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Subject: Management
Topic: Business Integration & Evaluation

Business Integration and Evaluation

Successful businesses are those that are managed
with an integrated strategy, conduct regular self-
assessments using both qualitative and quantitative
techniques, provide solid leadership, and incorporate
state-of-the-art information management systems.
The purpose of this section is to provide an overview
of the essential business management functions. The
section begins with a pre-test and concludes with a
post-test. The written activities require you to
analyze and examine several essential business
integration and evaluation functions using a practical
case-based scenario.

Assignment

The owners of XYZ Construction, Inc. realize that
they need to modernize their technology and
information management system within the company
in order to make the company more attractive for its
IPO.
Additionally, the owners see a value in using
quantitative techniques to measure customer
satisfaction, service quality, Equal Employment
Opportunity (EEO) workforce compliance, and new
market evaluation.

Specifically, the company owners want you to
describe, discuss, and analyze the steps needed to
plan, implement, evaluate, and control new
technology that will help them transform from a
privately-held regional company to a publicly-owned
international company.
The owners also desire information regarding
techniques, processes, and procedures associated
with quantitatively measuring and evaluating several
key business functions. For this fifth written
assignment your requirement is to develop a paper
where you describe, discuss, and analyze the
aforementioned topics identified by the owners of
XYZ Construction, Inc.

Within the paper, you must describe, discuss, and
analyze the following information management and

quantitative techniques/statistics relative to this
horizontal construction company:
1. Planning for Technology
2. Implementing a Technology System or
Change
3. Technology Evaluation and Control
4. Descriptive statistics that you will obtain and
use in tabular, graphical, and numeric formats
for construction company management
5. Hypotheses testing that could be used to
better quantify such key business operations
including employee morale and culture, quality,
customer satisfaction, and new market
evaluation

Length: 2000 words or more

SOLUTION

Business Integration and Evaluation

Construction is typecast as fragmented, inefficient and
geographically dispersed industry. The solution that is being
suggested for this industry is integration of the business functions
using IT solutions like enterprise systems. The uniqueness of each

construction company makes it difficult to standardize a single
system in all construction firms. Being project based and having
plethora of clients having varied requirements also makes it
important for these firms to customize their systems to suit these
difficult conditions. Most construction companies depend
heavily on ability of the managers to access up-to-date
information. With time straining projects, highly sophisticated
information systems allow time, cost and quality efficiencies. The
increasing access to information has intensified competition.
Information technology is playing an important role in shaping the
industry with modifying the entry barriers and competitive
advantages.

Planning for Technology

Information Technology can be applied to various functions of the
construction company, the major areas could be highlighted as:

• Information of cost management can predict events and event
chains. Prediction models supporting ERP systems help
construction companies optimize with great accuracy costs in
the future.

• Scheduling, project specification, designing, cost
management; etc can be done in real time with updated
information. This can be achieved using well set information
systems.

• Minor modification in detailing of project constituents can
change the complete acceptability of the project. With
systematic input systems, these modifications can be done
and immediate results extracted to provide multiple options
for the clients. Since the decision time taken by clients is
narrow, this requires companies to be not only proactive but
responsive also.

• Fund management, especially in contingency, situations is
decisive for the success of organizations. One needs to be
able to hedge changes in costs in the future and incorporate
the same in project management.

Developing an integrated information system requires it to qualify
for functionality of an enterprise system when the functions being
covered under the system. This system should lead to cost benefits
of the system. In order to implement an integrated information
system restructuring may be required to be done in the
organization. There could appear several implementation hurdles
of the system. Organizations need to acknowledge the factors
influencing the operational efficiency of the system. There should
be prudence in making choice of implementation strategy for the
company along with the choice of information system model for
the firm.

Integration of business systems involves the major stakeholders in
the organization. While planning and implementing the business
integration process, these individuals/ organizations need to be
involved because they will work as profit centers in themselves, if
not directly, indirectly. These stakeholders would include
suppliers/subcontractors, employees, customers and investors. The
integration of information between suppliers and subcontractors
and the firm can lead to cost effectiveness and timely response to
customers. The employees when become knowledge heavy and
information centric, deliver effectively to the clients along with
adding value to the form by elongated services, new ideas, product
innovations, etc. This will also lead to increase customer
satisfaction and positive attitude to service quality.

