please answer this case study

INTERACTIVE SESSION: ORGANIZATIONS New Systems and Business Processes Put Wlaney Gram "On the Money" If you use PayPal, you may not have heard of addition to updating technology, MoneyGram needed MoneyGram, but millions of people around the globe to change some of its key business processes. use this service to send money anywhere within min Culturally, MoneyGram's managers made changes utes. Dallas-headquartered MoneyGram is the sec in staff responsibilities to make employees more aware ond largest money transfer business in the world, of the company's business processes and ways to with 293,000 agent locations and 2,350 employees in improve them. Employees were instructed to under- 197 countries and territories. Most of MoneyGram's stand each step in the business processes that they money transfer services are provided through its were part of, instead of their own individual job func- worldwide network of third-party agents using tions. The company used numerous Webinars and MoneyGram's money transfer system, ranging from other tools to show employees how business processes Walmart to tobacco shops in Paris. MoneyGram also were being altered operates its own outlets in key countries, including the To that end MoneyGram created a subset of man- United States. Belgium, France, and Germany, in 2012 agers called global process owners or GPOs. Each MoneyGram generated wet 51.3 billion in revenue GPO is responsible for the performance of an indi- Customers send cash at an agent location and vidual process, such as cash management, customer within two minutes it is available for pick up by the onboarding, or credit processing. OPOs were asked recipient at a MoneyGram agent anywhere in the to define the current state of their processes, how world in many locations, consumers can collect processes impacted each other, and how they felt funds in local currency US dollars or euros. In some they could be improved. They also defined bow the markets, customers have the option to send and Success of their incess could be measured, and werd recesve money through alternative channels such as tasked with gathering performance data to gauge that online services, mobile phones ATM kiosks call unprovement MoneyGram till spes GPOs in its operations cooters, and one divery For a globalney transder conty it's essential along with subprocess owners/SP who are respon to be able to move ones berwech iwe poms and sible for bianching day-to-day activities and problems the winbin ruins Mouy Girly uses an auto This procesorientation used MoneyGram and continue to make this en he old sloed diametrosuntoon For a global money transfer company, it's essential to be able to move money between two points around the world within minutes. MoneyGram uses an auto- mated financial management system to make this hap pen. The system handles hundreds of thousands of money transfer transactions each day and ensures that all of the retail stores, banks, and other MoneyGram agents receive proper financial settlement and com- missions for each money transfer. Despite many years of double-digit growth, MoneyGram's operations were not working well. The company was saddled with outdated systems that required the use of spreadsheets and time-consuming manual processes to calculate payments and close the books each month. Those systems were adequate for a long time, but eventually their complexity and lack of scalability constrained MoneyGram's ability to address market demands, add new products, and serve the sales team. Moreover, lack of a central data store house made it difficult to create reports, analyze mar ket opportunities, and spot bottlenecks in the system, Senior management decided to examine MoneyGram's business processes and legacy systems. some of which were redundant it assembled the com- pan stop business and technology managers, includ. in the company's chief financial oflicet controller treasure head of sales and executive de president of operations and techno mlade along with subprocess owners (SPOS), who are respon- sible for handling day-to-day activities and problems. This new process orientation has moved MoneyGram from the old siloed departments to cross-functional work groups that collaborate closely with a long-range view of what's best for the business. For the technology to support its new global processes, MoneyGram selected Oracle's E-Business Suite with the Oracle Incentive Compensation module. Oracle E-Business Suite consists of enterprise resource planning (ERP), customer relationship management (CRM), and supply-chain management (SCM) appli- cations using Oracle's relational database management system. Oracle Incentive Compensation module auto- mates the process of designing, administering, and ana- lyzing variable compensation programs. Management believed the Oracle software was capable of handling the customization work required to integrate with the processes used by the company's back-office and proprietary agents and to handle other unique business requirements. The Oracle system included capabili ties for creating, viewing, and managing customer information online MoneyGram started implementing Oracle E-Business Suite in September 2013. The new software and business processes stammed most of MoneyGratis back once operations, making it enocess more on transaction Setlenients with ants and billattuna Part 1: Information Systems in the Digital Age 122 to update the company's General Ledger. New partners can be added at a much faster rate. Commissions are critical for driving profit- ability in MoneyGram's existing and new products. MoneyGram must track a large number of different plans for calculating the commissions of its partner agents throughout the world. Its legacy system was unable to automate many of the commission plans, so MoneyGram had to use spreadsheets and manual processes to manage several hundred commission plans. MoneyGram built a flexible commission model using Oracle Incentive Compensation that has been able to automate more than 90 percent of its noustan- dard commission plans MoneyGram business managers can also deliver new products faster to maintain their competitive edge in the global market. In the past new regional ingov Lions took months to plan, but the Oracle implementa tion has cut that time I approximately 10 This is because one of the bigger Challenges with new product introductions to ensure that they will integrate