Discuss about the Digital Innovation in Business Organization.
The report depicts the importance of planning and implementation of digital innovations in a business organization. The knowledge and skills that are required to lead the progress of the work are demonstrated in this report. In light of the given scenario, for mitigating the issue those are continuously affecting the business process, a digital solution in terms of Information System has been developed for the organization.
Different relevant processes, such as the operational, budgetary and procurement based planning are illustrated in this report. Apart from the digital innovations the report also elaborates the roles and responsibilities of the stakeholders and other working employees. In order to provide a new integrated solution along with the existing solution, the parallel training and coaching programs that are required to support the project team are also elaborated in this report. The features of the proposed digital solution i.e. an integrated Information System is demonstrated here. The workplace strategies and business operations that an information system could serve are mentioned. In addition to this, the purpose of training and development are also explained in here.
In order to plan for the selection and implementation of a digital solution for the business organization, the team leader and the top management team should concentrate and focus on the basic requirements of digital innovation (Hejazi, Halpin and Biggs 2014). The basic needs for the business process includes IT infrastructure, software tools, hardware tools and network support. Depending on the need of digital innovation the team leader has represented an Information System in terms of SAP ERP (Enterprise Resource Planning) solution. The management team of the business organization has accepted the digital solution as; the proposed solution has met almost all the requirements of the clients and the business process also (Raja 2014). Now, the team leader is required to go through certain other requirements such as the budgetary, procurement and business operations of the SAP ERP solution.
In order to select the most suitable solution for the organization many digital innovations are evaluated by the project team such as electronic commerce, mobile commerce or mobile application, ERP and many other information systems (Umar et al. 2016). After analysis and considering all the digital innovations SAP ERP has found to be best solution for the business organization.
Flexibility: It provides a highly flexible, reliable and clear digital solution to both the consumers and the business organization as well. As SAP is panned and developed, based on the 4th generation programming language and the system application uses Graphical User Interface (GUI), therefore, it is referred to as more efficient than any other digital innovations (Fosso wamb and Edwards 2014). Most of the large organizations use SAP ERP for their business progress though before implementing the solution, a feasibility study in terms of cost benefit analysis and Return on Investment is needed to be done. It helps to understand the beneficial aspects of a business organization.
Security: Another important aspect of SAP ERP is its security. It provides a highly secured solution to the users and to the organization (Seo 2013). The confidential information regarding the consumers and other employees that are stored in the data storage are secured enough and none of the unauthenticated users could access the data from the storage. The SAP solution could be deployed as Software as a Service (SaaS), on premises and sometimes on demand.
Procurement processes: With the help of procurement processes the cost of the digital innovation could be management rather it can be said that it offers a hybrid solution to the business organization that helps to enhance the business revenue growth (Weng and Hung 2014).
Customers focused: The SAP ERP solution is customer focused it means that based on the need of the consumers the solution is generally developed. Moreover, from the Human Resource Management team it receives a quality assistance and career management as well (Panayiotou et al. 2015). The solution serves customer satisfaction and reduces the number of employee turnover also.
Inventory management system: In order to develop an integrated digital solution, the material and products that are needed to run a business should be highly efficient (Bernroider, Wong and Lai 2014). Correct procurement could drive a business process towards positive business advantages.
An organization should strictly follow some business strategies before implementing the integrated digital solution. The strategies include de-centralized analysis, modeling and implementation of the business process, centralized analysis of the business process and harmonized model designing and implementation (Denolf et al. 2015). The business strategies that are needed t be maintained re as follows:
In house development of multiple systems: In order to develop an isolated system certain functions such as sales and product distribution, selling and buying processes are required to be traced. For account management the functional limitations should be overcome by the development team (Seo 2013). It will help to increase the business growth. Sometimes it become difficult to monitor and trace the business progress, therefore, in the workplaces the management team must focus on these aspects.
