CEPAS Case Reflection

To: Richard Peterson, CEO

From: Anna Szperlak

Date: July 27, 2014

Subject: Reflection on the meeting with consultants

   In response to the presentation with YSW Consulting firm, we received very informative details on how CEPAS implementation can improve the overall economy and what would the key takeaways be. As we know, prior to 2009 there were two major card issuers dominating: The Land Transport Authority (LTA) and the Network for Electronic Transfers Singapore (NETS). As the NETS held exclusive rights to the Electronic Road Pricing  (ERP) system and also dominated Singapore’s retail and private car park payment markets, the LTA monopolized Singapore’s public transit market which includes Mass Rapid Transit (MRT) ticketing, bus and taxi fare collections. Both of those platforms shared a common interest of getting an access to a card that would be more cost efficient and comparable with the existing system. The idea of merging multiple payment applications onto a single smart card will increase the overall sales since customers spent more when using credit cards.

However, you might wonder how would that affect the shareholders? As the consulting team have mentioned, the Singapore government will save an approximately $24.5MM just by reducing the labor cost associated with all of the cash transactions that are being performed daily. The retailers will increase sales since the new CEPAS implementation will expand the customer base due to its convenience. Also, banks' manual cash transactions will be replaced with an electronically ones instead, what would minimize the labor cost. Implementing the CEPAS will provide convenience to the customer, transaction speed and more accurate data which will help them better monitor their spending.

If you have any questions or would like to discuss further, please feel free to reach out to me.

Best Regards,

Anna Szperlak

CEPAS Case

To: Richard Peterson

From: Anna Szperlak

July 21, 2014

   Singapore's e-payments landscape has been dominated by two major card issuers with non-interoperable cards; The Land Transport Authority (LTA) and the Network for Electronic Transfers Singapore (NETS). While both companies were working independently, the Land Transport Authority has dominated the public transit market in areas such as: rail, mass transit, bus, taxi, etc. and NETS controlled the retail payments sector as well as Singapore’s private car park payment schemes. Even though they were both strong, independent entities, the Infocomm Development Authority has decided to merge both companies and turn them into a stronger and more effective one. Using two cards for different purposes has created an inconvenience for the consumers, card issuers, as well as the society as a whole. This resulted in a higher cost for both, the consumer and the issuer. In order to overcome this problem, enhance the local micropayments and open up e-payment services for the consumers, The Infocomm Development Authority has launched an initiative to develop an innovative standard which would provide an interoperable platform. Contactless e-Purse Application Standard in short CEPAS, the next generation e-Payment initiatives, was introduced to the society incorporating an unique security and high-performance features, that enabled multiple payment applications which are offered by different issuers into a single smart card and it could be used to pay to travel either on the bus, taxi, rail transport, car park and road usage charges, as well as retail micro payments. 

   The concept of CEPAS was for Singaporeans to have a single multi-purpose store value card to use all throughout Singapore for any kind of payments. CEPAS was introduced as the long-term solution for the dual infrastructure landscape, decreased revenue collection and as the settlement system costs. Even though the network of cards and card readers was already established, the issuers knew that creating a single infrastructure environment would result in lowering their overall costs. The convenience of using single e-payment system for multiple purposes will benefit the consumer as well as the businesses. Also, there was a believe that the single infrastructure environment would increase consumers’ spendings, as studies have shown customers definitely tend to make larger purchases when using credit/debit cards rather than when using cash. In conclusion there are multiple different reasons and benefits with implementing the single e-cards.

Since CEPAS initiative was a tremendously large initiative, the planning involved several stages:

· Creating an effective plan to merge the two existing card issuers into one e-payment system

· Ensuring the investment and shareholders support

· Developing an IT system that would support this project

· Ensuring the security necessities required by the Singapore transit system

· Developing a process of distributing the new cards out to the public and easy switch for the consumer

· Expending the process of CEPAS users

   This large initiation is facing several risks and challenges. A fear that consumers might not accept this new project and society won’t be willing to switch their current cards exists. Furthermore, since it is very time consuming for all of the organization to allow CEPAS to integrate and replace current cards with their new credit, debit, or member cards, there was a risk that not all businesses would consider adopting CEPAS.

