Seminar 4

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Seminar 4

  1. 1. IS5600 - 4 Global ERP Cases: Integration and Planning for the Extended Enterprise
  2. 2. Background <ul><li>IT has the potential to integrate information </li></ul><ul><li>IT can enable distributed people to communicate with ease </li></ul><ul><ul><li>Indeed, it is hard to imagine life without IT </li></ul></ul><ul><li>IT can extend the enterprise beyond its traditional borders </li></ul><ul><ul><li>Li & Fung, Amazon, HSBC, etc. </li></ul></ul><ul><ul><li>These organisations are truly IT-dependent. </li></ul></ul><ul><ul><li>They also leverage IT to ensure their competitive advantage </li></ul></ul>
  3. 3. However,… <ul><li>IT-based change is not without problems </li></ul><ul><li>Indeed, the changes associated with implementing major systems is a bit like ‘open heart surgery’, without the anaesthetic! </li></ul><ul><ul><li>You are cutting away at the very core (culture) of the organisation, implementing new systems and processes – while the organisation is still functioning. </li></ul></ul>
  4. 4. ERP: Enterprise Resource Planning <ul><li>Potentially integrated systems that </li></ul><ul><li>allow information to enter at a single point in the process (e.g., at the materials receiving stage of a manufacturing process), and </li></ul><ul><li>update a single, shared database in real time for all functions that directly or indirectly depend on this information. </li></ul>
  5. 5. For Example <ul><li>CityU has an ERP called AIMS (v.7.2) </li></ul><ul><ul><li>Staff, Student, Alumni </li></ul></ul><ul><ul><li>Payroll, leave, benefits </li></ul></ul><ul><ul><li>Course management, contacting students </li></ul></ul><ul><ul><li>Various tools, reports, documents, etc. </li></ul></ul><ul><li>The data in this ERP is integrated – there is a single set of databases, which all programmes access. </li></ul>
  6. 6. ERP… <ul><li>Is common in manufacturing and production </li></ul><ul><li>It is also increasingly frequently encountered in finance, banking, trade, services </li></ul><ul><li>It tends to be expensive and large </li></ul><ul><li>Information integration is often a ‘good thing’, but ERP is about much more than integration </li></ul><ul><ul><li>Despite popular wisdom, ERP may not be a good idea – it might destroy your organisation </li></ul></ul>
  7. 7. Does your organisation (try to) integrate information? How?
  8. 8. Integration? <ul><li>Integration should take place in real-time – now! </li></ul><ul><li>This means that databases must be updated continuously. </li></ul><ul><li>ERP can be extended to support EC, CRM & SCM functions. </li></ul><ul><li>ERP systems typically do not provide management reports – unless you customise . </li></ul>
  9. 9. Why ERP? <ul><li>To improve control over data (from distant locations) </li></ul><ul><li>To improve control over the organisation </li></ul><ul><ul><li>And reduce factionalism </li></ul></ul><ul><li>To reduce chaos and data redundancy </li></ul>
  10. 10. ERP systems are only part of a complex systems solution Middleware Analytical Programs Reports & Analyses ERP Systems CRM & SCM Legacy Systems Operational Data Stores Data Marts & Warehouses
  11. 11. ERP Illustration Order 2,000 MBs, CPUs, RAMs, … Update Order Book Track order completion Ship Order Bill Customer Update A/R Issue Payment to Suppliers Re-order miscellaneous supplies Send Shipping date estimate to customer Customer Order: 2,000 PCs ERP System Managed Process Flow
  12. 12. ERP Vendors 1 <ul><li>SAP – the market leader </li></ul><ul><ul><li>40,000+ customers, 120+ countries, 106,000+ installations </li></ul></ul><ul><ul><ul><li>SAP R/3 released from 1992-2005 </li></ul></ul></ul><ul><ul><ul><li>SAP ERP 6.0 (Business Suite), 2005- </li></ul></ul></ul><ul><ul><li>Also CRM, SRM, SCM and PLM applications </li></ul></ul><ul><li>Oracle – the market contender. </li></ul><ul><ul><li>Has bought up many smaller firms including Peoplesoft (2004: $10.3B), Siebel (2005: $5.8B), Hyperion Solutions (2007: $3.3B) and BEA Systems (2008: $7.2B). </li></ul></ul>
  13. 13. ERP Vendors 2 <ul><li>Baan – Smaller, European player, sold in 2000. </li></ul><ul><li>Microsoft – ERP is not a major area. </li></ul><ul><li>Kingdee – Major Chinese player </li></ul><ul><ul><li>500k customers, mostly Asia-Pacific </li></ul></ul><ul><ul><li>Strong focus on SME sector </li></ul></ul><ul><ul><li>Global alliance with IBM </li></ul></ul>
