1. GENERAL BENEFITS OF ENTERPRISE RESOURCE PLANNING.

Businesses employ enterprise resource planning (ERP) for various reasons, such as expanding, reducing
costs, and improving operations. The benefits sought and realized between companies may differ;
however, some are worth noting.

Improves Accuracy and Productivity

Integrating and automating business processes eliminates redundancies and improves accuracy and
productivity. In addition, departments with interconnected processes can synchronize work to achieve
faster and better outcomes.

Improves Reporting
Some businesses benefit from enhanced real-time data reporting from a single source system. Accurate
and complete reporting help companies adequately plan, budget, forecast, and communicate the state of
operations to the organization and interested parties, such as shareholders.

Increases Efficiency
ERPs allow businesses to quickly access needed information for clients, vendors, and business partners.
This contributes to improved customer and employee satisfaction, quicker response rates, and increased
accuracy rates. In addition, associated costs often decrease as the company operates more efficiently.

Increases Collaboration
Departments are better able to collaborate and share knowledge; a newly synergized workforce can
improve productivity and employee satisfaction as employees are better able to see how each functional
group contributes to the mission and vision of the company. Also, menial and manual tasks are
eliminated, allowing employees to allocate their time to more meaningful work.

2. HOW DO ERP SYSTEM WORKS?

An ERP system – also called an ERP suite – is made up of integrated modules or business applications
that talk to each other and share common a database.

Each ERP module typically focuses on one business area, but they work together using the same data to
meet the company’s needs. Finance, accounting, human resources, sales, procurement, logistics,
and supply chain are popular starting points. Companies can pick and choose the module they want and
can add on and scale as needed.

3. THREE TYPES OF ERP DEPLOYMENT

Cloud ERP
With cloud ERP, the software is hosted in the cloud and delivered over the Internet as a service that you
subscribe to. The software provider generally takes care of regular maintenance, updates, and security on
your behalf. Today, cloud ERP is the most popular deployment method for many reasons – including
lower upfront costs, greater scalability and agility, easier integration, and much more.
 On-Premise ERP
This is the traditional model for deploying software where you control everything. The ERP software is
typically installed in your data center at the locations of your choice. The installation and maintenance of
the hardware and software is your staff’s responsibility.

Hybrid ERP
For companies that want a mixture of both to meet their business requirements, there is the hybrid cloud
ERP model. This is where some of your ERP applications and data will be in the cloud and some on
premise. Sometimes this is referred to as two-tier ERP.
4. 10 THINGS TO LOOK FOR IN AN ERP SYSTEM

1. A common database: Centralized information and single version of the truth – providing
consistent, shared data and a cross-functional view of the company.
2. Embedded analytics: Built-in analytics, self-service BI, reporting, and compliance tools that can
deliver intelligent insight for any area of the business.
3. Data visualization: Visual presentation of key information with dashboards, KPIs, and point-
and-click analytics to assist in quick and informed decision-making.
4. Automation. Automation of repetitive tasks as well as advanced RPA powered
by AI and machine learning.
5. Consistent UI/UX: The same look and feel across modules – as well as easy-to-use configuration
and personalization tools for processes, users (including customers and suppliers), business units,
locations, and product lines, for example.
6. Integration: Seamless integration of business processes and workflows – as well as open and
easy integration with other software solutions and data sources, including from third parties.
7. New technologies: Support for AI and machine learning, digital assistants, the IoT, RPA,
security and privacy, and mobile.
8. Technology platform: A fast, proven, and stable technology stack for this long-term investment
– including a low-code/no-code platform, iPaaS, data management, and more.
9. Multinational support: Including for languages, currencies, and local business practices and
regulations – as well as technical support for cloud services, training, help desk, and
implementation.
10. Choice of deployment: Cloud, on-premise, or hybrid.