keamlessly with MoneyGram bekend processes at new transactions coded counted for correctly. The new Oracle system w MoneyGram to configure the processes easily simply by adjusting currently existing parameters instead of coding or developing new software. MoneyGram is less likely to go to market with a product that has to be initially run on manual processes Having an enterprise-wide repository of data located centrally allows MoneyGram employees to better serve customers and agents conducting the money transfers. Centralized data are up-to-date and easily available. Reports used to take 40 hours and three employees to create, but now take 80% less time. Those workers can spend more time analyzing reports and less time putting them together The cost savings of consolidating more than 40 MoneyGram legacy IT systems into one enterprise- wide implementation of Oracle E-business Suite amount to millions of dollars. The company can now handle more transactions without having to hire additional staff. The company estimates that the Oracle salware has paid for itself within one year CASE STUDY QUESTIONS seamlessly with MoneyGram's backend processes so that new transactions are recorded and accounted for correctly. The new Oracle system allows MoneyGram Sources: www.moneygram.com, accessed March 19, 2013: www.bu nesswire.com, February 6, 2013, and Alan loch. "On the Money and "MoneyGram Exploits the Flexibility of Oracle Incentive Compensation Profit Magazine, February 2012. CASE STUDY QUESTIONS 1. Why was it so important for MoneyGram to pay attention to business processes? How were they related to the company's global growth plans? What are the advantages of using an enterprise- wide software suite such as Oracle E-Business Suite in a global company such as MoneyGram? 3. How much did the new system and process improvements change the way MoneyGram ran its business? How did these changes help MoneyGram compete on a global scale? Business Process Reengineering Many business process improvements are incremental and ongoing, but occasionally, more radical change is required. Our example of a physical bookstore redesigning the book purchasing process so that it can be carried out online is an example of this type of radical. far-reaching changer This radical rethinking and redesign of business processes is called business process reengineering (BPRI When propedly implemented APR can lead to dramatis gains in productivity and efficiency even change the way the business is run. In some instances. It drives pura digm shifth and the nature of the businesselt Tally happened in book retailing when Amazon challenged traditional phosal bookstores with its online retail Bally thinkine the way all can be purchased and Amazoo Chapter 3: Achieving Competitive advantage with intormation Systems INTERACTIVE SESSION: ORGANIZATIONS New Systems and Business Processes Put NoneyGram "On the vibney" If you use PayPal, you may not have heard of MoneyGram, but millions of people around the globe use this service to send money anywhere within min- utes. Dallas-headquartered MoneyGram is the sec- ond largest money transfer business in the world, with 293.000 agent locations and 2,350 employees in 197 countries and territories. Most of MoneyGram's money transfer services are provided through its worldwide network of third-party agents using MoneyGram's money transfer system, ranging from Walmart to tobacco shops in Paris. MoneyGram also operates its own outlets in key countries, including the United States, Belgium, France, and Germany. In 2012 MoneyGram generated over $1.3 billion in revenue. Customers send cash at an agent location and within two minutes it is available for pick up by the recipient at a MoneyGram agent anywhere in the world. In many locations, consumers can collect funds in local currency, U.S. dollars or euros. In some markets. customers also have the option to send and receive money through alternative channels such as online services, mobile phones. ATMs, kiosks, call centers, and home delivery addition to updating technology, MoneyGram needed to change some of its key business processes. Culturally, MoneyGram's managers made changes in staff responsibilities to make employees more aware of the company's busindas processes and ways to improve them. Employees were instructed to under- stand each step in the business processes that they were part of, instead of their own individual job func- tions. The company used numerous Webinars and other tools to show employees how business processes were being altered To that end MoneyGram created a subset of man- agers called global process owners or GPOs. Each GPO is responsible for the performance of an indi- vidual process, such as cash management, customer onboarding, or credit processing. GPO's were asked to define the current state of their processes, how processes impacted each other, and how they felt they could be improved. They also defined how the success of their process could be measured, and were tasked with gathering performance data to gauge that improvement MoneyGram still uses GPOs in its operations, SPOT whose respon markets, customers also have the option to send and receive money through alternative channels such as online services, mobile phones, ATMs, kiosks, call centers, and home delivery. For a global money transfer company, it's essential to be able to move money between two points around the world within minutes. MoneyGram uses an auto- mated financial management system to make this hap- pen. The system handles hundreds of thousands of money transfer transactions each day and ensures that all of the retail stores, banks, and other MoneyGram agents receive proper financial settlement and com- missions for each money transfer. Despite many years of double-digit growth. MoneyGram's operations were not working well. The company was saddled with outdated systems that required the use of spreadsheets and time-consuming manual processes to calculate payments and close the books each month. Those systems were adequate for a long time, but eventually their complexity and lack of scalability constrained MoneyGram's ability to address market demands, add new products, and serve the sales team. Moreover, lack of a central data store- house made it difficult to create reports, analyze mar- ket opportunities, and spot bottlenecks in the system. Senior management decided to examine MoneyGram's business processes and legacy