What is Change Management?

Sep 11, 2009

What is Change Management?

If you work in a corporation or with a large organization, you might have heard the phrase "change management" used from time to time. Change management has been around for a while, but has become extremely popular with organizations or corporations that would like to initiate significant change to processes that can include both work tasks and culture.

A common definition used for change management is a set of processes that is employed to ensure that significant changes are implemented in an orderly, controlled and systematic fashion to effect organizational change. One of the goals of change management is with regards to the human aspects of overcoming resistance to change in order for organizational members to buy into change and achieve the organization's goal of an orderly and effective transformation.
READ MORE - What is Change Management?

Advantages of ITIL/Disadvantages of ITIL


Advantages of ITIL


There are several benefits for using the Information Technology Infrastructure Library for many of your IT business needs and one main benefit is that through the guidelines and best practices that are taught in the library, your business can save a tremendous amount of money once implemented.

Another advantage of ITIL is that it will help your IT department organize and manage many different disciplines using one comprehensive volume. ITIL is the leader in IT guidelines and best practice publications; it has been tested in real world environments for over a decade and is proven to work.

Disadvantages of ITIL

While the advantages usually far outweigh the disadvantages, there are a couple of criticisms that are worth noting including the idea that most IT professionals consider ITIL a holistic approach to IT management. While ITIL is comprehensive, even the publication itself does not consider itself a holistic approach to IT management.
In addition, there are also accusations by some IT professionals that following only the ITIL due to its acceptance by many IT managers as the authoritative source has actually led to many businesses to skip pragmatic solutions for their specific business needs. Finally, another criticism of ITIL is that while some topics are covered extensively and are of high value, other topics may not receive enough emphasis with quality being uneven in certain publications.
READ MORE - Advantages of ITIL/Disadvantages of ITIL

What is Service Management?

What is Service Management?

Service management, also called IT service management, is the discipline used in industries that provide services or a combination of goods and services. While widely used in the IT industry, specifically the ICT (information and Communication Technology) sector, service management can be integrated into many other industries.

Service management is usually used in conjunction with operations support systems. Systems that use service management can include order management, inventory management, activation, maintenance, performance diagnostics and several other types of support systems to make sure that these systems are running proficiently and error free.

There are several components of service management. Service management usually incorporates automated systems along with skilled labor. Service management also usually provides service development. For instance, it is extremely important to first simplify and then streamline services that you manage (i.e. delivery, support) into a simple workflow. However, managing your workflow is not enough, another component is the ability to govern automated controls from a centralized location and make sure that data security is in effect at all times.

Service Management is usually used with other types of management systems including Total Quality Management (TQM), Six Sigma, CMMI (Capability Maturing Model and Integration), and Business Process Management. It can be used with small scale companies or used with extremely large corporations. The discipline of service management has been around since the early 1970's and was originally part of the Operations Management discipline.

Today, you can find many resources and service providers that help small and large businesses incorporate the principles of service management into their organization. Some of the vendors that provide service management include: iSYS, IBM Service Management, Novell Zenworks, Oracle Enterprise Manager and Altrius Management Suite.

While the above service providers help organizations manage large groups of computers (automated systems), there are a few vendors that provide management services as well, most notably Econ Global Services.
READ MORE - What is Service Management?

What is ITIL?

What is ITIL?

ITIL is an acronym for Information Technology Infrastructure Library. ITIL are a series of books and training manuals that outline and explain the practices that are the most beneficial to IT services (usually manager focused). The goal of ITIL is for managers to have extremely high standards in IT value, as well as high financial quality in day to day IT operations. ITIL procedures are supplier independent and include instructional materials on IT infrastructure, operations and development issues.

It should be noted that the acronym ITIL is a registered trademark, and the books included in the ITIL library are copyrighted as well.

