[CHANGE MANAGEMENT: ERP IMPLEMENTATION

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......................................................................................................................................................................... 9 Recommendations ........................................................................ 5 Change Management Process ................. 11 Conclusion .................................................................................... 5 ERP Implementation Process............ 7 Case Study analysis .................. 8 Case Analysis and Discussion ........................................................ 3 Introduction ............................................................................................................................................................................................................................................................................................................... 4 Explanation of processes under consideration ........................................................................................................................................................................................................................................................................ 13 ............................................................................................................................................................................................................................................... 11 References................................................................................. 6 Operations Theory Discussion: Change management .................................................................................................................................................TABLE OF CONTENTS Executive Summary ..................................................................................................................

Especially these days with many companies actually going for the IT implementation. The report discusses about two cases on Sri Lankan companies who have taken up ERP implementation at two different stages and how they have managed to adapt to the changes in the existing system so that they were successful in implementing the ERP system.EXECUTIVE SUMMARY Change management is one of the key aspects that an organization should be prepared to face and it is one of the most challenging one. The success of the implementation depends on how well the organization manages the change in the system. The report also details about the theoretical aspects of change management and at the same time it shows how various theoretical concepts are put into practice by various companies so as to deal with the change. there are huge changes that would be in place when there is a complete change in the existing systems. .

2001). But one of the challenges that they face in the process is that that they look at these ERP implementation processes to solve their problems all at once without understanding the nuances of the implementation process. In fact looking at the statistics. One of the key differentiators that can make or break an ERP implementation process is the change management process that the companies undertake. thus the employees have to be hand held so that they can seamlessly adapt to these changes. Most of the companies these days who are aiming to grow exponentially have been resorting to ERP implementation processes so that they can streamline the processes in a better manner.INTRODUCTION The business organizations these days have been investing huge sums of money in developing their IT systems and one of the main reasons why they have been doing this is because of the peer pressure. This in fact has been identified as one of the factors that have resulted in many ERP implementation failures. we can say that most of the ERP implementations that have happened in many companies across the world have been a failure. One thing that the companies have to take note is that they have to have a strong top management who are ready to make these changes and at the same time educate their employees about the need of having such systems. It needs to be said that ERP implementation in a company doesn’t essentially guarantee a success to any company. Before doing this the companies have to make sure they understand and analyze various factors that are important in making this ERP implementation successful. . There is a massive change in the existing system that any ERP implementation process warrants. This is mainly because of the fact that they looked at these ERP implementation as a short cut to make things easier for them without understanding the need of having a change management process in place that can make sure that they use this ERP implementation to their advantage (Lau. Most of the companies these days have started to make use of IT technologies to make things easier for them and thus it becomes imperative for others also to adapt to these technologies so that they are not sidelined in the competition (Leon. In this report we are trying to analyze and understand various factors that are important in making an ERP implementation successful and at the same time I try to understand the importance that change management holds in any organizational context when they are trying to change and adopt something totally new for the company. 2008). The organization which does a proper IT implementation gains a competitive advantage over its competitors.

This means that first of an ERP implementation process that suits the company operations. EXPLANATION OF PROCE SSES UNDER CONSIDERATION ERP IMPLEMENTATION PROCESS Enterprise Resource planning is a management technique that is used by the organizations to integrate various business processes so that the resources that are available at the disposal of the company are managed effectively.Thus the report aims at understanding various factors that are important in making an ERP implementation successful and at the same time it take the case of Srilankan Organizations in general and few companies in particular in understanding how they go about these changes and how effectively they have managed to tackle the change in their organizations. The Project Phase model by Parr has been divided into three sections mainly such as Planning. In the planning part the top management decides on the broad guidelines that they would decide for the ERP implementation (Leon. A . This helps the management to streamline various processes and allocate the resources to those processes that are more important to the company by prioritizing them. 2008). Project Set Up and Enhancement. 2006). Based on these studies there are several frameworks that are developed to guide the ERP implementation process? In this report we are looking at the Project phase model that was developed by Shanks and Par and how it has helped the Sri Lankan Businesses in improving the processes and thus improve the margins. The report also aims at analyzing and understanding how different is the change management process in Sri Lanka as compared to that of other nations and whether any local factors play an important role (Oosterhout. This framework that we would design at the end of this report would help us in identifying the relationship with the change management process and the ERP implementation process so that it could be managed in a successful manner. 2008). Many academicians have pointed out the importance of how effective an ERP implementation can be in improving the processes and at the same time decrease the costs of operations by reducing the redundant steps that are present in the system. The studies have shown that there are several advantages that the company has by adopting the ERP processes in the system (Parr. The report would help us in making a framework in future for making the change management an important part in the whole implementation process.