Role played by the stakeholders of the business organization
Name of the stakeholder |
Role play |
Project manager |
The project manager of the organization must control and monitor the entire progress. |
Team leader |
The project team leader should motivate other fellow project team members so that they feel more focused to their job role (Panayiotou et al. 2015). |
Business analyst |
The business analyst analyzes the project. Particularly, in this scenario, SAP R/3 ERP solution is developed by the project team to mitigate the issues. |
Finance manager |
From the initiation phase up to the implementation phase the finance manager should monitors the cost and estimation. |
ERP package implementation and selection of partners: Two things that are mainly required to be focused include the dedicated team comprising and specification of the user requirements (Raj and Seetharaman 2014). A balanced score card must be used by the business organizations to increase the revenue growth.
Project initiation planning: In the project initiation phase the cost benefit analysis must be implemented to understand the feasibility of the project (Schniederjans and Yadav 2013). If it is found to be beneficial then only the digital solution could be implemented in the real world application and if not then additional features are required to be added to the existing process.
Infrastructure development: As the business process is based on digital innovation, thus the information Technology infrastructure is the main thing that is needed to be considered by the development team to increase the business growth. Database and the Operating System are the main things that are needed to be considered by the development team (Fosso wamba and Edwards 2014). The information that is related to the employees and consumers should be kept secured, so that the external users could not hack the data from the data storage without the permission of the authenticated users.
Backup and disaster recovery: The backup data and disaster recovery are another aspects that should be maintained by the development team while developing an IS in the workplace. If the organization needs to access any old data then that could be accessed efficiently (Weng and Hung 2014). On the other hand, if any data get lost from the data storage then with the help of disaster recovery that data could be retrieved again and also can be used appropriately.
While planning and implementing a digital innovation for the business organization, the application of all relevance policies and the utilization of the digital media by the employees are also needed to be maintained (Denolf et al. 2015). In order to protect the business properties, proper business policies and procedures are required to be adapted by the business organization. While the business organization exchange the information among the stakeholders it has been found that, sometimes the intellectual properties are getting theft by external attackers (Seo 2013). Digital media acts as a platform, where the employee and the users could interact with each other quite efficiently. Not only this but also, for business promotion, the digital media widely used by the business organization. In addition to this, certain other policies that are required to be maintained are as follows:
Digital media policy: During promotion, advertisement, and endorsement of the business process the digital properties and other assets are required to keep secured by using encryption technology (Bernroider, Wong and Lai 2014). Encryption will help to keep the data security and except than proper decryption even the information receiver will also not be able to access the data from the storage.
Intellectual property policy: It includes the invention, copyright, business trademarks and other tangible research properties. These assets are needed to keep safe so that the unauthenticated and external users could not access data.
IT security policy: As the project is based on SAP ERP, thus proper IT infrastructure is required to be maintained to keep the data security.
The rapid development of internet technology and digital innovation is increasing the level of complexity of the business processes. Every aspect of the technological development is needed to be maintained by the team members in order to apply the technologies in appropriate fields (Teittinen et al. 2013). Proper training and development program will correlate the employees with different new technological advances. These things are essential in the workplace to increase the revenue structure (Tarhini, Ammar and Tarhini 2015). In order to address the organizational weaknesses and to maintain the business consistencies training and development are found to be very helpful. In addition to this, training improves the performance of the employees. Even the level of employee satisfaction also increases by using the training and development program.
The company is required to maintain open communication so that the project team leader and the fellow team members feel free to communicate with each other (Supramaniam, Abdullah and Ponnan 2014). Open communication is referred to as a business tool that is generally used by the business organizations to increase the efficiency and business effectiveness. With the help of open communication the needs that could be reached are as follows:
Organizational goal: The open communication helps to achieve the business goal very efficiently (Raj and Seetharaman 2014). The values and vision of the upper level management team could be easily understood by the employees and it helps to meet the pre determined goal of the organization.
Improvement: The traditional policies could be developed if an organization conducts open communication. The ideas generated from all employees including the manager’s could be merged together to form a creative and innovative integrated system. The SAP ERP system is very much effective for overall business improvement (Schniederjans and Yadav 2013). Additionally the risk assessment processes also become easier after the implementation of ERP solution. The communication could understand the additional requirement of the consumers and to meet that requirements the open communication is found to be very effective.
