University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

The RAMESES Method. The RAMESES Method.

COMM80: Risk Assessment of Systems Change

Unit 14

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Objectives of Objectives of Session CoverageSession Coverage

• To understand the systems change perspective considered.

• To learn about the Concept of “Risk” in the method.

• To gain an understanding of the RAMESES method.

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

What isWhat is RAMESESRAMESES??

• An approach that can be used by SMEs to assess risk of systems change.

• Why is it needed?– Do IT systems always to live up to expectation?– Do IT systems always fit how the business operates?

• Systems Specification is hard.

• Two aspects of change: Business process and IT systems.

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Background toBackground to

RAMESESRAMESES• Development via liaison with SMEs

– studied them and their problems/successes in deploying new IT systems.

• Usage– tested and refined in a range of (mostly manufacturing)

SMEs.

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Concept of “Risk”Concept of “Risk”

• Risk is not viewed as a percentage or number– Risk of systems change can only be

assessed by profiling:• the differences between views of business

activity• the gaps between perceived and actual IT

usage.

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

RAMESESRAMESESFrameworkFramework

SS-3 SS-2

SS-1DC1-1

DC1-2 DC1-4

Data Collection: Phase 1

Data Collection: Phase 2

DC2-3 DC2-5 DC2-4

DC2-1

DC2-2

The

risk

gaug

es c

an b

e us

ed a

t any

tim

edu

ring

the

data

col

lect

ion

and

ana

lysi

s pr

oces

s

RG-2

RG-1

RiskAssessment

A-1

A-6A-5

RG-2RG-1Identify the Change andIts Characteristics

DC1-3 A-4

Key to the symbols used.

Data Collection Activity (identifies what data to collect,when, who from and how)

A-n Analysis Tool (compares specific data sets)

DCn-m

RG-n Risk Gauge (snap shot of risk)

SS-1System Specification Activity (identifies what isrequired in a new IT system and the constraints)

A-3 A-2

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Components of Components of RAMESESRAMESES

• Data collection (auditing)

• System specification

• Analysis (comparisons, gaps)

• Risk assessment (gauges)

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Data Collection Data Collection (Auditing)(Auditing)

DC1-1: Identify Business ActivitiesDC1-2: Mark IT Usage on the Business Activity ModelDC1-3: Undertake IT AuditDC1-4: Map Proposed IT System onto the Business Activity ModelDC2-1: Scope the Extent of the Detailed Data CollectionDC2-2: Identify Staff within the Business ProcessesDC2-3: Task Trail the Business Processes within the BoundaryDC2-4: Audit Staff IT Profile DC2-5: Audit Staff IT-Satisfaction

DC1-1

DC1-2 DC1-4

Data Collection: Phase 1

Data Collection: Phase 2

DC2-3 DC2-5 DC2-4

DC2-1

DC2-2

DC1-3

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

System System SpecificationSpecification

SS-1: Identify Technical Systems Specification for Required System.

SS-2: Develop List of New IT System Features:InfrastructureBusiness/Sector SpecificSupport Services

SS-3: Define Range of Potential Actions for Identified Changes

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

IT Analysis: Focused IT Analysis: Focused on Business Process on Business Process

A-1:Compare IT Usage:

Proposed against Existing

Map from DC1-2

Map from DC1-4

Expected Impact ofProposed Change

A-2:Compare Existing IT Usage:Perceived against Detected

Map from DC1-2

Abstracted Map fromDC2-3

Gap between reality andperception

A-3:Compare IT Usage:

Proposed against DetectedAbstracted Map from

DC2-3

Map from DC1-4

Actual Impact of ProposedChange

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

IT Analysis: Focused IT Analysis: Focused on Proposed Systemon Proposed System

A-4:Compare IT Audit against

Proposed IT SystemRequirements

New IT SystemRequirements (from SS-1)

IT Audit (from DC1-3)

Analysis of TechnicalFeasibility

A-5:Business Feature Analysis

for Proposed IT System

Current Support fromDC2-3 and DC2-5

New IT System Features'List (from SS-2)

Analysis of Fit ofProposed IT

Range of potential actions foridentified changes (from SS-3)

A-6:Staff Competencies Relative

to Proposed IT System

Impact of ProposedChange

Skills Audit from DC2-4and DC2-5

New IT SystemRequirements from SS-2

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Business Activity Map Business Activity Map (IT Usage Marked)(IT Usage Marked)