Implementation and Evaluation of Technology System

While implementing technology system in horizontal organizations
like construction firms, soft factors need to be implemented and
assessed. The factors that need to be understood and evaluated
include service quality, customer satisfaction, equal employee
opportunity and new market evaluation. During a business
integration process, the underline is to develop a system that
enhances results in the form of flourishing business. Putting things
one after the other, the following propositions can be suggested:

P01: Effective cost management benefits can be forwarded to
customers in the form of enhanced services or reduced pricing thus
leading to increased customer satisfaction.

P02: Increased competency as a result of availability of all
information leads to increased employee efficiency. This can be
mapped by the change in perception of service quality.

P03: With the implementation of technology in business
integration, the construction firm can customize its offerings to the
clients. This will lead to repeat contracts and referrals.

P04: New market can be developed due to increased efficiency and
responsiveness of the firm received due to integration with its
stakeholders.

Jiang et al. (2002, pg. 145); Jiang et al. (2000, pg145) and
Kettinger and Lee (1994, pg. 737) in their respective studies report
that service quality is an important determinant of user satisfaction.

1. Jiang, James J.; Klein, Gary; Carr, Christopher L.. (2002).
Measuring Infdormation System Quality: SERVQUAL from
the Other Side. MIS Quarterly, Jun2002, Vol. 26 Issue 2,
p145-166, 22p
2. Jiang, James J.; Klein, Gary; Crampton, Suzanne M (2002).
A Note on SERQUAL Relaiability and Validity in

Information System Service Quality Measurement. Decision
Sciences, Summer2000, Vol. 31 Issue 3, p725-744, 20p
3. Kettinger, W. J., and Lee, C. C. (1994). Perceived Service
Quality and User Satisfaction with the Information Services
Function. Decision Sciences (25:6), pp. 737-766.

The application of SERVQUAL for measuring customer
satisfaction is the most commonly used measure. Developed by
Parasuraman, Zeithaml, and Berry (1988, pg.41), this model has
been accepted as a useful instrument across industries including
services, finances and manufacturing (Jiang et al. 2002, pg. 145;
Jiang et al. 2000, pg.725; Kettinger and Lee 1994, pg. 737;
Kettinger and Lee 1997, pg. 223; Pitt et al. 1995, pg.173; Pitt et al.
1997, pg. 209). SERVPERF is a direct measure of the perception
of performance is similar to SERVQUAL differing only in the fact
that it is based on user perceptions. It helps gauge the discrepancy
between expected and perceived service quality.

Customer satisfaction is a much talked about concept these days.
Woodruff (1997, pg.1997) suggests that customer satisfaction is an
effective way to differentiate themselves from competitors and
gain competitive advantage. Kärnä et al. (2009, pg 387) has
pointed out several advantages of customer satisfaction for
organizations, improvement of communication between parties and
enabling mutual agreement; recognition of the demand of
improvement in the process; better understanding of the problems;
evaluation of progress towards the goal; and monitoring and
reporting accomplished results and changes.

4. Jiang, James J.; Klein, Gary; Carr, Christopher L.. (2002).
Measuring Infdormation System Quality: SERVQUAL from
the Other Side. MIS Quarterly, Jun2002, Vol. 26 Issue 2,
p145-166, 22p

5. Jiang, James J.; Klein, Gary; Crampton, Suzanne M (2002).
A Note on SERQUAL Relaiability and Validity in
Information System Service Quality Measurement. Decision
Sciences, Summer2000, Vol. 31 Issue 3, p725-744, 20p
6. Kärnä, Sami, Juha-Matti Junnonen, Veli-Matti Sorvala
(2009). Classifying and clustering construction projects by
customer satisfaction. Facilities, 2009 Vol. 27, Iss. 9/10; pg.
387
7. Kettinger, W. J., and Lee, C. C. (1994). Perceived Service
Quality and User Satisfaction with the Information Services
Function. Decision Sciences (25:6), pp. 737-766.
8. Kettinger, W. J., and Lee, C. C. (1997). Pragmatic
Perspectives on the Measurement of Information Systems
Service Quality. MIS Quarterly (21:2), pp.223-240.
9. Parasuraman, A., Zeithaml, V. A., and Berry, L. L. (1985). A
Conceptual Model of Service Quality and Its Implications for
Future Research. Journal of Marketing (49), pp. 41-50.
10. Pitt, L. F., Watson, R. T., and Kavan, C. B. (1995).
Service Quality: A Measure of Information Systems
Effectiveness. MIS Quarterly (19:2), pp. 173-187.
11. Pitt, L. F., Watson, R. T., and Kavan, C. B. (1997).
Measuring Information Systems Service Quality: Concerns
for a Complete Canvas. MIS Quarterly (21:2), pp. 209-221.
12. Woodruff, R.B. (1997). Customer value: the next
source for competitive advantage. Journal of the Academy of
Marketing Sciences, Vol. 25 No. 2, pp. 139-53.

