Graduate Business School
Assignment Cover Sheet
MSC International Business
Information Technology Management
No. of pages:
(ie. number of pieces submitted, size of assignment, A2, A3 etc)
5th Nov 2011
5th Nov 2011
Table of Content
Part 1: Report .................................................................................................................... 3
1.1 Problems Facing the Organization ......................................................................................... 3
1.2 Recommendations .................................................................................................................... 4
1.3 Web 2.0 tools………………………………………………………………………………………………………..5
1.4 Why Web 2.0 matters to you?.................................................................................6
Part 2: Report .................................................................................................................... 7
2.1 Considerations for implementing ERP in company ............................................................. 7
2.2 Success factors for successful integration of ERP for Jameson……………………………….8
2.3 Problems that might occur while implementing ERP in Jmaeson…………………………..9
2.4 Jameson pre-ERP IT architecture………………………………………………….10
2.5 Best- of Breed (Bob) Vs ERP for Jameson…………………………………………11
2.6 Jameson future with ERP…………………………………………………………...12
Outsourcing for Jameson………………………………………………………………..12
Jameson whiskey is one of the biggest brands in the alcohol market throughout the world. But
now a days it is facing so many technical problems. So in order to eliminate them we are going
discuss some technical tools and some IT solutions. Web2.0 tools and ERP system are the key
factors throughout the assignment and we will see how they will help us to increase the sales,
have the better communication system, privacy of data etc.
1.1 PROBLEMS FACING THE ORGANIZATION
Jameson whiskey has recently faced several problems with communications along with other
technologies. Major problems are as:
If Jameson whiskey wants to open new branches in different countries then the managers need to
implement an effective communication system because profitability of any company totally depends on
the quality of communications within each division and with senior management, between company and
their clients and component suppliers,. First of all the managers have to spend a great time on constant
travelling, visit divisional headquarters and departmental sites for meetings with senior management and
his project teams. Also the electronic mail system of the company is not very compatible with all the
branches which create a big problem in communication and sending important information. With the new
branches going to open in china and more to follow in future then there is need to improve the
communication system in order to support geographically dispersed teams. The systems which installed
previously are sophisticated to a certain level which cannot support the current growth.
Over the years Jameson whiskey has added some new telecommunication software‟s. Some of them are
still sub optimum or on the verge of being obsolete and others are sophisticated especially those
supporting the exchange of massively detailed engineering plan. They have been developed on an ad hoc
basis which is not good for the operations. The software‟s used for one function and installed separately
as they are only wasting the company resources.
In the recent years, with the use of existing systems and services has resulted in the loss and corruption of
data which is totally not good for the company operations. The Jameson whiskey has been using the
facilities/services of different vendors to support its hardware and software as well as communication
needs. There is no guarantee and maintenance of data which led to loss and corruption with the use of
The following recommendations for the existing problems are:
They should be developed the better communication methods to handle the communication problem.
Jameson whiskey should install Microsoft outlook or Lotus in order to solve the problem of electronic
mail system. These can be installed through board to the different branches and can be synchronized with
one another. An address book database can be created and is very helpful for any member of any team
and any part of the world to send emails to their co-workers. In order to solve the problem of the
managers travelling, the company can provide smart phones to their management and team members that
can be synchronized with the company‟s official address so that they can talk face to face from any part
of the world. And with the help of Intranet they can get the information about their colleagues in different
In order to solve the problem of existing system, Jameson whiskey should get new software‟s and install
them from starting. The sub optimum and obsolete systems should be removed. The company should
install only those software‟s which are essential and are more central for the day to day operations needs.
All the systems should be combined to a central server to protect, efficiently use the system. Specific ERP
(Enterprise Resource Planning) will be very effective and helpful to the company‟s employees and will be
effective for operations.
The Jameson whiskey should get a company specific system installed for the smooth day to day
operations. It should be customized to the needs of the company. There should be one vendor among a
host of others should install the system. So with the help of these servers will help to protect the loss and
corruption of data. With this, only vendor should be there for all the maintenance and upgrading of
software‟s and systems. The ERP (Enterprise Resource Planning) and CRM (Customer Relationship
Management) system will be highly effective and helpful in retention of all the data for all the
departments and branches.
