Patterns For IT Service Management Resource Plan

Implementation of change for Woolworths

Discuss about the Patterns For IT Service Management Resource Plan.

Woolworths is one of the largest retail outlets in Australia (Woolworth, 2018). The firm is doing well and its revenues are rising by 5.1% annually (Woolworth, 2018). However, the firm has in place older technologies to manage its Enterprise resource planning (ERP) and customer relationship management (CRM) systems. Cloud computing can improve these systems. Cloud computing is an IT service where data, software or any other information is shared on a third party server over the internet (Erl, 2013). Cloud computing reduces costs, increases accessibility, increases data processing speed and restricts data loss caused due to hardware failure (Jamsa, 2012). Cloud servers are safeguarded with security locks to prevent breech of data. Woolworths can apply cloud computing to its ERP and CRM system to make them more cost effective and accessible. Following work creates a framework for implementation of change plan for Woolworths.

Information architecture entails the design of shared information with regards to an organisation (Betz, 2011). It involves the structure and design of websites, shared communities and other content which an organisation wants people to find on the internet. Information architecture helps an organisation in making its content usable and findable (Betz, 2011).

Major change requirement of Woolworths is a move towards cloud computing and management of ERP and CRM system through the cloud. For optimal functioning a shared community like the cloud requires proper designing  (Scholz, 2013).This can be brought about by information architecture  (Betz, 2011). Hence, use of information architecture is justified for implementation of cloud computing at Woolworth.

Technology architecture in enterprise planning involves adoption of latest models, methods, guidelines and specifications involving new technology (Hausman, 2013).Cloud computing implementation at Woolworths would require upgradation of IT infrastructure, power backups, high volume data hosting servers etc.

Therefore, to enable cloud computing, the firm requires designing of technology architecture (Hausman, 2013). Through structured designing of servers and other equipment it will become easy for staff to understand cloud computing.

Woolworths needs to transit from old ERP and CRM system to cloud computing which can greatly reduce costs for the company (Jamsa, 2012). For this purpose the firm needs to treat the change process as a project and break it down into work units.

Work breakdown means dividing the work in hand into smaller units so that each can be completed separately and more efficiently (Nicholas, 2012). Following is work breakdown and decomposition of implementation of cloud technology for Woolworths.

Description and Justification of Information Architecture

Work Breakdown Structure

Table 1: Source: Adapted from (Nicholas, 2012)

 This work breakdown structure can help Woolworths in implementing cloud computing technology in an easy and efficient manner.

The change process of migrating to cloud computing for ERP and CRM should be done in a sequential and phased manner so that the staff adapts gradually to new mechanism (Bridges, 2017). Following is a sequence of the activities to be undertaken while implementing the change

Activities and Timelines

Table 2 Source: Adapted from (Bridges, 2017)

Through these activities the change from old system to cloud computing can be adopted smoothly.

Well planned change strategy can make transition towards cloud technology easier for an organisation (Cameron & Green, 2015). However, there are a few factors which are very important to success of the cloud policy (Ruparelia, 2016). Woolworths needs to pay attention to these factors while implementation. These are:

1. Finding the right partner/service provider- management of Woolworths would need to spend time an effort in choosing the right service provider(Erl, 2013). Wrong selection can pose a threat to data storage on the cloud(Erl, 2013). After in-depth assessment most suitable service provider should be chosen
2. The security issue- The biggest concern of cloud computing is security of data(Jamsa, 2012). As the data is kept on third party server there is more possibility of data breach. While partnering with a service provider the firm must assess each and every aspect of security and enter into a security agreement with the service provider.
3. Training and technical support- Whenever a firm migrates from one system to another there are many fears and misconceptions in the mind of the workforce(Goksoy, 2015). Woolworths needs to undertake proper training and explain benefits of cloud computing to its staff(Jamsa, 2012). Well trained staff is critical to success of new technology implementation.

If the firm pays attention to these critical success factors, it will be able to smoothly transit to the new cloud technology.

Stakeholders are the people who affect or get affected by any change of policy in an organisation  (Hill, 2012). Major stakeholders in the process of implementation of cloud computing in Woolworths would be the management, employees, Government, media, customers and the service provide (Brinkman, 2014). Any project can only be successful if stakeholders are satisfied. Organisations can categorise stakeholders based on the power and the interest they have in the situation (Brinkman, 2014). This can be done through the power –interest matrix.

Understanding power and interest of stakeholders

The power interest matrix is a helpful management tool to categorise and prioritise stakeholders while undertaking a new project (Hill, 2012).

