SEMINAR ON

CHANGE MANAGEMENT AND ERP

LIEUTENANT COLONEL R SRINIVAS

MBA (FT) 2008-10
 ERP DEFINED

ERP is an acronym for Enterprise Resource Planning, which is a category of

business systems forming the primary transaction processing across multiple
business functions or business units. Typical functionality may include systems
such as, accounting, human resources, customer order processing, purchasing,
inventory management, manufacturing/operations, and order fulfillment.
Although ERP systems are an outgrowth of MRP and MRP II systems in the
manufacturing sector, the term ERP is applied to cross-functional transactional
systems in many other
 Change Management Defined

▪ Change management can be defined as a

process of developing a planned approach to
change in an organization.
▪ It could also be defined as the process during
which the changes of a system are
implemented in a controlled manner by
following a pre-defined framework/model
with, to some extent, reasonable
modifications.
 Change Management and ERP
• Change Management is a planned approach to
bring change within an organization.
• The objective of this planned approach is to
maximize the benefits for the organization and
lower the potential risk associated with any ERP
solution changes.
• There are psychological aspects of any change,
such as resistance, that many people go through.
• The key process of change management begins
by measuring attitudinal changes as the process
of ERP implementation.
 Organization Change Management
Change & ERP implementation
Organization Change Management

• Implementing an ERP will bring in changes to

the way people work within the organization,
processes will change and there may be job
cuts and rationalization of responsibilities
within departments.
• All this will definitely evoke resistance from
the employees and this has to be managed
effectively before, during and after the
implementation of the ERP package
 Change Management Drivers:
• Employees.
• Process.
• Technology.
• Organization Commitment.
 ERP Organizational Change
Management and Benefits Realization
• Results. Successful ERP implementations are
less about technology and more about people
and processes. As part of an effective ERP
implementation, vendors helps clients
develop, actualize and sustain long-term
organizational changes to best realize the
measurable business improvements enabled
by their new technology
Organizational Change Management
Focus Areas
• Business process management and improvement
• ERP organizational assessment, change, design
and support
• ERP performance measurement and optimization
• Training needs analyses and content
development
• Training delivery and follow-up
• Communications planning and execution
 ERP Benefits Realization

• Business case design and development

• Business case quantification and validation
• Business case communication and implementation
• Post-implementation audit to track and report
progress vs. the business case
• Obstacle identification and solution implementation
• Process and organizational enhancements designed to
fully optimize new enterprise technologies
 Highlights from Upcoming 2010 ERP
Benchmark Study being carried out in
USA
• Over 40% of organizations are dealing with
significant change concurrent with a new ERP
system rollout.
• People do not adapt well to change and
organizational communication is weak.
• Over 60% of organizations suffer from poor
visibility to data and poor integration in their
old systems.
….contd
 Slide contd……
• Organizations expect a lot from their ERP
systems.
• Most companies are not yet ready for the
organizational changes of ERP software.
 Conclusion

• As per the above we can easily conclude that

implementing and utilizing a world class ERP solution is
tightly associated with managing change efficiently.
• Change Management tasks are not the same even in
one ERP project. That means if you have selected
Purchasing, HRMS, or an Enterprise Resource Planning
system, you have to do Change Management tasks
regarding to specific module. It means because
employees in different departments do different tasks,
thus we need to apply change management
intelligently to ensure successful implementation of
ERP.
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THANK YOU AND JAI HIND!