Sara Petrochem implemented a new ERP system to standardize processes and improve efficiency as the company expanded. However, several factors hindered a successful change process. The company selected existing managers as change agents without considering their leadership skills, and did not anticipate resistance from employees. Management prioritized a fast rollout over a phased approach and overlooked cultural issues, hoping the strong existing culture would ensure cooperation. This resulted in challenges during implementation and highlighted the difficulty of managing change in a large, bureaucratic organization.
Relationship Between Organizational Factors, Technological Factors and Enterp...IJMIT JOURNAL
There are three stages of Enterprise Resource planning System (ERP) Implementation; which are preimplementation, mid- implementation and post-implementation. In pre-implementation stage the pervious
researchers found that it fail in Organizational and Technological factors. Therefore, this research studies
the Technological Factors availability and the Organizational Factor readiness at Greater Amman
Municipality (GAM) Case study. The statistical results showed that there are availability of the
Organizational factor (Organizational Objectives and Services, Organization culture, and Business
process) for success of ERP system, and indicate the technological infrastructure is available og GAM.
There are three stages of Enterprise Resource planning System (ERP) Implementation; which are preimplementation,
mid- implementation and post-implementation. In pre-implementation stage the pervious
researchers found that it fail in Organizational and Technological factors. Therefore, this research studies
the Technological Factors availability and the Organizational Factor readiness at Greater Amman
Municipality (GAM) Case study. The statistical results showed that there are availability of the
Organizational factor (Organizational Objectives and Services, Organization culture, and Business
process) for success of ERP system, and indicate the technological infrastructure is available og GAM.
10. What Managers Should Know About Erp ErpiiDonovan Mulder
The document discusses enterprise resource planning (ERP) systems and what managers should know about implementing ERP/ERP II systems. Key points include:
- ERP systems integrate different business units like finance, manufacturing, and HR to improve information flow and competitiveness.
- Implementing ERP requires significant investment and organizational change, and is one of the most important decisions managers will make.
- Managers should carefully analyze their needs, develop an implementation plan, and ensure top management support to avoid high failure rates for ERP projects.
The Impact of ERP on Business Organization in Mongoliaijtsrd
1. The document discusses the implementation of an ERP system by a Mongolian construction company called ESU LLC. It analyzed ESU's business processes across 9 departments to identify inefficiencies.
2. ESU hired a local ERP vendor called Veritech Mongolia to implement a new ERP system. Veritech analyzed ESU's requirements and developed a project plan to design, test, and launch the new system between September-December 2019.
3. The implementation appears to be proceeding successfully so far. ERP systems can integrate business functions and improve productivity, but also require changes to organizational culture and employee training to fully realize benefits.
Critical Success Factors for Implementing an ERP System within University Con...IJMIT JOURNAL
Nowadays, Information Technology (IT) plays an important role in efficiency and effectiveness of the organizational performance. As an IT application, Enterprise Resource Planning (ERP) systems is considered one of the most important IT applications because it enables the organizations to connect and interact with its administrative units in order to manage data and organize internal procedures. Many institutions use ERP systems, most notably Higher Education Institutions (HEIs). However, many projects fail or exceed scheduling and budget constraints; the rate of failure in HEIs sector is higher than in other sectors. With HEIs’ recent movement to implement ERP systems and the lack of research studies examining successful implementation in HEIs, this paper provides a critical literature review with a special focus on Saudi Arabia. Further, it defines Critical Success Factors (CSFs) contributing to the success of ERP implementation in HEIs. This paper is part of a larger research effort aiming to provide guidelines and useful findings that help HEIs to manage the challenges for ERP systems and define CSFs that will help practitioners to implement them in the Saudi context.
Manufacturing Companies today are constantly in search for ways to achieve
better business performance and sustain competitive advantages through effective
deployment of resources and business processes. To improve business performance,
Manufacturing Companies require an efficient planning and control system that
synchronizes planning of all processes across the industry. Enterprise Resource
Planning (ERP) provides a centralized framework for all data and processes of an
industry. It integrates all aspects of a business from planning to inventory control,
manufacturing, sales, marketing, finance, customer service and human resources.
Manufacturing Companies undertake ERP implementations to achieve tangible
benefits including a significant return on investment. Accordingly the most common
benefit of Manufacturing Company is for an increase in response time due to better
availability of information. Another common benefit is increase in interaction across
the company, integration of business operations/processes, improved interaction with
customers, reduced direct operating and labour costs, reduced IT maintenance costs,
improved lead-time, improved inventory levels and improved interaction with
suppliers. A study was undertaken to assess impact of ERP as a Change Management
Tool in Manufacturing Companies. This article presents the key findings, conclusions
and suggestions.
Relationship Between Organizational Factors, Technological Factors and Enterp...IJMIT JOURNAL
There are three stages of Enterprise Resource planning System (ERP) Implementation; which are preimplementation, mid- implementation and post-implementation. In pre-implementation stage the pervious
researchers found that it fail in Organizational and Technological factors. Therefore, this research studies
the Technological Factors availability and the Organizational Factor readiness at Greater Amman
Municipality (GAM) Case study. The statistical results showed that there are availability of the
Organizational factor (Organizational Objectives and Services, Organization culture, and Business
process) for success of ERP system, and indicate the technological infrastructure is available og GAM.
There are three stages of Enterprise Resource planning System (ERP) Implementation; which are preimplementation,
mid- implementation and post-implementation. In pre-implementation stage the pervious
researchers found that it fail in Organizational and Technological factors. Therefore, this research studies
the Technological Factors availability and the Organizational Factor readiness at Greater Amman
Municipality (GAM) Case study. The statistical results showed that there are availability of the
Organizational factor (Organizational Objectives and Services, Organization culture, and Business
process) for success of ERP system, and indicate the technological infrastructure is available og GAM.
10. What Managers Should Know About Erp ErpiiDonovan Mulder
The document discusses enterprise resource planning (ERP) systems and what managers should know about implementing ERP/ERP II systems. Key points include:
- ERP systems integrate different business units like finance, manufacturing, and HR to improve information flow and competitiveness.
- Implementing ERP requires significant investment and organizational change, and is one of the most important decisions managers will make.
- Managers should carefully analyze their needs, develop an implementation plan, and ensure top management support to avoid high failure rates for ERP projects.
The Impact of ERP on Business Organization in Mongoliaijtsrd
1. The document discusses the implementation of an ERP system by a Mongolian construction company called ESU LLC. It analyzed ESU's business processes across 9 departments to identify inefficiencies.
2. ESU hired a local ERP vendor called Veritech Mongolia to implement a new ERP system. Veritech analyzed ESU's requirements and developed a project plan to design, test, and launch the new system between September-December 2019.
3. The implementation appears to be proceeding successfully so far. ERP systems can integrate business functions and improve productivity, but also require changes to organizational culture and employee training to fully realize benefits.
Critical Success Factors for Implementing an ERP System within University Con...IJMIT JOURNAL
Nowadays, Information Technology (IT) plays an important role in efficiency and effectiveness of the organizational performance. As an IT application, Enterprise Resource Planning (ERP) systems is considered one of the most important IT applications because it enables the organizations to connect and interact with its administrative units in order to manage data and organize internal procedures. Many institutions use ERP systems, most notably Higher Education Institutions (HEIs). However, many projects fail or exceed scheduling and budget constraints; the rate of failure in HEIs sector is higher than in other sectors. With HEIs’ recent movement to implement ERP systems and the lack of research studies examining successful implementation in HEIs, this paper provides a critical literature review with a special focus on Saudi Arabia. Further, it defines Critical Success Factors (CSFs) contributing to the success of ERP implementation in HEIs. This paper is part of a larger research effort aiming to provide guidelines and useful findings that help HEIs to manage the challenges for ERP systems and define CSFs that will help practitioners to implement them in the Saudi context.
Manufacturing Companies today are constantly in search for ways to achieve
better business performance and sustain competitive advantages through effective
deployment of resources and business processes. To improve business performance,
Manufacturing Companies require an efficient planning and control system that
synchronizes planning of all processes across the industry. Enterprise Resource
Planning (ERP) provides a centralized framework for all data and processes of an
industry. It integrates all aspects of a business from planning to inventory control,
manufacturing, sales, marketing, finance, customer service and human resources.
Manufacturing Companies undertake ERP implementations to achieve tangible
benefits including a significant return on investment. Accordingly the most common
benefit of Manufacturing Company is for an increase in response time due to better
availability of information. Another common benefit is increase in interaction across
the company, integration of business operations/processes, improved interaction with
customers, reduced direct operating and labour costs, reduced IT maintenance costs,
improved lead-time, improved inventory levels and improved interaction with
suppliers. A study was undertaken to assess impact of ERP as a Change Management
Tool in Manufacturing Companies. This article presents the key findings, conclusions
and suggestions.
Investigation and Study of Vital Factors in Selection, Implementation and Sat...IJECEIAES
Small and Medium Scale Enterprises in India are the most productive job designers and forerunners in developing new ideas in the field of business. SMEs not only play a vital role in providing large scale employment openings at reasonably lower capital than large businesses but also help in industrialization of rural areas in India. SMEs are complementary to large industries as subsidiary units and this sector contributes immensely to the socio-economic development of the country. Small and Medium scale industries have grown tremendously in the last 5 decades. In spite of high enthusiasm and intrinsic capabilities to grow, there are a number of problems faced by SME‟s; one of them is the „technological obsolescence‟. The SME sector in order to outcome this challenge must make advances in the field of engineering and technology. Adoption of Information Communication Technology in their business process can enhance their productivity and global competency.in the market. In this connection Enterprise Resource Planning plays a vital role in the SME‟s business process strategy. Hence there is a need for the motivation to implement ERP and find whether the current ICT solution the industries using are adequate for their strategy. In this paper we try to find out which ERP vendors does the SME sectors prefer, are the features of the ERP system and the implementation methodology selected have met the business goals and user satisfaction.
Rolls Royce faced several potential challenges and risks in improving its international supply chain performance. Cultural issues at its manufacturing plant in China contributed to an engine explosion on a Qantas flight. The plant had a culture of not reporting minor deviations, and Rolls Royce was too reliant on the single Chinese plant for manufacturing. More broadly, international supply chains involve longer lead times, shipping distances, and complexity. Outsourcing and reducing supply bases can increase risks. Diversifying manufacturers and moving them closer to customers could help mitigate environmental and reliance risks.
