Change Management Considerations

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Revision as of 04:35, 1 February 2011 by MJMcKay (Talk) (Adding more references)

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When implementing an enterprise resource planning (ERP) system, top management commonly faces an unwanted attitude from potential users-for one reason or another, they resist the implementation process. Top management should, therefore, proactively deal with this problem instead of reactively confronting it. This paper describes an integrated, process- oriented approach for facing the complex social problem of workers' resistance to ERP.
An effective IT infrastructure can support a business vision and strategy; a poor, decentralized one can break a company. More and more companies are turning to off-the-shelf ERP solutions for IT planning and legacy systems management. The authors have developed a framework to help managers successfully plan and implement an ERP project.
This case study analyses a multiyear ERP (SAP R/3) implementation project in a global company from perspectives of conflicts and problems the project faced. The paper reports on the core of the implementation activities from the start of the project in late 1995 until mid 2000, when most of the originally estimated implementation efforts were finished. The study reveals what pitfalls an inappropriate understanding of the magnitude of changes required for implementation involves and what unidentified consequences can result from this. The main reasons for problems encountered are discussed and analysed. The main lesson of the study is that the fundamental challenge of ERP implementations is not technology but organisational and human changes, which, if not properly understood and addressed, can lead to unidentified consequences causing implementation failures.
Change is inevitable when working on any large project or change initiative – especially with the implementation of an ERP system. Institutions preparing for an ERP implementation should proactively approach and manage change to improve the likelihood of success of the implementation project and the ultimate use of the new system.