MIS 800: Re-engineering Principles in ERP System Implementation

This assignment delves into the concept of re-engineering, particularly its significance in the context of Enterprise Resource Planning (ERP) systems. It highlights that re-engineering involves fundamentally rethinking and redesigning business processes to achieve dramatic improvements, rather than simply automating existing ones. The importance of re-engineering in ERP setup lies in its ability to streamline processes, eliminate redundancies, and foster better alignment of business goals. The assignment also addresses potential reasons for ERP failure and success, emphasizing the need for companies to carefully consider their objectives, existing strategies, and organizational culture before undertaking an ERP initiative. It concludes that ERP is not a universal solution and its effectiveness depends on proper deployment and alignment with the company's overall goals. The paper also touches upon the role of ERP in integrating various business functions and its impact on competitive advantage.

Joanna Chung
11/16/18
MIS 800
Assignment 5 Re-engineering
1. Define what is re-engineering. Why is it important in an ERP system set-up?
According to Hammer’s article in the Harvard Business review, re-engineering uses the
power of modern information technology to redesign processes that result in significant
performance improvement. This involves identification and destruction of old processes and
finding innovative ways to achieve aligned goals and outcomes. Hammer argues that re-
engineering is not simply automating old processes; rather, it redesigns old processes by
challenging existing methods, policies, and procedures. Re-engineering takes a deeper look into
the fundamental principles of business from a cross-functional perspective through asking and
identifying the ‘why’ and ‘what if’.
One example of a re-engineering principle is to reorganize around outcomes rather than
tasks. This principle eliminates the assembly line method of specialization and unifies a single
entity to sequentially understand the steps within the processes resulting in the problems. In
knowing and being involved in each step of the process, the more information can be observed
and used to identify gaps to be reorganized in order to improve outcomes. Therefore, it is
important to have those involved in output functioning be involved in performing the processes
to gain a better understanding of the process as a whole. The purpose is to involve necessary
players within the processes to gain better ideas that may contribute to the larger picture as a
whole. This results in minimizing the need for as much managerial support, or intermediary
liaisons. In empowering autonomy and individual accountability, control systems can be placed
at each step to monitor and provide support in making decisions for processes improvement.
In a way, re-engineering emphasizes centralizing geographically dispersed areas to parallel
activities during the processes rather than integrate results after completion; the latter facilitates

Joanna Chung
11/16/18
MIS 800
Assignment 5 Re-engineering
redundancy. Separate units would perform the same function through utilization of
communication networks, database sharing, and teleconferencing in order to coordinate similar
functions. These units could also be re-engineered to collect, store, and transmit information at
the source of the process. The tools needed to integrate paralleled common processes and data
modeling for business functions of operations, finance, human resources, distribution,
sales/marketing, and manufacturing can be delivered by an enterprise resource planning system
that includes core software components.
2. What are the possible reasons for ERP failure/success?
ERP systems are designed to defragment information in large business organizations.
Individually, these systems can function independently as a business unit, but when
integrated together, the combination of systems house the facilitation of productivity and
performance. As a multi-system, cots for storing, reformatting, updating, and maintaining
each system can be costly. Implementation of common database systems are required to
ensure flexibility, linking of databases, and providing consistent standards across the
organization. On the other hand, cost invested in maintenance, updating, and improving
communications between systems can provide desired outcomes that can be customized to
the business processes. When set up properly, ERP can save companies money in the long
run through streamlined processes, utilizing and valuing data efficiently, and coordinating
system processes.
Another benefit of ERP is that it can provide alternative decision making among inter-
firm partnerships, mergers, or acquired entities. Because of the larger benefit of desired
outcomes outweighing costs, enterprise systems are used in every company in an industry,

Joanna Chung
11/16/18
MIS 800
Assignment 5 Re-engineering
which mitigates the competitive advantage of companies if it is derived from product
distinction. In other words, standardization of processes can be made easy available for
competitors to match.
3. What would you prescribe a company to do before they undertake an ERP initiative?
With each company, the ERP initiatives would depend on a multitude of factors: industry
and competitive players, the goals of each company in balancing commonality and
variability, and goals beyond technical criteria. A company must decide what purpose would
an ERP serve in their company? How would it enhance the current company’s strategy,
culture and organization to serve as a competitive advantage in areas such as human
resources, manufacturing, inventory, sales, purchasing, order tracking or decision support?
How much uniformity should exist within and between individual units within a company?
What can the company afford to invest in the storing, maintenance, and implementation of
ERP? Are there alternatives to ERP?
In conclusion, it is important to note that ERP is not the solution to all problems for a
company. ERP is not a one-size fits all, if not deployed or used effectively. Implementing
ERP initiatives depend on factors noted above, but ultimately, answering the question of how
can ERP be utilized to achieve the company’s goals.
Resources:
i. Hammer, M. Reengineering work: don’t automate, obliterate. Harvard Business
Review. 1990; Jul-Aug: 104-112.
ii. Davenport, TH. Putting the enterprise into the enterprise system. Harvard Business
Review. 1998; Jul-Aug:121-131.
iii. Gallaugher J. Information systems: a manager’s guide to harnessing technology v7.0.
Chapter 2 Strategy and Technology: concepts and frameworks for achieving success.
Information Systems e-Textbooks. 2018.

Joanna Chung
11/16/18
MIS 800
Assignment 5 Re-engineering
Comments
The answer is completely relevant, factually correct and accurate. The term
“Reengineering” and its background has been properly introduced. However, statistical
data and real life examples would be a great choice to make it perfect. On the other hand,
the requirement and possible way to implement ERP system is described in the paper.
Apart from these, the linking between reengineering and ERP has been discussed. The
answer is comprehensive and addresses most of the issues. In addition, the presentation is
clear and logical, clearly and smoothly with clear and cogent writing with no grammatical
errors.
Criteria/ standards Points
Relevance and correctness 3/3
Thoroughness 2/3
Presentation/ Logic 2/2
Readability 2/2
Total- 9/10