1.3 WEB 2.0 TOOLS
In 2004 Dale Dougherty, a vice president of O‟Reilly Media Inc. coined the term „Web 2.0‟
(Anderson 2007).There are so many definitions of web 2.0. But simply we can say that web2.0
represents an important shift in the way digital information created, shared, stored, distributed
In the coming years, it will have a great impact in the way businesses use both the internet and
enterprise-level IT applications. The name clearly explaining that it describes set of next
generation internet technologies.web 2.0 tools are less expensive than the traditional software‟s
and many are even free because they are web based.
Buzz phrase coined: 2004, by Tim O‟Reilly of tech publisher O‟Reilly media.
Thumbnail definition: Web 2.0 is a set of web based software services that encourages users to
become more involved in the creation and manipulation of data.
Enabling technologies: AJAX, RSS, XML, Atom, and Blogs.
Prominent web 2.0 brands: Google apps, dig, LinkedIn, YouTube, Wikipedia, Flickr,
salesforce.com, social text.
Investment: Web 2.0 startups attracted 844 million in venture capital investment during 2006,
more than twice as in 2005.
Now a day‟s web based apps are very fast and dynamic and they behave as software installed on
desktop computers. For example, Google spreadsheets is a spreadsheet tool that works like
Microsoft excel, with the three major differences: it‟s web based, so that‟s why users need not to
install any software; it‟s collaborative, so many users can work on single spreadsheet at the same
time; and the main and important difference is that it‟s free .
Web 2.0 allows a number of groups of people to work on a document or spreadsheet at the same
time, while in the background a computer continuously keeps track of what changes when,
where and who made it.
The key characteristics of web 2.0 are:
Web based applications can be accessed from anywhere.
Data can be readily shared.
Simple applications solve specific problems.
Value lies in content, not the software used to display content.
Employees and customers can access and use the tools on their own.
Distribution is bottom-up, not top-down.
1.4 WHY WEB 2.0 MATTERS TO YOU?
There are mainly two reasons why it is relevant to business.
First of all it reduces the costs associated with old enterprise applications. IT managers knows
this things that it‟s very costly to install, configure, maintain, and upgrade important software on
the personal computers and the company servers- and even more if you have many employees
with many different computing needs. Web 2.0 tools remove much of this squabble and expense
because web 2.0 applications reside on servers operated by the vendors themselves.
Secondly, it is also changing the way information is made, used, shared and manipulated. The
gap between a company and the consumers has never been so thin with web 2.0. Hierarchy and
direct control are giving way to notions of collaboration, creativity, transparency and mass
participation and the effects of this change are just starting to make themselves felt (Wolcott
2.1 CONSIDERATION FOR IMPLEMENTING ERP IN COMPANY
Enterprise Resource Planning commonly known as ERP systems have become vital strategic tool‟s in
today‟s competitive business environment especially in a company like JAMESON which is already
facing problems in deploying new technology its structure and its business process. ERP in basic
definition is an enterprise-wide information system that helps organization to integrate and controls
various business processes that are going in an organization. In simpler words we can say that ERP is
single integrated software program that run off a single database so that various departments can more
easily share information and communicate with each other. This integrated approach can have tremendous
payback if an organization installs the software correctly like Philips and Nokia Dallas they both use SAP
However If in case it is not installed properly then it can become a nightmare for an organization like
what happened with “The Fox Meyer Drug‟s” and after the ERP failure they went bankrupt in 1997.
Successful implementation of ERP in a multinational company like JAMESON needs to be carried out
very carefully. M. MARTIN in 1998 talks about “Implementation Complexity of ERP” and in case of
Jameson this factor plays a very important role because Jameson in recent years is suffering from
problems like data corruption and unsupportive current system so in this case chances failure increases.
Not only has the implementation complexity ERP had one more problem of conflict with business process
strategy (Loinsky 1995). ERP solutions though very effective but they are non-flexible in nature so in
many cases they forces organization to fit the package and abandon their way of doing work which
sometimes results in failure or bankruptcy ( Davenport 1998) like happened in “The Fox Meyers” (Scott).
