Task 2 Inputs to decision making - data, information & knowledge; systems analysis.

Problem

Project Managers have to enter revenue forecast information into one system, while actual invoiced values come from another. These values are then reconciled monthly.

Issue

The issue is that this information is prone to inaccuracy and or entered late.

Reasons for inaccuracy

• Projects are tracked in Australia in AUD while the Resource Forecast has to be mapped in USD.
• Each month a snap shot is taken of live projects for the past month to be compared against actual revenue for the current month.
• There are multiple points where information and knowledge is put in and taken out.
• Any mismatch between the revenue forecast and the actual invoicing is flagged as an exception.
• Schedule changes and variations to projects affect actuals but may not be reflected in the forecast.

Looking at the process flow above, you can see where I have highlighted the points that are prone to error and the information and knowledge flows, both in and out. The diagram indicates that there are issues around currency conversion, the fact that known data or knowledge is entered in at the TS point and invoicing stages but then through the addition of ERP information, has to be re-analysed to again become knowledge.

Through analysing this process I have developed four possible options listed below and shown graphically in figure 2.

1. Change all local Australian systems to use USD. This has the risk of causing issues and confusion with invoicing and errors if values are mistakenly entered as AUD. The benefits are that currency conversion is removed.
2. Do nothing and leave the systems as is. There are no benefits to this choice, however there are also no additional risks involved.
3. Replace all systems with a single source of truth that can be used by all parties across the global organisation. This is easily the highest risk option as it would involve the introduction of a new system, training will be required and the costs could be high. This option also has the highest benefit as it will remove all inputs and outputs from disparate data sources and automated and contiguous workflows could be introduced.
4. Cover the issues with a procedural solution. This would be low risk in that no new technologies are introduced and the benefits are relatively high if the procedures are governed appropriately.

 

Conclusion

Balancing the risk/benefit of the options, I have chosen to take option four. This includes introducing procedures that need to be followed at certain times of the month, as well as a governance model to police these procedures. Additionally we can see that by transforming data into information and then knowledge, we get a much clearer view of the necessary decisions.

Task 2 comment - Teresiah