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This essay examines the importance of change management in the successful implementation of Enterprise Resource Planning (ERP) systems. ERP systems are software solutions that integrate business processes and data flow in real-time, but their implementation can be complex and expensive. Change management strategies, including top management support, effective training, clear communication, and experienced staff, can help ensure success. The case study of Nestle is used to illustrate the challenges, risks, and benefits of ERP implementation and change management strategies. The essay also discusses the tools used to implement successful ERP applications. The study highlights the importance of considering the people side of change in the implementation of ERP systems to achieve the ultimate business outcome.
Get original essayHuman resource management, Customer relationship management (CRM), Supply chain management, inventory management, Business Intelligence (BI), Financial Management are the main components of the ERP software system which basically includes all the main business processes and keeps information flowing through the entire system in real-time thus helps in making effective decisions.
As ERP system are expensive and complex should be implemented properly by considering the change management critical success factors or else it can lead to failure. Some of the change management strategies that have proof to be successful are support from top management, effective training and proper knowledge transfer, effective communication, clear systematic plans, and experienced people.
Prime players of ERP solution such as SAP, Microsoft, Oracle provide the required ERP software solution to large, mid-size, and small organization according to their parameters of requirement such as may it be for business expansion, and may it be adding new functions to the existing business for its improvement. So, choosing an appropriate ERP solution is important for the business as business management software solutions may differ from organization to organization.
Change Management (CM) is an approach which supports, helps, and prepares organizations, teams and individuals in making an organizational change. Customer requirement pressure, evolution of technology, crisis responses, organizational restructuring, internal reviews of activities, acquisitions, mergers, and competitive pressure are some of the important drivers of change.
It is an approach in which the organizations describe and implements change within both its internal and external processes so as to adapt with changes. In organizational perspective the change which is concern about any event or program that the enterprise undertakes which causes major disruption in its daily operations such as implementing an ERP software system.
The right executive sponsor, cultural willingness to adapt and change, individual willingness to change, communication and communication planning, rewards and consequences, resistance management, employee training and development, readiness assessments, data collection, feedback analysis, after project review are the elements for implementing a successful change management process.
So, when deploying ERP software solution across the whole organization proper change management process, tools, and strategies should be used to manage the people side of change so as to achieve the ultimate business outcome.
Nestle S.A. a swiss multinational company founded by Henri Nestle in the year 1866 is headquartered in Vevey, Vaud, Switzerland is one of the largest foods and drink processing company around the globe and is the major shareholder of Loreal cosmetics company.
With subsidiaries all around the world it currently offers for about 2000 brands with a broad spectrum of products which includes coffee and tea, baby food, ice cream, confectionery, pet food, infant formula products, snacks, breakfast cereals, dairy products, frozen foods, healthcare nutrition, and milkshakes. Maggi, KitKat, Nescafe, Smarties, Nespresso, Stouffer’s are some of its products which contribute the most to its annual profit.
To sustain in this today’s competitive market businesses, have to make sure that their businesses processes are streamline and aligned together so that it can generate efficient outcomes. Enterprise Resource Planning (ERP) is a software system which is a consolidation of certain software packages which unifies the entire business activities and bring in usability, reduced cost, efficiency, centralized control, and high productivity.
Implementation of ERP can only be successful if proper change management tools, processes, and strategies are executed. Change a particular framework of business process is not easy and takes considerable amount of time as the change is not only about the deployment of a certain software system but it is about the changing the employees work approach, function, processes, and organizational culture. So basically, change is about the people of the organization.
In this research paper titled as “Change Management Perspectives in an ERP implementation” the author describes about the problems faced by the global fortune company when implementing an ERP (SAP R/3) system. A successful ERP implementation primarily is a change management process when not addressed properly there is chance that few of the business units can be left integrated thus like the case of this company. As always technical, economical, and managerial factors are considered as a major problem while implementing ERP and often the human side is left unaddressed. Ultimately it was understood from this report as that the issue in implementing ERP is not the technology but the organizational and human changes which is are not conveyed in a proper manner can also lead to implementation failure.
