HOW TO OVERCOME THE PROBLEM OF LOW IS

HOW TO OVERCOME THE PROBLEM OF LOW IS MODEL CONFORMITY in a case of made by Alyona Protasova

PROJECT MOTIVATION • Personally involved • Faced with IS-failure consequences • Know people who are directly responsible for such a IS-gap 3337 RUB DHL global capability tool screenshot Photo of received parcel 1

PROJECT CONTEXT To clarify IS gap, explain its reasons • What exactly the problem is? To describe and find ways to solve “expectation-reality” problem • Why expectations do not conform the reality? To analyze stakeholders involvement • Who suffer and why? • Who is responsible? 2

PROBLEM DESCRIPTION GENERAL PROBLEM Low IS conformity between global and local data Organizational structure of Deutsche Post DHL • Subfolder problem in MEA DHL • Difference between hierarchy in global and local data • Additional rules in calculating prices in RAS areas (remote access services) 3

PROBLEM DESCRIPTION SPECIFIC PROBLEM Global IS data structure does not conform the local data structure due to DHL business processes diversity worldwide that leads to slow (manual) processing of a client request IS • request • price calculation Customer service • check the request • recalculation • Delivering • shipment receiving a parcel Process od processing customers request with/without IS failure 4

GOALS AND NON-GOALS RESEARCH PROCESS INTEND TO • Understand the causes of the problem, • Describe stakeholders’ involvement, • Find the best practice cases in solving such IS problems; DEFINE THE PROBLEM NOT INTEND TO • Count financial losses (not enough time to do); • Offer the best solution how to fix IS failure (not enough information to do); ASSESS STAKEHOLDER INVOLVEMENT FIND REASONS OF FAILURES FIND THE BEST PRACTICE CASES IN SOLVING SUCH IS PROBLEMS 5

LIMITATIONS & THREATS • Subjectivity of the findings, based on interviews; • External environment of companies applying best practices can differ from the DHL environment; • The factor of interconnection processes may be underestimated; • Company is not interested in solving the problem, until the IS fixing costs are higher than losses due to the failure. 6

METHODOLOGY METHODS WHAT WAS DONE? Case study DHL case description Stakeholder Bryson’s matrix with key stakeholders analysis In-depth interview 6 interviews conducted: with 3 IS developers, 1 head of internal development department, 2 DHL customers from different regions IS real testing Author’s personal experience Best practices Nestle case; Likard (Lukoil subsidiary) analysis case 7

STAKEHOLDER ANALYSIS Clients Don’t face a failure directly, but can feel its consequences when understand a difference in real and calculated price of parcel delivering; Subsidiary TOP management Know about the problem, but have limited power in solving global questions; Internal development department Work with a GIS that is critical in the whole DHL business process; can see a failure, but should receive a lot of permissions to make some changes; 8

STAKEHOLDER ANALYSIS Customers service Faces unsatisfied clients; have not enough time to process regular customers requests; have low power, but high involvement; Marketing department Dissatisfaction of clients in some regions grows, so it is necessary to develop there new marketing strategy; Staff Faces the consequences of IS failure when some customers reject their orders or start ague with delivery staff about DHL service; 9

BRYSON’S MATRIX High Context setters Key players Internal development unit Subsidiary top management Power Stuff (couriers) Low Marketing unit Crowd Customer service Level of Interest Clients Subjects High Power and interests of stakeholders according to Bryson’s matrix 10

NESTLE CASE • • BUSINESS PROBLEMS Standards establishment Development of Management global business processes • • Corporate PO by Technology SAP Web Platform Global Headquarter Local Business Units Employees Decentralized IT infrastructure Decentralized global operations Business solution GIS • Organization • Standardization of information flows between organizational units Consolidation of reporting system • • Support of global operations Reducing costs 11

LUKOIL CASE • Lukoil is Russian second largest oil company; • Likard company is the Lukoil subsidiary; • Likard is carrying out payments by plastic cards at gas stations; • System includes 5000 terminals at 3700 gas stations; • Comprehensive program of IT services availability was conducted; • New IS was launched without interruption in customer service; • Flexible IT infrastructure was set; • New GIS reduce unplanned failures cases, organize service and reduce costs; 12

INTERVIEW RESULTS Problem description Developers Possible reasons The best solution Not a problem, the only way how GIS can work at early stage Business environment problem Difference in data structure in some regions Special rules when counting a shipment price to RAS regions Internal Bureaucracy Local data doesn’t Developme Unclear conform global responsibility nt business data distribution within department the company head Customers Slow processing of the request by Low-skilled Adding to GIS some local tool for Russian customers Fast communication between call centre and developers Receive a power to introduce some GIS changes by themselves Doesn’t matter 13

MAIN DELIVERABLES Main problem causes: • Heavy organisation structure of DHL; • Differences in hierarchy in global and local DHL data; • Bureaucracy (long decision making process); The most appropriate solutions: • To add to GIS some autonomous tool for Russian customers; • To standardise some rules when local subsidiaries has a power to introduce some GIS changes by themselves; • To intensify communication process between developers and customer service. 14