  14. 15. SAP ERP <ul><li>A set of business applications designed for a client/server environment. </li></ul><ul><li>Runs on many different hardware platforms. </li></ul><ul><li>Consists of ~80 highly integrated modules. </li></ul><ul><li>Supports major business functions such as: HR, F/A, Manufacturing, Logistics, Sales & Distribution on a real-time basis. </li></ul><ul><li>Can be configured to map the organisation’s processes onto software. </li></ul>
  15. 16. Client/ Server Layered Architecture Modular Design & “Plug-In” Capability <ul><li>- Partner Solutions C/W </li></ul><ul><ul><li>Certified Interfaces (Existing, Developing, Planned) </li></ul></ul>Integration & Interoperability Scalable Open Systems Enterprise data model/databases Comprehensive functionality EH&S - R/3 Core Financials - R/3 Core Logistics - R/3 Core HR - Industry Solutions LEGEND - R/3 Technology SFA Sales Force Autom- ation “ Configurable” Packaged Solution Process Oriented GUI & Internet Enabled Telecom Extensions Source: SAP FI Financial Accounting IM Investment Mgt IS P IS Retail CO Controlling RF / Mobile Dispatch AFUDC AM Fixed Assets Mgt WF Workflow IS RE IS Industry Solutions IS-T CCS IS-T / RF & NF CAD AM/FM GIS Workforce Mgt EDI PS Projects System QM Quality Mgt Network Mgt PP Production Planning MM Materials Mgt MSM Maintenance and Service Mgt HR Human Resources Billing EH&S SD Sales & Distribution CS Cable Bar Coding IA Imaging and Archiving Multi-company Support SAP Enterprise Solution
  16. 17. Industry Overview <ul><li>Software vendors sell a vision of an integrated package. </li></ul><ul><li>Systems integrators & consultants are big and have ample resources </li></ul><ul><li>Development of SME market segment. </li></ul><ul><ul><li>This is recognised as an area of huge potential, so the major developers are trying to ‘downsize’ their products </li></ul></ul>
  17. 18. Why ERP Systems are interesting (and potentially useful) <ul><li>Many businesses lack integrated systems (especially global businesses) </li></ul><ul><li>Language and currency support are valuable </li></ul><ul><li>Contemporary businesses are often decentralised </li></ul>
  18. 19. What did it look like pre-ERP? <ul><li>Redundant systems (e.g., 24 different general ledgers) </li></ul><ul><li>Huge software maintenance expenses </li></ul><ul><li>Lack of common data structures (e.g., 140 different definitions of “full-time equivalent employee” or 225 different job titles) </li></ul><ul><li>Difficulty consolidating information (e.g., exactly how many business locations do we have - 175 or 250?) </li></ul>
  19. 20. The Potential Solution? <ul><li>Common systems </li></ul><ul><li>Decision-support capabilities </li></ul><ul><li>Cheaper and faster than in-house development </li></ul><ul><li>Lower maintenance costs </li></ul><ul><li>Automatic currency conversions and consolidations </li></ul><ul><li>Multiple language interfaces </li></ul><ul><li>Built-in international “best practices” </li></ul>
  20. 21. Potential Drawbacks <ul><li>Individual modules often not “best of breed” . </li></ul><ul><li>Limited flexibility. </li></ul><ul><li>Loss of internal strength and agility. </li></ul><ul><li>Cultural clash – ' open systems' ERP and ' closed systems' organisation. </li></ul><ul><li>Risk of implementation failure. </li></ul><ul><li>Software lock-in. </li></ul><ul><li>Not cheap! </li></ul>
  21. 22. Furthermore <ul><li>ERP packages may be cultural “ misfits ” </li></ul><ul><li>Multiple sites make implementations challenges worse </li></ul><ul><li>The “ extended enterprise ” must also be integrated </li></ul>
  22. 23. SAP in Singaporean hospitals,… <ul><li>Company-specific misfits </li></ul><ul><ul><li>System’s patient management module does not allow for billing individual patients on an installment plan </li></ul></ul><ul><li>Public sector-specific misfits </li></ul><ul><ul><li>System uses internally generated patient ID, instead of government issued ID number </li></ul></ul><ul><li>Country-specific misfits </li></ul><ul><ul><li>Package did not provide reports needed for government reports </li></ul></ul><ul><ul><li>System requires names entered in Western name format (first, middle, last): operators had trouble parsing Indian, Malay and Chinese names </li></ul></ul>
  23. 24. Multi-Site Implementations Are Worse SAP Baan Consolidated Information One Face to the Customer <ul><li>Local autonomy: </li></ul><ul><li>Legitimate country differences? </li></ul><ul><li>Or an obstacle to progress? </li></ul><ul><li>Cultural values. </li></ul>??
