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Parker Earth Moving Company Consulting: Session 4
Your team
ISCOM305 - Systems Operations Management

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Parker Earth Moving Company Consulting: Session Four
Generations behind in information technology, Parker Earth Moving Company (PEMC)
has requested Team A provide recommendations for potential technologies to improve their
business process. To make a recommendation to PEMC to improve the information technology
resources, Team A has addressed how technologies are currently used in operations management,
the evolution of information technology in operations management, what technology resources
used to be available and what is available today, and potential problems managers would
experience by adapting to new technology.
Operations managers, “work with customers and suppliers, the latest technology, and
global partners” (Russell & Taylor, 2009, p. 2). Current operations management includes
product, process, manufacturing, and information technologies. CAD, which creates electronic
designs, is an example of product technology. Process technology includes E-procurement that
allows the purchase of items from electronic marketplaces. Flexible manufacturing systems are
an example of manufacturing technology that allows machines to be connected electronically and
produces a large assortment of parts. Information technology includes decision support systems.
These systems provide managers the information needed to make decisions. PEMC would be
able to benefit from the use of one or all of these current technologies.
The biggest development in technology for operations management has been the
invention of microprocessors. It has enabled the three big changes in technology to take place:
small computers, wireless technology, and the use of the Internet. Without the microprocessor
none of these would have been possible. The microprocessor has affected operations
management by making the manufacturing process more precise. Computers control much of the
manufacturing process and provide the ability to integrate portions of the value chain through

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better management of data and communication. Technology (and in particular microprocessors)
have also been able to improve quality through the supply chain and it has done this by being
able to monitor the manufacturing process and also being used in test equipment. Because the
microprocessor and better technology made the supply chain work more efficiently they also
made the operations management easier to maintain.
Technology has progressed in the past couple decades, and the resources available today
are sufficient to increase efficiency at PEMC. Technology has expanded from a simple
spreadsheet that improved bookkeeping efficiency to the Internet where global communication is
possible with a touch of a button. One industry spawned by the Internet is the software as a
service (SaaS) industry. A company like PEMC with little technological experience can benefit
from outsourcing its software development because of the ease of installment and the added
security features (Greengard, 2008). Additionally, implementing SaaS helps encompass other
technology systems like the enterprise resource planning system (ERP).
Three primary obstacles encountered by the management team in adopting and installing
a new information technology system are complication, cost, and resistance.
Complication: Complications in technology is an obstacle that may interfere with
operations. Computer or system malfunctions, crashes, or lack of technology experience.
Costs: Maintaining a new information system can be costly for an organization, which
would be a barrier in its implementation because it ultimately increases organizations’
operational expenses.
Resistance: When an organization adopts and installs a new information system, it can
become very difficult for the employee to work over it. Employees must be willing to accept the
change. “The issue of technology readiness is especially important for contact employees to

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