Following is a power interest matrix for Woolworths

Figure 1: Source: Adapted from (Brinkman, 2014)

Based on this matrix Woolworths can categorise its stakeholders as follows

Service provider- Service provider is a very important stakeholder as the success of cloud technology is dependent on efficient service by this stakeholder (Erl, 2013). Therefore, service provider is very powerful stakeholder. However, service providers or suppliers are not interested in internal function of the organisation (Brinkman, 2014). Strategy for high power- low interest stakeholder is to keep them satisfied with periodic payments and information,

Management and Employees- Management and employees have an important role to play in the implementation of cloud computing (Jamsa, 2012). Additionally, they have an interest as well as power in its successful implementation. Strategy for these stakeholders is to monitor their efforts closely so that project progresses well (Hill, 2012).

Technology architecture

Government- As long as the firm is operating lawfully the Government has no power or interest in its internal policy implementations (Hill, 2012). Strategy for these stakeholders is to monitor them to check there approach towards the company.

Customers and media- Customers and media are very interested in policy changes of large organisations. However, they have low power over internal implementation (Hill, 2012). Strategy for these stakeholders is to keep them informed about the changes.

Proper stakeholder management can help in smooth transition of the change at Woolworths.

Implementation of cloud computing at Woolworth would require allocation of budget (Cameron & Green, 2015). Following is an assessment of various activities and their budgetary requirements

Budget and Costing for change Implementation

Table3: Source: Made by Author (2018) Adapted from (Cameron & Green, 2015)

This budget allocation will help in assessing and fulfilling the financial costs of change implementation at Woolworths.

For any change process to be successful it needs to be implemented with proper planning and clarity (Goksoy, 2015). Amy unplanned change can create chaos and fear in the employees mind. Cloud computing is a new way of conducting business; therefore, importance has to be given to planning before its implementation so that nothing goes wrong.

Pre implementation plan for implementation of clouds computing at Woolworths

Table4: Source: Adapted from (Erl, 2013)

Hence, though the above plan there will be easy implementation of cloud computing at Woolworths.

Change process does not end with implementation (Cameron & Green, 2015). After the change process the management needs to assess the efficiency of organisational functioning with in the changed process. Following is the post implementation plan for Woolworth’s change to cloud computing

Table 5: Source: Adapted from (Erl, 2013)

Post implementation planning helps in mitigating any issues which arise due to change (Cameron & Green, 2015). This planning will help in proper handling of the cloud computing at Woolworths.

Risk assessment is the assessment of any underlying costs or harm that can come about because of a project (Goksoy, 2015). Risk assessment helps in analysis of costs associated with a project and mitigating them (Nicholas, 2012). As cloud computing is a new technology there are various risks associated with it. However, with proper planning these risks can be mitigated (Erl, 2013). Following is a risk assessment of implementing cloud computing at Woolworths.

Table 6: Source: Made by Author (2018) Adapted from (Cameron & Green, 2015)

Through this risk assessment the organisation can assess the risks of cloud computing and put in place corrective measures.

Conclusion

Cloud computing for ERP and CRM systems can reduce costs and improve data accessibility for staff. However, transition towards this system needs to be carefully planned and implemented. Without clear implementation plan the change towards cloud computing can lead to chaos and resistance by staff. Therefore, proper assessment of all the activities involved along with risk assessment is required to implement change.

References

Betz, C. T., (2011) Architecture and Patterns for IT Service Management, Resource Planning, and Governance: Making Shoes for the Cobbler’s Children. Amsterdam: Elsevier.

Bridges, W., (2017) Managing Transitions: Making the Most of Change. Boston: Da Capo Press.

Brinkman, J., (2014) Unlocking the Business Environment. New York: Routledge.

Cameron, E. & Green, M., (2015) Making Sense of Change Management: A Complete Guide to the Models, Tools and Techniques of Organizational Change. 2015: Kogan Page Publishers,.

Erl, T., (2013) Cloud Computing: Concepts, Technology & Architecture. Harlow: Prentice Hall.

Goksoy, A., (2015) Organizational Change Management Strategies in Modern Business. Harshey: IGI.

Hausman, K., (2013) Sustainable Enterprise Architecture. Boca Raton: CRC Press.

Hill, C., (2012) Strategic Management: An Integrated Approach. New York: Cengage Learning.

Jamsa, (2012) Cloud Computing. Burlington: Jones & Bartlett Publishers,.

Mastroianni, F., (2017) Technology and innovation. How does the strategic planning process impact the management of technology and innovation and what consideration is given to the impact of disruptive technologies in particular?. Nymphenburger: GRIN Verlag.

Nicholas, J. M., (2012) Project Management for Engineering, Business and Technology. New Jersey: Routledge.

Ruparelia, N. B., (2016) Cloud Computing. cambridhe: MIT Press.

Scholz, J. A., (2013) Enterprise Architecture and Information Assurance: Developing a Secure Foundation. Boca Raton: CRC Press.

Vaquero, L., Rodero-Merino, L., Caceres, J. & Lindner, M., (2008) A break in the clouds: towards a cloud definition.. 39(1), pp. 50-55.

Woolworth, (2018) Home. [Online]
Available at: https://www.woolworthsgroup.com.au/
[Accessed 13 May 2018].

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