5. HOW DO YOU KNOW YOU’RE READY FOR AN ERP SYSTEM?

1. You’re spending more time on daily activities. If it’s taking longer to manage key activities, like closing
the books, too many disparate applications may be to blame. ERP software integrates solutions and data
into one system with a common interface, making it easier for business units to communicate and do
their jobs effectively.
2. You have many unanswered business questions. Can you easily answer important questions about your
business, such as revenue per product line or number of returns? If not, segregated systems and a lack of
access to metrics and KPIs may be holding you back. Enterprise resource planning software is designed
to address these challenges.
3. You have runaway business processes. Are there areas where your processes are getting away from
you? Maybe it’s harder for you to manage inventory, satisfy customers, or keep costs in check. If so,
your business processes may need to be restructured to accommodate growth or changing priorities – a
natural fit for ERP software.
4. You have manual processes with multiple data sets. Are most of your departments using their own
applications and processes to get things done? If so, chances are you’re spending too much time on
 duplicate data entry. When information can’t flow between systems, reporting takes longer, errors
happen often, and decision-making is hampered.
5. You’re missing out on fast-moving opportunities. Are you spending so much time running your
business that you can’t pursue exciting new opportunities? Newer ERP systems include advanced,
intelligent capabilities, like machine learning and predictive analytics, that make it easier to identify and
capitalize on profitable new ventures.

6. 5 STEPS IN THE CHANGE MANAGEMENT PROCESS

1. Prepare the Organization for Change - For an organization to successfully pursue and implement
change, it must be prepared both logistically and culturally. Before delving into logistics, cultural
preparation must first take place to achieve the best business outcome.

2 .Craft a Vision and Plan for Change - Once the organization is ready to embrace change, managers
must develop a thorough, realistic, and strategic plan for bringing it about.

3. Implement the Changes - After the plan has been created, all that remains is to follow the steps
outlined within it to implement the required change. Whether that involves changes to the company’s
structure, strategy, systems, processes, employee behaviors, or other aspects will depend on the specifics
of the initiative.

4. Embed Changes Within Company Culture and Practices - Once the change initiative has been
completed, change managers must prevent a reversion to the prior state or status quo. This is particularly
important for organizational change related to business processes such as workflows, culture, and strategy
formulation. Without an adequate plan, employees may backslide into the “old way” of doing things,
particularly during the transitory period.

5 .Review Progress and Analyze Results - Just because a change initiative is complete doesn’t mean it
was successful. Conducting analysis and review, or a “project post mortem,” can help business leaders
understand whether a change initiative was a success, failure, or mixed result. It can also offer valuable
insights and lessons that can be leveraged in future change efforts.

7. SYMPTOMS OF FAULTY CHANGE MANAGEMENT

 Employees are asked to change too much, too rapidly, and they become overwhelmed.
 Decisions are handed down without consultation and feedback from the people who will
be using the new technology every day.
 Management assumes that communication is the same as engagement – it isn't.
 Managers focus on changing processes and systems but fail to consider the way
employees work, what they believe about the technology, and how it will affect their
jobs.
 Insufficient information is provided as the project progresses. Stakeholders may not
understand timelines, expectations, and what participation will be required of them.
  The IT department may believe that they own the project and fail to account for and
support the day-to-day challenges that arise after going live.
 Siloed work efforts are still in place because there was no confirming agreement across
departments.

8. KEY BENEFITS OF CHANGE MANAGEMENT IN ERP IMPLEMENTATION

User Adoption - Change management helps organizations achieve higher user adoption rates by actively
involving employees in the change process. By addressing concerns, providing training, and soliciting feedback,
change management promotes acceptance and buy-in from end users, leading to a smoother transition and
increased system utilization.

Minimizing Resistance and Disruption - ERP implementations can be disruptive and met with resistance
from employees who are accustomed to existing processes. Change management identifies potential sources of
resistance and develops strategies to mitigate them, ensuring a more seamless transition and minimizing
disruption to business operations.