For a construction based firm, customer satisfaction refers to
customer orientation. Application of technology should be done
to integrate quality, schedule and costs. In construction, the
relationship between client and contractor constitutes a
multilevel complex in which parties operate simultaneously and
collaborate with in-groups of networks. Therefore, customer
satisfaction in construction should be understood as a

relationship-specific rather than a transaction-specific construct
(Homburg and Rudolph, 2000, pg. 15).

Kärnä et al. (2009, pg 387) in their study have cited the use of
variables of RALA project variables. These include:

• Contractual work quality
• Management and implementation of agreed quality assurance
procedures
• Functionality of handover material and maintenance manual
handover
• Quality of assignment material and maintenance manual
• Degree of completion at handover inspection
• Repair of defects and deficiencies noticed during handover
inspection
• Adherence to schedule in accordance with common
agreements schedule
• Cleanliness and order on site
• Management of work safety on site safety
• Management of environmental issues and related know-how
on site environment
• Tending to official obligations official
• Supplier’s personnel’s capacity to co-operation co-opera
• Access to supplier’s employees access
• Quality of overall service level
• Information flow on site
• Agreeing on changes
• Skill of supplier’s work supervisors
• Tending to notices of defect
• Tending to site supervision duties
• Skill of supplier’s workers
• Commitment of supplier’s employees to set goals
• Conformity of supplier’s subcontracting to contract

Equal employee opportunity in case of construction companies
would apply to various functions like at the time of recruitment,
job profiles, compensation, training and development.

13. Homburg, C. and Rudolph, B. (2000). Customer
satisfaction in industrial markets: dimensional and multiple
role issues. Journal of Business Research, Vol. 52, pp. 15-33.
14. Kärnä, Sami, Juha-Matti Junnonen, Veli-Matti Sorvala
(2009). Classifying and clustering construction projects by
customer satisfaction. Facilities, 2009 Vol. 27, Iss. 9/10; pg.
387

Organizations, especially the ones moving to become public
limited companies, stand a liability to offer to their employees all
the opportunities in the organization at equal levels. The most
important contexts for this firm would be;

• Equal opportunity to both men and women
• Health and safety issues
• Appropriate compensation
• Developing and training employees as per client requirement
• Compensation in line with the work requirements
• Enhancing the quality of life of workers

For the purpose of construction company, technology application
needs to be implemented in al the above mentioned areas.

Evaluation Parameters

In a quality driven construction organization, the following are
principal reasons why measurement is needed and why it plays a
key role in quality and productivity improvement. Love and Hold
(2000, pg. 408) suggest that measurement helps:

- ensure that customer requirements have been met (and
if not, why not);

- enable establishment of achievable business objectives
and monitors compliance thereto;
- provide standards for business comparisons;
- provide transparency and a scoreboard for individuals
to monitor their own performance;
- identify quality problems and those requiring priority
attention;
- give an indication of the costs of poor quality;
- justify the use of resources; and
- provide feedback for driving the improvement effort.

