Transcript What about IT-consulting? Jos Benders & Stefan Heusinkveld

What about IT-consulting?
Jos Benders &
Stefan Heusinkveld
(University of Nijmegen & Tilburg University)
“Innovative Capabilities and the Role of
Consultants in the Information
Economy”
Mannheim, 19-20 November 2007
Wrong title !
What about ERP-consulting?
Jos Benders &
Stefan Heusinkveld
(University of Nijmegen & Tilburg University)
“Innovative Capabilities and the Role of
Consultants in the Information
Economy”
Mannheim, 19-20 November 2007
• Combines two interests:
– Organization concepts, and role consultants
– ERP-systems in moulding organizations
• “Discussion presentation”, including
“investment proposal”: part VW-project
Case
• Informants: acquainted with manager for
about three years, with consultant half
year, engaged in same project
• Meet frequently, often with informal
component
• Documents including Master theses
• Two inter-linked parts
“Technical isomorphism”
(Benders, Batenburg & Van der Blonk, 2006)
• ERP aims at control, i.e. centralistic
philosophy
• “best practices”, “industry solutions”,
“templates” inscribed into software
• Pre-defined “solutions”
• not deterministic, yet are likely to become
enacted: pressures to conform
• SAP: mechanisms to stimulate
conformance (Batenburg, Benders & van der Blonk, 2008)
Case; part I: the “Business case”
Decision: Global blueprint
• Reasons: show conformance to external
institutions, credibility to analysts, IT-hobby
• Proof profitability!,
• post-decision, that is
• Internal: insufficient skills to formulate
business case convincingly: consultancy!
“the business case” (2)
• First calculations: Total Cost of Ownership
• Net Present Value (NPV) positive, yet
small
• Find more!
“the business case” (3)
• “benefits from best practices and common
process”
helpful: original NPV times 21
however….
• “benefits from the global platform”:
NPV lifted to 44 times the original NPV
• Arguments “credible, and hard to attack”
The case, part 2: Implementation
• Blueprint included:
• standard applications will not be supported
unless an exception;
• the blueprint consists of common structures,
data definitions and processes for all
participating business units;
• there is one central maintenance organization;
• all solution changes are subject to strict control;
• the implementation methodology and toolset are
standardized.
Implementation (2)
• Example of procedure
• Distant location, controlled from
elsewhere, enabled by SAP
• Maintenance essential …,
• And disastrous…,
• According to SAP-data!
Implementation (3)
• Last step in procedure, to “report ready”:
“remove scaffolding”
• Yet: inefficient if scheduled maintenance
later at same spot
• Operator dilemma:
– remove scaffolding, and be inefficient;
– be efficient, report ready yet keep scaffolding.
choice between inefficiency and data
integrity
Implementation (4)
• Example of creation “virtual reality”:
dangerous in ERP-system yet feels safe to
present staff
• Authorities threaten to close!
• Consultant: “creates a lot of work”, doubts
about proper solution yet overruled: ‘”client
likes IT
Concluding remarks
• Consultants help creating & solving ERPproblems; link in “materiality”
• Once again: “political rationality” prevails
• Internal actors & consultants are well
aware, and play the game
• ERP-added: study of how consultants
operate in local decisions to “stick to
standards”, certainly in case of potential
misfit(s)