For the business operational success a business organizations should arrange training and development programs. It could serve the below benefits:
Conclusion
From the overall discussion it can be concluded that the team leader of the business organization has suggested a SAP ERP based Information System (IS) to improve the existing business process. After analyzing different Information System it has been found that SAP ERP is the most beneficial solution. The existing business operation could be developed after adapting the ERP solution. The solution ensures the success of the business by planning, development and implementation of the ERP solution. The security policies, features and purpose of implementing integrated information system in the business organization are also demonstrated in this report. Apart from this, the effectiveness of the strategies, in the workplace operations and the requirement of training and development program, for the working employees are demonstrated in this report.
References
Babu, M.P. and Sastry, S.H., 2014, June. Big data and predictive analytics in ERP systems for automating decision making process. In Software Engineering and Service Science (ICSESS), 2014 5th IEEE International Conference on (pp. 259-262). IEEE.
Bernroider, E.W., Wong, C.W. and Lai, K.H., 2014. From dynamic capabilities to ERP enabled business improvements: The mediating effect of the implementation project. International Journal of Project Management, 32(2), pp.350-362.
Denolf, J.M., Trienekens, J.H., Wognum, P.N., van der Vorst, J.G. and Omta, S.O., 2015. Towards a framework of critical success factors for implementing supply chain information systems. Computers in Industry, 68, pp.16-26.
FOSSO WAMBA, S. and Edwards, A., 2014. Joint Effect of Organizational Identity and Trust on ERP Implementation Success: A Longitudinal Case Study.
Hejazi, S.S., Halpin, A.L. and Biggs, W.D., 2014. Using SAP ERP technology to integrate the undergraduate business curriculum. Developments in Business Simulation and Experiential Learning, 30.
Panayiotou, N.A., Gayialis, S.P., Evangelopoulos, N.P. and Katimertzoglou, P.K., 2015. A business process modeling-enabled requirements engineering framework for ERP implementation. Business Process Management Journal, 21(3), pp.628-664.
Raj, J.R. and Seetharaman, A., 2014. Business Issues in Enterprise Resource Planning (ERP) Implementation. East Asian Journal of Business Economics, 2, pp.9-25.
Raja, N., 2014. Study on perspectives of enterprise resource planning ERP practitioners on emerging trends with reference to Indian functional consultants of Oracle ans SAP ERP applications.
Ram, J., Corkindale, D. and Wu, M.L., 2013. Implementation critical success factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?. International Journal of Production Economics, 144(1), pp.157-174.
Schniederjans, D. and Yadav, S., 2013. Successful ERP implementation: an integrative model. Business Process Management Journal, 19(2), pp.364-398.
Seo, G., 2013. Challenges in implementing enterprise resource planning (ERP) system in large organizations: similarities and differences between corporate and university environment (Doctoral dissertation, Massachusetts Institute of Technology).
Supramaniam, M., Abdullah, A. and Ponnan, R., 2014. Cost Analysis on ERP System Implementation amongst Malaysian SMEs. International Journal of Trade, Economics and Finance, 5(1), p.72.
Tarhini, A., Ammar, H. and Tarhini, T., 2015. Analysis of the critical success factors for enterprise resource planning implementation from stakeholders’ perspective: A systematic review. International Business Research, 8(4), p.25.
Teittinen, H., Pellinen, J. and Järvenpää, M., 2013. ERP in action—Challenges and benefits for management control in SME context. International Journal of Accounting Information Systems, 14(4), pp.278-296.
Umar, M., Khan, N., Agha, M.H. and Abbas, M., 2016. SAP-ERP Implementation: Change Management Model using Qualitative Approach. International Journal of Computer Science and Network Security (IJCSNS), 16(6), p.9.
Weng, F. and Hung, M.C., 2014. Competition and challenge on adopting cloud ERP. International Journal of Innovation, Management and Technology, 5(4), p.309.
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