Managing IT Change—Fully Integrated Manufacturing: Impacts on Manufacturing

Published date01 January 2016
Date01 January 2016
© 2016 Wiley Periodicals, Inc.
Published online in Wiley Online Library (
DOI 10.1002/jcaf.22125
Managing IT Change—Fully
Impacts on Manufacturing
Art Worster, Thomas R. Weirich, and Frank Andera
As we have seen
in the past
articles in this
series (IT Applica-
tions and Managing
Change, Journal of
Corporate Accounting
and Finance,
Sept–Oct, 2015;
Managing IT
Change—A New
Role for HR, Jour-
nal of Corporate
Accounting and
Finance, Nov–Dec
2015), the introduc-
tion of enterprise
resource planning
applications has sig-
nificant implications both for
how design decisions in individ-
ual functional areas create both
intended and unintended con-
sequences, and in how the con-
sequences of design decisions
made in other functions also
define much of what options
exist in key areas like manufac-
turing. In this article, we will
explore how manufacturing
(both planning and execution)
is impacted by and impacts
these cross-functional deci-
sions. Arguably, manufacturing
operations are the
most complex pieces
of any organiza-
tion. Consequently,
they have impact
on virtually every
other function in
the enterprise. From
financial planning
and reporting to HR
(as we discussed in
the previous article),
logistics (procure-
ment and inventory
management), sales,
quality management,
and plant mainte-
nance, every part of
the organization is
impacted by design decisions
made in manufacturing. And
yet, often, organizations will
design and implement financial
applications and perhaps basic
materials prior to understand-
ing what the optimal design
will be for manufacturing
applications. Normally, from a
financial executive’s (CFO or
chief accountant) perspective
the problem with this is that
This article presents some implications for manu-
facturing functions operating in an integrated
business environment. In this case, however, there
are often more opportunities than failure points
that can be used to define efficiencies and resolve
issues between departments. The issue, of course,
is that integrated business process designs need
to be a collaborative effort of all functions within
the organization. The measurement for success or
failure needs to be overall organizational efficiency
measured by meeting financial expectations. With
manufacturing, there are so many connections
or at least touch points that each needs to be
identified and an optimal solution designed.
© 2016 Wiley Periodicals, Inc.
This is the third installment in a series
of articles that will appear in the com-
ing issues of the JCAF. Art Worster
and his associates, Thomas R. Wei-
rich and Frank Andera, will address
matters that arise during and after
the implementation of integrated IT
applications in a business.

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