Managing Expectations - Change management facilitates effective communication and manages stakeholders'
expectations throughout the ERP implementation journey. By providing timely and accurate information,
organizations can address uncertainties and build trust among employees, resulting in a more positive and
supportive environment during the transition.

Maximizing Benefits Realization - ERP systems offer numerous benefits, including streamlined processes,
improved data visibility, and enhanced decision-making. Change management ensures that employees
understand these benefits and are equipped with the necessary skills and knowledge to leverage the system's
capabilities, maximizing the return on investment

9. STRATEGIES FOR EFFECTIVELY MANAGING ORGANIZATIONAL CHANGE

Create a Compelling Vision - A clear and compelling vision is the foundation for effective change
management. Leaders must articulate a compelling reason for the change, explaining how it aligns with the
organization's mission and values. This vision should inspire and motivate employees, helping them understand
the benefits of change and the consequences of maintaining the status quo.

Communicate Openly and Frequently - Effective communication is essential during times of change.
Leaders should provide regular updates to employees, addressing their concerns and keeping them informed
about the progress and impact of the change initiative. Transparency builds trust and reduces uncertainty, which
can help alleviate resistance and foster a more supportive environment.

Build a Strong Change Management Team - Change management requires a dedicated team with the right
skills and expertise. Identify individuals who are passionate about driving change and enlist them to lead and
support the initiative.

Develop a Change Management Plan - A well-structured change management plan outlines the necessary
steps and activities to implement the change successfully. It should include clear objectives, a timeline, resource
allocation, and strategies for addressing potential risks and challenges. The plan should be flexible enough to
accommodate adjustments while providing a roadmap for the change process.

Identify and Address Resistance - Change often triggers resistance from employees who may fear the
unknown or perceive the change as a threat. Proactively identify potential sources of resistance and develop
strategies to address them. Involve employees in the change process by soliciting their input, providing training
and support, and addressing their concerns with empathy and understanding.

Empower and Engage Employee - Employees who feel empowered and engaged are more likely to embrace
change. Provide opportunities for them to participate in decision-making, share their ideas, and contribute to the
change initiative.

Support and Training - Change often requires employees to acquire new skills or adapt existing ones. Offer
comprehensive training programs to ensure employees have the knowledge and tools they need to succeed in the
changing environment. Provide ongoing support, coaching, and mentoring to help employees navigate the
transition and address any challenges they may encounter.

Monitor Progress and Adjust - Regularly monitor the progress of the change initiative and gather feedback
from employees. Evaluate whether the desired outcomes are being achieved and identify any areas that require
adjustments or additional support. This continuous assessment allows leaders to make informed decisions and
refine the change strategy as needed.

Celebrate Successes - Recognize and celebrate milestones and achievements throughout the change journey.
Acknowledge the efforts and contributions of individuals and teams who have embraced the change and made a
positive impact. Celebrating successes not only boosts morale but also reinforces the value of change and
encourages a culture of continuous improvement.

10. CHANGE MANAGEMENT BEST PRACTICES FOR ERP IMPLEMENTATION

What Is Change Management and Why Is It Important for ERP

Implementation?
ERP (Enterprise Resource Planning) implementation is a big project for any company. It will affect your
company now and for years to come. You can't afford to get it wrong. Successful ERP implementation is
not an accident; it takes careful planning and well-proven methods. When ERP implementations go
wrong, it represents a considerable waste of time and resources, and it's usually a failure of change
management.
Change management is a collective term for all approaches used to prepare, support, and help individuals,
teams, and organizations make organizational changes. Changes may be necessary because of business
growth and expansion or the ongoing evolution of technology.
Change management is a systematic approach to dealing with the transition or transformation of an
organization's goals, processes or technologies. The purpose of change management is to implement
strategies for effecting change, controlling change and helping people to adapt to change.
Organizational change refers broadly to the actions a business takes to change or adjust a significant
component of its organization. This may include company culture, internal processes, underlying
technology or infrastructure, corporate hierarchy, or another critical aspect.