Integration is also a very important problem of ERP solutions. Although, ERP packages describe and
promote them as “integrated suites” but them serious integration problems (Davenport 1998). And more
over ERP implementation involves lot of money therefore budgets plays a very important role in deciding
whether to go for ERP or not.
2.2 SUCCESS FACTORS FOR SUCCESSFUL INTEGRATION OF ERP
In today‟s competitive world successful implementation of ERP in Jameson will give company an edge
over its competitors like Jack Daniels and Johnny walker. For successful implementation of ERP
company should follow the correct methodology and should keep various success factors in mind while
implementing ERP so that it does not result in a failure. The first and the foremost important factor to
consider is the selection of ERP package that can suite the requirements of company. Acc to Wei and
Wang (2004) there is no single ERP package that could provide all the functionalities to business so
therefore selection of ERP package becomes first and foremost factor because it involve huge amount.
Acc to Al-Mashari et al. (2003) and Zhang et al.(2002) top management support is the most important
success factor in the ERP system implementation projects because they provide two main aspect for the
implementation and that are providing leadership and providing the necessary resources. So therefore top
level management of Jameson should involve themselves at each and every stage of the ERP
implementation, so that they can give direction to implementation team and keep an eye on progress of
the project. In this way they can have the full understanding of new system being deployed and also better
control over it.
A clear business plan and vision is another success factor that comes into play while implementing an
ERP. Top level management before going for ERP should have clear vision of why we need ERP and
after that Jameson should have clear business plan for it. Acc to Schwalbe (2000) project management
identifies three competing and integral goals namely; scope, time, and cost of goals because primary stage
of any project begins with conceptualization of the goals and possible ways to achieve these goals. So,
therefore top management should have clear business plan and vision.
Jameson in recent years is facing problems in technical field as well as in other business process so
therefore in Jameson BPR or Business Process Re-engineering becomes way much more important so
that it becomes easier to integrate the various systems in the company. BPR plays a very important role in
early stages of implementation. Not only BPR at each and every stage then end user involvement is also
very important so that they can get familiar with the system being developed and also they can learn
various technical aspects and functionality of it.
2.3 PROBLEMS THAT MIGHT OCCUR WHILE IMPLEMENTING ERP
Jameson currently facing problems with its system maintenance and its legacy system therefore need of
ERP becomes essential for the company. But implementing ERP in any organization is not an easy task.
There are so many factors that are supposed to be taken under consideration while implementing ERP
because over the years it has been an expensive fix.
Conflict with Vendors and ERP packages comes first among such factors. While implementing an ERP in
an organization top management should carefully choose the ERP packages from number of ERP
packages being provided by various vendors which specifically solves their problem because one ERP
cannot solves the all ongoing problems in company. After selecting the packages management should
choose the right vendor for implementing these packages because successful implementation of ERP
depends a lot on the vendor‟s experience. In today‟s ERP market there are no of vendors like SAP,
ORACLE, and MICROSOFT etc. So therefore management should carefully choose both ERP packages
Second factor that comes under consideration is conflict with business strategy. The implementation of
ERP brings many good changes in the company‟s convention business model and also in daily practices.
But in most of the cases ERP forces organization to fit the package and thus forcing company to abandon
their way of doing work. And sometimes this inflexible nature of ERP results in nightmare for company
like what happened with “The Fox Meyers” and “Hershey”. And for company like Jameson it becomes
more necessary to take this factor into accounts because Jameson is already facing problems in these
Next factors that need to be consider is employee resistance to change for the new system being
implemented in company. Sumner (1999) urges that there is fair amount of resistance in company when it
rolls out ERP. In many cases companies face quite fair amount of employee resistance during the
implementation stages (Motsios, 1999) which sometimes results in delays of project like what happened
Hershey in 1999 and further in the failure of ERP in company.
Project delays correlate with the project cost overrun. These two are different problem but they often
occur simultaneously. If during the implementation stage if company faces any problem whether it‟s
external or internal it will result in project delays and thus resulting in project cost overrun.