Integration impediment during ERP Developmentijtsrd
ERP (Enterprise Resource Planning) systems have increasingly been developed and integrated with other internal and external systems. This paper contributes to the field of enterprise systems integration by clarifying the concept of integration in the context of ERP systems. We investigated integration obstacles during ERP development in 5 large organizations through theme-based interviews. Besides considering integration as purely technical challenge, our findings reveal the other perspectives of integration. In total 31 environmental, technical, managerial, and organizational integration obstacles were identified from empirical data and further mapped with 13 ERP challenge categories derived from the literature. Our findings reveal that integration barriers are related to all 13 categories of ERP challenges. This indicates that integration should not be a separate project from ERP development. Identifying the integration obstacles is necessary for practitioners to develop counteractions to enterprise integration problems Jaychand Vishwakarma"Integration impediment during ERP Development" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-3 , April 2018, URL: http://www.ijtsrd.com/papers/ijtsrd12735.pdf http://www.ijtsrd.com/computer-science/other/12735/integration-impediment-during-erp-development/jaychand-vishwakarma
This document presents a framework for evaluating ERP implementation choices. It identifies various customization options for business processes and ERP systems. It also identifies technical and process change capabilities required to customize systems and processes. The framework combines customization options and change capabilities to help managers identify feasible customization options for their organization and recognize gaps between desired options and capabilities. It aims to support management decision-making around ERP implementation.
IRJET- The Impact of Organization Size on ERP Implementation in Indian Indust...IRJET Journal
This document discusses a study on the impact of organization size on ERP implementation in Indian industries. It conducted case studies of 6 manufacturing companies ranging in annual revenue from 10 crore to billions. The key finding was that company size impacts ERP implementation in several ways. Larger companies tend to implement ERP for strategic reasons and customize systems more, while smaller companies implement ERP for tactical needs and adapt processes to fit systems. Implementation strategies also differ, with larger companies using phased approaches and smaller companies using "big bang" styles. Reported benefits also vary by size, with larger firms seeing more financial gains and smaller seeing manufacturing and logistics benefits. The study aims to confirm these initial findings through a broader survey.
Critical Success Factors (CSFS) of Enterprise Resource Planning (ERP) System ...csandit
Nowadays, Information Technology (IT) plays an impo
rtant role in efficiency and effectiveness of the
organizational performance. As an IT application, E
nterprise Resource Planning (ERP) systems is
considered one of the most important IT application
s because it enables the organizations to connect a
nd
interact with its administrative units in order to
manage data and organize internal procedures. Many
institutions use ERP systems, most notably Higher E
ducation Institutions (HEIs). However, many project
s
fail or exceed scheduling and budget constraints; t
he rate of failure in HEIs sector is higher than in
other
sectors. With HEIs’ recent movement to implement ER
P systems and the lack of research studies examinin
g
successful implementation in HEIs, this paper provi
des a critical literature review with a special foc
us on
Saudi Arabia. Further, it defines Critical Success
Factors (CSFs) contributing to the success of ERP
implementation in HEIs. This paper is part of a lar
ger research effort aiming to provide guidelines an
d
useful findings that help HEIs to manage the challe
nges for ERP systems and define CSFs that will help
practitioners to implement them in the Saudi contex
t.
A Project report on ERP system in Hindustan Aeronautics Limited(Summer Intern...Rohit Srivastava
This is a summer internship report which explains the ERP tools and their effectiveness carried out at Hindustan Aeronautics Limited.For more visit:
www.mbaprojectfree.blogspot.com
Towards A Model Of Organisational Prerequistes For Enterprise Wide Sys IntegDonovan Mulder
The document discusses a model of organizational prerequisites for enterprise-wide systems integration projects. It proposes that examining critical factors throughout an integration project's lifecycle can help identify an organization's readiness. Specifically, the model involves assessing an organization's "existing," "planned," and "implemented" states across five factors: systems, data, skills, organizational, and project management. The goal is to help organizations better understand the impacts and complexities of large-scale integration efforts like ERP and data warehousing implementations.
IMPROVING CORPORATE GOVERNANCE USING CORPORATE SOCIAL RESPONSIBILITIES THROUG...Fahad Mahmud Mirza
Corporate Governance is generally a skeleton of rules and practices by which a board of directors ensures accountability, equality, and lucidity in the firm's relationship. Corporate Social Responsibility (CSR) is an effort to operate a company or a business organization in an economical and socially sustaining environment. This paper is written keeping in view, the major and minor bits necessary of administering a corporation governance and the increasing importance and adaptation of CSR in organizations. This paper discusses up to one-hundred vital pointers having positive effect on the framework of Corporate Governance, and later mentions a Spiral Model of Success, called CGSMS (Corporate Governance- Spiral Model of Success). Secondly, to start CSR department in some organizations, there should be some specific CSR performance measures and analysis tools.
The document summarizes the existing IT infrastructure of ABC Manufacturing Company and identifies areas for improvement to support the company's goal of expanding into new global markets. It describes the current in-house data center design and notes deficiencies such as the lack of a disaster recovery plan, enterprise architecture framework, formal change management policies, and project management processes. Solutions proposed include implementing a DR plan, adopting an enterprise architecture standard, and formalizing IT policies, procedures, and project management. The review finds that overall the infrastructure design is solid but changes are needed to enable sustainable global growth.
Migrating from a legacy enterprise resource planning (erp) system to a new er...eSAT Publishing House
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology
The Readiness of Palm Oil Industry in Enterprise Resource PlanningTELKOMNIKA JOURNAL
The palm oil industry is one of the sources of non-oil and gas foreign exchange of Indonesia. It
contributes to National Gross Domestic Product at 13.96% in 2017. This study aims to examine the readiness
of palm oil industry in the implementation of Enterprise Resources Planning (ERP). The readiness of palm
oil industry in implementing ERP, is not only about a large cost, but also the ERP has required great
resources including human respurces, technology, management, and process and data. Thus, it should fit
the needs of the industry. Using the Critical Success Factors (CSF) method, this study employs five
dimensions of the ERP readiness, that is management, process, technology, data, and personnel. A survey
research method is employed to acquire the data and there are 19 items for those five dimensions. A gap
analysis is employed to analyse the data and this method is used to determinethe disparity between existing
conditions and future expectations. The findings reveal that the palm oil industry is well prepared to
implement the ERP from four dimensions of management, technology, process and personnel.The
management factor is the one of an factor of readiness in the ready category together with other factors
including process, and human resources. Technology is the best factor which has led to increasing demands
for building a strong information technology infrastructure to integrate business processes. The company
needs to complete the master data onto the database and change the database system integrated into a
single database that causes data is lack of ready data in ERP implementation.
This document provides an overview of enterprise resource planning (ERP) systems. It discusses what ERP is, the evolution and history of ERP from MRP systems, key features and modules of ERP like finance, human resources, manufacturing, material management, and sales. It also covers ERP implementation methodology and steps. Major ERP vendors like Oracle, SAP, Baan and Sage are described. The role of chartered accountants in ERP audits and challenges they may face are also summarized. Finally, the conclusion emphasizes that accountants need ERP knowledge to effectively perform their roles.
1) Pak Elektron Limited (PEL) manufactures printed circuit boards but has encountered problems with operations, productivity, quality, and delivery that have reduced profits and sales.
2) Key issues include production bottlenecks from shifting workloads, idle machines and workers, subpar quality inspection, and late deliveries averaging 9 days.
3) Recommendations include only accepting feasible orders, separating production into new and rework departments, and implementing quality management strategies like Six Sigma to improve processes, productivity, and performance.
Development of a Practical ERP Pre – Implementation Assessment Model for Orga...IRJET Journal
This document presents a proposed model for assessing the pre-implementation of an enterprise resource planning (ERP) system in organizations in Tanzania. ERP implementation is complex, costly, and challenging, especially in developing countries. The model aims to help organizations prepare for and increase the chances of success of an ERP implementation. The document provides background on ERP technology, implementation processes, enterprise architecture, strategic planning, and critical success factors. It argues that ERP pre-implementation assessment requires a decision-making approach that considers multiple interrelated factors. A practical pre-implementation assessment model could help Tanzanian organizations better implement ERP systems and realize benefits like improved productivity and competitiveness.
This document provides an introduction and overview of enterprise resource planning (ERP) systems and related technologies. It begins by defining ERP and describing its purpose of integrating key business processes. It then discusses the evolution of ERP from earlier systems like MRP and MRP II. Common myths about ERP implementations are addressed. Key ERP modules like finance, HR, and production planning are outlined. Related technologies such as business process reengineering, supply chain management, and data mining are also introduced. The document poses questions and provides answers on topics including decision support systems, enterprise information systems, ERP drivers and benefits, and the typical lifecycle of an ERP implementation project.
The document discusses the SWOT analysis of Tufail Chemical Industries Ltd., identifying several internal factors (strengths and weaknesses) and external factors (opportunities and threats). It notes strengths such as a reputable clientele and good production capacity. However, it also identifies weaknesses such as mismanaged data, lack of long-term facilities/insurance, and underutilized production capacity. Opportunities include fulfilling workforce needs and utilizing available space for modernization. Threats consist of global competition and other companies having better infrastructure and R&D. The analysis aims to help develop long-and short-term strategies to improve company performance.
Initiating IT Governance Strategy to Identify Business NeedsPECB
Implementation of IT Governance, or indeed any IT best practice, should be consistent with organization’s management style and the way organization deals with risk management and delivery of IT value. The biggest risk and concern to top management today is failing to align IT to real business needs, therefore implementing IT Governance based on best practices is needed.
Main points that have been covered are:
• Introducing IT Governance
• Business needs for Governance of IT
• Identifying the business performance and conformance needs
Presenter:
Rohit Banerjee has 14+ years overall, with 10+ years in IT hands-on progressive experience across programme, project & team management leading full SDLC life cycle for complex, cross-functional, multi-site initiatives. He is ISO/IEC 38500 Lead IT Governance Manager.
Link of the recorded session published on YouTube: https://youtu.be/rB_BP-9ns4A
A transition management plan is a people plan that moves people through three steps: (1) leaving the past behind, (2) getting through chaos, and (3) emerging with new attitudes and behaviors. Step one involves managing endings through negotiating losses and closure. Step two focuses on the chaotic period between endings and new beginnings by creating temporary structures and outlets. Step three centers on marking new beginnings through events and symbols, while managing expectations and tapping into the power of new starts. The plan differs from change management by focusing on the human aspect of change.
