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Enterprise System Implementation in the NZ Health Board

Table of Contents

Part 3: Proposed Plan for Action.

Description of Adopted Strategy.

Challenges Faced by NZ Health Broad.

Alternative Approaches for ERP Implementation.

Advantages and Drawbacks of Proposed Approaches.

Part 4: Potential Change Management and Risk Issues.

Change Management Issues.

Action Plan for Change Management Issues.

Senior Management Support

Conclusion.

Reference List

Part 3: Proposed Plan for Action

Description of Adopted Strategy

The NZ Health Broad ES project has taken major initiatives to streamline healthcare services by implementing an effective enterprise system while considering software functionalities, system configurations and commercial contractual agreements with third-parties. The prime strategy that was adopted included a selection of ES, hardware vendors and a suitable IT platform. In 1997, the NZ Health Broad already implemented a heavily customized financial module of Oracle 10.7 ES (Hongling and Di, 2018). However, technological limitations, availability of upgraded ERP systems and complexity of operations influenced the board to undergo an up-gradation procedure to reduce overhead costs, TCO and hardware acquisition cost. The board intended to use Oracle 11 as a cost-effective alternative and selected Windows NT as a suitable IT platform due to lower TCO and existing Oracle ES (Baclawski et al. 2017). The NZ Health Broad has engaged ConsultCo as an ES implementation partner to evaluate and manage the embedded ES while selecting Vendor2 for hardware procurement.

Challenges Faced by NZ Health Broad

The installation of an effective enterprise system in a large-scale project is complex as it engages multiple parties and management practices. However, in contrast to the NZ Health Broad project, the fundamental challenges that the organisation faced include the availability of an adequate IT platform to the latest version of Oracle 11i. As Oracle 11i was new in the market it demanded high-end specifications in the operating system to support the synchronisation settings and predetermined functions. In the 2000s, the organization had only two available options for implementing Oracle 11i; Windows NT and Unix platform (Venkata et al. 2017). Lack of expertise solutions, conflicts between ConsultCo, Oracle and the NZ Health Broad, limited opportunities in the implementation of ES in different combinations of OS and inadequate IT infrastructure had challenged the project to become successful. The ES up-gradation project also experienced both hardware and software engineering challenges as lack of integrated management system, limited vendor participation and misinformation regarding functional efficiency of Oracle 11i have created comprehensive obstacles to achieve premeditated deliverables and streamlined operations (Maheshwari et al. 2017). Moreover, insufficient testing, lack of expertise and combination of unrealistic expectations have set a handful of internet-based challenges for NZ Health Broad.

Alternative Approaches for ERP Implementation

As the field of information, systems have been highly influenced by various emerging trends and techno-centric visionaries including distributed client-server architecture, availability of internet and intranet, modernized user interface technology. These technological advancements and benchmark innovations can influence NZ Health Broad to effectively manage organisational performance, patient orientations, quality of working by developing new information systems (Weichhart et al. 2016). As a prominent MIS, ERP software has become an integral property of modernized contemporary organisations as it encompasses functional areas such as Business Intelligence, CRM, e-commerce and Automation facilities to mitigate organisational needs (Menon et al. 2019). To maximize organisational capabilities, this study intends to mention two distinct information system development approaches such as Interactionist Approach and Soft System Methodology based on functions, conceptions and organisation-wide infrastructure.

Interactionist Approach

Interactionist Approach describes the symbolic relationship between client and organisational environment where both parties will reach out to each other through mutual needs in urgencies. It allows developing collaboration to negotiate critical problems while considering web models and institutional viewpoints.

Soft System Methodology

Soft system methodology defines a holistic method that allows reshaping complex problems and issues within engaged parties and incorporates effective and feasible solutions within a heterogamous group. It facilitates developing multiple ideas and collective approaches to redirect development programs (Phillips and Kenley, 2019). As NZ ES Project engages multiple groups including ConsultCo, Oracle and Nz Health Broad; soft system methodology is an effective alternative to structure the complex problem of implementing Oracle 11i.

Advantages and Drawbacks of Proposed Approaches

Approach

Advantages

Drawbacks

Interactionist Approach

● Interactionist approach is effective to shed light on key organisational issues of ISD including infrastructure development, user resistance and minimal recognition of the importance of technical potential of ISD (Shibutani, 2017).

● It allows giving all parties equal opportunity and comparing individual perspectives while understanding organisational capabilities and functionalities.

● Interactionist approach underestimates the power of structure and may lead to further conflicts due to negligence and discrimination. 

● This approach fails to recognise the consequences for actions; only if mutual agreements are unavailable.

