP system has been highly successful in nature (Soja and Soja
2017).
Conclusion
The report can be settled by stating that the processes of Qantas Airways has been
affected in a huge way by the proper application of ERP or Enterprise Resource
Planning based systems. The organization has partnered with a major organization like TCS
in order to grow the ERP system based on the proper management of the organizational
operations. The speed of processes has been increased in an effective way with the support
that is provided by the implementation of ERP based systems. Qantas Airways has thereby
gained major levels of success based on the methods by which it can maintain its processes in
the industry for a longer period of time.
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References
Ahmad, S., Ibrahim, S. and Garba, S., 2015. Enterprise resource planning (ERP) systems in
banking industry: Implementation approaches, reasons for failures and how to avoid
them. Journal of Computer Sciences and Applications, 3(2), pp.29-32.
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.
Altamony, H., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship between
change management strategy and successful enterprise resource planning (ERP)
implementations: A theoretical perspective. International Journal of Business Management
and Economic Research, 7(4), pp.690-703.
Ann Sykes, T., 2015. Support structures and their impacts on employee outcomes: A
longitudinal field study of an enterprise system implementation. MIS quarterly, 39(2).
Appelbaum, D., Kogan, A., Vasarhelyi, M. and Yan, Z., 2017. Impact of business analytics
and enterprise systems on managerial accounting. International Journal of Accounting
Information Systems, 25, pp.29-44.
Bansal, V. and Agarwal, A., 2015. Enterprise resource planning: identifying relationships
among critical success factors. Business Process Management Journal, 21(6), pp.1337-1352.
Chang, B., Kuo, C., Wu, C.H. and Tzeng, G.H., 2015. Using Fuzzy Analytic Network
Process to assess the risks in enterprise resource planning system implementation. Applied
Soft Computing, 28, pp.196-207.
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Chofreh, A.G., Goni, F.A. and Klemeš, J.J., 2018. Evaluation of a framework for sustainable
Enterprise Resource Planning systems implementation. Journal of Cleaner Production, 190,
pp.778-786.
Chofreh, A.G., Goni, F.A., Ismail, S., Shaharoun, A.M., Klemeš, J.J. and Zeinalnezhad, M.,
2016. A master plan for the implementation of sustainable enterprise resource planning
systems (part I): concept and methodology. Journal of cleaner production, 136, pp.176-182.
Marabelli, M. and Newell, S., 2019. Absorptive Capacity and Enterprise Systems
Implementation: The Role of Prior-Related Knowledge. ACM SIGMIS Database: the
DATABASE for Advances in Information Systems, 50(2), pp.111-131.
Murphy, K., Lyytinen, K. and Somers, T., 2016, January. Does steering committee
information processing capacity influence project success in enterprise-wide system
implementations. In 2016 49th Hawaii International Conference on System Sciences
(HICSS) (pp. 4942-4951). IEEE.
Qantas.com 2019. Our people | Qantas. [online] Qantas.com. Available at:
https://www.qantas.com/au/en/qantas-group/acting-responsibly/our-people.html [Accessed
31 May 2019].
Shao, Z., Feng, Y. and Hu, Q., 2016. Effectiveness of top management support in enterprise
systems success: a contingency perspective of fit between leadership style and system life-
cycle. European Journal of Information Systems, 25(2), pp.131-153.
Shen, Y.C., Chen, P.S. and Wang, C.H., 2016. A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, pp.127-139.
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