The second step involves Project set up which involves various steps such as Project set up and Re engineering redesign that needs a complete overhaul of the existing systems in most of the cases. they are forced to face many huddles that can affect the in the process.steering committee needs to be elected from among the employees who could make sure that the ERP implementation takes placed in the right manner. It is clear from various examples that has been discussed in various literature that change management is an important role in ERP implementation and if it is not managed properly then. Thus it becomes important for the businesses in the country to understand the basics of change management and then go ahead with the implementation process so that the growth and development of the Sri Lankan businesses are managed properly. It has been revealed that in most of the cases the top management does not give the required importance to the change management in the whole implementation process and as a result of the same. After this the project scope needs to be decided by the top management so that the whole team is focused in getting the work done at the right pace and using the right amount of resources. This is also to have someone accountable for the same. It also involves deciding the person who would be heading the operations and allocating the resources that are required for the same (Li. 2008). there are a large number of organizations who undertake the same and end up failing. There is a basic inertia that . The Change management process By Kurt Lewis is basically comprised of three steps namely unfreezes. 1997). The time that is taken for the implementation process and the change management becomes longer thus making it a tedious process in such countries. One of the major problems that we face in adopting ERP implementation systems in emerging economies like that of Sri Lanka is that there is a huge gap in terms of knowledge and they have to resort to outsourcing many process implementations that in turn affects the change management systems in a negative manner (Lau. It also involves the most important steps in the whole process such as Configuration of the systems and set up and installation. In this study we make use of Kurt Lewis change management process to understand how change management may be used effectively while implementation of ERP systems in an organization (Leon. 2001). it is bound to affect the whole implementation process and the whole process would be doomed to fail. CHANGE MANAGEMENT PROCESS Even though there are several advantages that are associated with the ERP implementation in an organization. There are several factors that are responsible for the same. move and freeze.

They have to bring the inertia again so that they lock it in the desired state. the employees have to be educated about the same and thus they are prepared to face the change in the system (Li. Change in the environment normally happens either due to an internal or external stimuli and this in most of the cases would be unforeseen in nature (Kumar.would be there in any system that it requires a push from the side of the management as well as from the side of the employees so that the changes are brought about in the system. . If this is not done then it will affect the whole implementation process mainly because of the fact that there is no constancy in the process and the employees are bound to get affected and their productivity would go down instead. This means that before the implementation of any change management system. Once the system is ready to accept the changes. Change is one of things that the organizations have to deal with and in most of the cases the organizations does not plan for managing the change. 1997). The theory of change management means that the organization deals with the change in a systematic and orderly fashion so that they can be pro active and deal with the damages with minimal losses. Thus even though the employees and other organizational actors may be an important part in the whole thing we may say that other concerned stakeholders and other beneficiary groups may be a part of the whole change process in an organization. 2009). instead they take reactive steps in order to manage the change in the condition in the market. the necessary changes have to be made in the system and they have to make sure that once it reaches the required point. This also gives the organization a competitive edge over its competitors in terms of being prepared for the change. Managing an organization in an uncertain environment can result in the top management getting confused in fixing up the priorities and hence allocation of resources would not be done in the right manner. Changes that are happening in an organization not only affect the people and the organization. There are several methods that the practitioners use to manage these changes and make things more clear for the top management to handle. OPERATIONS THEORY DISCUSS ION: CHANGE MANAGEMENT The success in any business depends upon how well they adapt to the changes in the situation in the market conditions. but the wider organizational context also.