This document contains a student's honesty declaration for an assignment submitted for an Advanced Research Methods course. The student declares that the assignment is their original work and where they have used other writers' ideas or visuals, they have properly referenced them. The student also acknowledges reading the university's code of conduct regarding honesty in submitting coursework. The student signs and dates the declaration.
This document discusses organizational change and how people react to change. It outlines the different types of reactions people can have (from victim to pioneer) and reasons why change may be difficult or embraced. It also identifies common mistakes in change management and keys to successful change implementation, such as strong leadership, clear vision, communication, and training. Overall, the document provides an overview of change management strategies and challenges.
Investigation and Study of Vital Factors in Selection, Implementation and Sat...IJECEIAES
Small and Medium Scale Enterprises in India are the most productive job designers and forerunners in developing new ideas in the field of business. SMEs not only play a vital role in providing large scale employment openings at reasonably lower capital than large businesses but also help in industrialization of rural areas in India. SMEs are complementary to large industries as subsidiary units and this sector contributes immensely to the socio-economic development of the country. Small and Medium scale industries have grown tremendously in the last 5 decades. In spite of high enthusiasm and intrinsic capabilities to grow, there are a number of problems faced by SME‟s; one of them is the „technological obsolescence‟. The SME sector in order to outcome this challenge must make advances in the field of engineering and technology. Adoption of Information Communication Technology in their business process can enhance their productivity and global competency.in the market. In this connection Enterprise Resource Planning plays a vital role in the SME‟s business process strategy. Hence there is a need for the motivation to implement ERP and find whether the current ICT solution the industries using are adequate for their strategy. In this paper we try to find out which ERP vendors does the SME sectors prefer, are the features of the ERP system and the implementation methodology selected have met the business goals and user satisfaction.
Rolls Royce faced several potential challenges and risks in improving its international supply chain performance. Cultural issues at its manufacturing plant in China contributed to an engine explosion on a Qantas flight. The plant had a culture of not reporting minor deviations, and Rolls Royce was too reliant on the single Chinese plant for manufacturing. More broadly, international supply chains involve longer lead times, shipping distances, and complexity. Outsourcing and reducing supply bases can increase risks. Diversifying manufacturers and moving them closer to customers could help mitigate environmental and reliance risks.
Integration impediment during ERP Developmentijtsrd
ERP (Enterprise Resource Planning) systems have increasingly been developed and integrated with other internal and external systems. This paper contributes to the field of enterprise systems integration by clarifying the concept of integration in the context of ERP systems. We investigated integration obstacles during ERP development in 5 large organizations through theme-based interviews. Besides considering integration as purely technical challenge, our findings reveal the other perspectives of integration. In total 31 environmental, technical, managerial, and organizational integration obstacles were identified from empirical data and further mapped with 13 ERP challenge categories derived from the literature. Our findings reveal that integration barriers are related to all 13 categories of ERP challenges. This indicates that integration should not be a separate project from ERP development. Identifying the integration obstacles is necessary for practitioners to develop counteractions to enterprise integration problems Jaychand Vishwakarma"Integration impediment during ERP Development" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-3 , April 2018, URL: http://www.ijtsrd.com/papers/ijtsrd12735.pdf http://www.ijtsrd.com/computer-science/other/12735/integration-impediment-during-erp-development/jaychand-vishwakarma
This document presents a framework for evaluating ERP implementation choices. It identifies various customization options for business processes and ERP systems. It also identifies technical and process change capabilities required to customize systems and processes. The framework combines customization options and change capabilities to help managers identify feasible customization options for their organization and recognize gaps between desired options and capabilities. It aims to support management decision-making around ERP implementation.
IRJET- The Impact of Organization Size on ERP Implementation in Indian Indust...IRJET Journal
This document discusses a study on the impact of organization size on ERP implementation in Indian industries. It conducted case studies of 6 manufacturing companies ranging in annual revenue from 10 crore to billions. The key finding was that company size impacts ERP implementation in several ways. Larger companies tend to implement ERP for strategic reasons and customize systems more, while smaller companies implement ERP for tactical needs and adapt processes to fit systems. Implementation strategies also differ, with larger companies using phased approaches and smaller companies using "big bang" styles. Reported benefits also vary by size, with larger firms seeing more financial gains and smaller seeing manufacturing and logistics benefits. The study aims to confirm these initial findings through a broader survey.
Critical Success Factors (CSFS) of Enterprise Resource Planning (ERP) System ...csandit
Nowadays, Information Technology (IT) plays an impo
rtant role in efficiency and effectiveness of the
organizational performance. As an IT application, E
nterprise Resource Planning (ERP) systems is
considered one of the most important IT application
s because it enables the organizations to connect a
nd
interact with its administrative units in order to
manage data and organize internal procedures. Many
institutions use ERP systems, most notably Higher E
ducation Institutions (HEIs). However, many project
s
fail or exceed scheduling and budget constraints; t
he rate of failure in HEIs sector is higher than in
other
sectors. With HEIs’ recent movement to implement ER
P systems and the lack of research studies examinin
g
successful implementation in HEIs, this paper provi
des a critical literature review with a special foc
us on
Saudi Arabia. Further, it defines Critical Success
Factors (CSFs) contributing to the success of ERP
implementation in HEIs. This paper is part of a lar
ger research effort aiming to provide guidelines an
d
useful findings that help HEIs to manage the challe
nges for ERP systems and define CSFs that will help
practitioners to implement them in the Saudi contex
t.
A Project report on ERP system in Hindustan Aeronautics Limited(Summer Intern...Rohit Srivastava
This is a summer internship report which explains the ERP tools and their effectiveness carried out at Hindustan Aeronautics Limited.For more visit:
www.mbaprojectfree.blogspot.com
Towards A Model Of Organisational Prerequistes For Enterprise Wide Sys IntegDonovan Mulder
The document discusses a model of organizational prerequisites for enterprise-wide systems integration projects. It proposes that examining critical factors throughout an integration project's lifecycle can help identify an organization's readiness. Specifically, the model involves assessing an organization's "existing," "planned," and "implemented" states across five factors: systems, data, skills, organizational, and project management. The goal is to help organizations better understand the impacts and complexities of large-scale integration efforts like ERP and data warehousing implementations.
IMPROVING CORPORATE GOVERNANCE USING CORPORATE SOCIAL RESPONSIBILITIES THROUG...Fahad Mahmud Mirza
Corporate Governance is generally a skeleton of rules and practices by which a board of directors ensures accountability, equality, and lucidity in the firm's relationship. Corporate Social Responsibility (CSR) is an effort to operate a company or a business organization in an economical and socially sustaining environment. This paper is written keeping in view, the major and minor bits necessary of administering a corporation governance and the increasing importance and adaptation of CSR in organizations. This paper discusses up to one-hundred vital pointers having positive effect on the framework of Corporate Governance, and later mentions a Spiral Model of Success, called CGSMS (Corporate Governance- Spiral Model of Success). Secondly, to start CSR department in some organizations, there should be some specific CSR performance measures and analysis tools.
The document summarizes the existing IT infrastructure of ABC Manufacturing Company and identifies areas for improvement to support the company's goal of expanding into new global markets. It describes the current in-house data center design and notes deficiencies such as the lack of a disaster recovery plan, enterprise architecture framework, formal change management policies, and project management processes. Solutions proposed include implementing a DR plan, adopting an enterprise architecture standard, and formalizing IT policies, procedures, and project management. The review finds that overall the infrastructure design is solid but changes are needed to enable sustainable global growth.
Migrating from a legacy enterprise resource planning (erp) system to a new er...eSAT Publishing House
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology
The Readiness of Palm Oil Industry in Enterprise Resource PlanningTELKOMNIKA JOURNAL
The palm oil industry is one of the sources of non-oil and gas foreign exchange of Indonesia. It
contributes to National Gross Domestic Product at 13.96% in 2017. This study aims to examine the readiness
of palm oil industry in the implementation of Enterprise Resources Planning (ERP). The readiness of palm
oil industry in implementing ERP, is not only about a large cost, but also the ERP has required great
resources including human respurces, technology, management, and process and data. Thus, it should fit
the needs of the industry. Using the Critical Success Factors (CSF) method, this study employs five
dimensions of the ERP readiness, that is management, process, technology, data, and personnel. A survey
research method is employed to acquire the data and there are 19 items for those five dimensions. A gap
analysis is employed to analyse the data and this method is used to determinethe disparity between existing
conditions and future expectations. The findings reveal that the palm oil industry is well prepared to
implement the ERP from four dimensions of management, technology, process and personnel.The
management factor is the one of an factor of readiness in the ready category together with other factors
including process, and human resources. Technology is the best factor which has led to increasing demands
for building a strong information technology infrastructure to integrate business processes. The company
needs to complete the master data onto the database and change the database system integrated into a
single database that causes data is lack of ready data in ERP implementation.
This document provides an overview of enterprise resource planning (ERP) systems. It discusses what ERP is, the evolution and history of ERP from MRP systems, key features and modules of ERP like finance, human resources, manufacturing, material management, and sales. It also covers ERP implementation methodology and steps. Major ERP vendors like Oracle, SAP, Baan and Sage are described. The role of chartered accountants in ERP audits and challenges they may face are also summarized. Finally, the conclusion emphasizes that accountants need ERP knowledge to effectively perform their roles.
1) Pak Elektron Limited (PEL) manufactures printed circuit boards but has encountered problems with operations, productivity, quality, and delivery that have reduced profits and sales.
2) Key issues include production bottlenecks from shifting workloads, idle machines and workers, subpar quality inspection, and late deliveries averaging 9 days.
3) Recommendations include only accepting feasible orders, separating production into new and rework departments, and implementing quality management strategies like Six Sigma to improve processes, productivity, and performance.
Development of a Practical ERP Pre – Implementation Assessment Model for Orga...IRJET Journal
This document presents a proposed model for assessing the pre-implementation of an enterprise resource planning (ERP) system in organizations in Tanzania. ERP implementation is complex, costly, and challenging, especially in developing countries. The model aims to help organizations prepare for and increase the chances of success of an ERP implementation. The document provides background on ERP technology, implementation processes, enterprise architecture, strategic planning, and critical success factors. It argues that ERP pre-implementation assessment requires a decision-making approach that considers multiple interrelated factors. A practical pre-implementation assessment model could help Tanzanian organizations better implement ERP systems and realize benefits like improved productivity and competitiveness.