In this research paper titled as “Effects of Change and Change Management on Employee Responses: An Overview of Results from Multiple Studies” the authors describe about how to sustain in the highly competitive business environment businesses needs to change their business processes repeatedly. Change is the necessity for the businesses to overcome the increasing challenges in the competitive environment. Adapting to the changing environment in not easy at all. Changes in the business operations can create a stressful impact on the employees of the organization, they will find it difficult to adjust to the new business activity and this will eventually impact their overall business performance and their commitment to the organization. The paper concludes about that the age factor is the concern when it comes to taking into account the good change management approach if not properly managed. Change should be implicated carefully both at individual job level and unit level of the organization so that the organizational change can have a minimum impact on the people.
In this research paper entitled as “What Happens After ERP Implementation: Understanding the Impact of Interdependence and Differentiation on Plant-Level Outcomes” the authors would like to state about the impact of the ERP model on the overall organizational performance and business operations. It will be much better for the organization when the two important sub-unit level element interdependence is low and differentiation element is high as because ERP systems includes the involvement of data and integrating the business process of the organization. The ERP implementation is executed and adopted in well-organized manner can mostly show positive impact on the organizational level and the two elements interdependence and differentiation both affect the level of the gain obtain from the data and process integration.
In this research paper titled as “Change Management strategies for the successful implementation of Enterprise Resource Planning Systems” the author wants to convey that with the rapidly rising technology in business operations it provides the business various benefits which are helpful to the management to operate their business efficiently and yield as many profits. One such solution that the information technology offers is ERP (Enterprise Resource Planning) solutions which is a multi-module software package consisting of various modules that unifies the entire business activities from the initial stage to the final stage such as the after-sales service stage. This entirely integrated system through which the information flows can automate the business processes thus improving the quality, efficiency, accuracy, and cost reduction. So as to yield maximum benefits from the ERP system proper ERP implementation is necessary. According to some of the case studies reviewed the paper concludes some commonly identified change management strategic components which should be properly addressed for the successful ERP software system implementation in any organization. Top management backing, effectual communication, experienced employees, proper well-structured plans, effective training, and knowledge transfer.
In this research paper titled as “The Effect of ERP System Implementation on Business Performance: An Exploratory Case-Study” the author wants to signify that the implementation of ERP (Enterprise Resource Planning) software system is very much usual in today’s business organization. The benefits achieved from implementing the ERP solution is not clearly known but it seen that it does affect the ultimate business performance of the organization. ERP vendors for selling their software solution do exaggerate about the gain obtain from executing ERP such as fast return on investment and providing rapid solutions for business decision making. The significant relationship of the ERP on the business operational performance cannot be estimated on the basis of the financial profit gain by the organization. The impact of ERP can only be understood by focusing on the qualitative approach that is by considering the operational and intangible gains. Operational effectiveness, information, communication, operational efficiency is some of the intangible business performance factors on the basis of which the benefits can be estimated after adopting the ERP software solution.
In this research paper titled as “Evaluating the Effects of ERP Systems on Performance and Management Accounting in Organizations” the authors want to state that with the IT (information technology) spreading widely the use of IT system have also increased. ERP system an automated business software management system integrates the various departments and provides information in real time provides that helps the top management to make complex decision very quickly and in an easier manner. Subsequently after implementing the ERP system its impact can be assess through the changing management practices, organizational performance, and on accountants and management accounting as advanced management accounting techniques are also introduced once the execution of ERP system was found to be successful. As a consequence of implementing this ERP system technology some of the problems associated with generating budgets of the organization where eliminated and more up-to-date information was available to the employees of the organization.
In this research paper entitled as “Enterprise Resource Planning (ERP) System Implementation: A case for User participation” the authors describe about the information system (IS) such as the ERP (Enterprise Resource Planning) software system which deals with automating and integrating the business process through the interaction between technology and people. Different researches which are being conducted are mostly about the successful adoption of ERP in an organization, its critical success factors, and the factors through which success can be measure so that it may not lead to opposition from the users of the system ranging from the top-level management to the low-level management. The implementation of the complex IT based system which involves huge amount of expenditure to be spend, organizational commitment, and lengthy periods are the obstacles or the challenges which should be backup by user participation that is by the employees of the organization are necessary for the successful development of the ERP information system. Thus, any information system cannot be executed successfully if users are not ready to accept the changes is the system.