The measurement parameters would provide data on the following
variables:

A. Service quality: measured on a 5 point likert scale where 1 lies
for strongly disagree, 3 as neutral and 5 as strongly agree.
Statements developed to incorporate the following factors

1. Perception towards service attributes
2. Perception towards reliability of construction companies
3. Perception towards responsiveness of the firm
4. Perception towards assurance given by the construction firm
5. Perception towards the firm being emphatic

15. Love, Peter E.D., Gary D. Holt. Construction business
performance measurement: the SPM alternative. Business
Process Management Journal. Bradford: 2000 Vol. 6, Iss. 5;
pg. 408

Tabulation

Mean Mean Mean score Mean Mean
score of score of of score of score of
percepti percepti perception percepti percepti
on on towards on on

towards towards responsive towards towards
service reliabili ness of the assuran the firm
attribute ty firm ce being
s emphati
c

Small
custom
ers
Mid
size
custom
ers
Large
custom
ers

B. Customer satisfaction: measured again on a 5 point likert scale,
where

1 2 3 4 5

Highly dissatisfied dissatisfied neutral satisfied
highly satisfied

Measured on statements incorporating satisfaction towards
following factors:

- Product/Project assortment
- Price efficiency
- Timely delivery
- Resource efficiency
- Service package
- After sales services

- Online support

C. Performance parameter: Data is also collected on probability
to repeat the firm for future projects; recommend the firm to other
customers; offer constructive suggestions for improvement. This
data was collected on a 10 pint continuum scale where 1 stands for
never and 10 stands for definitely yes.

Cross Tabulation:

Mean Mean Mean score of Mean Mean
score of score of perception score of score
perception perception towards perception perce
towards towards responsiveness towards towar
service reliability of the firm assurance the
attributes being
emph

Product/Project
assortment
Price
efficiency
Timely
delivery
Resource
efficiency
Service
package
After sales
services
Online support

Cross Tabulation:

Mean Mean Mean score of Mean Me
score of score of perception score of sco
perception perception towards perception perc
towards towards responsiveness towards tow
service reliability of the firm assurance the
attributes bein
emp

Repeat purchase
Recommendation
Constructive
feedback

D. Employee perception: Data to be collected from employees on
a 5 point likert scale of satisfaction and dissatisfaction on
statements incorporating following factors:

- Equal opportunity to perform
- Opportunity for improvement of skills
- Competitive compensation
- Constructive personal development
- Responsiveness to employee needs
- Empathetic policy system

Cross tabulation:

Mean Mean Mean Mean Mean
score score score of score score
of of perception of of
percept percept towards percept percept
ion ion responsive ion ion
toward toward ness of the toward toward
s s firm s s the
service reliabil assuran firm

attribut ity ce being
es emphat
ic

Equal
opportunit
y to
perform
Opportunit
y for
improveme
nt of skills
Competitiv
e
compensati
on
Constructi
ve personal
developme
nt
Responsive
ness to
employee
needs
Empathetic
policy
system

E. New market development: Data also needs to be collected on
increase in sales from current customers and sales from new
customers

Cross tabulation:

Increase in Sales from
sales from new customers
current
customers
Repeat purchase
Recommendation
Constructive feedback

Hypothesis:

H01: There is a significant relationship between the size of the
customer and perception towards service quality

HO2: There is a significant positive correlation between perception
towards service quality and customer satisfaction

H03: There is a significant impact of perception towards service
quality and performance measures.

HO4: There is a significant relationship between Employee attitude
and perception towards service quality

H05: There is a significant impact of performance measures on
increase in sales among current customers and new customers.

White (2007, pg.18) asserts that as IT gets integrated into
construction companies, but the key differentiator for construction
companies that use it intelligently. Samaranayake (2009, pg. 2009)
concludes in his study on business process integration that business
process improvements must be made at two levels, improvements
in business process modeling and improved process functionalities.
His proposed business intelligence framework results in process
integration, automation and optimization which provide

streamlined transactions beyond process integration. When applied
to the construction firm, it is suggested that while developing a
business integration model, information technology being the core,
to incorporate systematic enhancements of the system as a whole
while aiming at increase in soft assets of the firm. This will not
only increase the immediate sales of the firm but also create a
positive image of the firm in the market hence creating a platform
for the launch of its IPO.

16. Samaranyake, Premarante (2009). Business process
integration, automation, and optimization in ERP; Integrated
approach using enhanced process models. Business Process
Management Journal. Bradford. Vol15, Iss 4; Pg 504.
17. White, Mark (2007). Information Technology: A
Mandatory Role in Construction Project Management. Cost
Engineering. Morgantown. Nov,Vol. 49, Iss. 11; pg. 18, 2
pgs

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