MIS2101 Section 702 – Amy Lavin – Spring 2014

CIO’s, CEO’s and ERP Systems

http://panorama-consulting.com/the-ever-changing-role-of-cios-ceos-and-erp-systems/

 

Chief Information Officers (CIO) have the unfortunate task of attempting to not only keep up with the rapid changing technology in the world, but they also must find the best suitable technology for their company. Failure to not have the latest version or most comprehensive software out their could lead to competitors having an advantage. This article discusses challenges companies and their CIO’s face when trying to implement an ERP system.

After reading this article

1. How can CEO’s get CIO’s to understand the business goals of the company so that the CIO’s can make more informed decisions?

2. With how fast technology is constantly changing and the high costs of newer products in the market, can CEO’s expect CIO’s to always have the best, most updated ERP system?

3. Do you think most ERP systems fail because they are not suited for the business or because management has not properly trained employees on how to use the system?

9 Responses to CIO’s, CEO’s and ERP Systems

  • CEOs should always include CIOs in their vision to make changes in the company, especially when finances are involved. Keeping the CIOs in the loop would help the CEO to know that funds are available in order to make a good effective decision.

    CEOs should only expect CIOs to do what they know to do. If the CEOs are not keeping them abreast of what needs to happen and include them in the vision, then they cannot expect CIOs to always have the best.

    ERP systems can fail because they are not suited for the business and because management does not always trained their employees properly. Many CEOs make the decision on what system to implement, but they are not the ones that have to use it on a daily basis to get various tasks done effectively. New systems are implemented and they are not built to fully execute the tasks at hand. Then during training questions come up that cannot be answered. If they would take the time to ask the employees for input, they will save thousands. When they see that the systems do not work, they have to implement something else. I have seen this over and over again. Oh, what a waste.

  • I find it rather surprising about the statistics that are listed about CEO’s views of IT. I feel like this should be something they need to focus more on if they have these views and feelings. As CEO they need to make sure that the CIO and the rest of the IT department understands the goals of the company. If the CIO feels more connected to the organization as a whole they will be able to make better decisions for the company in general.
    I think it would be difficult to expect the CIO to have an up to date ERP system at all times. There are so many pieces that go into developing a system that take so much time, so it would be impossible to keep up with the changes in technology.
    I would like to believe that the CIO and his/her team have done a good job at creating an ERP system and that it is a lack of training that is the reason for the failure. I think it could go both ways in this situation as part business failure and operating issues by employees.

  • I think i’s important to ensure the CIO has a solid understanding of the business. They should be included in decision making, and before implementing a new system they should spend time talking to the employees that will use it. Find out from the employees what they need from a new system, what the old system lacked, what they think can be improved on, and then find a system that fits those needs. Employees are a resource that is often overlooked when making decisions on the tools they will use.
    I don’t think CEOs can or should expect to have the “best” and most up to date systems. I think that would be less of an issue if the systems that are currently used are being utilized correctly. If the ERP systems they currently have are being used properly they would not feel a need to replace the system, it’s easier to blame the system for an issue then it is for any management team to admit it was a failure on their part in terms of training the staff on how to use the systems they currently have.
    I think most fail because they have not properly trained employees on how to use them. Very often employees become used to one system, and if it gets replaced they immediately hate the new system and only focus on the flaws because they aren’t comfortable with how it has changed their jobs, even if it has actually made things easier it isn’t any easier for them if they don’t understand how to use it properly.

  • 1. How can CEO’s get CIO’s to understand the business goals of the company so that the CIO’s can make more informed decisions?
    Maybe they can have a meeting to explain the key reasons and points why the CEO wants the ERP system and what it is needed for.

    2. With how fast technology is constantly changing and the high costs of newer products in the market, can CEO’s expect CIO’s to always have the best, most updated ERP system?
    No, this is a big reason why changes in ERP are so expensive and take so much time. The more time the CIO spends tweeking the software to fit the company needs the higher the cost.

    3. Do you think most ERP systems fail because they are not suited for the business or because management has not properly trained employees on how to use the system?
    It is possible some ERP systems fail for multiple reasons. I don’t think they fail for one reason verse another. But training is key because if the employees don’t understand how to use the software then it won’t be efficient in the company.

  • Really great article, Sean. In today’s environment it is important that the Chief ____ (everyone) have a global view of the company’s vision. The CEO/CIO/COO etc all need to be focused on the same goal and then work together to ensure that each team member knows how to achieve that goal. Exec sponsorship is a key part of an implementation.

  • 1. It all comes down to communication. The CEO and CIO need to communicate in some way what the business goals are and how they are to achieve those goals together. The CIO needs to understand the needs of the company and be knowledgeable enough to know what systems and technology will work best. Decisions should be made together and make sure that everyone is on the same page.

    2. I don’t think it’s necessary to always have the newest, most up to date technology available but it does need to serve it’s purpose efficiently. I’ve worked at companies with decades old systems but was still able to do my job well.

    3. ERP systems fail for both reasons: employees are not properly trained and the system is not suited for the business. It’s up to the CIO to make sure that the system will well suited for the business and it’s goals, and it’s up to management to be properly trained so that they can properly train all of those using the system.

  • The most common fail from CIOs are to customize a system with a fuzzy goals, which mean unclear goals, or unclear plan or instruction between CEO, CIO, and the management; and an expensive cost to re do to make it suit for the business.

    I don’t think keeping renew the system is a proper way to make profit for business. But to run the system efficiency is the best way to make the business profitable and success.

  • 1. How can CEO’s get CIO’s to understand the business goals of the company so that the CIO’s can make more informed decisions?
    They definitely need to make sure they are on an even wavelength with one another in respect to what their goals are. The CIO should definitely have a big portion of his/her respects going towards making sure the CEO can easily pick out information that is associated with the company goals and create manipulative data.
    2. With how fast technology is constantly changing and the high costs of newer products in the market, can CEO’s expect CIO’s to always have the best, most updated ERP system?
    No definitely not. This is why CIO’s are constantly adapting, as all facets of businesses do. It is crucial for a CIO to adapt to the new technology practices that come out as it is essential for a CEO to adapt to the new methods that competition may be putting in place.
    3. Do you think most ERP systems fail because they are not suited for the business or because management has not properly trained employees on how to use the system?
    I think it’s more important that the company understands how to use the systems in place, make sure everyone is familiar with them. The training is the most essential piece and that’s why many system based companies have such detailed training programs to help familiarize management with the new system.

  • 1. How can CEO’s get CIO’s to understand the business goals of the company so that the CIO’s can make more informed decisions?

    According the article the CEO must assert the importance of the company’s business and guide their CIOs how to integrate the specific needs of new technology to their business rather than rushing only to implementing the new technology.

    2. With how fast technology is constantly changing and the high costs of newer products in the market, can CEO’s expect CIO’s to always have the best, most updated ERP system?

    Yes or no: yes CEOs can expect CIOs to implement the latest ERP system to their business as long as they provide the necessary support and training. No, if the CEOs simply expect the latest and best ERP system from their CIOs without investing properly and providing the proper training for IT department.

    3. Do you think most ERP systems fail because they are not suited for the business or because management has not properly trained employees on how to use the system?

    I think most ERP systems fail because management failed to update its IT department by providing the proper training on how to use the newest ERP system.

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