Bombardier Case Reflection

To: Richard Peterson, CEO

From: Anna Szperlak

Date: July 19, 2014

Subject: Reflection on the meeting with consultants

    After meeting with Resource Planning Consultants I wanted to provide you with my feedback on how adopting ERP practices can improve the data processing. To recap, the consultants stated that, from the list of the best-of-best practices, our organization should focus on the following:

• Ensure Senior Management Support
• Designate Qualified Project Team
• Identify and Define Clear Objectives and Key Requirements
• Create Clear Implementation Plan and Timeline
• Choose the Right Software
• Establish Key Performance Indicators (KPIs)
• Set Realistic Expectations
• Ensure Effective Communication to ALL Users
• Provide ERP Training Before and After Implementation
• Invest in Change Management Training

The consultants listed and highlighted the areas that helped Bombardier’s second implementation at St. Laurent bring better results as compared to its first implementation at Mirabel. After discussing the issues in the second rollout with the consultants, it was pretty obvious that we have made major improvements as compared to the results from the first rollout; however, there are still some challenges and concerns that need to be addressed. By recognizing all of the factors such as better planning, emphasizing on the importance and the value of implementing ERP, understanding the requirements / different phases of operation, and gain the organizational commitment from top to bottom will help us achieve a 100% of accuracy and as a result ultimate success. I believe in order to improve all areas mentioned above we have to focused on implementing the best practice work, starting from the relationship between the management and employees. As you have been mentioning on many occasions “people are the biggest asset to the company”, that is why first of all we have to make sure our employees are sharing a common goal of growing and succeeding within our company. The consultants discussed that we need to focus on proper project management, resources and also invest in training our staff, which are ultimately most affected by any system change.

In addition, there should be a presentation session which would be used to explain in detail to the employees where the company currently stands and where is it headed by implementing the ERP system, which I believe would be very beneficial for the staff. Before we do so, I would recommend doing a survey to gather all of the employees’ feedback on what in their opinion could be improved and what would be less important. This initiative would definitely help both sides to better understand the ERP system and address all of their concerns.  Furthermore, it will enable the employees to have a clearer and better idea about the changes in their roles and new responsibilities after the ERP implementation.

As the consultants brought up, we need to have professional, dedicated specialist on board to conduct the trainings as well as provide an ongoing support to the users during and after the implementation. This will reduce the difficulty level, resolve any issues quickly and ensure access for the employees to additional resources. With taking into consideration all of the above factors we will be able to get better results and a 100% success in the third rollout of the ERP implantation.

            I want to thank you again for allowing me to attend the meeting and please feel free to let me know if I can be of further assistance.

Best Regards,

Anna Szperlak

Bombardier: Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation Pre and Post-Presentation Notes

To: Richard Peterson

From: Anna Szperlak

July 13, 2014

Problem/Issue Statement

Through acquisitions and expansion, Bombardier inherited data processes and specific systems to replace their legacy system. Unfortunately, the first attempt of Enterprise Resource System ERP implementation failed with inefficiencies especially in inventory, through the purchasing and procurement department. The individual systems did not communicate with each other efficiently because of the large, complex system was made difficult to share data between all of the facilities. Also, employees were not ready for a such big of a change and were hesitant about starting a new implementation. The second round of implementation was more successful due to the additional resources of consultants and senior management support.  Even though the migration went well it seems like there is still a problem; disconnection between the businesses and project team. The lack of communication in regards to the training for all employees using the new ERP system is affecting the roll out and the further development.

•       The following are the symptoms that have been identified:

• Lack of communication between business and project team
• Poor time management / intense- ineffective training
• Specialized knowledge concentrated in a few individuals, not all potentials ERP users
• New system was not seen as a priority within the business members, no understanding of importance of the new system
• Employees still utilizing legacy systems to complete functions of their jobs
• Lack of protocol to measure success of implementation

The scope of the problem involves the rest of the divisions/ locations to be fully functional. This includes over 27,130 employees and 13 facilities worldwide. It is crucial to establish best practices to ensure a smooth transition for the employees and the project team, before moving further with the implementation process. To address the main problem, the company needs to prepare a “Best Practices” framework to follow and establish an alternative to become a better-centralized system and find a solution to the lack of integration of their legacy systems.

Situation Assessment

The context of the problem is primarily coming from not having a consistent plan for rolling out the ERP system, which causes issues with the project team, employees and management.  The lack of best practices causes disorganization and distress among trainers and employees.