  24. 25. Organizational Implications of ERP Implementations <ul><li>Individual departments begin to recognise they are all part of larger business processes (“visibility”) </li></ul><ul><li>Dissolves boundaries between previously independent units. </li></ul><ul><li>Blurs job definitions (job broadening) </li></ul><ul><li>Changes power structures </li></ul><ul><li>Standardises processes </li></ul>
  25. 26. Organizational Implications of ERP Implementations <ul><li>Creates demand for: </li></ul><ul><ul><li>team work, </li></ul></ul><ul><ul><li>process expertise, </li></ul></ul><ul><ul><li>business knowledge. </li></ul></ul><ul><li>Devolves authority/responsibility to front line employees. </li></ul><ul><li>Hub, or multi-point? </li></ul><ul><li>How much chaos would you like? </li></ul>
  26. 27. Hub-and-Spoke Integration Source: www.elemica.com
  27. 28. How to Succeed in Implementation <ul><li>This project is a business initiative , not IT! </li></ul><ul><li>Put the company’s best people on the project! </li></ul><ul><li>Have a strong project leader (VP). </li></ul><ul><li>Continued commitment of senior management. </li></ul><ul><li>Get all affected parties to “ buy in ”. </li></ul><ul><li>Communication about expected change is essential; prepare the organization for change. </li></ul><ul><li>Smart contracts with vendors, consultants. </li></ul><ul><li>Provide the necessary resources . </li></ul>
  28. 29. The Future of ERP <ul><li>ERP’s are getting easier: </li></ul><ul><ul><li>to use </li></ul></ul><ul><ul><li>to implement </li></ul></ul><ul><ul><li>to adapt to individual user needs. </li></ul></ul><ul><li>ERP’s are moving away from being a product towards being a service </li></ul><ul><ul><li>ASP style </li></ul></ul>
  29. 30. <ul><li>Hosted E-business platform solution (on SAP’s computers) </li></ul><ul><ul><li>Link organization to supply chain </li></ul></ul><ul><ul><li>Link organization to consumers </li></ul></ul><ul><ul><li>Exchange (B2B Hub) </li></ul></ul><ul><li>Expands ERP use to medium sized companies. </li></ul>
  30. 31. Nestl é (source: cio.com - 15-5-02) <ul><li>June 2000 – Nestl é signed a US$200M contract with SAP (+80M consulting/maintenance fees) </li></ul><ul><ul><li>To centralise an empire with 200 operating companies in 80 countries </li></ul></ul><ul><li>HSBC Securities: “should have long term benefits, but what will happen along the way?” </li></ul><ul><ul><li>“ It touches the corporate culture, which is decentralised, and tries to centralise it. … That’s risky”. </li></ul></ul>
  31. 32. Primary Lessons <ul><li>“ No major software implementation project is really about software. It’s about Change Management . … Just to install the software might take 18-24 months.” </li></ul><ul><li>And the changes can be very detailed. </li></ul><ul><ul><ul><li>Pre-integration (1997), Nestl é’s various independent companies were buying the same vanilla flavouring from the same vendor at 29 different prices! </li></ul></ul></ul><ul><ul><ul><li>No one knew – because each company used a different order code to order the same item. </li></ul></ul></ul><ul><ul><ul><li>In 1997, the changes started… </li></ul></ul></ul>
  32. 33. Integration… <ul><li>… was seen as essential because top management finally realised how ugly the situation was </li></ul><ul><ul><li>Nine general ledgers </li></ul></ul><ul><ul><li>28 points of customer entry </li></ul></ul><ul><ul><li>Multiple purchasing systems </li></ul></ul><ul><ul><li>No basis of comparison or control </li></ul></ul><ul><ul><li>Each company was a law unto itself </li></ul></ul><ul><li>The Solution? </li></ul><ul><ul><li>Software, BPR and a 3-5 year project </li></ul></ul>
  33. 34. Strategic Plans… <ul><li>50 top business executives and 10 top IT people focused on best practices – to be standardised Nestl é-wide </li></ul><ul><li>A smaller team spent 18 months looking at every piece of data in the system </li></ul><ul><ul><li>So as to be in a position to implement a common set of standards </li></ul></ul><ul><li>By March ‘98, they agreed to buy five SAP modules: purchasing, financials, sales/distribution, accounts payable, and accounts receivable </li></ul><ul><li>In 1999, they were ready to install, but not all was well… </li></ul>