ITIL has had a long history of development, and many IT professionals believe that ITIL grew out of the yellow books, which were best practices and guidelines that were used in IBM during the 1980's, however it wasn't until the middle of the 1990's that ITIL become a formal library of IT best practice frameworks. The newest version of ITIL (version 3) is set to be released in May of 2007. The ITIL v3 has been anticipated by many IT professionals all over the world for the last few years. It is expected that five core texts will be packaged in the publication, they include: Service Strategy, Service Design, Service Transition, Service Operation and Continual Service Improvement

The original ITIL library included several books that covered specific themes in IT Service Management. However, after the original publication, the books in the library grew to over 30 volumes. Since 30 volumes can be cumbersome, difficult to read and digest and expensive to purchase as a complete set, the second version of ITIL has been consolidated.

ITIL v2 was packaged differently; version 2 was sold in sets that related to process guidelines and included several different aspects of IT including applications, services and IT management. It should be noted that the most popular sets being sold in ITIL v.2 include the services set, specifically Service Support and Service Delivery. While these two sets are by far the most popular, the ITIL library used as a whole is extremely comprehensive and a good foundation for any business using IT components today.

Following is a list of the books included in ITIL version 2:

1. Introduction to ITIL: While not one of the core competencies of ITIL, this publication gives the reader a comprehensive overview of the advantages, methods used and wide array of publications available in the ITIL library. This introductory book helps both the individual and organization acquire a thorough understanding of how ITIL can be an invaluable tool when put into action.
2. Service Delivery- Part of the IT Service Management Set, the service delivery book is primarily focused on being proactive and looking at the long term for what businesses require from its ICT (information and communications technology) provider to make sure that the proper support is being given to its businesses users. This includes Service Level Management, Capacity Management, IT Services Continuity Management, Availability Management and Financial Management.
3. Service Support- Service Support is also part of the IT Service Management Set. This book is focused on the businesses end user and making sure that all end users of the organization have appropriate services to run and complete their tasks accordingly.
4. ICT Infrastructure Management- ICT is an acronym for information and communications technology, this manual includes best practices for several facets of the ICT infrastructure including ICT design, planning, deployment, operations and technical support.
5. Security Management- ITIL security management focuses on the best practices and guidelines to make sure that information is stored safely and protected against risks of hacking and theft. In today's business world, it is extremely important that sensitive data remains private and confidential.
6. Business Perspective- This book details the best practices and addresses many issues in IT. This book tries to facilitate understanding regarding key issues in the IT along with quality management in the IS (Information Service) field.
7. Application Management- This set includes best practices and guidelines in order to improve quality of software applications and support of these applications through the entire development life cycle.
8. Software Asset Management- Software asset management is part of IT service management and looks at how software should be treated as an asset with value. This book details how businesses can save money through policies and procedures that underline using software expeditiously.
9. Planning to Implement Service Management- provides business with a framework for analyzing and understanding what is needed when instituting certain IT processes and approaches. Many times a CSIP (Continuous Service Improvement Program) is implemented, along with other ITIL books and disciplines.
10. ITIL Small Scale Implementation- This discipline is used for businesses with smaller ITIL departments. This book covers many best practices and guidelines used for larger implementation, but focuses as well on the important roles and responsibilities within a small unit and ways to avoid conflicts between ITIL priorities.
READ MORE - What is ITIL?

What is Sarbanes-Oxley?

What is Sarbanes-Oxley?

The Sarbanes-Oxley Act was signed into law on July 30, 2002 by President Bush, and was approved by the House by a vote of 423-3 and by the Senate 99-0. Sarbanes-Oxley is considered the most significant change to federal securities laws in the United States since the New Deal. Officially titled the Public Company Accounting Reform and Investor Protection Act of 2002, and commonly called SOX and Sarbox, it was named after sponsors Senator Paul Sarbanes (D-MD) and Representative Michael G. Oxley (R-OH) and came as result of a series of corporate financial scandals.

