The SME can then refine the description of the requirements and the formulation of the company's questions to the vendors. Each requirement is ranked according to the risks and opportunities identified by each user group and an aggregate of the data allows the user groups opinions to be consolidated (Krystkowiak et al., 2004).
Finally, Figure 3 below is an OPAL screen that shows how the SME weights each requirement by each user group. According to Krystkowiak and his colleagues, "A synthetic weighting, made by management, is then performed, and comments can clarify the reasons for a management decision. This weighting will enable the creation of the future selection grid of the offers by calculating the importance of each requirement in the score of the future suppliers" (p. 4).
Figure 2. Reusing requirements.
Source: Krystkowiak et al., 2004 p. 3.
Figure 3. Weighting requirements.
Source: Krystkowiak et al., 2004 p. 3.
By using the OPAL tool and the recommendations provided by consultants of a Luxembourg government agency, Prestagaz developed a highly effective call for tenders that resulted in their receiving a large number of responses from potential vendors; fortunately, the OPAL tool even allows for a consolidation and comparison of these responses to determine which vendor and ERP best matches the company's unique requirements based on the input from all of the affected stakeholder. In addition, the OPAL tool has features that allow SMEs to track negotiations with ERP vendors, and synthesize these results for management decision making (Krystkowiak et al., 2004). The results of this initiative were impressive and were found to be far superior than a spreadsheet approach; furthermore, Prestagaz selected the ERP tool that best suited to its specific business requirements.
CMW, United Kingdom. In 2003, as part of the National Action Learning Programme (NALP), one company called "CMW" (the company's name has been disguised), participated in an ERP-based project designed to improve the competitiveness of UK-based enterprises. CMW was founded in 1986, and grew over the years to become one of the largest independent manufacturers in its industry in Europe. At the time, the company's management recognised that its existing approach to practice and performance were not competitive, and despite having the requisite talent and expertise to succeed in its industry, there were no immediate solutions forthcoming from the industry itself (Coghlan & Coughlan, 2003).
In collaboration with NALP, this company examined its operations using an action research approach and launched an ambitious and fundamental overhaul of its organizational structure. The company subsequently adopted modern information management alternatives such as ERP and MIS networks (unidentified in the case study), expanded its use of the electronic transfer of information that increased the quantity of networked information, as well as basic communication system improvements such as e-mail and voice mail (Coghlan & Coughlan, 2003). The results of these initiatives were not immediate but they were impressive; the owner-directors concluded that CMW had finally started moving towards "world class" levels of operations practice that would result in superior performance (Coghlan & Coughlan, 2003).
Northern Digital, Waterloo, Ontario. A case study by Managing Automation (2005) of this company shows that it was founded in 1981 and is headquartered in Waterloo Ontario,
Canada. Today, Northern Digital Inc. (NDI) is a major Canadian supplier of 3D/6D measurement products used in industries such as image guided surgery, robotics, aeronautics and biomechanics; NDI employs 90 workers and has over $20 million in annual revenues (Northern Digital, 2005). The case study reports that NDI's previous information system was constraining, rather than facilitating the accomplishment of its organizational goals; the company was not without its strengths, though. The company had received numerous awards for quality and was ISO9001 registered, but customer service was suffering and order backlogs had reached unacceptable levels (Northern Digital, 2005).
The case study reports that following an analysis of which product and vendor would best suit their needs, NDI selected Intuitive ERP ™ from Intuitive Manufacturing Systems based on factors that directly supported their organizational goals. According to the case study, "Intuitive ERP provided a level of system functionality that could immediately improve inventory management and the expandability and flexibility to support NDI's growth. Equally important was the system's level of ease of implementation and ease of use" (p. 1). Following its implementation of the Intuitive ERP package, NDI experienced continued success in improving inventory management and increasing revenue; inventory turn rates have doubled (a major corporate goal), and are expected...
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