  34. 35. Resistance <ul><li>None of those who would be affected by the new processes had been involved in the design process </li></ul><ul><ul><li>No one knew what they were doing or why </li></ul></ul><ul><ul><li>Demand forecasters had turnover of 77% </li></ul></ul><ul><ul><li>Planners did not want to abandon their old spreadsheets </li></ul></ul><ul><ul><li>The modules were not integrated properly </li></ul></ul><ul><ul><ul><li>If a sales person offered a discount rate to a customer, the accounts receivable dept wouldn’t know about it. </li></ul></ul></ul>
  35. 36. Changes to Processes? <ul><li>By April 2001, things were getting clearer – the end was in sight </li></ul><ul><li>A new Director for Process Change </li></ul><ul><li>Regular meetings between users and the project team </li></ul><ul><li>Finally running, the system is proving its value. Much of the $325M savings (by 2002) comes from Supply Chain improvements. </li></ul><ul><li>Next time? </li></ul><ul><ul><li>First fix the business processes, then achieve employee buy-in, then think about installing the solution. </li></ul></ul>
  36. 37. SinoForce <ul><li>A local (HK) HQ-ed home entertainment product manufacturer </li></ul><ul><li>Annual revenues – HK$5Billion + </li></ul><ul><li>Late 1990s – boom in DVD players helped push the market share up. </li></ul><ul><li>Business processes still 1970s style </li></ul><ul><ul><li>Patched up, unintegrated, manual </li></ul></ul><ul><ul><li>The business was changing - fast </li></ul></ul><ul><ul><ul><li>New features in each product cycle </li></ul></ul></ul><ul><ul><ul><li>Retail costs down 80% </li></ul></ul></ul><ul><li>Top Mgt realised that change was needed </li></ul>
  37. 38. Oracle … <ul><li>… selected as an ERP provider </li></ul><ul><ul><li>“ because it is famous” </li></ul></ul><ul><ul><li>“ because the software is available” </li></ul></ul><ul><ul><li>“ because the consultants recommend it” </li></ul></ul><ul><li>Then the consulting firm died, so they employed the lead consultant directly </li></ul><ul><li>No customisation to reduce costs </li></ul><ul><li>After two years, the project was stopped. HK$15M spent. </li></ul><ul><li>Many causes of the failure. </li></ul>
  38. 39. Critical Failure Factors <ul><ul><li>Business practices grossly misaligned with Oracle’s software </li></ul></ul><ul><ul><li>Considerable employee resistance </li></ul></ul><ul><ul><li>No attempt to re-engineer old business processes </li></ul></ul><ul><ul><ul><li>And so no real understanding of what they wanted to change to </li></ul></ul></ul><ul><ul><ul><li>No one person at SF actually understood all the business processes </li></ul></ul></ul><ul><ul><ul><li>Most unit managers spent all their time fighting fires </li></ul></ul></ul><ul><ul><li>Oracle was not just a process shift . It was a cultural shift as well: centralisation and control. </li></ul></ul>
  39. 40. The IT Manager was a Dinosaur <ul><li>He chose to focus only on IT issues </li></ul><ul><ul><li>Ignoring the rest of the business issues </li></ul></ul><ul><li>He made no attempt to secure buy-in from functional managers </li></ul><ul><ul><li>Later on all the functional managers refused to do anything that was requested </li></ul></ul><ul><ul><li>The IT manager was powerless </li></ul></ul>
  40. 41. More Problems <ul><li>Data conversion </li></ul><ul><ul><li>A very messy process </li></ul></ul><ul><ul><ul><li>Useful data scattered all over the place </li></ul></ul></ul><ul><ul><ul><li>Much of it offline in old paper documents </li></ul></ul></ul><ul><ul><ul><li>Lots of errors, questionable integrity </li></ul></ul></ul><ul><li>Skills </li></ul><ul><ul><li>All staff needed to learn new skills </li></ul></ul><ul><ul><ul><li>But many lacked the education or willingness to do so </li></ul></ul></ul>