This document provides an introduction and overview of enterprise resource planning (ERP) systems and related technologies. It begins by defining ERP and describing its purpose of integrating key business processes. It then discusses the evolution of ERP from earlier systems like MRP and MRP II. Common myths about ERP implementations are addressed. Key ERP modules like finance, HR, and production planning are outlined. Related technologies such as business process reengineering, supply chain management, and data mining are also introduced. The document poses questions and provides answers on topics including decision support systems, enterprise information systems, ERP drivers and benefits, and the typical lifecycle of an ERP implementation project.
The document discusses the SWOT analysis of Tufail Chemical Industries Ltd., identifying several internal factors (strengths and weaknesses) and external factors (opportunities and threats). It notes strengths such as a reputable clientele and good production capacity. However, it also identifies weaknesses such as mismanaged data, lack of long-term facilities/insurance, and underutilized production capacity. Opportunities include fulfilling workforce needs and utilizing available space for modernization. Threats consist of global competition and other companies having better infrastructure and R&D. The analysis aims to help develop long-and short-term strategies to improve company performance.
Initiating IT Governance Strategy to Identify Business NeedsPECB
Implementation of IT Governance, or indeed any IT best practice, should be consistent with organization’s management style and the way organization deals with risk management and delivery of IT value. The biggest risk and concern to top management today is failing to align IT to real business needs, therefore implementing IT Governance based on best practices is needed.
Main points that have been covered are:
• Introducing IT Governance
• Business needs for Governance of IT
• Identifying the business performance and conformance needs
Presenter:
Rohit Banerjee has 14+ years overall, with 10+ years in IT hands-on progressive experience across programme, project & team management leading full SDLC life cycle for complex, cross-functional, multi-site initiatives. He is ISO/IEC 38500 Lead IT Governance Manager.
Link of the recorded session published on YouTube: https://youtu.be/rB_BP-9ns4A
A transition management plan is a people plan that moves people through three steps: (1) leaving the past behind, (2) getting through chaos, and (3) emerging with new attitudes and behaviors. Step one involves managing endings through negotiating losses and closure. Step two focuses on the chaotic period between endings and new beginnings by creating temporary structures and outlets. Step three centers on marking new beginnings through events and symbols, while managing expectations and tapping into the power of new starts. The plan differs from change management by focusing on the human aspect of change.
This document contains a student's honesty declaration for an assignment submitted for an Advanced Research Methods course. The student declares that the assignment is their original work and where they have used other writers' ideas or visuals, they have properly referenced them. The student also acknowledges reading the university's code of conduct regarding honesty in submitting coursework. The student signs and dates the declaration.
This document discusses organizational change and how people react to change. It outlines the different types of reactions people can have (from victim to pioneer) and reasons why change may be difficult or embraced. It also identifies common mistakes in change management and keys to successful change implementation, such as strong leadership, clear vision, communication, and training. Overall, the document provides an overview of change management strategies and challenges.
The document summarizes key aspects of managing organizational change based on a board retreat presentation. It discusses defining the desired future state and current state, facilitating the transformation process, developing plans to transition from the current to future state, determining why and how to change, communicating change, and addressing resistance. It also outlines the planning, implementing, enhancing, and sustaining phases of change and strategies for each phase such as communicating vision, building capabilities, and rewarding progress.
The document discusses the importance of change management for successful strategy implementation. It provides an overview of key points:
1) Implementing a strategy involves changes that cause emotional reactions from impacted people, which can block the process if not managed properly. Managing the resulting changes is essential for success.
2) The presentation aims to understand why people resist change emotionally and provide principles for managing change effectively to increase the chances of strategy implementation succeeding.
3) It discusses concepts like the change curve, the different emotional phases people experience when facing change, and keys to the successful management of change like ensuring people understand the reasons for change.
BSBINN601 Mapping 2015 Lead and manage organisational changeMuna Haider
This document maps the performance criteria and skills of the BSBINN601 Lead and manage organisational change unit of competency to assessment tools, including multiple choice questions (MCQs) and a project planning portfolio (PPP). It outlines where each element and criteria can be assessed, including identifying change requirements through analyzing objectives and reviewing policies. It also provides details on developing a change management strategy through risk analysis and a project plan, and implementing the strategy by developing communication plans and responding to barriers. Performance evidence, knowledge evidence, and assessment conditions are defined.
Understanding the role of leadership in successful organisational change sasc...Sascha Michel
This document discusses leadership approaches for organizational change. It examines traits, behavioral, contingency, and distributed leadership theories. It notes limitations of each approach and argues that no single approach fits all change contexts. The document then analyzes how organizational models, structure, change type, culture, and growth stage can indicate suitable leadership styles. It argues that considering multiple concurrent approaches may provide more flexibility for selecting leadership given uncertain and dynamic environments faced by organizations.
The document provides guidance on writing a business plan for a catering business. It explains that a business plan lays out the goals, structure, and financial projections of the business. The business plan should include an executive summary, business objectives, company mission, ownership structure, startup costs, market analysis, marketing strategy, management structure, employee information, and 3-4 year financial projections. Creating a thorough business plan is crucial for starting a new business and obtaining financing.
Knowledge practitioners have often faced challenges in ensuring the successful delivery of KM initiatives in Organisations. Organisational change management programs are vital to the success of a KM initiative. In fact, the reasons most often cited for why KM implementations did not deliver their expected benefits were organisational issues, such as insufficient communication; failure to integrate KM into everyday working practices; lack of training; and a lack of time to learn new systems and processes.
Success in knowledge management (KM) was traditionally about systems, technologies and platforms. What is often neglected is the focus on applying Change Management strategy and techniques to KM initiatives in order to address traditional resistance to new work, processes or systems.
This short, hands on session will walk the audience through on why Change Management is an effective and critical aspect of any KM initiative that impacts Culture and People. It will give participants a quick awareness and understanding of the ADKAR framework for Change Management. Participants will also be involved in interactive discussions on how they can implement the ADKAR framework into their KM initiatives. This presentation will conclude with the emphasis that, Change Management is a critical component of the success of KM in an Organisation.
First part of a larger paper on the topic of incremental vs. radical innovation. The paper is based on extant research and tries to answer a very simple question: how to innovate? Marketing literature is used in order to provide a deeper understanding of the topic.
Interactive & Collaborative Communication V002EriaanOelofse
Presentation I delivered at a Seminar hosted by Knowledge
Resources focussing on Internal Communications (18 September 2008)
Topic: Change management: creating shared meaning, commitment and sustained effort in organisational change initiatives through interactive and collaborative comunication techniques
This document appears to be an assignment for a human resources management course. It discusses compensation strategies for a new startup weight loss company called Freedom From the Scale. It defines the required behaviors for different employee roles, evaluates contextual factors to determine a high involvement managerial strategy is most suitable, and proposes a compensation mix including base pay matching market rates, individual and group performance pay such as commissions and bonuses, and indirect compensation like benefits. It evaluates the strategy in terms of affordability, legality, and attraction of employees. Compensation plans are then outlined specifically for managers, sales and research employees, and sales associates.
Impacts of Change on Employees and CultureTed Thanh Tran
Due to various external and internal forces, all oganisations must change themselves to be competitive. In this change process, both the employees and organisational culture are affected. This presentation focuses on the impacts of changes, the challenges to change employees' attitude and behaviour, and how to overcome these challenges.
Civilisation as we know it has seen an enormous amount of change - social, cultural, scientific, economic, political - and the 20th century alone saw a significant proportion of these transitions, so much so that our ways of thinking and lifestyles are transforming faster than ever.
CMI Presentation on Organisational Change Maturity Modelkyliemalmberg
On 22 March Caroline Perkins, MD of Carbon Group and President of the CMI, shared her latest research and work from her new book. The Maturity Model supports you and your organisation in becoming more agile with clear levels that you can aim for.
An holistic approach to Organisational Change ManagementThu Nandi Nwe
The document discusses the use of systems concepts to facilitate organizational change in engineering companies. It describes how rich pictures and metaphors were used with engineers to:
1) Explore their current organizational situation and perceptions of change through rich pictures.
2) Help them envision their desired future state using metaphors.
3) Potentially shift their mindset from a purely technical perspective to one that also considers social and cultural aspects of change.
Change management in an Uncertain World: The Human aspect of Organisational C...Markus Krebsz
Markus Krebsz gave a presentation on human aspects of organizational change at the SII IT Forum in London on July 16, 2009. He discussed how dissatisfaction with the status quo, a shared vision of the future, knowledge of practical steps, and consideration of change costs are important for successful change based on Gleicher's Formula. He also emphasized engaging and consulting employees, providing clear communication and tools, and acknowledging past resentments to help transition from "we" and "them" to "us." The presentation concluded with a mind map of human aspects of organizational change for further exploration.
This document provides an abstract and contents page for a dissertation exploring organisational change and the role of internal and external change agents. The 12,580 word dissertation examines change management models and theories, and compares emergent and planned approaches to change. It defines the roles of internal and external change agents, and discusses how organisations manage change using these different types of agents. The dissertation aims to determine whether internal or external project managers deliver better results for organisational change projects. It reviews literature on change management and uses qualitative secondary research methods to analyse models, theories and case studies related to organisational change.
1) An enterprise resource planning (ERP) system integrates core business functions like finance, operations, and HR to automate processes and share information across departments. ERP is now essential for businesses to operate efficiently and make data-driven decisions.
2) Implementing an ERP system comes with high risks of failure if not done properly. Key steps include designating project leaders, selecting an ERP package that fits the organization, and preparing employees for changes.
3) When successfully implemented, ERP provides benefits like improved data accuracy, reduced costs, and greater flexibility to adapt to changes. Related technologies like business intelligence can enhance ERP's benefits.
This document discusses why ERP implementations often fail and outlines 10 key steps for implementation success. It notes that ERP projects frequently fail to meet unrealistic expectations around timelines and budgets. The 10 steps outlined are: 1) Setting realistic expectations, 2) Commitment from the board, 3) Appointing an effective project sponsor, 4) Defining business requirements, 5) Selecting the right ERP package, 6) Establishing an effective project team, 7) Training stakeholders, 8) Managing change, 9) Testing the system thoroughly, and 10) Evaluating the project. Following these 10 steps can help ensure the ERP implementation achieves its goals and delivers results.