2.4 JAMESON pre-ERP IT ARCHITECTURE
Now a days, Jameson is using AIS Applications across the company. Accounting information system
(AIS) are an internal function which is used to handle financial information of a business. Earlier
these system uses paper and ledger with information from multiple business departments or
locations. Now, AIS uses computers and intranets which electronically transfer the financial
information. While these systems provide information to the manager and owners which helps in
decision making, they can face threats which hamper the overall effectiveness of business.
There are some weaknesses in this system and are as follows:
Complexity: In business operations, a company‟s AIS system can become very complex to be more
effective for use. When company‟s owner and managers try to create IS which capture large information
than use or use the system unnecessary without its original purpose than the complexity arises. They find
these systems difficult to use if they are not familiar with the computerized accounting system. Company
should make sure that their system is usable by all the employees in the company.
Fraud: By the company employees, AIS can subject to be fraud or abuse. The employees gather the
information for their personal use and change the information to make financial papers looks better than
actual results. Owners and managers can‟t handle all the operations in the company so they rely on other
individuals to give exact information through AIS on time. Others employees can also create problems in
Age: If the company wants to take the advantage of current technology then they should keep their AIS up
to date. Maintaining the computerized accounting system can be more expensive; leave the system
inefficient just because of its age can create problems for the company. During the upgrade of old
information system can also needs more money during the replacement process (Vitez 2011).
According to the report, it recommended that we invest €100m in a company to buy ERP SYSTEM from
one of the large vendors. It will allow the company to combine as a whole all of it‟s IS called single
instance ERP platform. The CEO is not happy to invest this much capital in IT because he is concerned
about the long-term competitive advantage and return on investment (RoI). But CIO and CKO argued that
going towards the single instance ERP platform will be lower in cost in long run and provide cost saving.
At the same time, CEO preferred the approach of Transformational Outsourcing Agreement with one of
the biggest outsourcing companies which provide all the company‟s existing IT activities transferred to
the third party provider and also that provider would take all the responsibility for moving the system for
seven years. This option would be „cash positive‟ and company will focus on all of its core activities.
ERP is high end business applications that connect all the departments within a business, from human
resource to finance department.
Still it has some IT risk for implementation:Not fitted properly: At the time of implementing an ERP, one of the huge risks is that the ERP is not
It must be keep in mind to analysis any ERP fault in system while implementation. As, if the faults are
not discovered then it will led to some hazardous impact on the business.
Lack of Skills: If the manpower used for implementation are unskilled or not properly trained then
it will raise the risk factor like if the ERP consulting is not able to troubleshoot the problems,
lack of ERP experience. Mainly there should be better understanding and communication between the
management and workforce and also with the external ERP specialist as well.
Management issues: On an ERP‟s success, the members of management have a huge impact. The
problems definitely arise when the management doesn‟t support an ERP and lack of communication with
the workforce. So there should be better communication within the management and the workforce and
management should take interest in ERP activities and motivate their workforce as well.
User and training issues: The management and the workforce must be trained during the implementation
of an ERP. To utilize the benefits of the ERP the proper training should provide to all of the users in the
2.5 BEST OF BREED (BOB) VS ERP FOR JAMESON
Best of breed (BOB) means using a particular software program or package for each specific
application or requirement (P. Robinson 2003). The best of breed approach provide optimal
solution for each business area as richer functionality is supplied. But main problem of best of
breed approach is for different processes in a company we require different best of breed vendors
and addition to that there is big problem of integrating various applications. In Jameson if we go
for best of breed approach we can save money but when it comes to integrating these
applications or process then it might add to company ongoing problems. In addition to that
selecting different vendors for different business process should done very carefully because it is
quite risky from technical point of view if not controlled properly then time and cost associated
with development of system can go out control quite rapidly.
ERP applications provide a single solution that comprises an array of functionality needed to
underpin business core process (Morris 2011). ERP though very expensive but it provides
several benefits to the organization like they reduce development risk (Kelly et al., 1999),
increase global competiveness and business efficiency( Markus and Tanis,1999) etc. But the
main problem with ERP is greater cost involved and complexity while implementing.