  41. 42. And… <ul><li>All this time, the old legacy system was kept running </li></ul><ul><ul><li>So the staff could just point at the old system and say “Look! It works! It’s better!” </li></ul></ul><ul><ul><li>There was no appreciation for the benefits of the new system at all. </li></ul></ul>
  42. 43. ERP in China <ul><li>Some common lessons from a survey of eight firms </li></ul><ul><ul><li>(4 Joint Venture; 4 State Owned Enterprise) </li></ul></ul><ul><li>Lenovo’s Positive Experience </li></ul><ul><li>Olmec’s Positive Experience </li></ul><ul><li>Farina’s Negative Experience </li></ul>
  43. 44. Common Characteristics I <ul><li>Seldom completed on time </li></ul><ul><li>Seldom exceed the planned budget </li></ul><ul><li>Lots of information resource allocation – even though this is inconsistent with the usual ERP mantra of a core team </li></ul><ul><li>Projects seldom improved cycle times or customer satisfaction </li></ul><ul><li>Most benefits are reduced labour costs and inventory levels </li></ul>
  44. 45. Common Characteristics II <ul><li>Projects initiated by the CIO/CTO usually fail. </li></ul><ul><li>Projects initiated by top management usually succeed. </li></ul><ul><li>CIOs/CTOs seldom have the political clout and business knowledge to resolve disputes between functional managers </li></ul>
  45. 46. Private Venture vs SOE? Primary Project Aims Improving Competitiveness through process streamlining & integration in PVs. Cutting costs and automating processes in SOEs. Role of Top Management Hands-on leadership to demonstrate commitment in PVs. Tendency to delegate ERP responsibilities in SOEs. Role of Steering Committee More frequent meetings and sharper focus on problem resolution in PVs Role of Consultants Greater reliance on outside help and more emphasis on ERP-specific expertise by PVs. Scope of Implementation Broader and more cross-functional ERP application in PVs. Pace of Implementation Faster implementation with more simultaneous modules in PVs. Implementation Problems Less frequent, less serious problems in PVs, due to differences in employee reward systems & data maintenance. SOEs characterised by Acc-Fin & Pur-Mfg squabbles Evaluation & Outcomes PVs undertake more systematic evaluation and control, achieving more substantial quality and SC improvements
  46. 47. Lenovo’s SAP R/3 Experience 1 <ul><ul><li>Recognise that we need </li></ul></ul><ul><ul><ul><li>a clear Information Strategy </li></ul></ul></ul><ul><ul><ul><li>to understand that an ERP may conflict with our established procedures. </li></ul></ul></ul><ul><ul><li>Use the ERP project as a way of </li></ul></ul><ul><ul><ul><li>re-engineering the business and improving internal management </li></ul></ul></ul><ul><ul><ul><ul><li>Many PRC organisations have poor information management </li></ul></ul></ul></ul><ul><ul><ul><li>creating both internal and external value chains </li></ul></ul></ul>
  47. 48. Lenovo’s SAP R/3 Experience 2 <ul><li>Extensive knowledge transfer is essential </li></ul><ul><ul><li>From consultants to local champions </li></ul></ul><ul><ul><li>From local champions to all end users </li></ul></ul><ul><ul><li>It has to be done right – or errors will perpetuate for ever </li></ul></ul><ul><li>But Knowledge Transfer is not easy! </li></ul><ul><li>And many end-users are rather “passive”, showing little interest in either information or the ERP. </li></ul>
  48. 49. Lenovo – User Perspectives <ul><li>联想刚开始上 ERP 时,大家都认为这只是一个软件系统,把 ERP 当做一个 IT 项目来做, </li></ul><ul><li>When Lenovo began their upgrade to ERP, many people thought that it was only a software system. They classified ERP as an IT project and assigned the technical department to lead the project. </li></ul>
  49. 50. Lenovo - Leadership <ul><li>… 企业信息总管 CIO 的领导艺术对信息化的推进非常重要,他(她)不必是信息技术专家,但他(她)一定要懂业务,懂管理。 </li></ul><ul><li>… the art of leadership of the CIO was critical to the informatisation process. </li></ul><ul><li>S/he did not need to be a technical specialist but s/he had to have a good understanding of the business and its management.   </li></ul>