The Sarbanes-Oxley Act is designed to review dated legislative audit requirements to protect investors by improving the accuracy and reliability of corporate disclosures, covering issues such as establishing a public company accounting oversight board, corporate responsibility, auditor independence, and enhanced financial disclosure. The act's major provisions mention that we can name the prohibition on insider trades during pension fund blackout periods, the certification of financial reports by CEOs and CFOs, the public reporting of CEO and CFO compensation and profits, accelerated reporting of trades by insiders, and ban personal loans to any Executive Officer and Director. Basically, the act requires full disclosure on just about everything.

Sarbanes-Oxley requires additional disclosure as well as criminal and civil penalties for securities violations and significantly longer jail sentences and larger fines for corporate executives who knowingly and willfully misstate financial statements. The act also notes the prohibition on audit firms providing extra "value-added" services to their clients, including actuarial services, legal and extra services such as consulting or unrelated to their audit work. The Sarbanes Oxley Act also requires that publicly traded companies furnish independent annual audit reports on the existence and condition of internal controls as they relate to financial reporting.

Other provisions included mention that US companies are now obliged to have an internal audit function, which must be certified by external auditors. The act also grants auditor independence, including outright bans on certain types of work and pre-certification by the company's Audit Committee of all other non-audit work. The Sarbanes-Oxley Act list also requires that information on how significant transactions are initiated, authorized, supported, processed, and reported must be disclosed if this information is requested at any time.

Sarbanes-Oxley allows enough information about the flow of transactions to identify where material misstatements due to error or fraud could occur. There is also information and other implementations and controls designed to prevent or detect fraud, including who performs the controls and the regulated segregation of duties. This act also states how the period-end financial reporting process and controls over safeguarding of assets, reporting the results of management's testing and evaluation must be handled.

The future of The Sarbanes-Oxley Act will depend on businesses' ability to respond to those areas already mentioned by making it a part of every-day business. Deloitte and Touche LLP has released a new publication called "Under Control" where some points on this matter are exposed, such as education and training to reinforce the control environment, clearly articulated roles and responsibilities and assigned accountability, effective and efficient processes for evaluating testing, remediating, monitoring, and reporting on controls, technology to enable compliance, adaptability and flexibility to respond to organizational and regulatory change, and integrated financial and internal control processes. It's clear that the act may need refining in the future, but presently it serves as a protection to investors against those that do not or mistakenly fail to report accurately.
READ MORE - What is Sarbanes-Oxley?

What is ERP?

What is ERP?

ERP stands for Enterprise Resource Planning. ERP is a way to integrate the data and processes of an organization into one single system. Usually ERP systems will have many components including hardware and software, in order to achieve integration, most ERP systems use a unified database to store data for various functions found throughout the organization.

The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization - large or small.

In order for a software system to be considered ERP, it must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization (QuickBooks: Payroll & Accounting), most ERP systems cover several functions.

Today's ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.
READ MORE - What is ERP?

Integration is Key to ERP

Integration is Key to ERP

Integration is an extremely important part to ERP's. ERP's main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow. ERP's usually accomplish integration by creating one single database that employs multiple software modules providing different areas of an organization with various business functions.

Although the ideal configuration would be one ERP system for an entire organization, many larger organizations usually create and ERP system and then build upon the system and external interface for other stand alone systems which might be more powerful and perform better in fulfilling an organizations needs. Usually this type of configuration can be time consuming and does require lots of labor hours.

READ MORE - Integration is Key to ERP

The Ideal ERP System

An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:

Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.

Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.

Human Resources: Benefits, training, payroll, time and attendance, etc

Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.

Projects: Costing, billing, activity management, time and expense, etc.

Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.

Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.

READ MORE - The Ideal ERP System

ERP Improves Productivity

Before ERP systems, each department in an organization would most likely have their own computer system, data and database. Unfortunately, many of these systems would not be able to communicate with one another or need to store or rewrite data to make it possible for cross computer system communication. For instance, the financials of a company were on a separate computer system than the HR system, making it more intensive and complicated to process certain functions.

