ROI of Implementation

Measurable Values

Katherine Askew

CMGT/583

February 17, 2020

David Conway

Measurable Values

Introduction

Phoenix Fine Electronics, like other organizations, requires the interlink between the different departments as a way of optimizing productivity and increasing efficiency. Furthermore, the decisions made by one head of department also influence the other departments. Due to this understanding, the chief information officer affects the establishment of management plans and needs. However, there is a need for collaboration between the chief financial officers and the chief information officer to incorporate the functions of the ERP, CRM, and DSS. The functions of the mentioned systems help in the expansion of the organization’s branches and client base. The desired results from the incorporation of the functions of the systems depend on the seriousness of the functions and the implementation level (Mehta, 2016). Among the desired results is securing a customer satisfaction scorecard that will enhance the expansion of the new establishments. Also, the organization will have a well laid-out plan when it comes to the expansion of the branches, as well as the resources needed.

Moreover, the other outcome is increased profits due to increased sales. The success of the system hinges on the results achieved and on the flow of the functions. As such, a sufficient flow of outcomes leads to the achievement of the outcomes hence the success of the system.

The Current Project

Phoenix Fine Electronics has several stores; each store employs an IT manager and a store manager who reports to the chief executive officer. The organization has an IT project that focuses on utilizing technology in the store; the expected benefits include an increase in sales, tracking inventory, securing customer data, reporting all sales, payroll data, and inventory to the primary office. The IT manager in the organization is mandated to manage the IT system and make decisions related to technology in the organization while the store manager is responsible for inventory, sales, and staffing functions within the store. Due to the nature of the IT project, the chief executive officer is concerned about the aggregation of departmental and customer data to enable the organization to make timely and better business decisions. However, because the CEO is not knowledgeable about IT-related issues, the organization hired the chief information officer and the chief financial officer to oversee the organization’s finances and expansion. The two new employees are required to monitor the systems and technologies that exist between the different stores, streamline the process of gathering information, and to report to the headquarters.

Organizational Values Brought by the System

Due to the benefits of the system to the organization, three outcomes would arise because of using the system. They are; increased customer satisfaction scorecard that will lead to expansion of the customer base, good plan for the development of the branches, and increased profits due to increased sales. The three benefits lead to the following organizational values

· Cherishing customer satisfaction

· Well-planned expansion strategy

· Increasing organizational performance

Cherishing customer satisfaction

With cherishing customer satisfaction, the system enables the organization to be rated by the different customers that use its products. The feedback and reviews by customers allow potential customers to assess the quality of the products offered by the organization hence attract more customers. Furthermore, the positive feedback from clients is beneficial, particularly to the new stores that need to attract many new customers. Based on the input, the organization may strategize on ways of improving customer satisfaction.

Well-planned Expansion Strategy

The organization will establish an expansion strategy useful for the current situation. A well-planned expansion strategy will ensure that adequate resources allocated to the new stores. Furthermore, it will streamline the linkage between the headquarters and the new stores such that inventory is sufficient to meet the demand at the new stores.

Improving Organizational Performance

The system will lead to improved organizational performance because of increased efficiency in inventory control, communication with the headquarters, and prompt feedback from customers. All organizations value performance because it enhances their competitive advantage; therefore, the new system will be a source of competitive advantage that will lead to higher profits

Benefits of the Values to the Organization

The above three mentioned organizational values that will arise a result from adopting the system are beneficial to the organization because it is a source of competitive advantage. Notably, the competitive advantage of the organization lies in the ability of the organization to use the existing resources to achieve the desired outcomes cost-effectively (Lahovnik & Breznik, 2014). As a source of competitive advantage, the organization will penetrate the market in the new locations without investing heavily in marketing.

Effective planning for expansions helps the organization to optimize the available processes and resources to maximize output. That means the organization can expand without substantial capital investment because of the optimization of processes. To increased organizational performance, the system is beneficial because of the higher the profits, the higher the rate of return on investment. The high rate of return on investment attracts investors to the organization. The money from investors helps the organization to expand to new geographical regions and products offered.

How the Values will differentiate the Business to Customers

The organizational values differentiate one organization from the other. However, by adopting the system, the communication between the different stores and the organization’s headquarters will be expanded. Furthermore, the system will enhance the internal capabilities of Phoenix Fine Electronics in terms of customer relations management. As such, one of the differences that will arise due to the values resulting from the use of the system is enhanced customer relations management. The organization will be known for being customer-focused because the feedback received from the system will influence the decisions made in terms of service delivery and product innovation (Lahovnik & Breznik, 2014). The customer base will differentiate from others based on the promptness with which it addresses their concerns. The system enables a connection between the business and the customers; therefore, the concerned employees within the company will be able to receive clients’ interests and respond to them promptly (Lahovnik & Breznik, 2014).

Risks of Doing the Project

Engaging in the project has some underestimated risks. As an IT-oriented system, there is a risk of not achieving the desired outcomes in terms of performance. According to Lahovnik and Breznik (2014), information technology may not attain the desired results in terms of organizational performance; therefore, the organization invests heavily in IT but receives little in return. That means among the risks of adopting the system is a higher amount on investment and a lower rate of return on investment due to the lack of changes in organizational performance.

Furthermore, the project may face resistance from the organization’s employees. Resistance arises when there is inadequate preparedness for change. Resistance may lead to a boycott of the system leading to non-performance. Furthermore, the system will lead to a collection of vast customer and employee data. The privacy of the data may be a breach by the cybercriminals who may sell the data to the organization’s competitors or use it for other malicious activities. For instance, they may use a customer’s financial information to defraud them.

Risks of Not Doing the Project

Creative and innovative products and processes as a way of reducing costs, increasing efficiency and attracting more clients mar the current business environment. Therefore, not carrying out the project means that the organization will be stagnant; it will not be able to handle the changes in the business environment. For example, the organization will not be to gather and respond to the different customer concerns on time; as such, the challenge reduces its competitive advantage and loses its market share to competitors that adapt technology (Lahovnik & Breznik 2014). Moreover, when the project is not adopted, Phoenix Fine Electronics will have to invest heavily in its expansion strategy, among the areas of investment that will include marketing in the new markets. The high investment may lead to losses in the youthful years of the new stores, unlike when the system is used.

References

Lahovnik, M and Breznik, L (2014), Technological Innovation Capabilities as a Source of Competitive Advantage: a Case Study from the Home Appliance Industry. Transformations in Business & Economics, Vol. 13, No 2 (32), pp. 144-160

Mehta, A (2016). BI, SCM, CRM, and ERP in a Nutshell and their Relationship. Medium. Web. Accessed on 16/2/2020.