The decision criteria to consider include:

• Set clear goals and objectives
• Stronger communication between management, employees, and project team
• Ensure proper project management and resource commitment
• Better time management
• Training issue

List of Plausible Alternative Courses of Action and Evaluations

The alternative course of action would be to implement the ERP which would get Bombardier closer to their vision of becoming a “One Company” organization. Employees would have the ability to share common data across divisions and products what leads to achieve an ultimate goal.

I would recommend that Bombardier adopt/continue to strengthen the following best practices:

The communication must be maintained throughout the implementation process in an efficient manner. – it is very important to communicate the importance of the implementation. A complete knowledge of the business processes is essential for implementing an ERP system as well as having a common goal, as a company will help the process to be more effective.  Stuff should be aware of what the final outcome will be and what it takes to get there.  Also, the benefits the company expects from the implementing the ERP should be define. By holding department meetings, follow up emails, or just having weekly updates, employees will see the importance of ERP implementation.

For this project to be successful it is essential to dedicate a project manager who will be involved in both planning and ongoing management reporting.  Also, the resources from the financial support, management support and user support, and quality will be necessary. In order for the goals and objectives to be clearly communicated to the organization, the executive management should endorse the ERP project and remain active throughout the implementation. In addition, this will foster a positive attitude towards changing to an ERP system since people are naturally adverse to change.

Training and support are also essential and should concentrate on business workflows and how these changes affect job roles and the people who do the work. Training should be scheduled closer to implementation with a more generalized theme and then have some refresh courses. In addition, highly qualified trainers/consultants should be available to train and support users on the daily use of the system addressing issues that may occur during and after the system update.

Recommendation

After reviewing the issues Bombardier experienced at the first two locations, the logical recommendation is to allow the ERP process to take place once more and finish what was once started. As my recommendation, the company should apply all of the above alternatives. By using the best practice framework, Bombardier will not only improve their technical implementation but it will also address the tension held by employees.  As mentioned above, prior to any further steps, Bombardier needs to set clear goals and objectives and communicate them to the entire business.  This will help the employees to understand why the BMIS is being implemented and would allow the firm’s vision to become “One Company” come true. Also, it will let all of their divisions share the vision and become centralized as a whole.

Project Management Case Reflection

To: John Strider, CEO

From: Anna Szperlak

Date: July 12, 2014

Subject: Reflection on the meeting with consultants

Mr. Strider,

As we discussed in the meeting now more than ever, new projects and new initiatives need to be successfully completed on time and on budget. There is a constantly growing pressure of having an effective project management team leading the operations. Nothing is more frustrating than working hard and expending valuable resources only to have your project canceled, fail, or to hear, “…this isn’t exactly what we wanted” - all this can be avoided through effective project management. As you had mentioned in the past, you have never witnessed the kinds of pressure that is now facing the personal computer (PC) industry. That is why our company has to take an action in current industry transition and improve existing Information Technology organization. The PMO initiative is a great solution that will provide standardization in managing our projects as well as improvements in planning and performance of any new initiatives. I believe that the PMO will become the firm experts on project practices, standards, tools and passing on this knowledge throughout the firm’s departments. Of course as prior to any major implementation there are many questions and concerns, foe example: How much PMO support is enough of a support?

Along with our consultants’ recommendations, applying the step-by-step process and going through all of the PMO phases carefully with specifying the expectations, roles, metrics, and level of approvals, this implementation will be very successful. Deciding how much control and authority the PMO should have might be one of the most important decisions. The PMO will be working closely with senior management of each individual departments and decision in regards to those departments will be discussed and made with management consultation knowing that the PMO will be too new.

However, I’m more concerned about our company’s culture, since employees are not necessarily following any methodology and do whatever they think is right. Applying and putting in place new regulation and structures might be too chaotic so again, introducing that to our employees and then the training will have to be implemented gradually. It might be very helpful prior to the implementation of PMO to get our employees’ feedback on what possibly would help their day to day tasks, what they think should be improved and what is useless since they are the one who have that knowledge and will be affected the most.

Thank you for taking your time on this important subject and considering my feedback.

Best Regards,

Anna Szperlak

AtekPC Project Management

1. What is the purpose and mission of a PMO?  The mission statement defines achievable and measurable objectives and identifies the responsibilities, and hence services, of the PMO.