Soft System Methodology

● SSM allows developing a collective approach within an organisation to confine multiple ideas and perspectives regarding the problem.

● It will facilitate NZ Health Broad to make adjustments by taking insights of each party to make desirable and feasible changes based on consensus and data-driven analytics.

● SSM engages a preparatory role who is responsible to control the entire process. Biased opinions, favouritism and deceptive involvements are the prime threats of SSM approach (Sommer and Mabin, 2016).

● SSM processes can take adequate time to resolve conflicts between stakeholders and get realistic results. Engaging all three parties also can be difficult.

Part 4: Potential Change Management and Risk Issues

Change Management Issues

Effective implementation of distinct alternative approaches as change management plans are highly capable to handle organisational hurdles. As both Interactionist and SSM approaches are designed to bring change initiatives; various distinct issues can occur within the consultancy process.

Excessive Complexity

The fundamental purpose of the project is to initiate ES to enhance control in supply chain and reporting on organisational finances. Countless disagreements between ConsultCo and Oracle can diminish organisational goals and timely delivery. Excessive complexity also can lead to lawsuits, and the substantial coalition can get affected. 

Unavailability of Expertise and Lack of Organisational Capabilities

The NZ Health ES project encompasses a regulatory environment that engages multiple-layer teams and a handful of IT professionals. As the whole ES implementation process is interdisciplinary, each team must differentiate functionalities and tasks (Alvi and Awan, 2017). Due to unavailability of ICT based training programs, insufficient knowledge and expertise qualities, the project may face major constraints to complete within the time frame. 

Lack of Vision

The prime objective of the project is to upgrade Oracle ES by considering the latest operating system and IT platforms to ensure further development. Lack of vision in conflict resolution attributes, inadequate communication strategies and decision-making process may hamper engaged parties both financially and reputationally.

Volatile Corporate Culture

Forceful implementation of change management attributes through enforcement of changes, reviews and audits can affect corporate relations as all organisations uphold the distinct culture and governance systems (Hayes, 2018). The enforcement process must comply with applicable laws and organisational regulations of the NZ Health ministry. 

Action Plan for Change Management Issues

The NZ Health ES project faced catastrophic consequences as lack of expertise solutions and comprehensive continuous improvement plans upheld complexity to resolve in-house comprehensive issues. Moreover, the availability of high-tech IT platforms, complex databases, large-scale information system networks and technological advancements have challenged organisation-wide infrastructure to support employees with adequate training.

Excessive Complexity

Enterprise System implementation is highly complex and engages multiple functions including IT platforms, hardware, operating system and availability of process simplification and standardisation programs are necessary to streamline core functions including procurement, selection of appropriate OS and IT platforms (Domingues et al. 2017). A distributed decision making attributes alongside data-driven rationalization process can assist NZ Health Broad to reduce value chain complexity and conflicts between stakeholders.

ICT based Training programs

Technology is indistinguishable and a major powerhouse to amplify collective and individual skills. Dedicated ICT based training programs will provide well-designed technological solutions to resolve skills gaps and insufficiencies within the organisational context. Both ConsultCo and Oracle need to provide extensive training facilities for IT professionals to make data-driven decisions. Computer-aided design (CAD) software, data visualization tools, wood processing and spreadsheets can be implemented to enhance organisational capabilities and modifications (Taylor, 2018).

Development of Strategic Vision

As a non-profit organisation, NZ Health Broad is determined to deliver utmost care for its wide range of patients which demands strategic vision, mission and values to improve treatment facilities. The team must consider organisational standards of NZ Health Broad, ISO quality standards and feasible solutions to diminish occupational and legal obligations. Integrated management system, centralised embedded information system and detailed description of corporate affairs need to align with both ConsultCo and Oracle.

The coalition of Corporate Cultures

Each organisation including NZ Health Broad, ConsultCo and Oracle uphold the distinct corporate culture and determined to provide extensive IT services by meticulously maintaining a business portfolio and high-end specifications. Effective communication and collaboration between these companies are necessary to thrive creativity and brainstorming sessions to confine adequate solutions (Kumar, 2018). A centralised configuration policy, technological guidelines and users manuals are essential to provide.

Senior Management Support

The commitment of senior executives and dedication to improving organisational performance is significantly important to undergo successful change management.

  • The NZ Health Broad alongside Oracle and ConsultCo need to agree upon the common vision and regulatory compliances to diminish conflicts and disagreements. Development of conflict resolution, standard commercial contractual agreements and reporting system will increase transparency and accountability within the project.
  • The board needs to appoint an executive committee, steering committee and regulatory body to streamline project operations. Feedback loops, recognition mechanism and restructured resources allocation can amplify the collective objectives of ES up-gradation projects (Kumar, 2018).
  • The NZ Health Broad must provide considerable time, resources and infrastructure to emphasize collaboration and stakeholder empowerment throughout the ES up-gradation project. Financial support, transparent employment practices and contracts need to be in places.