Production Planning andProduction

BuildPlanning

MRPLoading

CapacityPlanning

ResourcePlanning

Document-ation

Issue

Monthly/Daily

BuildPlanning

Despatch

DocumentControl

Customer

DailyBuild(Plan

)

DailyBuild(Actual

)

Key

Where MRP is used

Where MS Office is used

Miscellaneouspackages

Assurance

Build Plan

CapacityPlanning

Capacity PlanningSpreadsheets

Shop FloorTargets/Plan

Works Order

Under Release Report

Drawings

ProductManagementPlans

Build/ Test

Packed Product

QA Product

Product

Targets

DailyProductionMeeting

WeeklyOperatorsMeeting

ApprovedDrawings

Quality

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Business Activity Map Business Activity Map (Proposed (Proposed IT Marked)IT Marked)

Operations Business Planner(Service)

RMA

ReceiveGoods

NCIssueRM

AReceipt

BookIn

Acknowl-edge

RMAReceipt

MaintainCurrentbusiness

CompaqissuePicklist

WinningNewBusiness

TestTest Product

Document

NoteCompanyPack

Q.A.

Re-Work

PickCompon-ents

Ship

Repairs

Pack

QA

Document

Reconcile

Resultstocustomer

Pass

Fail

Compaq

ReceiveGoods

DispositionfromInspection

POReceipt

RaisePO

Acknowled-gementtocustomer

IssueMaterialsto

workorders

BERScrap

RaiseWorkOrder

s

WorksOrderReceipt

StockTransfer

RaiseForecastOrders(4

Months)

ReceiveMonthlyForecast(Order)

Sales/Worksorders

forcurrentweek

Run

MRP

GoodsIn

PlaceOrders

RaisePO

Action

ContactAgency

Personnel

Assess

Staffreduction

Justifystaffneeded

StaffRequirements

Action

AssessImpactonResources

FacilitiesEquipment

Key

Where MRP is used

Where MS Office is used

Where Miscellaneous packages are used

Proposed ERP System

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Risk GaugesRisk Gauges

• RG1: Change Consensus– purpose: to assess agreement among the

Senior Management team (SMT).

• RG2: Change Context– purpose: to assess the SMT’s perception of the

context of the proposed changes.– purpose: to assess the SMT’s perception of past

company experience.

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

RG1: Change RG1: Change ConsensusConsensus

Identified change:Implementation of new ERP system to replace packages currently used with an integrated solutionJustification of need for change:•Our system is out of date and difficult to maintainand•We know we are not operating at best efficiency and wish to investigate further. Consensus among SMT:Strongly Agree: 2, Agree: 1, No view: 1, Disagree: 0

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

RG2 Change ContextRG2 Change Context

• Considers– Project Timescale– Project Scope– Nature of Project– Cost of Project

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

RG 2: Change RG 2: Change ConsensusConsensus

Change Consensus: Expected Impact

0

1

2

3

4Time

Scope

Nature

Cost

Expected Impact * Confidence

0

1

2

3

4Time

Scope

Nature

Cost

Manager Proposing Change Senior Manager 1 Senior Manager 2

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

RG2: SMT Consensus RG2: SMT Consensus on Experienceon Experience

SMT Perception of Company's Experience of Project Timescales

0%

20%

40%

60%

80%

100%

Proposer SM 1 SM 2

2 years

18 months

1yr

within 6 months

SMT Perception of Company's Experience of Nature of Systems Change

0%

20%

40%

60%

80%

100%

Proposer SM 1 SM 2

radical change withinorganisation

radical "localised"change

incrementalchange/organisationallevelincrementalchange/localised level

small localisedchange

SMT Perception of Company's Experience of Project Scope

0%

20%

40%

60%

80%

100%

Proposer SM 1 SM 2

over 75%

between 50% and75%

between 25% and50%

<25%

SMT Perception of Company's Investment in Individual IT Solutions

0%

20%

40%

60%

80%

100%

Proposer SM 1 SM 2

over £50000

between £20000 and£50000

between £5000 and£2000

between £1000 and£5000

< £1000

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Impact of RAMESESImpact of RAMESES

• Information gathered when needed – stored for future reference

• Comparative analyses using defined data sets for specific purposes.

• Simple diagrams are used to show:– business processes– IT used within business processes– impact of new IT on business processes.

University of Sunderland COMM80 Risk Assessment of Systems Change Unit 14

Usage of the ToolsetUsage of the Toolset

• Internal assessment - gains from SMEs' knowledge of their business. – Data collected via simple workpacks, these

can be used in isolation or within the method.

– Business activities can be mapped to required level of granularity.

– Senior management consensus can be tested.