In the nut shell, after pros and cons of ERP system and Best of Breed (BOB), Jameson is better
suited for ERP because in Jameson we need deeper and industry specific solution to its various
problems. And also Jameson needs minimal potential for software functionality gaps with lesser
development risk for the system. So therefore keeping all these factors in mind Jameson should
go for ERP.
2.6 JAMESON FUTURE WITH ERP
ERP benefits framework and extent of tangibility and quantifiability (adapted from Shang & Seddon, 2000)
1.1 cost reduction
1.2 cycle time reduction
1.3 productivity improvement
1.4 quality improvement
1.5 customer services improvement
2.1 better resource management
2.2 improved decision-making and planning
2.3 performance improvement
3.1 support business growth
3.2 support business alliance
3.3 build business innovations
3.4 build cost leadership
3.5 generate product differentiation
3.6 build external linkages
4.1 build business flexibility for current and future
4.2 IT cost reduction
4.3 increased IT infrastructure capability
5.1 support organizational changes
5.2 facilitate business learning
5.4 build common visions
There is a framework of the benefits of ERP system given by Shang & Seddon (2000). They
surveyed on 233 vendors success stories and 34 interviewed by phone from three biggest
vendors‟ websites and they found that all the organizations get benefits from at least two out of
five categories and in all the five categories, all the vendors‟ products had returned customer
OUTSOURCING FOR JAMESON
In recent years Outsourcing has become critical strategic decision that helps organization to drive greater
efficiencies and cost reduction. Leading firms have been adopting more sophisticated outsourcing core
processes such as design, manufacturing, and marketing and these organization have benefiting greatly
from accessing the specialist capabilities of supplier in a range of business processes (Aron and Singh
2005). In simpler words Outsourcing is the practice of contracting out to a supplier work previously done
within the operation (Slack, Stuart &Robert 2010) or we can say that planned transfer of business process
to third party provider in order to allow an organization to achieve measurable benefits, long term
relationship. Outsourcing helps organizations to enhance their own internal core capabilities that help
them to drive competitive advantage over their competitors.
Every organization in today‟s world does not does everything required to produce its products and
services every now and then they use third party to do that work for them for example banks usually do
not do their own credit checking they the services of specialist credit checking agencies with expertise
and specialized information system to do that in better way this is called „Outsourcing‟ or Business
Process Outsourcing (BPO). The organizations often outsource their back-office processes and human
resource process like pay-roll, training and recruitments. They do this in order to save money and time.
Jameson is going for ERP to solve its on-going problems with aim to expand globally. In this case
outsourcing also becomes the very important aspect for the company. This is because outsourcing will
help company to shape its business fundamentally. This will help Jameson in many ways because once
company goes for outsourcing the its back-office work like Oder management, operation supports,
marketing, advertisement etc. will outsourced to specialist companies. Similarly they can also outsource
their human resource function simply to pay-roll services to more complex one like training and
development process to specialist companies this will not only help company to reduce their cost but it
will also help them to save time.
The out sourcing will not just help them in saving money and time but it will also help Jameson in
1. Improved quality: The specialist suppliers have specialized knowledge and are self motivated
because of market pressure.
Improved speed: Speed of response is built in the supply contracts where commercial pressures
will encourage good performance.
3. Dependability decreases: Late-delivery penalties in the supply contract encourage good
performance thus dependability decreases unlike in house supply.
4. Flexibility increases: Outsource supplier may be larger with wider capabilities than in house
suppliers and have more ability to respond to changes.
5. Cost decreases: Outsourced companies can achieve economies of scale and they are motivated to
reduce their own cost because it directly impacts their own business.
Keeping all the above factors in mind it good for Jameson to go for outsourcing. Now the main issue
arises what all activities to outsource and what all not to for that company has to decide what all activity
to keep in-house and what all to outsourced. All the activities with strategic importance, specialized
knowledge etc. should be kept in house. this can be better explain by diagram.
For an organization to survive in today‟s competitive world needs to have competitive edge over its
competitor. And for Jameson to not only survive and expand globally ERP plays a very important role to
solve its problem of legacy and integration. It will also help Jameson to increase global competitiveness
and business efficiency. Not just ERP Jameson is also in great need of outsourcing its few in house
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