An Empirical Investigation Of Factors Affecting ERP ImpactLisa Muthukumar
This document discusses factors affecting the impact of Enterprise Resource Planning (ERP) systems on business processes. It reviews literature identifying nine critical success factors for ERP implementations, including team composition, top management support, and communication. The document also discusses how ERP systems often require companies to modify their business processes to fit the ERP, but this may not always be the most optimal approach.
This document discusses critical issues and success factors for an ERP implementation. It identifies top management commitment, reengineering business processes, integration with other systems, selecting competent ERP consultants and employees, training, and maintaining employee morale as critical implementation concerns. The document emphasizes that ERP implementations require transforming business practices and culture through reengineering processes to conform with best practices in the ERP system. Top management must be actively involved and committed throughout the implementation process.
The document discusses an ERP failure story at Hershey, a leading chocolate manufacturer. Key reasons for the failure include implementing ERP during a peak business period, which disrupted normal operations and diverted attention away from core activities. This led to losses in profits and sales as the business faced uncertainties and the ERP implementation was not completed properly. Choosing a less busy time period may have avoided these issues for Hershey.
Original article from the Flevy business blog can be found here:
http://flevy.com/blog/sap-and-change-management/
As a “seasoned” Change Manager, I have been involved in many diverse projects focusing on managing the business aspect of technology implementations; e.g. ERP (SAP, Oracle, Microsoft Dynamics), Core Banking Systems, Business Intelligence, Case Working and Knowledge Management solutions, and the like.
To this day, I continue to be asked why is there a need to have involvement from a Change Manager, because a technology implementation “is what it is” and once implemented, the business should just be able to “get on and work with it.” But, it’s not quite as simple as that, because if you break down the impact of a technology implementation on a business, it would go something like this:
• It will change the way a business operates.
• Key stakeholders will want and need to be involved and communicated with.
• Processes will change.
• Organisation structures will change.
• The readiness of the business will need to be measured to ensure a smooth go-live.
• There will be a need to train and educate people in new ways of working.
• Business benefits as set out in the business case will need to be tracked.
• Once people gain competence with the new technology they should be encouraged to continuously improve ways of working into the future.
That sounds very simple, but actually it’s not, because all of these things involve people and they will need to have their expectations and perceptions managed.
Technology implementations aimed at making an organisation more efficient have become larger and more critical in recent years and now represent a major challenge for organisations. Despite improved technical functionality and reliability there are still project overruns, delays and sometimes downright failure. Research continues to show that between 30% and 70% of technology implementations either fail to meet their targeted benefits or stall and/or overrun. Problems are typically not related to the system or to technical issues surrounding the software but instead are often due to business related issues. One of the main reasons cited for this failure rate is that projects are usually managed from a technical perspective by Project Managers who are driven by milestones and deliverables but lack the necessary “soft skills” to deal effectively with the people side of change.
Attain the ‘State of Readiness’ Before You Embark on Implementing New ERP Sol...RoadmapITSolution
"Empowering businesses to achieve the 'State of Readiness' for seamless ERP transformation. 🚀 Navigate the complexities of implementing new ERP solutions with our expert insights and strategic guidance. 💡 Unlock the potential of your enterprise with informed decisions and proactive preparedness. Join us on the journey to ERP success! ✨
#ERPImplementation #BusinessTransformation #StateOfReadiness"
This document summarizes a research paper that analyzed factors affecting ERP system adoption and compared adoption between small-to-medium enterprises (SMEs) and large companies. The summary identifies that business complexity and organizational change were examined as factors potentially influencing ERP adoption. An empirical study of 366 companies found that business complexity was a weak predictor of adoption, while company size was a strong predictor. SMEs cited structural and organizational reasons for non-adoption more than financial constraints, differing from large companies who cited organizational reasons most.
I often listen statment such as "Why should I spend money in a new ERP, I did it 15 years ago ! "
Well, 15 years are a geologic era in businees word (and quite long time in human life).
Many thanks, to Thomas Danford autohor of theese slides
The document discusses key success factors for ERP implementation projects. It covers 5 factors: top management commitment, clear goal setting and budget planning, a good project team from both the client and vendor sides, effective change management, and business process re-engineering. For each factor, it provides details on what they entail and why they are important for a successful ERP rollout. It emphasizes the importance of support from top leadership, establishing clear objectives and budget, assembling a qualified project team, managing organizational change, and aligning business processes with the new ERP system.
This document provides an overview and introduction to Enterprise Resource Planning (ERP) systems. It discusses what an enterprise and ERP system are, why companies implement ERP, and how an ERP implementation should be carried out. The key points made in the document are:
1. An enterprise is a group of people with a common goal, and an ERP system integrates the information systems and automates core functions of an organization.
2. Implementing an ERP system has become necessary for companies to survive in today's competitive environment. However, selecting and implementing an ERP system is a difficult task with a high risk of failure.
3. A successful ERP implementation requires identifying an experienced consulting firm
The document discusses common sins or reasons that ERP implementations fail to meet expectations, along with best practices to avoid them. It identifies four main sins: 1) Overlooking the purpose of the ERP system and not focusing on process improvements. 2) Lack of commitment from top management. 3) Poor ERP system selection that does not match the organization's needs. 4) Poor project management that shortcuts critical events. The best practices include focusing on process analysis and optimization, securing top management buy-in, thoroughly selecting the right ERP system and partner, and employing sound project management strategies with a cross-functional team.
422019 Business Processeshttpslearn.umuc.edud2llec.docxtroutmanboris
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Business Processes
Introduction
The fourth component of information systems is process. But what is a process and how does it tie into
information systems? And in what ways do processes have a role in business? This reading will look to
answer those questions and also describe how business processes can be used for strategic advantage.
What Is a Business Process?
We have all heard the term process before, but what exactly does it mean? A process is a series of tasks that
are completed in order to accomplish a goal. A business process, therefore, is a process that is focused on
achieving a goal for a business. If you have worked in a business setting, you have participated in a business
process. Anything from a simple process for making a sandwich at Subway to building a space shuttle
utilizes one or more business processes.
Learning Resource
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Processes are something that businesses go through every day in order to accomplish their mission. The
better their processes, the more effective the business. Some businesses see their processes as a strategy
for achieving competitive advantage. A process that achieves its goal in a unique way can set a company
apart. A process that eliminates costs can allow a company to lower its prices (or retain more profit).
Documenting a Process
Every day, each of us will conduct many processes without even thinking about them: getting ready for
work, using an ATM, reading our email, etc. But as processes grow more complex, they need to be
documented. For businesses, it is essential to do this because it allows them to ensure control over how
activities are undertaken in their organization. It also allows for standardization: McDonald’s has the same
process for building a Big Mac in all of its restaurants.
The simplest way to document a process is to simply create a list. The list shows each step in the process;
each step can be checked off upon completion. For example, a simple process, such as how to create an
account on eBay, might look like this:
1. Go to ebay.com.
2. Click on “register.”
3. Enter your contact information in the “Tell us about you” box.
4. Choose your user ID and password.
5. Agree to User Agreement and Privacy Policy by clicking on “Submit.”
For processes that are not so straightforward, documenting the process as a checklist may not be sufficient.
For example, here is the process for determining if an article for a term needs to be added to Wikipedia:
4/2/2019 Business Processes
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1. Search Wikipedia to determine if the term already exists.
2. If the term is found, then an article is already written, so you must think of another term. Go to 1.
3. If the term is not found, th.
This document is a project report submitted for a Master's degree in business administration. It examines the impact of an ERP (enterprise resource planning) system on employee productivity and performance at More Modular Homes Private Limited. The report includes an acknowledgements section, executive summary, table of contents, and introduction discussing the background and objectives of the study. It will analyze data collected from employees on their experiences using the ERP system.
Our certified ERP consultants can aid you in finalizing the vendor and the software that best fits your current business processes and align with your future goals as well.
Business process reengineering module 5POOJA UDAYAN
This document discusses reengineering knowledge work and business processes for growth. It argues that a participative, bottom-up approach to reengineering is more effective than a top-down approach. Reengineering knowledge work requires addressing cultural and social aspects as well as linking business strategy to knowledge requirements. Rapid reengineering can be done using tools that evolve over time, such as through software reengineering. Post-BPR organizations should focus on enhancing value for customers while reducing costs, realigning processes for growth opportunities, and developing employee capabilities.
This document provides an overview of enterprise resource planning (ERP) systems. It defines ERP as integrated software that helps businesses manage important operations like production planning, purchasing, inventory, customer service and order tracking. The document discusses how ERP systems evolved from earlier material requirements planning systems of the 1970s-80s. It also outlines key considerations for selecting, implementing and managing a successful ERP project, such as choosing a vendor, assessing total costs, avoiding common mistakes, and providing change leadership.
New surveys tell us how firms "live" an ERP implementation, what are the cost, implications, results, success or failures of implementing an ERP.
Also several key success factors are defined and tell us how to successfully implement an ERPs throughout the organization.
Impact of ERP on Organizational Functions in Retail SectorProjects Kart
The business environment has changed more in the last five years than it did in the previous five decades. Winning in today’s business climate requires more than just providing high-quality, low-cost products to customers, when and how the customers want them. The ability to respond to new customer needs and seize market opportunities as they arise, without compromising on the profitability of the firm is critical for the success of any organization. Competitive pressures frequently force manufacturers to decrease prices in spite of the fact that their internal costs continue to rise. Enterprises are continuously striving to improve themselves in the areas of quality, time to market, customer satisfaction, performance and profitability. Making informed business decisions in this manner would enable organizations to accomplish their business growth and at the same time enable them to utilize the information to competitive advantage. To make it possible for the companies to execute this vision, there is a need for an infrastructure that will provide information across all functions and locations within the organization and this is the Enterprise Resource Planning (ERP) solution available in the market today.
1) The document discusses implementing an HRIS system for a construction services startup company that currently lacks systematic processes. It outlines 10 steps for automating the HRIS implementation process including what to study, sending an RFI, developing an RFP, vendor proposals, selection, and go-live.
2) The recruitment process is used as an example to show how an HRIS can improve processes like applicant tracking, interviews, and onboarding. It analyzes the company's current and future needs for recruitment and highlights objectives of the HRIS.
