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Lack of methodology

Category: Information Systems

Historically, many companies converted from Mainframe to modern Intranet technologies and most encountered methodological problems in modernising their software. Various programmers using different languages developed programmes to overcome problems. However, programme source codes are usually insufficiently documented and business processes and document turnover are rarely formalised. This all poses difficulties for system upgrades because, for example, the lack of users manuals requires that more time be spent on mastering new techniques and on user training.

Insufficient description and formalisation of systems in place pose a risk to future upgrades.

Alternative approaches

Basically, a company faces a choice between two main options when deciding to upgrade its MIS system. One option is to opt for the complete adoption of an integrated MIS software such as BAAN, SAP etc. This choice implies the dismantling of existing systems and the installation of a new one. This is a long expensive and risky process that usually takes between 2 and 4 years.

The second option is to make use of the functionality of the existing information system by adding new management tools. In this case, positive results will be achieved in a shorter time at lower cost. This solution also creates a favourable background for an integrated MIS implementation in future.

ERP system implementation

Necessary Preparatory Steps Before Implementing an Integrated MIS

Preparatory steps for a complete change to an existing MIS are extremely important. They require time, are costly and consume companyr esources. At the preparation stage, the company, supported by consultants, needs to analyse the business processes and create a detailed requirements analysis. Preparation of the Statement of Requirements would normally take six months. Before starting implementation, the company would need to

— Create a list of potential MIS solutions according to the IT strategy;

— Evaluate offers according to the Statement of Requirements;

— Prepare tender documents for selection of the system supplier, hardware supplier and system software supplier

— Prepare a shortlist of suppliers and evaluate the offers in detail.

— Preparatory analysis and planning steps for an integrated MIS are costly and take at least 6 months.

Time and Cost of an Integrated System

The cost of implementation of a fully integrated system is typically $1-2 Million. The sheer size of this investment means that even large, profitable enterprises in Ukraine find it difficult to afford. Furthermore, companies underestimate the total cost of implementing a new fully integrated MIS by considering only the price of the software and disregarding consultancy and other labour costs.

The length of time required for such an implementation was beyond the scope of the  project.

The time span and the cost of an integrated MIS was beyond the scope of the current project. It also required an investment which even the best Ukrainian companies could hardly afford.

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