There are two case studies that would be used in this case to study about the effects of change management in ERP implementation process. It also tries to find out an ideal framework for ERP implementation in a Sri Lankan context.CASE STUDY ANALYS IS It has been seen from the previous section that there has no study have been done on the correlation between the change management and the ERP system implementation in a Sri Lankan business context. The objectives were kept in mind while choosing these organizations and at the same time it has been ensured that the organizations chosen for the study is different in all respects so that we get a holistic view and the study does not become redundant. Here we use a case study analysis as it is contemporary issue and a case study method is the one that is best suited to understand the issues and find a solution for the same as in this subject the boundaries between theory and practice is blurred (Panneerselvam. This is one of the important things that need to be studied so that the ERP implementation process is on track. The primary objective of this study is to identify and fill the gaps in the research which exists between these two important processes namely ERP implementation and change management. 2008). Afridi and Angell is a subsidiary of a Dubai based firm which is established in Sri Lanka in the year 1995. Two different case studies have been used for this purpose and the organization that has been used in this case has been information rich in terms of ERP implementation processes. Let us look at both these cases and then analyze the same. With a number of processes that they have to handle the top management wanted to streamline the processes . The company was established as a flagship firm and they are in the business of milling of Wheat and have a capacity of around 1000 metric tons per day. The report aims at achieving two things: How the change management processes affects the ERP implementation in an organizational context and at the same time we try and identify whether such techniques are being used by Sri Lankan companies while they have been doing their ERP implementation. The company was hugely successful in its operations as they have managed to gel well with the culture irrespective of the fact that it is completely different from that of Dubai. The report aims to understand the influences that the process of change management has on ERP implementation processes and the extent to which it affects the implementation process.

One of the best part was that the top management envisioned these changes much before the actual operations in the country was about to start and as a result of the same they have managed to make it successful. Thus they have decided to automate the processes with the use of computers and hence get accurate and real time information. let us analyze both the scenarios with respect to the above mentioned theoretical frame works. The top management had to come up with a solution that would address these issues immediately (Irani. in this case the most difficult phase for the company was the unfreeze phase. This also ensured that there would be little errors which needed back checking by the employees. there was a lot of lethargy in the system and thus it was very difficult for the top management to get it moving. As mentioned earlier. In this case just like a normal public sector organization. 2001). In this section I would try and . The second case is about a public sector organization in Sri Lanka where their area of operation was into operations and logistics management.and hence in effect they wanted to save the costs that are involved in these processes. 2001). Also the top management faced some opposition from the part of the employees as they were used to the systems that were already in place CASE ANALYS IS AND DISCUSS ION Now that the background of the case has been discussed. It was also found that in many cases some processes are redundant in nature and thus they had to be eliminated (Irani. Thus they have decided that ERP implementation is the way out in such a situation. The main problem was in the finance department which took long times to prepare the reports even though there was adequate manpower available in the finance department. One of the only problems that they have faced in the ERP implementation process was that they were new to the circumstances and it took them some time to understand the culture and hence design of the implementation process took some time. They have tried out various methods to overcome this delay and this was solved to a certain extent when the whole department was made to use MS excel but again this caused some other issues that needed attention from the top management. The company top management saw ERP implementation as the solution to the problems that they face. This has helped them in making the required changes within the timeline and this pro active decision has also resulted in reducing the resistance from the part of the employees and thus the whole implementation process went on smoothly.