systems, Sonne of which were redundant i assembled the com. Dany's top business and technology managers, includ in the company's chef ancial officer, controller, Secos o el process could be leasuicu, Wese tasked with gathering performance data to gauge that improvement. MoneyGram still uses GPOs in its operations, along with subprocess owners (SPOs), who are respon- sible for handling day-to-day activities and problems. This new process orientation has moved MoneyGram from the old siloed departments to cross-functional work groups that collaborate closely with a long-range view of what's best for the business. For the technology to support its new global processes, MoneyGram selected Oracle's E-Business Suite with the Oracle Incentive Compensation module. Oracle E-Business Suite consists of enterprise resource planning (ERP), customer relationship management (CRM), and supply-chain management (SCM) appli- cations using Oracle's relational database management system. Oracle Incentive Compensation module auto- mates the process of designing, administering, and ana- lyzing variable compensation programs. Management believed the Oracle software was capable of handling the customization work required to integrate with the processes used by the company's back-office and proprietary agents and to handle other unique business requirements. The Oracle system included capabili ties for creating. Viewing, and managing customer information online MoneyGrain started implementing Oracle E-Business Suite in September 2012. The new software and business processes streamlined most of MoneyGrani's back office books each month. Those systems were adequate for a long time, but eventually their complexity and lack of scalability constrained MoneyGram's ability to address market demands, add new products, and serve the sales team. Moreover, lack of a central data store- house made it difficult to create reports, analyze mar- ket opportunities, and spot bottlenecks in the system. Senior management decided to examine MoneyGram's business processes and legacy systems, some of which were redundant. It assembled the com- pany's top business and technology managers, includ- ing the company's chief financial officer, controller. treasurer, head of sales, and executive vice president of operations and technology. They concluded that in mates the process of designing, administering, and ana- lyzing variable compensation programs. Management believed the Oracle software was capable of handling the customization work required to integrate with the processes used by the company's back-office and proprietary agents and to handle other unique business requirements. The Oracle system included capabili- ties for creating, viewing, and managing customer information online. MoneyGram started implementing Oracle E-Business Suite in September 2012. The new software and business processes streamiined most of MoneyGram's back-office operations, making it easier to process more customer transactions and settlements with agents and billers and to update the company's General Ledger. New partners can be added at a much faster rate. Commissions are critical for driving profit- ability in MoneyGram's existing and new products. MoneyGram must track a large number of different plans for calculating the commissions of its partner agents throughout the world. Its legacy system was unable to automate many of the commission plans, so MoneyGram had to use spreadsheets and manual processes to manage several hundred commission plans. MoneyGram built a flexible commission model using Oracle Incentive Compensation that has been able to automate more than 90 percent of its nonstan- dard commission plans. ers can also deliver to configure the processes easily simply by adjusting currently existing parameters instead of coding or developing new software. MoneyGram is less likely to go to market with a product that has to be initially run on manual processes. Having an enterprise-wide repository of data located centrally allows MoneyGram employees to better serve customers and agents conducting the money transfers. Centralized data are up-to-date and easily available. Reports used to take 40 hours and three employees to create, but now take 80% less time. Those workers can spend more time analyzing reports and less time putting them together. The cost savings of consolidating more than 40 MoneyGram legacy IT systems into one enterprise- ALL SIUS, LUUL LULU 50 Meylan U W US SPIPUSIS AU anual processes to manage several hundred commission plans. MoneyGram built a flexible commission model using Oracle Incentive Compensation that has been able to automate more than 90 percent of its nonstan- dard commission plans. MoneyGram business managers can also deliver new products faster to maintain their competitive edge in the global market. In the past new regional innova- tions took months to plan, but the Oracle implementa- tion has cut that time by approximately 40%. This is because one of the bigger challenges with new product introductions is to ensure that they will integrate seamlessly with MoneyGram's backend processes so that new transactions are recorded and accounted for correctly. The new Oracle system allows MoneyGram easily available. Reports used to take 40 hours and three employees to create, but now take 80% less time. Those workers can spend more time analyzing reports and less time putting them together. The cost savings of consolidating more than 40 MoneyGram legacy IT systems into one enterprise- wide implementation of Oracle E-business Suite amount to millions of dollars. The company can now handle more transactions without having to hire additional staff. The company estimates that the Oracle software has paid for itself within one year. Sources: www.moneygram.com. accessed March 19, 2013. www.bust nesswire.com, February 6, 2013; And Alan Joch. On the Money and MoneyGram Exploits the Flexibility of Oracle Incentive compensation Profile Magazine, February 2012 CASE STUDY QUESTIONS 2 Why was it so important for MoneyGram to pay attention to business processes? How were they related to the company's global growth plans? What are the advantages of using an enterprise wide software suite such as Oracle E-Business Suite in a global company such as MoneyGram! 3. How much did the new system and process improvements change the way MoneyGram ran its business? How did these changes help MoneyGram compete on a global scale