How do I know I'm ready for an ERP system?

Most businesses start out using a variety of simple, standalone tools to manage different business
processes – such as QuickBooks or Excel spreadsheets. Here are five signs you’ve outgrown them and
need a modern 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.
The quote "Change is the only permanent thing in this world" as given
by the great Greek philosopher, Heraclitus refers to the constant
nature of change. *Changes are bound to happen whether it is
associated with the unexpected turns and twists of life or the normal
phenomenon of the universe.
Mahatma Gandhi's quote, "Be the change that you wish to see in the world," serves
as an inspiring call to action that empowers us to take control of our lives and become
agents of positive change.
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.

Types of organizational change

Change management can be used to manage many types of organizational change. The three
most common types are the following:

1. Developmental change. Any organizational change that improves on previously

established processes and procedures.

2. Transitional change. Change that moves an organization away from its current state
to a new state to solve a problem, such as implementing a merger and acquisition or
automating a task or process.

3. Transformational change. Change that radically and fundamentally alters the

culture and operation of an organization. In transformational change, the end result
might not be known. For example, a company may pursue entirely different products
or markets.

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.

In the preparation phase, the manager is focused on helping employees recognize and understand the need
for change. They raise awareness of the various challenges or problems facing the organization that are
acting as forces of change and generating dissatisfaction with the status quo. Gaining this initial buy-in
from employees who will help implement the change can remove friction and resistance later on.

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.

During the implementation process, change managers must be focused on empowering their employees to
take the necessary steps to achieve the goals of the initiative and celebrate any short-term wins. They
should also do their best to anticipate roadblocks and prevent, remove, or mitigate them once identified.
Repeated communication of the organization’s vision is critical throughout the implementation process to
remind team members why change is being pursued.

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.

By embedding changes within the company’s culture and practices, it becomes more difficult for
backsliding to occur. New organizational structures, controls, and reward systems should all be
considered as tools to help change stick.

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.

Symptoms of faulty change management

Managing significant changes in your business environment is an art as well as a skill. Looking at the
reasons why technology implementations fail, we notice some common contributing factors:

 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.

Poor change management is to blame for all of these difficulties. Improve your change management, and
you will increase your chances for a successful implementation. Effective change management watches
for any "red-flag" issues and nips them in the bud. It guards against scope and time creep and keeps an
eye on quality issues. Risk is reduced when players have a deep knowledge of the business, the right staff
is involved, and surprises are kept to a minimum.

The problems come when change management is overlooked. It is against our instincts as humans to
change because change is typically uncomfortable, so it is imperative to have a solid plan in place for
effective change management and, ultimately, a successful implementation.

Change can be uncomfortable yet beneficial

Yes, change can be uncomfortable; it's against our instincts. But it's essential to remind yourself and your
team that when change is done right, for the right reasons, it can be a game-changer for your entire
organization. Help everyone in the company understand how the proposed changes can benefit them
personally. Your management team has the responsibility to mitigate resistance to change. Without
complete adoption or employee buy-in, you will fail to maximize the potential of your new technology.

On the other hand, resistance to change is not all bad. A little pushback can be healthy for your
management team as it forces them to choose their battles carefully. They'll have to consider the changes
they are introducing and be ready to back up their decisions. That encourages good planning,
communication, and awareness of the needs of the entire organization.