3) An RFP template is provided that specifies requirements for an HRIS vendor proposal to automate recruitment through the HRIS. The RFP requests pricing, timelines,
Similar to Implementation of new information systems at sara petrochem and organisational change (20)
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The Enigmatic Gemini: Unveiling the Dual Personalitiesmy Pandit
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Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...Niswey
50 million companies worldwide leverage WhatsApp as a key marketing channel. You may have considered adding it to your marketing mix, or probably already driving impressive conversions with WhatsApp.
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That's exactly what we explored in this session.
We take a look at everything that you need to know in order to deploy effective WhatsApp marketing strategies, and integrate it with your buyer journey in HubSpot. From technical requirements to innovative campaign strategies, to advanced campaign reporting - we discuss all that and more, to leverage WhatsApp for maximum impact. Check out more details about the event here https://events.hubspot.com/events/details/hubspot-new-delhi-presents-unlocking-whatsapp-marketing-with-hubspot-integrating-messaging-into-your-marketing-strategy/
Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...Adani case
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Cover Story - China's Investment Leader - Dr. Alyce SUmsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
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China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Implementation of new information systems at sara petrochem and organisational change
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Implementation of new information systems at Sara Petrochem and organisational
change
Key theme: Organisational change, Information systems, ERP, Kotter’s change model,
Strategic change, change management.
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Table of Contents
Introduction ............................................................................................................................................3
Organisational background and stated need for change .......................................................................3
Description of the change process..........................................................................................................5
Roles and perspectives ...........................................................................................................................5
Evaluation of relevant academic literature ............................................................................................8
What is Organisational Change?.........................................................................................................8
Why organisational change: ...............................................................................................................9
Types and models of Organisational Change....................................................................................10
Critical Analysis .................................................................................................................................14
Conclusions ...........................................................................................................................................19
References ............................................................................................................................................20
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Introduction
Change is essential part of business management as firms operate in a dynamic business
environment and must continuously change in response to change in their internal and external
environment. But while change is essential, it is also challenging. Because every change alters
the status quo, the individuals who are affected by the change are likely to resist change. Thus,
managing change is not a regular business function- it is an art which requires combination of
both professional and personal skills.
This research investigates a large scale change program undertaken at a very large organisation
Sara Petrochem (here after SP). The change program involved automating the information flow
within the organisation through implementation of ERP system. Theoretically speaking the
ERP system could have been very beneficial for the organisation; it would have streamlined
the information flow within such a large organisation, would have helped eliminating
inefficiencies and would has standardised the functions which would have made the expansion
process very smooth. But the bureaucratic nature of the organisation combined with its culture,
history and political system made it extremely challenging for the management to implement
the ERP system.
Organisational background and stated need for change
Established in 1978 SP is a very large organisation with a very unique ownership structure. It
also has a very unique organisation culture, albeit bureaucratic, which makes it essential to
consider the firm as different. It partner with some of the petrochemical industry giants such
as Aramco and SABIC to develop and market petrochemical products. At the time of
implementation of ERP it employed just over 2000 employees who operated from three
locations- two in Saudi Arabia and one in Kuwait.
SP’s decision to implement ERP system was driven by certain internal and external factors.
The internal factors that drove the decision were rising inefficiency in the organisation as well
as rising conflicts on information ownership. Respondents indicated that as SP was growing in
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size it was realised that new offices will need to be set up and there was significant level of
concern about information exchange within different business units. In particular, there were
conflicts between the technical departments and non technical departments with each
shouldering the responsibility of errors on the other team. Also it was found that some of the
information was lost in communication. There was no record of unofficial communication and
when conflicts arose, unofficial communication was often cited as the cause behind the issue.
Since there was no record of unofficial communication, it was difficult to hold people
accountable for errors. In addition, it led to significant level of dissatisfaction as employees
started to engage in politics.
The external issues which led to SP’s adoption of ERP were that the rising inefficiency was
undermining the performance and reputation of SP. It was under immense pressure to improve
efficiency and it was realised that the only way of improving efficiency was technological
adoption. Since ERP was the buzzword and many of its competitors were moving on to ERP
systems, the top management decided to call some ERP vendors for discussion. After several
rounds of discussion, it was decided that ERP systems were the way forward.
Although the decision was mainly focused on improving the operation efficiency there was a
strong strategic aspect of this ERP implementation project. SP was expecting rapid expansion
in years to come and it was considered essential to standardise the system so that the expansion
could be undertaken smoothly. SP’s management felt that if SP had a standardised system in
place, it would be easier to scale up both in terms of recruiting and training new employees but
also in terms of setting up new offices. Standardisation is indeed one of the most significant
benefits of ERP as a standardised system makes it easier to implement new systems/functions
and train employees there on.
The primary goal was to improve information handling and to improve efficiency. In fact
theoretically speaking these are two main benefits of ERP implementation. SP, in collaboration
with the chosen vendor, carried out a pre-implementation analysis which the time loss in
information origin to information utilisation as well as information loss rate was calculated.
After this analysis, a complex method was used to calculate to estimate the time and cost
benefits that SP can expect to achieve with the implementation of ERP.
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Description of the change process
Vendor was primarily selected on the basis of their experience of implementing ERP systems
for similar firms. Since every industry is unique, it was considered essential to select a vendor
which has experience and knowledge of the general requirements of industry.
In fact, vendor selection is a huge challenge for the management because vendors play a vital
role in the success of implementation of ERP systems. Implementation of ERP systems is a
large scale change process which involves cultural issues. But SP’s management did not
consider the cultural issues while making decision on ERP system. This is often cited as one
of the most fatal mistakes made by the managers.
The approach adopted at SP was the big bang approach. Management wanted to implement the
system as soon as possible because the next phase of the plan (that is, expanding and setting
up new offices) depended significantly on ERP implementation. In fact, the vendor selected
was selected for his historical success with this particular approach. It was decided that the
phased or pilot approach will be simply time consuming. A parallel system approach was also
overlooked by the management team which was too keen to get over with the implementation
so that they could get promoted to senior (top) positions in the new office. So ERP
implementation was not an opportunity but rather an obstacle which they had to cross.
The top management was also keen to set up new offices and expand into other markets because
the competitive threat was rising. They were eyeing some strong deals with other petrochemical
firms. It was essential to move fast and hence ERP had to be implemented as soon as possible.
Furthermore, ERP was also considered essential because the top management felt that it will
be good for their image if the organisation is computerised. So apart from efficiency the
management was also looking at how the image of the organisation will be affected by ERP
implementation.
Roles and perspectives
The line managers themselves were selected as change agents. Earlier the management
considered appointing the new change agents but then it was thought that it would be very
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disruptive for the hierarchy of the organisation. There is a strong bureaucratic element present
in SP which meant that disrupting the hierarchy would have led to chaos. To avoid this,
management decided to keep the existing managers as change agents. SP’s management did
not expect any lack in cooperation from the lower level employees because the organisation
has a strong culture and most of the employees had spent their life working there. Management
believed that it had a strong backing from the employees in whatever it did so much so that the
managers never thought it is necessary to ask them.
Strong leadership skills are required to facilitate organisational change especially the one as
large as ERP implementation. Management could not be sure that agents were selected purely
on the basis of leadership skills. Besides that the working environment of SP was not such
where people got the chance to gain and show their leadership skills. It was much more
structured and ordered organisation where any form of disorder was considered indiscipline.
Indeed this is one of the problems with large organisation that any slight change to the status
quo is considered disruptive; the larger the organisation more difficult it is to change it.
Overall speaking, fearing that the lower level employees may not have the necessary leadership
skills and fearing chaos because of disruption SP’s management decided to use existing
managers as change agents.
Both training and monetary compensation was offered to the change agents. The number of
change agents was selected dependent on the division size (in terms of the number of
employees). Top management considered the request of mid level managers in selecting these
change agents because they wanted to avoid selecting change agents with conflicting
perspectives. The idea was to select the managers most in favour of the change taking place;
not only implementation of ERP but also expansion.
Change agents were selected on the basis of following criteria:
- Rapport with the employees.
- Perspective (support) on change program.
- Leadership skills
- Organisational commitment/loyalty.
- Years of experience working at SP
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Since SP had not undertaken any large scale change program in recent years, experience of
managing change program was not considered as essential criteria for selection.
The change teams were mixed; some of the internal staff and some external staff with
experience of managing technological change projects worked together to manage the change
process. The ratio of internal to external staff members was 2:1. External change agents were
brought in to give their suggestion and guide the managers as and when necessary. They,
however, lack the knowledge of the culture of SP. These external change agents had the hard
(technical) knowledge but not the soft knowledge required to undertake change program in SP
type organisation. Although these external agents were working with internal agents (who
knew about the culture and could have filled the cultural knowledge gap), there was another
problem. Although the internal members of the change management team knew about the
culture but they never argued with the external team members because the external team
members had superior technical knowledge and internal team members felt obliged to accept
whatever those external team members said. In one sense, rather than working as equals, as
team members, internal agents were taking orders from the external team members.
Most employees thought that change agents were politically selected rather than being selected
on merit. For example, most of the respondents questioned why only old individuals were
selected as change agents despite the fact that they lacked technological skills. Employees
believed that it was because they were closer to the management and were due to get higher
posts in post ERP implementation stage. During the change process, the change management
fulfilled only its duties towards the management but completely failed to convey their concerns
to the management. For example, several key functions which are unique to SP were to be
replaced without consultation with the staff members. Also the employees have been requesting
the change managers to request the top management to start training the employees at an early
stage so that they can learn the key IT skills but it was not until the implementation of ERP that
any training was provided and that too was provided at a level which most of the employees
could not understand. What was shocking for the employees was that the managers they have
been working under for several years suddenly changed their behaviour towards them and
started avoiding discussion on critical issues despite repeated requests. There was a seizure of
communication.
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Evaluation of relevant academic literature
What is Organisational Change?
Van de Ven and Poole (2004) defined organisational change as “an empirical observation of
difference in form, quality, or state over time in organisational entity. The entity may be an
individual’s job, a work group, an organisational strategy, a problem, a product, or over all
organisation” (p.512). Broadly speaking organisational change is a continuous process of
improvement from existing state to desired state (French et. al., 2005). The desired state is often
determined by organisational goals and objectives.
