Case Study On ERP Customization
1. Why does an ERP customization lead to so many headaches when it is time to upgrade?
Customisation undoubtedly is one of the most controversial topics when it comes to ERP implementation and maintenance. However, as we saw in the case study, it often leads to serious problems because an ERP is not a static software. Customisation itself requires changes to the code of the system, and respectively “an army of developers”, when the business needs are not supported. When it’s time for update, the customized part may not be supported by the vendor. In order to benefit from the latest version and technical improvements, or to answer the newly developed needs of a company due to its growth, the change on the customisation also is needed. If a company …show more content…
What are the key benefits of using IBM’s WebSphere to build a single database? In terms of the project management issues discussed in class (see also the course lectures notes), what did using IBM provide to the BCBS group in charge of building the system?
Implementing IBM’s system, help BCBS to deal with one of the main challenges – to consolidate 14 member demographics systems into one single solution and, respectively, consolidate data which make the processes reusable and repeatable. The centralized system makes the members’ and providers’ experience consistent, trustworthy and effective which lead to cost savings for BCBS. Moreover, the product allows BCBS to build upon it with any other initiative which the company wants, for example different types of data and insights, and faster business solutions …show more content…
When it comes to the implementation of such systems, undoubtedly one of the first things which should be considered in terms of project issues is the costs effect (for example replacement of the old systems leads to maintenance costs decrease in long-term period). As we saw in the video, one of the results of building such a system is the increased efficiency in customer service, as well as the improvement of decision making due to the solidarity of information source. The complexity of the project is in the large amount of organizational units and their information, and systems which should be integrated, which is a huge risk for such a project. All this requires some kind of change management and new distribution of power, authority, work activities, work interaction, to name but few, in order to guarantee the successful implementation of the system and its acceptance from the working teams. IBM as a leading provider can assure flexibility and scalability due to the web based server and high level of experience, not only from technical point of view, but also from industrial (health care) one, which are essential for this
Customisation undoubtedly is one of the most controversial topics when it comes to ERP implementation and maintenance. However, as we saw in the case study, it often leads to serious problems because an ERP is not a static software. Customisation itself requires changes to the code of the system, and respectively “an army of developers”, when the business needs are not supported. When it’s time for update, the customized part may not be supported by the vendor. In order to benefit from the latest version and technical improvements, or to answer the newly developed needs of a company due to its growth, the change on the customisation also is needed. If a company …show more content…
What are the key benefits of using IBM’s WebSphere to build a single database? In terms of the project management issues discussed in class (see also the course lectures notes), what did using IBM provide to the BCBS group in charge of building the system?
Implementing IBM’s system, help BCBS to deal with one of the main challenges – to consolidate 14 member demographics systems into one single solution and, respectively, consolidate data which make the processes reusable and repeatable. The centralized system makes the members’ and providers’ experience consistent, trustworthy and effective which lead to cost savings for BCBS. Moreover, the product allows BCBS to build upon it with any other initiative which the company wants, for example different types of data and insights, and faster business solutions …show more content…
When it comes to the implementation of such systems, undoubtedly one of the first things which should be considered in terms of project issues is the costs effect (for example replacement of the old systems leads to maintenance costs decrease in long-term period). As we saw in the video, one of the results of building such a system is the increased efficiency in customer service, as well as the improvement of decision making due to the solidarity of information source. The complexity of the project is in the large amount of organizational units and their information, and systems which should be integrated, which is a huge risk for such a project. All this requires some kind of change management and new distribution of power, authority, work activities, work interaction, to name but few, in order to guarantee the successful implementation of the system and its acceptance from the working teams. IBM as a leading provider can assure flexibility and scalability due to the web based server and high level of experience, not only from technical point of view, but also from industrial (health care) one, which are essential for this