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G S T 5 0 8 3
INFORMATION SYSTEMS & ELECTRONIC COMMERCE
Group Members
Austin Energy handles electrical, water and waste disposal for the City of
Austin, Texas and surrounding counties, serving...
Yes, the Austin Business Project is failure because :
Modernization billing project delays
• Austin and IBM project late c...
Instability issues
• Seriously impact business and customer
• Persistent system error from billing department
• Revenue lo...
Operation
• Mostly affected is billing department.
• Difficulties of issuing bills because of billing software failure.
• ...
Customer service
• The department mostly affected.
• Employee work in high level of stress.
• Extra effort need to solve c...
Finance and accounting
• Inaccurate financial report since the actual value of revenue and profit
inaccurate recorded.
• G...
IBM not really responsive to the problems.
It made Austin Energy appealed so many times to IBM officials ranging from
the ...
Organizational
• Employee could not be committed enough and described as if they are alpha tester when
they encountered bu...
Austin Energy and IBM need to develop an information system plan which
indicates :
1. The direction of system development
...
3. The current systems / situation
• Major system supporting biz function and process
• Current infrastructure capabilitie...
6. The implementation plan
• Anticipated difficulties in implementation
• Progress report
7. Budget requirement
• Requirem...
Good project management is essential for ensuring that billing system
are delivered on time, on budget and provide busines...
THANK YOU
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Austin energy's billing system can't light up

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Austin Energy's Billing System Can't Light Up

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Austin energy's billing system can't light up

  1. 1. G S T 5 0 8 3 INFORMATION SYSTEMS & ELECTRONIC COMMERCE Group Members
  2. 2. Austin Energy handles electrical, water and waste disposal for the City of Austin, Texas and surrounding counties, serving more than 1 million residents. It is publicly owned company and an arm of city government, and returns its profits to the community each year. The company has provided $1.5 billion in dividends back to Austin since 1976, which help fund city services such as fire, police, emergency medical services, parks and libraries. Austin Energy has one of the largest renewable energy programs in the country, but its legacy billing systems did not integrate with smart meters and other newer technologies. It also lacked newer customer assistance options, like the ability to choose the time of the month that a customer prefers to pay bills. To modernize the billing system and to bring its information systems up to date with newer energy conservation methods, Austin Energy contracted with IBM in 2009 to create a centralized billing system and to run the system for five years. Introduction
  3. 3. Yes, the Austin Business Project is failure because : Modernization billing project delays • Austin and IBM project late completion, delay schedule, software bugs • Complexity new billing system with 73 different interface Software bugs • Error of thousand of bills • 65000 never received bills • 35000 in accurate bills, overcharging Question 1 : Is Austin Business Project is a failure?
  4. 4. Instability issues • Seriously impact business and customer • Persistent system error from billing department • Revenue loses Customer services employee • Employee response one to one assistant for account accessing and correcting error. • Called them selves as alpha tester Customer • Unable to access system online portal • System causes a lot of problem, not friendly and hard time for customer. IBM failure • Billing software system failure CONT’S
  5. 5. Operation • Mostly affected is billing department. • Difficulties of issuing bills because of billing software failure. • Common error of customer not received bills, customer receive in accurate bills, account automatically cancelled. • Incurred more cots in utilities and operation. Since business function is interconnected, one function failure give impact of another function such as production. • Business service is inaccurate, it give impact in revenue and profit even though they don’t have pressure of competitor. Question 2 : Describe the business impact of the faltering Austin Energy project.
  6. 6. Customer service • The department mostly affected. • Employee work in high level of stress. • Extra effort need to solve customer problem. They still need to serve customer better even though customer angry to show their disappointment towards the company. • Employee also treated in the same way as usual, do not receive any appreciation from the company. • Give impact of public relationship disaster. CONT’S Sales and marketing • Company also faced difficulties in determining the actual sales since the system leads more error. • Sales and profit decreasing. • Company might face law suit for this issues. If it is happening, more cost to handle legal costs. It is bad for company since give negative impact in their legacy. • Company also incurred more cost in advertising to give explanation to the public
  7. 7. Finance and accounting • Inaccurate financial report since the actual value of revenue and profit inaccurate recorded. • Give impact of financial planning and investment. • The project is delayed, suppose fully operational in early 2011 but it still not fully operational and incurred more cost. Management • Wrong decision making of having IBM to develop the software as the bad experience IBM performance in inventory management. • The service give by IBM is bad and disappointment. • Need to train all employees with new technology. CONT’S Customer • Mostly affected. • System also not user friendly, Austin portal also always have problem, customer cant access account information. • Company also doesn’t think of their preference such as ability to choose time of the month that customer prefers to pay bills.
  8. 8. IBM not really responsive to the problems. It made Austin Energy appealed so many times to IBM officials ranging from the managers of billing system project up to IBM CEO. IBM responsible in find the roof of problem, make system correction, test the latest system version and implement the system. Question 3 : To what degree was IBM responsible for the problem countered by the Austin Energy billing project ? Was Austin Energy at fault for the problem? Yes, Austin Energy is at fault for the problem. It is because: • Austin Energy as a user had to be committed to the system. • Probably, Austin Energy did not plan very properly in the project to develop the billing system. • They must have clear and proper project management objective which should deal with five major variables: scope, time, cost, quality and risk. • The agreement should clearly define the roles and responsibilities of both party.
  9. 9. Organizational • Employee could not be committed enough and described as if they are alpha tester when they encountered bugs and issues that never have made it to a live version. • Unable to meet customer satisfaction. • No realignment internally and externally. • Caused vastly on costs that exceed budgets. • Fail to meet customer expectation. • Lost trust draws customer away. Technical • No specific infrastructure. • Unreliable system caused money loss. • Did not work closely with third party vendors like oracle. • Customers unable to access the system’s online portal. Management • No strategy which cause time slippage. • No business solutions. • Interrelated with manpower. • Repeating mistakes and delays. Question 4 : What were the specific organizational or technical factors as well as management factors involve in this project failure ?
  10. 10. Austin Energy and IBM need to develop an information system plan which indicates : 1. The direction of system development • Overview of plant contents • Current and future business organization • Key biz process • Management strategy 2. The rationale • Current situation and current business organization • Changing environment • Major goals of the biz plan • Firm’s strategic plan Question 5 : Describe the steps Austin Energy and IBM should have taken to better manage this project.
  11. 11. 3. The current systems / situation • Major system supporting biz function and process • Current infrastructure capabilities • Difficulties meeting business requirement • Anticipated future demand 4. New developments to consider • New system project • New infrastructure capabilities required 5. The management strategy • Acquisition plan • Milestone and timing • Organizational realignment • Management control CONT’S
  12. 12. 6. The implementation plan • Anticipated difficulties in implementation • Progress report 7. Budget requirement • Requirement • Potential saving • Financing • Acquisition cycle CONT’S
  13. 13. Good project management is essential for ensuring that billing system are delivered on time, on budget and provide business benefit. Risk assessment are required in order to prevent any chances of failure encountered without deep consideration and deliberations. Strategies are vital to be implemented since it is useful for managing project risk and system implementation. Conclusion
  14. 14. THANK YOU

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