  50. 51. Lenovo – Generalise, then Optimise <ul><li>… 牵涉到业务流程的时候,实际业务流程与 ERP 业务流程还是有一些矛盾,创造性地解决这些矛盾非常重要。有些时候只能先按照 ERP 流程去做,再逐步优化,也就是所谓的‘先僵化后优化’”。联想在实施在整个 ERP 项目中,成功清理、规范和优化了 77 个业务流程。 </li></ul><ul><li>… when dealing with business processes, the actual business processes conflicted with ERP workflows. Without creative solutions, we would not be able to solve these problems. Sometimes, we had to follow the ERP processes at the beginning, and then optimize them. This was what ‘first generalize and then optimize’ means. Lenovo finally successfully cleared, standardized and optimized 77 business processes in the whole ERP project. </li></ul>
  51. 52. Olmec – Nationwide Shoe Manufacturer <ul><li>Old IT infrastructure cannot cope with increased data and new processes caused by rapid expansion. </li></ul><ul><ul><li>2000 products (shoes) in over 10 sizes </li></ul></ul><ul><li>Need for org. change recognised by top management </li></ul>
  52. 53. Olmec <ul><li>One year planning in advance </li></ul><ul><ul><li>Strong top mgt support </li></ul></ul><ul><ul><li>Clarification of individual team member responsibilities </li></ul></ul><ul><ul><li>Alignment of business processes via BPR with IT and software </li></ul></ul>
  53. 54. Farina – Luxury Fashions <ul><li>Nationwide luxury goods retailer (not manufacturer) </li></ul><ul><li>IT project </li></ul><ul><ul><li>IT manager is the champion </li></ul></ul><ul><ul><li>Poor communication with other parts of the firm </li></ul></ul><ul><ul><li>Many unresolved internal conflicts, which top mgt failed to contain/resolve </li></ul></ul><ul><ul><li>IT Mgr resigned; Vice-IT mgr promoted </li></ul></ul>
  54. 55. Farina <ul><li>No attempt to align software with internal processes </li></ul><ul><ul><li>Top mgt refused to change business processes </li></ul></ul><ul><li>No customisation initially </li></ul><ul><ul><li>Later, many modifications to software needed </li></ul></ul><ul><li>Systems failed during use and no back-up, so reinstallation is necessary </li></ul><ul><li>Eventually, the project was abandoned. </li></ul>
  55. 56. Plan for the Worst – and then Expect Worse Still!!! <ul><li>It is impossible to predict all the variables, all the contingencies. </li></ul><ul><li>But one can be better prepared </li></ul><ul><li>One can have spare supply at hand </li></ul><ul><ul><li>Whether in order processing or manufacturing </li></ul></ul><ul><li>CIOs tend to rely on excellent project management skills to get the job done. </li></ul><ul><li>Perhaps a more flexible approach is needed. </li></ul><ul><ul><li>Contingency is not only an IT issue, but a whole-of-business issue as well. The contingency plan must be holistic too. </li></ul></ul>
  56. 57. ERP Lessons Learned <ul><li>ERP system implementations are not just technical projects </li></ul><ul><li>They’re strategic business decisions and major organizational changes , involving </li></ul><ul><ul><li>International and business culture </li></ul></ul><ul><ul><li>Corporate governance </li></ul></ul><ul><ul><li>Extended enterprise issues </li></ul></ul>
  57. 58. Lessons for IT Based Org Change <ul><li>Top Management must be the change architects </li></ul><ul><li>IT cannot transform an organisation – IT enables transformation </li></ul><ul><li>Enterprise-wide business-IT Partnerships are needed </li></ul><ul><li>The pace of change must match the rate of acceptance </li></ul><ul><li>Individual transformation is as important as organisational transformation </li></ul><ul><li>Change champions must be diverse, yet work together </li></ul><ul><li>Offshoring IT development sounds attractive, but it is not just an IT project. </li></ul>
  58. 59. Consequences of Transformation <ul><li>Organisational culture and identity </li></ul><ul><ul><li>There will be pressure for change here too </li></ul></ul><ul><ul><li>People who support ‘the old way’ will feel left out, marginalised or discriminated against </li></ul></ul><ul><li>A new, more flexible set of cultural norms may be necessary </li></ul><ul><ul><li>Guided by new principles, new values, … and perhaps new managers? </li></ul></ul><ul><ul><li>A Culture of Blogging? The CEO’s blog-desk? </li></ul></ul>
  59. 60. Technology Changes Business...

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