Conclusion on Enterprise System Implementation

Enterprise Systems are designed to facilitate organizations to make data-driven decisions, control, manage and visualize organizational information to enhance collectivistic culture and collaborative efforts while considering integrated information systems such as MIS. However, in contrast to the NZ Health project, the mismanagement of information and unavailability of techno-centric visionaries have negatively triggered corporate relations which extensively affected deliverables and strategic partnerships. Additionally, major performance problems of newly installed Oracle 11i ES, insufficiencies in the decision-making process and improper contractual specifications have challenged to receive integrated ES solutions. As the NZ Health Board struggled to ensure a seamless pattern with Oracle ES and Windows NT, the organization must consider an integrated information system such as MIS (ERP) to maximize organisational functions including supply chain, inventory and financial implications.

Enterprise Resource Planning (ERP) software refers to a systematic empirical system that allows handling organisational resources to accommodate accuracy in organisational transformation while providing a broad range of capabilities and data-driven analytics. Enormous IT burdens, infrastructure inadequacy and maintenance costs have created massive challenges for NZ Health Broad, the project can be amplified by using cloud-based ERP software such as Oracle ERP Cloud, Oracle Financials, Oracle e-Business Suite, Netsuite, Microsoft Dynamics 365… as SAAS ERP software. As NZ Health Broad also lacks to provide extensive IT infrastructure, in-house IT professionals and facing financial limitations, SAAS ERP software is significant to minimise TCO with high-end customisation facilities and up-gradation design. This systematic empirical framework has mentioned various distinct issues between stakeholders and provided extensive recommendations to incorporate streamlined and distributed information systems to enrol concurrent changes in management systems.

Reference List for Enterprise System Implementation

Alvi, Z. and Awan, M.M., 2017. Implementing Enterprise System in Large State-owned utilities: A case study. ICT and Innovation, p.7.

Baclawski, K., Chan, E.S., Gawlick, D., Ghoneimy, A., Gross, K., Liu, Z.H. and Zhang, X., 2017. Framework for ontology-driven decision making. Applied Ontology, 12(3-4), pp.245-273.

Domingues, A.R., Lozano, R., Ceulemans, K. and Ramos, T.B., 2017. Sustainability reporting in public sector organisations: Exploring the relation between the reporting process and organisational change management for sustainability. Journal of environmental management, 192, pp.292-301.

Hayes, J., 2018. The theory and practice of change management. Palgrave.

Hongling, L. and Di, W., 2018, September. Application of Asymmetric Key Technology in M-ES. In 2018 11th International Conference on Intelligent Computation Technology and Automation (ICICTA) (pp. 186-189). IEEE.

Kumar, S., Stecher, G., Li, M., Knyaz, C. and Tamura, K., 2018. MEGA X: molecular evolutionary genetics analysis across computing platforms. Molecular biology and evolution, 35(6), pp.1547-1549.

Maheshwari, H., Abdul, M.R.G.M., Das, S., Pakkath, R. and KATTI, S., Oracle International Corp, 2017. Unified provisioning of applications on devices in an enterprise system. U.S. Patent 9,692,748.

Menon, S.A., Muchnick, M., Butler, C. and Pizur, T., 2019. Critical challenges in enterprise resource planning (ERP) implementation. International Journal of Business and Management, 14(7), pp.54-69.

Phillips, I. and Kenley, C.R., 2019, July. An SSM‐TRIZ Methodology for Business Problem Structuring. In INCOSE International Symposium (Vol. 29, No. 1, pp. 406-420).

Shibutani, T., 2017. Society and Personality: Interactionist Approach to Social Psychology. Routledge.

Sommer, K.A. and Mabin, V.J., 2016. Insights into the eldercare conundrum through complementary lenses of Boardman's SSM and TOC's Evaporating Cloud. European Journal of Operational Research, 248(1), pp.286-300.

Taylor, T.A., 2018. On-demand service platforms. Manufacturing & Service Operations Management, 20(4), pp.704-720.

Venkata, B.K.J., Maheshwari, H., Abdul, M.R.G.M. and Kandasamy, P., Oracle International Corp, 2017. Policy based compliance management and remediation of devices in an enterprise system. U.S. Patent 9,749,311.

Weichhart, G., Molina, A., Chen, D., Whitman, L.E. and Vernadat, F., 2016. Challenges and current developments for sensing, smart and sustainable enterprise systems. Computers in Industry, 79, pp.34-46.

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