Once an ERP system is in place, usually all aspects of an organization can work in harmony instead of every single system needing to be compatible with each other. For large organizations, increased productivity and less types of software are a result.

READ MORE - ERP Improves Productivity

Implementation of an ERP System

Implementing an ERP system is not an easy task to achieve, in fact it takes lots of planning, consulting and in most cases 3 months to 1 year +. ERP systems are extraordinary wide in scope and for many larger organizations can be extremely complex. Implementing an ERP system will ultimately require significant changes on staff and work practices. While it may seem reasonable for an in house IT staff to head the project, it is widely advised that ERP implementation consultants be used, due to the fact that consultants are usually more cost effective and are specifically trained in implementing these types of systems.

One of the most important traits that an organization should have when implementing an ERP system is ownership of the project. Because so many changes take place and its broad effect on almost every individual in the organization, it is important to make sure that everyone is on board and will help make the project and using the new ERP system a success.

Usually organizations use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting, Customization and Support.

Consulting Services - usually consulting services are responsible for the initial stages of ERP implementation, they help an organization go live with their new system, with product training, workflow, improve ERP's use in the specific organization, etc.

Customization Services - Customization services work by extending the use of the new ERP system or changing its use by creating customized interfaces and/or underlying application code. While ERP systems are made for many core routines, there are still some needs that need to be built or customized for an organization.

Support Services- Support services include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.

READ MORE - Implementation of an ERP System

Implementation of an ERP System

Implementing an ERP system is not an easy task to achieve, in fact it takes lots of planning, consulting and in most cases 3 months to 1 year +. ERP systems are extraordinary wide in scope and for many larger organizations can be extremely complex. Implementing an ERP system will ultimately require significant changes on staff and work practices. While it may seem reasonable for an in house IT staff to head the project, it is widely advised that ERP implementation consultants be used, due to the fact that consultants are usually more cost effective and are specifically trained in implementing these types of systems.

One of the most important traits that an organization should have when implementing an ERP system is ownership of the project. Because so many changes take place and its broad effect on almost every individual in the organization, it is important to make sure that everyone is on board and will help make the project and using the new ERP system a success.

Usually organizations use ERP vendors or consulting companies to implement their customized ERP system. There are three types of professional services that are provided when implementing an ERP system, they are Consulting, Customization and Support.

Consulting Services - usually consulting services are responsible for the initial stages of ERP implementation, they help an organization go live with their new system, with product training, workflow, improve ERP's use in the specific organization, etc.

Customization Services - Customization services work by extending the use of the new ERP system or changing its use by creating customized interfaces and/or underlying application code. While ERP systems are made for many core routines, there are still some needs that need to be built or customized for an organization.

Support Services- Support services include both support and maintenance of ERP systems. For instance, trouble shooting and assistance with ERP issues.

READ MORE - Implementation of an ERP System

Advantages of ERP Systems\Disadvantages of ERP Systems

Advantages of ERP Systems

There are many advantages of implementing an EPR system; here are a few of them:

  • A totally integrated system
  • The ability to streamline different processes and workflows
  • The ability to easily share data across various departments in an organization
  • Improved efficiency and productivity levels
  • Better tracking and forecasting
  • Lower costs
  • Improved customer service

Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

Usually many obstacles can be prevented if adequate investment is made and adequate training is involved, however, success does depend on skills and the experience of the workforce to quickly adapt to the new system.

  • Customization in many situations is limited
  • The need to reengineer business processes
  • ERP systems can be cost prohibitive to install and run
  • Technical support can be shoddy
  • ERP's may be too rigid for specific organizations that are either new or want to move in a new direction in the near future.
READ MORE - Advantages of ERP Systems\Disadvantages of ERP Systems

 
 
 
free counters 
HTML Hit Counter