   The purpose of implementing the PMO is to provide standardization in managing projects as well as to gain improvements in planning and performance. PMO will help AtekPC to improve the project management skills, process, and governance structures. In fact, the PMO purpose can be defined as the project focused and enterprise-oriented tool. Project focused on consulting, mentoring, and training what leads to the success of individual projects. The enterprise responsibilities are addressed services that might improve all projects and overall company image such as portfolio management, methods, and tools, PM standards, and project performance archives. The enterprise purpose is to provide a long-term stability and backbone for the project management's success. This mission can be met by forming and maintaining a project historical database, developing project management best practices, and providing training in all project management knowledge areas.

   There are few missions associated with the PMO, the first one is cost reduction where the Project Management Office uses IT as a support role as well as the factory role since AtekPC have increasingly become more focused on operations and maintenance instead of company’s improvement and efficiency. Also, by implementing PMO the company becomes more creative, adaptive, and responsive in launching new products.

2. What are the main challenges and obstacles in implementing a PMO?  The governance model establishes the domain of control, its organizational level of accountability, and its authority.

   One of the challenges AtekPC is facing is determining the correct allocation of resources dedicated to the PMO in implementing this new project. Also, the lock of PMO experts available to be a part of the project shows the internal culture or rather lock of innovation. Another issue and at the same time symptom for looking into PMO is the decrease in sales and profitability due to a maturing Personal Computer market. The PC industry was experiencing difficulties because of the low demand for those products, so eventually the company found itself behind the curve in areas of new technology such as mobile phones, PDA’s, and web-based applications. Even though the PC market kept lowering the cost of distribution, the competition among PC manufacturers grew very rapidly and their innovated products became easily accessible. Consumers were focused more on convenient and efficient gadgets with and access to the internet anywhere and anytime.

     3. What structural and governance mechanisms are critical to effective PMO implementation?  The structural model determines its degree of centralization, staff allocations, and level of direct project management.

   The critical structure of the PMO is the organizational strategy based versus departmentally based. PMO’s are more effective and can better impact the bottom line, when they are operating at the corporate enterprise-wide strategic level. After reviewing the Limitations and issues - heavy vs. light there are some major factors that are leaning to both. One of the heavy issues is that AtekPC does not have enough people and resources to move as fast as they would want to. Another concern is that no management wants to move to the PMO - people in the department challenge the values of PMO what definitely comes from the close-minded culture of the organization.

AtekPC considered two organizational models of PMO:

-PMO-Heavy

•  Full staff of project managers responsible for the management of all IT projects.
• Acquire project management experts, and used these resources to manage projects under the direction of the PMO.
• There should be no projects that operate outside the management and direct control of the PMO.

-PMO-Light

• Minimal staff of experts working through internal project managers to perform responsibilities of PMO.
• Developing the skills of internal project managers who were not formally connected with the PMO.
• Possibility to operating all projects outside of the PMO under existing organizational controls.

4. How much PM is enough PM?  How much PMO support is enough PMO support?  The cultural impact of the PMO on the organization is assessed by the receptivity to PM and the amount of organizational flux.

   The case vividly describes that PMO will never succeed if the goal is to try and change the permamnent atmosphere present in Atek PC. In my own words; the most optimal approach for PMO to arise victorious in Atek, and hopefully other companies to come, is to gather the proper ingredients that PMO requires to maintain information and begin to create pathways for companies. Once that is settled, the proper ingredients will be used in factions over specific periods of time so the PMO will not shock the employees and methods they have grown accustomed too. It may seem at first senseless to use the PMO very little, but in the future it will be more beneficial and efficient than the methods used now, as well as promoting the changes slowly but surely. In order for the employees to remain content and con continue to their job, the plans for the PMO will be verbalized in advanced, and clearly. Some many jump to conclusions thinking that the PMO will do all the work, but that is not the goal. The goal is for the PMO to work with businesses and optimize performance and results in projects. As long as the goals for PMO are communicated clearly and slowly, everything should go just fine. The PMO is a guide, not a worker or a manager. The resulting effects of PMO will not be a shock to a corporate environment, as long as the changes are long-term instead of short term.

   For PMO to work to the best of its ability, management must back the plan to the utmost. Whoever is in charge must be putting forth the plan in a manner that employees will not find offensive. As long as this is executed properly, PMO will then be looked upon with respect and then used in a maximized manner.