ERP Implementation and Change Management

ERP Implementation and Change Management

Enterprise resource planning software requires full support from top management at the time of implementation, selection, customization etc. During implementation, organization may require to change some business processes to meet the software standards, which are industry specific standards. Business process can not be change without top management support. It is quite necessary to change some of the business process. It helps in implementation. If you are not willing to change any business process you may go for customization. But, customization is costly and not good for any ERP project. Little bit customization is ok, but too much customization will affect your ERP project. It will increase your project duration, budget, and increase the risk of implementation failure.

It will be better to change some business process if possible, rather than customizing. When an organization changes their some business processes, change management expert is required. People resist change. Change management expert will guide how to change, and explain the benefits of changes to the employees. ERP system helps in changing the process; it is designed and developed by adopting best practices of specific industries.

Internal Change Management: An ERP implementation entails changes in business processes and reporting structure. Addressing this paradigm move is a process that the organization has to go through. This will help in achieving the acceptability of the ERP users.

Change Management Drivers:

Employees: Employees are the key players in any ERP implementation. The employees of the organization will be in the capacity of process owners, software users and administrators of the ERP software. The main challenge of an ERP implementation is to achieve the acceptability of the system to the employees and for them to perceive the benefits to the organization and to their way of working.

Process: One of the returns on investment (ROI) is adopting business best practices by virtue of an ERP system. Little change in the business process will reduce the chance of implementation failure. Minimum or no customization is very good for any ERP implementation. These processes impact the effectiveness levels to be attained by the organization.

Technology: Implementation of ERP system automatically entails adopting technology that will address easy scalability, eradication of distance and upgradeability to latest technologies.

Organization Commitment: ERP system has to be viewed as a process enabler rather than a software package to be installed and run. The implementation process is a journey towards achieving organizational effectiveness. This demands a very strong commitment of the top management throughout the entire process.

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