Best Practices in It Portfolio Management, Case Study Example

Introduction

The case study involving Vermont Teddy Bear represents a challenge that many organizations face in their efforts to improve their revenues and sales growth, while also balancing existing resources to improve their competitive advantage. Furthermore, the expansion of a technology-based infrastructure requires additional resources that may be difficult to secure in a competitive marketplace. Therefore, it is necessary for an organization such as Vermont Teddy Bear to improve its information technology practices not only to accommodate its own growth, but to also improve its manufacturing performance and data management flow (Gogan & Lewis, 2011). Therefore, this process requires an extensive evaluation of existing capabilities versus the upgrades that are required to accommodate new methods in order to improve organizational growth and performance. Based upon the need for an Enterprise Resource Planning (ERP) application that would satisfy organizational demands yet also be cost effective, the CIO faces a difficult and uphill battle to make an informed and well-executed decision. Based upon these considerations, it is recommended that the CIO introduce a mid-priced solution that would be more cost effective and achieve the required objectives for the time being, yet not require the extensive resources of a full ERP implementation.

Body

Achieving the desired balance between the resources that are available and committing to the required information technologies requires a unique approach that supports the demand for new ideas and creativity in order to properly allocate resources and aim to improve the organization’s IT objectives (Feld & Stoddard, 2004). Although the costs of IT implementation are typically very high, they should be evaluated using a cost-benefit analysis method in order to evaluate their efficacy and overall impact on an organization and its ability to increase its performance over the long-term (Feld & Stoddard, 2004). Finally, all leadership sectors within the organization and its divisions must be on board with the chosen strategy and must be able to identify its potential benefits within their division in order to achieve the intended results (Feld & Stoddard, 2004).

An organization must focus on its own growth and development through IT implementation using its core strengths to achieve the intended results. Organizations must be able to accept technology as a means of expanding outcomes and supporting the delivery of new ideas to facilitate positive results (Dezdar & Ainin, 2011). Based upon this perspective, organizations must focus on their ability to be creative and gain knowledge to implement the chosen system in an effective manner that will meet the desired expectations of the firm on a continuous basis. The opportunities available to expand technology must explore all available resources wisely and determine the best possible approaches to ensure that the technology is practical and flexible in moving the organization forward.

Managing an organization at the IT level also requires knowledge from a variety of divisions and should not simply focus on technical knowledge (Jeffery & Leliveld, 2004). The IT strategy must be in sync with all other organizational objectives and provide a basis for increasing technical knowledge and capacity in other areas (Jeffery & Leliveld, 2004). From an operational perspective, it is likely that an organization will improve its performance and create a new set of advantages to drive its success and achievement over the long term (Madapusi & D’Souza, 2012). Based on these objectives, organizations must continue to evolve and create new ideas for growth using IT in order to accomplish successful results through effective decision-making within the firm. Preparing for an organizational IT implementation requires a high degree of preparedness to ensure that the effort is successful (Sammon & Adam, 2010). As a result, organizational leaders must be prepared to manage the needs of the business through the IT implementation effort and create a balance between these interests and emerging needs as the firm continues to grow and thrive.

Conclusion

Vermont Teddy Bear and its associated divisions have a significant decision to make regarding their plans to achieve a successful information technology infrastructure. This process requires significant analysis and evaluation at the organizational level, using leadership to determine the best possible strategy that will be cost effective yet productive in meeting the anticipated goals and objectives. This practice is essential to the development of new ideas and approaches to determine which approach is most feasible, given the limited resources that are available. Nonetheless, sustaining a strong competitive advantage must remain a key driver for the organization and support its long-term strategy for success in this area.

It is believed that the best possible IT strategy is not to implement a large-scale ERP process at this time, as this would not serve as the most effective allocation of resources for the organization. On the contrary, a mid-level approach is likely to be most effective in achieving the intended goals and objectives, while also considering other resources that will support the organization over the long term. It is believed that this type of approach will offer the highest level of flexibility at this point and will also enable upgrades as necessary to support changes required within the infrastructure. When these objectives are considered, it is possible for Vermont Teddy Bear to achieve its desired goals, both in the present and in the future, using established knowledge and resources as a guide in supporting new directions for the organization to take as it grows and increases its competitive advantage within the industry. These efforts will support a long-term growth strategy that will have a significant impact on outcomes and on the development of new approaches to improve the growth of the business and its level of success.

References

Dezdar, S., & Ainin, S. (2011). The influence of organizational factors on successful ERP implementation. Management Decision, 49(6), 911-926.

Feld, C.S., & Stoddard, 2004, D.B. (2004). Getting IT right. Harvard Business Review, pp. 72-79.

Gogan, J.L., & Lewis, M. (2011). Peak experiences and strategic IT alignment at Vermont Teddy Bear. Journal of Information Technology Teaching Cases, 1, 61-70.

Jeffery, M., & Leliveld, I. (2004). Best practices in IT portfolio management. MIT Sloan Management Review, pp. 41-49.

Madapusi, A., & D’Souza, D. (2012). The influence of ERP system implementation on the operational performance of an organization. International Journal of Information Management, 32(1), 24-34.

Sammon, D., & Adam, F. (2010). Project preparedness and the emergence of implementation problems in ERP projects. Information & Management, 47(1), 1-8.