2002). there was resistance amongst the existing employees mainly because of the fact that they were used to working in a particular pattern and hence they had to change based on the changes in the system (Fortune. 2006). In the first case the job roles did not change much and it was much easier for people to adapt to the changes which was not the case in the second case. This was not the case in the second one.. this has resulted in more time that was taken for the implementation process. Even though ERP implementation was one of the only ways to move forward in this case. In both the cases the employees had to be educated to make them understand the need of ERP implementation in the organization. In the first case it was much easier for the management to educate the employees as they were starting up afresh. In the first case the vendor had to work with the employees in developing the system that matched their needs and it was much more difficult as they had to develop the systems right from the scratch and this was not the case in the second one. 2001). Some initial cost had to be incurred by the company in getting their employees trained for the same and get them ready to work in the new work environment.analyze both the cases with each other so that the differences in both the scenarios are brought out. In the first case the idea of implementation came from the top management who identified the need of having a change in the processes so that they can adapt to the changed environment. In the first case after the systems were developed the testing was done later. In the second case. the need was identified by the people at ground and later it was passed on to the top management. There was a shift in the power from being decentralized to a centralized power system which meant that the job roles did change and hence there was uncertainty in the minds of the employees when this implementation has happened (Hong. The employees and the top management were clearer about what they wanted and hence the planning part was much easier and at the same time this meant that the amount of rework that they wanted was minimal in this case (Elrod. The implementation idea was put forward much before the actual operations started which made things much simpler for all the people concerned. In both the cases we can see that the organizations had to impart training to the employees and in some cases had to hire new recruits in case the existing skill sets were not good enough for the process redesign that they have made. The employees were already seasoned to work in a particular fashion and hence they had to be made aware of the benefits of shifting their work practices into a separate thing altogether. This also meant that they had to .

In both the cases the organizations were not aware about the changes that had happened and as a result of the same. If the employees are also made a part of the same. RECOMMENDATIONS     Work closely with the vendors so that the changes in the implementation process can be done as and when they understand the hurdles that are present in the system. In the second case the testing was done in parallel and hence the requirement for changes in the system was minimal in nature. Conduct more training programs so that the employees are handheld to carry out various tasks.do continuous iterations to reach the right process. Involve employees also in making the decisions and especially when they allocating the resources so that the right amount of resources gets allocated to all the departments. Educate the employees well before the implementation starts so that they are ready to face the changes in the system. This meant that they had to do more number of iterations which spent both time and resources to make it as per their requirement. This means that they were more or less unprepared to face the changes that were happening and . the top management has to be relentless in making it a success right from its beginning to the implementation phase and should continue to put in the efforts during the enhancement phase. 2008). Potential changes that could have been made in both the cases were that in both these cases the top management took the decision without adequate consultation with the people who are at the ground. the steps that they have taken is more or less reactive in nature (Dawson. This also resulted in a bit of resistance from both the parties thus the management had to spend a lot of time educating the employees.  CONC LUS ION From the report it is clear that in case of change management. then they would have developed a sense of belongingness in the organization and they would have taken the ownership of the work in making it a success.

they had to adjust to the situation which both the companies have done in a successful manner. change management in case of ERP implementation needs a special attention . 2009). Refreezing is one of the most important phases in the change management as the organization has to make sure that they reinforce the learning that they have imparted to the employees so that it becomes imbibed in the work habits of the employees (Rajapakse. 2002). This is ensured by means of user trainings that makes the employees familiar with the processes. The theoretical framework that has been discussed above shows that there is continuous relationship between the theory and the practice so there is no gap. The research shows that the planning phase in the implementation process has a direct correlation to the unfreeze phase and in the next step where there is a continuous communication between the vendor and the company where in both the parties work towards a better solution that would address the issues (Akkermans. This is the next step that needs to be managed in change management process. there would be wide spread changes that would have to be done in the system and as a result of the same it has to be predicted at a much earlier stage so that the organization can prepare itself for the changes that are going to happen in the organizational culture. It has been revealed that in most of the cases the top management does not give the required importance to the change management in the whole implementation process and as a result of the same. In the case study it is being mentioned that the training is a continuous process that has been carried out throughout the life of the project. they are forced to face many huddles that can affect the in the process. this is mainly because of the fact that most of the employees lacked the technical expertise and skills to be on board right from the beginning. people and the organization as a whole. but this is not the actual case. In case of an ERP implementation program. Thus the refreezing phase has a direct relationship with the enhancement phase in theory. Change management is one of those processes that the organization have to give utmost importance to mainly because of the uncertainty that surrounds the whole set up and ERP implementation in lots of the cases can make or break the situation.

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