Firms need to change in response of both internal and external environmental changes (Chaffey
and wood, 2005). Internal factors can include organisational restructuring, mergers, and
operational restructuring etc (Nyström et al., 2006). External factors than can trigger change
include new innovations, competitive threats, and changing product life cycles etc. (Rabey,
2003). Firms can change in response to these internal or external factors or in anticipation of
future changes.
Despite the high level of research the success rate in change projects remain critically low;
either the change projects fail completely or partially or are sometimes undertaken in a manner
which forces the firms to revert back to status quo after some time. According to estimates
(Jacobs, 2002) “around 80% of the change programs fail; around 50% fail completely while
another 30% fail partially”. Some researchers argue that it is essential for firms to adopt a
planned approach to organisational change which includes consolidating the existing changes.
Some researchers argue that firms must choose a change strategy not on the basis of the context
of organisation but on the basis of which can be the most efficient and effective strategy. But
this again brings us to the point that we cannot eliminate the context of the firm and perspective
of its members when we assess the efficiency and effectiveness of a particular change strategy.
Simply speaking, their argument fails on the grounds that they are suggesting that there is a
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single magical approach suitable to undertake change in all the organisations, an argument
which is strongly rejected by the popular school of thought.
Why organisational change:
Change is inevitable in today’s fast changing business environment. Several factors including
but not limiting to technological innovations, rising competitive threat from global competitors
and constantly changing consumer behaviour are key drivers of this wave of change
(Härenstam et al., 2004). To become sustainable firms must anticipate and respond to change
even before the change occurs; it requires a change in behaviour and perception from a static
and responsive one to a dynamic and proactive one (Nonås, 2005). This ability of firms to
manage themselves in view of both micro and macro level changes is known as change
competence (Senior and Fleming, 2006). In addition, firms must be careful to choose a change
strategy which is appropriate in the context of the firm and its members’ experience of change
processes (Nonås, 2005).
A firm is a collection of several attributes; its employees, its business competence its culture,
its stakeholders etc. While all these attributes are critical to the success of the firm, culture and
human resources are the two attributes which we are mainly concerned about in this paper. It
is safe to say that almost all organisational changes will have an impact on the organisation’s
workforce (Chaffey and Wood, 2005). It is this impact on the status quo and anticipation of the
impact of change on their work environment which leads to employees resisting any
organisational change (Schein, 1992). Whenever there is a conflict between culture and change,
the former is likely to prevail because while a change is important for survival, employees are
the soul of the organisation. As Svanberg (2007) recommends, before any major organisational
change is undertaken we must assess its impact on the culture and workforce of the organisation
because if there is a conflict between the two and if such conflicts cannot be managed, the
change process is most likely to fail. Hirschhorn (2000), however; argues that even in cases of
such conflicts the organisational change can be successful provided the managers can provide
the employees a new basis for cohesion.
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Types and models of Organisational Change
Lewin’s model:
Lewin’s (1951, cited in Cameron and Green, 2004) change model includes three different
elements, unfreezing, changing and refreezing.
Figure 3: Lewin’s change model. Source: Cameron and Green (2004)
In Lewin’s change model, the unfreezing stage initiates the change process; it involves
moving away from the stationary state and towards a more desirable state. Next is the ‘move’
stage which involves implementation of change; at this stage the new order is formed. Finally
‘refreezing’ takes place; this involves consolidation of the changed state.
Employee motivation is the most significant driver of change according to Lewin’s model
(Cameron and Green, 2004). Especially the employees have to be motivated for unfreezing and
move stages. Unless the employees are not motivated to move to the desired stage as envisioned
by the top management, they will resist altering the status quo (Senior and Fleming, 2006) i.e.
they will resist the unfreezing stage. Unless the HR managers can persuade the employees to
buy-into the top management’s vision, it will be extremely difficult to unfreeze. HR managers
are the main point of contact between the top management and the lower management, and are
responsible for translating the corporate strategy into work based language allowing lower level
employees to understand their role in the organisation (Daft, 2008). Thus, HR managers are
responsible for communicating the change vision to the lower level employees.
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At the ‘move’ stage employees have to remain motivated to move to the desired state. This
motivation can be maintained by HR managers. No change program is smooth and employees
are likely to lose their interest in the program as new challenges emerge (Daft, 2008). HR
managers remain in contact with the employees and are responsible for promoting
organisational citizenship behaviour among the employees. This organisational citizenship is
likely to improve employees’ commitment towards the change program.
Finally at the refreezing stage, when the new state is to be consolidated, HR managers ensure
that the employees are aware of their redefined roles in the altered state. This is an essential
part of the change process because unless employees agree to this altered state, the refreezing
process will not be accomplished. HR managers must provide employees a reason for cohesion
with the changed organisation (Hirschhorn, 2000).
It is within HRM's domain to ensure that the employee side issues of an organisational change
process are handled adequately. HR managers can ensure this by implementing some methods
such as “employee integration, acknowledgement of progress and a regular feedback on the
achievements” (Appelbaum et al., 2000, p.649). HR managers are also responsible for ensuring
that there is open communication between the management and the employees; this will
“undermine stress among the unwitting employees and the possible conflicts which may arise”
(Appelbaum et al., 2000, p.650). HR managers thus, play a vital role in facilitating
organisational change.
Kotter’s 8 step model: Kotter (1996) expanded, Lewin’s model in 8 stages. The role HR in
these 8 stages is described below.
Establishing a sense of urgency: The first step in Kotter’s model is to create a sense of urgency.
Often firms fail to provide a strong rational for change while in some other cases, the employees
refuse to accept the management’s rationale for change (Nach & Lejeune, 2008). In such cases,
the changes process is likely to fail.
Because organisational change has a huge impact on how employees undertake their roles,
there is bound to be resistance to change (Rees, 2009). Management must thus create a sense
of urgency but also ensure to prevent build up of negative environment in the organisation
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(Daft, 2008). By negative environment we mean the sense of insecurity and uneasiness which
often builds up in cases of uncertainty. HRM policies of the organisation create an environment
of trust between the organisation and its workforce. This trust is key to prevention of build up
of negative environment at the time of change (Schraeder and Self, 2003). HRM policies also
involve selecting the right communication tools, which are highly important when emphasising
the necessity to perform the change (Daft, 2008).
Creating the guiding coalition: This stage involves selecting individuals who can act as
intermediary change agents. It is important for the firm to engage the right individuals for
coordinating the change process (Schraeder and Self, 2003). HR managers can identify the
right individuals who other employees are likely to trust and respect. The individuals ranking
high on the following four characteristics are most suitable to such roles: position power,
expertise, credibility and leadership (Kotter, 1996). HRM policies can be used to equip them
with skills necessary to undertake the role of change agent. For example, HRM policies play a
vital role in equipping these individuals with leadership and interpersonal skills which these
agents will require to gain trust and respect of the team members they are responsible to guide.
Developing a vision and strategy: Having a vision is critical for the employees to buy-in change
projects. Kotter (1996) suggests that the vision should exhibit the following six characteristics:
imaginable, desirable, feasible, focused, flexible and communicable. HRM policies are a vital
aspect of corporate strategy as no corporate objective can be achieved without adequate efforts
of the human resources of the organisation. Thus, HRM policies play a vital role in any strategy
that the management designs.
Communicating the change vision: Communicating the vision is extremely important for
facilitating change. HRM policies include the communication strategy practiced within a firm;
by selecting the right (i.e. open, transparent and reliable) HRM policies can affect the
effectiveness of communication between the management and the employees; for example,
firm’s HRM policies determine whether there is a two way communication between the top
management end employees or only one way. Also the HRM policies determine the level of
communication layers between the top management and the employees. HR managers can
prove a vital link in communicating the change vision to the employees especially in the context
of their jobs.
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HRM policies of the firm help the employees translate the change vision in the context of their
roles which in turn helps them to understand how the change process will affect them and how
they can contribute to the organisational strategy for mutual gains (O’Shea et al., 2007). Also
the employees have to be rewarded for extra effort they will need to put in to acquire additional
skills in context of the change. HRM policies take care of the rewards and performance
management aspects which ensure that employees are duly rewarded for their efforts.
Empowering broad-based action: It is important to empower the employees because they are
the carriers of the change process. HRM policies can create a democratic environment where
the voices of the employees are heard and accounted for. It is more likely that a change project
will succeed when the end users are engaged at the decision making stage. HRM policies of
the firm determine the extent of autonomy and level of engagement enjoyed by the lower level
employees which will essentially determine the success of the change process in the long run.
Generating short term wins: It is essential to create short term wins to convince the
participants that change process is progressing in a positive direction. Short term wins are not
only technical but also personal. These personal short term wins are what HRM policies of the
firm takes care of. For example, carrying out successful training programs and motivating
individuals to increase their human capital in wake of the change process are some HRM
policies which can play a vital role in keeping the employees motivated.
Consolidating gains and producing more change: Consolidation is a key aspect of the
change process. At consolidation stage the HR managers communicate the revised roles and
responsibilities to the employees. HRM policies ensure that employees are aware of and
satisfied with their revised roles. This may also involve setting a new rewards policy to reward
the employees for undertaking additional responsibilities and for agreeing to change.
Anchoring new approaches in the culture: Finally, the changed stage should be embodied in
the culture of the organisation. The HRM policies of the organisation play a key role in
establishing and managing a common culture throughout the organisation. Altering this culture
can be done through subtle changes in the HRM policies. For example, the organisation can
alter its rewards or performance management strategy to reward employees who contribute the
most to the altered form of organisation.
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Critical Analysis
In several respects, the case of SP is similar to many cases of failure of ERP implementation.
The primary reason for such failures is inadequate consideration of the end users that is, the
lower level staff members. The locus of control remains in the hands of the managers but at SP
lower level staff outnumber these managers by 25 to 1. Thus, not providing equal
representation to these staff members is always likely to result in a system which will fail either
because the employees may resist it because they may feel that it is being imposed on them or
because the system would have been built by ignoring the human aspect of the organisation.
SP’s management used a magic bullet approach in which the users have to learn the system
because it is already in place and there is no choice. However; this approach is extremely risky
in large organisation and in case of large scale changes because failures can lead to
dissatisfaction and a feeling of insecurity as occurred in case of SP.
