Managing And Using Information Systems: A Strategic A 726573

Managing And Using Information Systems A Strategic Approach Sixth

Managing and Using Information Systems: A Strategic Approach – Sixth Edition Keri Pearlson, Carol Saunders, and Dennis Galletta John Wiley & Sons, Inc. Chapter 5 IT and Business Transformation 2 Sloan Valve What was wrong with their Product Development Process? What did Sloan do? What is NPD? Did it help? Are all enterprise system implementations this successful?

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The development and implementation of information systems within an organization often encounter significant challenges that can hinder their success and impact on business transformation. An illustrative case is Sloan Valve's experience with their product development process, which exemplifies common pitfalls and strategic interventions associated with enterprise system projects. This essay explores the issues Sloan faced, the solutions they adopted—particularly through New Product Development (NPD)—and evaluates the broader success rate of enterprise system implementations.

Initially, Sloan Valve's product development process was characterized by complexity, sluggishness, and inefficiency. The process involved 16 units coordinating across multiple stages, stretching over 18 to 24 months to bring a new product to market. Such a protracted timeline was coupled with high failure rates, where more than fifty percent of new ideas failed to materialize into successful products. Additionally, accountability was diffuse, making it difficult to identify who was responsible for each phase, further complicating project management. The process was largely siloed, with specialized functions operating independently, leading to redundancies, communication gaps, and sub-optimal overall organizational outcomes. This traditional silo perspective hampered innovation, agility, and responsiveness to market demands.

To confront these issues, Sloan Valve adopted an enterprise resource planning (ERP) driven approach aimed at streamlining and integrating the product development process. They restructured the process into a more collaborative model involving cross-functional teams. The new process included key phases such as ideation, business case development, project portfolio management, product development, validation, and launch. This restructuring was underpinned by the implementation of enterprise information systems that facilitated better data sharing, real-time communication, and accountability. The results were notable: the time to market was reduced from nearly two years to approximately 12 months, early screening of poor ideas increased efficiency, and access to customer feedback improved decision-making. The process evolution also fostered better accountability, ensuring that responsibilities were clearer, and progress could be more effectively monitored.

The concept of New Product Development (NPD) refers to the integrated process of conceptualizing, designing, developing, and commercializing new products. It involves coordinated activities to bring innovations from initial ideas to market-ready offerings. Effective NPD processes leverage technology, cross-functional collaboration, and strategic planning, ultimately enabling faster time-to-market, cost efficiency, and alignment with customer needs.

In Sloan's case, NPD—supported by enterprise systems—proved to be a successful intervention. The reduced development cycle, enhanced accountability, and improved access to customer insights exemplify how strategic integration of technology into processes can lead to tangible business benefits. These improvements contribute to a competitive advantage by enabling organizations to respond swiftly to market opportunities and reduce the risk associated with new product introductions.

However, it is essential to recognize that not all enterprise system implementations achieve such success universally. Failures remain prevalent, particularly when organizations do not adequately plan, customize, or align systems with strategic goals. For instance, prominent failures such as Overstock.com, Levi Strauss, and Avis Europe highlight the risks when organizational change management, user engagement, or process redesign are insufficiently addressed. These failures often result from misalignment between system capabilities and business needs, poor top management support, inadequate training, or resistance to change.

Research indicates that successful enterprise system deployment requires a comprehensive change management strategy, clear leadership, and ongoing evaluation. Moreover, organizations must recognize that systems are tools that support but do not automatically drive business transformation. The critical factor for success hinges on aligning technology with business processes and strategic objectives. Notably, enterprise systems that are implemented without considering organizational culture and process reengineering often fall short of realizing anticipated benefits.

In conclusion, Sloan Valve’s experience with their product development process demonstrates the potential benefits of integrating enterprise systems and adopting a strategic NPD approach, including shorter cycle times, better accountability, and improved customer feedback mechanisms. Nonetheless, the varying success rates across different organizations underscore the importance of holistic planning, change management, and process alignment to ensure that enterprise system implementations fulfill their promise of fostering business transformation. While Sloan's case exemplifies successful deployment, the broader landscape remains mixed, emphasizing the need for organizations to approach such initiatives with strategic intent and comprehensive support.

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