Most of the employees felt that instead of implementing an ERP system, the management
should have tried automating the existing system. This would have ensured that the employees
understood what was going on. Instead the ERP system changed a lot of things; employees
were thus left to understand both the system as well as their revised role. For example, for some
employees their main job was to deal with the customers and suddenly they found that they are
overburdened with administrative work of inputting information on daily basis.
There were people in the workforce who had never used computers in their lives and the
minimal training provided was about how to use the system; these employees did not
understand what was meant by logging in, session etc. Training was not individualised and was
carried out in large batches by people who used very technical language. It was obvious that a
large bunch of people did not understand what was going on. The trainers took for granted that
the employees had the basic skills of using a computer. For many employees this was a
horrifying experience and they started to feel that they are not skilled anymore to do their job.
They started to feel that they would be laid off anytime soon so many of them started taking
computer lessons from outside institutes in order to improve their knowledge of computers.
The situation grew more chaotic and employees grew more impatient with the system with
time.
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There were a lot of rumours that there will be massive lay-offs with some rumours even
suggesting that SP was going to be overtaken and that ERP implementation was being
undertaken under instructions from the overtaking firm. There was absolutely no truth in any
of these rumours but then the management was to blame because they failed to inform the
lower level employees and instil trust in them. Instead the management should have adopted a
transparent approach informing the employees about its plans.
The level of dissatisfaction was understandable because many of these employees have been
working for SP for whole of their professional career- all they knew was this organisation and
when such level of uncertainty is in the air then insecurity, dissatisfaction and all kind of
negative feelings come to mind. Many employees started to apply for jobs in other firms and
some even started to enrol for training courses to look for other jobs. Overall the human aspect
was very poorly handled by the management; the management had all good intentions for the
organisation and its workers but the communication was poor. This was made worse by lack
of participation from the lower level employees.
Thus, SP’s management made three mistakes: firstly, the big bang approach was not
appropriate, secondly there should have been more participation from the lower level staff and
thirdly there should have been more open and continuous communication between the
management and lower level employees.
Several models can be used to analyse change projects. One such model is Kotter’s 8-step
model which is essentially a detailed version of the ground breaking 3 stage model proposed
by Levin. SP’s change project can be analysed using Kotter’s 8 step model.
Establishing a sense of urgency: The first step should have been about creating a sense of
urgency within the employees. Nach & Lejeune (2008) suggest that many firms change because
of changes in external environment, even though these changes are not proven to bring any
significant benefits. Such change processes are likely to fail. SP employees were unsure of why
the organisation was implementing ERP and the reason that most of their competitors were
implementing the same did not stand well with most of the employees. The management failed
to create a buy-in situation with the employees. Quite the contrary, the employees believed that
ERP implementation was intended to downsize the workforce.
Due to the fact that the new ERP system will drastically change the way business is done, there
will definitely be resistance to the new system and the new change (Rees, 2009). SP
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management should have created a sense of urgency and should have clarified that ERP was
intended to streamline the information flow and not downsize the workforce. They could have
clarified that the firm wanted to expand instead of shrinking and having an ERP system would
have made it easy for the firm to expand. Management should take a very bold action which
will immediately catch attention; this could have included shareholder action against the
management and consequently against the workforce if some urgent action was not taken. This
is where communication about the future vision (discussed later) could have been extremely
beneficial. By keeping the lower level employees unaware of the future, the management
deprived them of chance to make useful contribution in the development of SP which created
a sense of detachment and disinterest.
Creating the guiding coalition: According to the Force Field Theory Organisational change
can be influenced by two invisible forces such as resistance force (negative force) and change
forces (driving force or positive force). When the forces are evenly balanced the organization
is in a state of inertia and does not change, to achieve change an organization would need to
increase the change force and reduce resistance force simultaneously. According to the
Gleicher's Formula
Change can occur when D x V x F > R
D = Dissatisfaction with how things are now (status quo);
V = Vision of what is possible;
F = Initial, concrete steps that can be taken towards the vision.
R = Resistance to change
Change managers can increase D and reduce R. Dissatisfaction with the status quo is a trait
which does not occur naturally among the employees especially in large organisations. Thus,
it becomes management’s responsibility to create this dissatisfaction by stimulating the minds
of the employees and motivate them to achieve that greater self. The first and foremost step in
this regard is to update the lower level employees of the strategic orientation of the firm and
educate them on how they can contribute to corporate strategy. It is only by contributing to the
organisational objectives that employee can achieve greater things for themselves and for the
organisation. This requires effective engagement with the employee. In case of SP, end users
were not engaged in the process right from the beginning. There was low awareness of ERP
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system in the workforce. The SMEs were considered as outsiders and no information exchange
took place. Instead of recruiting outsiders to undertake the change process, change agents
should have been chosen from within the organisation. The employees were likely to trust their
team members more and these change agents would have been more aware of the culture of
the organisation. These agents could have been appointed as change agents and could have
been assigned responsibility to collaborate with the SMEs. It is also important for the firm to
engage the right individuals for coordinating the change process. The individuals ranking high
on the following four characteristics are most suitable to such roles: position power, expertise,
credibility and leadership (Kotter, 1996) while the firm should avoid appointing individuals
who ignore the values of team working and high ego.
Developing a vision and strategy: Having a vision is important about the future is critical
for the employees to buy in into change projects. For example, the vision of the organisation
could include a customer-centric and fast growing organisation which would assure the end
users that the future vision of the organisation is in their favour. Kotter (1996) suggests that the
vision should exhibit the following six characteristics: imaginable, desirable, feasible, focused,
flexible and communicable. SP management did not have (or atleast did not show) a clear
strategy and vision in ERP implementation. Above all, the rationale for ERP implementation
was very weak considering that the firm had a strong reputation for its quality of service. This
vision along with the sense of urgency acts as a strong rationale for the employee buy-in
process.
Communicating the change vision: Lack of communication of the change vision was one of the
most critical causes of failure of the ERP implementation project. This lack of communication
led to a gap between what management wanted to achieve and what employees thought the
management wanted to achieve; management’s ultimate objective was to standardise the
operations so as to make expansion easier and smoother while the employees believed that the
management wanted to downsize the workforce in the name of efficiency.
This case clearly highlights the significance of communication in change management. SP
management did not communicate the future vision of the organisation and employees created
their own image of SP’s future vision. Management should have clarified how the change
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project contributes to their future vision of the firm. Change agents could prove very beneficial
in this respect; management need to communicate the change vision to these change agents
who in turn can communicate it to the lower ranks in the context of their jobs. However; in
case of SP, the change agents itself were considered outsiders (as management’s agents) and
hence there was a lack of trust between the employees and agents.
O’Shea et al (2007) suggests that the purpose of change should be to create a state of the system
where needs can be transformed to results in a social environment that increases peoples worth
and dignity. It is important for the end users to understand the change vision in the context of
their roles so that they can understand how the change process will affect them. If the
employees are to assume more responsibility after the change process, the rewards attached to
these extra responsibilities should be clarified as well.
Empowering broad-based action: there was minimal participation from the employees and the
process of change was localised towards the upper and mid end of management. As a result
there grew a difference in perception of the change process. Lower level employees at SP felt
that ERP was being forced upon them and in such situations the change project was likely to
fail anyway. ERP implementation at SP should have been undertaken at a broader scale rather
than through a small team working in isolation. End users should have been asked to provide
their inputs. It is more likely that a change project will succeed when the end users are engaged
at the decision making stage. In addition, end users should have been provided adequate
training in order to make full use of the system. This would have assured the employees that
the managers want them to use the system and not the system to replace them which, in turn,
would have reduced resistance to change. The training provided was so minimal and inadequate
that the employees grew more suspicious of their own skills and capabilities after the training.
Generating short term wins: ERP implementation at SP took place at a very rapid pace and
the project went live in one go. There was thus, no way of eliminating minor issues at early
stages; these issues are very likely to magnify into large scale problems at the whole project
level. ERP implementation in SP could be categorised as ‘discontinuous’ change rather than
‘smooth incremental’ change. Instead ERP implementation should have been undertaken in
incremental stages with divisions being moved to ERP one by one. This would have not only
19. P a g e | 19
eliminated any concerns that the end users had regarding the system but would have also
ensured that all the issues with the system were resolved as they arose. Failure to resolve such
issues at incremental stage is likely to result in the failure of full scale project.
Consolidating gains and producing more change: In the incremental change process, it is
essential to consolidate the changes from each stage and move on to the next stage of change.
In cases, when the change occurs in one go, consolidation is extremely difficult and consumes
a lot of time. In case of SP, consolidation never occurred and end users were not able to realise
the benefits of the change.
Anchoring new approaches in the culture: Finally, the changed stage should be embodied in
the culture of the organisation. It will, however; only occur if the employees buy-in the change
project. Otherwise, it will lead to a clash of cultures in which case, the old culture is most likely
to emerge as the winner.
Conclusions
The key issues identified as the cause of failure of ERP implementation project in SP are as
follows:
- Communication: There was a lack of communication between the top management and
the employees which led to a feeling of distrust amongst the employees. This also
fuelled dissatisfaction and rumours thereby motivating the employees to resist change.
Management should have communicated openly and transparently with front line
employees. This could have ended the rumours.
- Lack of vision: Management either had no clear vision or this vision was not properly
communicated to the employees. A vision is necessary because it allows cross checking
and benchmarking which are both key to success of a project.
- Lack of employee participation: there was minimal participation from the lower level
management which meant that the employees were excluded from the change process.
This exclusion meant that the employees’ concerns were not addressed thereby leading
to a feeling insecurity among the employees.
20. P a g e | 20
- Lack of adequate training: Using ERP was new to almost all the employees and it was
essential to provide adequate training to the employees on how to use the system. While
SP’s management organised the training, the training program was poorly structured;
firstly, it took for granted that all the employees had the basic IT skills while they clearly
did not. Secondly, it was undertaken by technical people who spoke in a technical
language making it extremely difficult for the trainees to understand even the most basic
of things. Thirdly, the training program was undertaken in large batches which reduced
the level of participation and engagement thereby reducing the effectiveness of the
program. Finally, the training program was too short and fast for trainees to absorb the
information provided. All these factors meant that the training program was a complete
failure and employees knew as much about the system after the training as they did
before the training.
- There should have been more support available for individuals who were struggling to
use the system. Feedback from the employees about how they are coping with the
training and how much they are learning would have been useful. Instead the
management undertook training as a burden which they wanted to get over with.
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