In this research paper titled as “Challenges in Implementing Enterprise Resource Planning (ERP) system in Large Organizations: Similarities and Differences Between Corporate and University Environment” the author wants to convey about the obstacles the organizations have to face while implementing ERP in between the corporate and university environment and to assess the required the critical success factor and risk factors while executing ERP software system. The legacy support system which was replaced ERP for the betterment and improvement of the management and the administration are primarily evolved from the manufacturing and planning system to integrating other system such as the finance, production, human resource, planning, supply chain management, and sales force automation. Some of the challenges assess from the study are failure to get user support, lack of senior manager commitment, failure to redesign business process, insufficient training of end-users, ineffective communication with users, conflicts between user departments, and attempts to build bridges to legacy applications.
In this research paper entitled as “ERP Systems and their Effects on Organizations: A Proposed Scheme for ERP Success” the authors would like to describe about the effect the ERP (Enterprise Resource Planning) software information system on the organization’s financial position, business process, and their overall business performance. Basic computer system which was conventionally used to manage the business data, information, and its activities were later replaced by the ERP solution which was firstly introduced in 1990s but back then this was only provided the feature of the back-office system, then later the modern ERP came into more highlight in the business world due to the problem of Y2K. The modern ERP then included the not only the core business processes, back-office but also the activities of the organizations which involved the customers as well. The paper stated that about the success scheme and the effects of ERP system on the managerial and operational level. The success scheme (SS) which was suggested in this paper consisted of eight phases which are consultation team phase, team plan, announcement, involvement, business process mapping, implementation, tracking, and evaluation phase.
In this research paper titled as “Change Management Strategies in ERP Implementations” the author wants to state that the implementation of ERP (Enterprise Resource Planning) software system is not consider successful unless it is accepted by the people of the organization. The ERP system which integrates business activities and presents accurate and effective data in real time across the functional departments of the organizations often encounters resistance from the internal employees. As employees are left with fear that this automated technology-based system can make them lose their jobs, some are concern about the change that this system will bring in their work, and some worry about that there will be no control over the information so to avoid this change management and its strategies should be adopted and not neglected due to budget and time constraint. Thus, in order to make sure that the problems consider while implementing ERP system can be checked by matching it with the Aladwani’s model of think-feel-do framework.
In this research paper entitled as “The Organizational Change Dilemma of ERP Implementation in a Small Manufacturing Company” the author wants to describe that change is a necessity for each and every business if they want to thrive and survive in the rapidly changing pace of the business environment. Computer system being used traditionally had made the work a little bit easier for the businesses but there was a communication-based problem as the system worked as sperate systems and increased a lot work related pressure for the managers. Information technology (IT) has provided a solution to integrate this various functional departments into one single integrated system by implementing the ERP software system solution which not only integrated all the sub-systems but provides real time and accurate information by fetching from its common database making it easier for managers in decision making. But implementing an ERP solution is a very big challenge for every organization be it large organizations, medium size organizations, or small organizations. For small organizations it is even more difficult due to the shortage of funds and lack of talented and experienced individual thus making the implementation of the ERP solution resist able due to organizational changes.
In this research paper entitled as “ERP: Implementation Procedures and Critical Barriers” the authors want to state about the how the implementation procedure to implement ERP the management information system (MIS) backbone of the information technology (IT) in an organization to unify the various departments at all which will share a common database through which accurate information is generated then being useful for making effective decision by the top-level management for the betterment and improvement of the organization. The main purpose of this research paper was to understand the execution procedure for implementing ERP software system solution and also to assess the critical barriers while implementing the same. There are five implementation steps which consist of project preparation phase, requirement gathering, business blue printing (print), realization phase, and go-live preparation or data migration. Lack of top management support, technological barrier, knowledge gap, general barrier, and change management barrier are some of the most crucial barriers that needs to consider.
In this research paper entitled as “Change Management” the author wants to state that how change management has to managed, implemented effectively by the HR human resource management department. Change is crucial for every organization to survive, to take a lead in the market. At times organization tend to adapt change management but fail to execute it practically. Change management seems to be successful when the people of the organization are satisfied with their work life quality and are readily agreed for any future changes. So, if the employees, job satisfaction, and productivity are connected or link together it can generate better effective results. Generally, change management factors is driven by an acknowledged leader but proper adaption and execution of it is to be done by the HR personnel. Communication, training, process re-designing, accurate change management programs are considered as applications for change management mechanism. Organizational change is a highly complicated process and has become a primary concern for the organization with the growing political and economic pressure. Understanding customers, technology, and improving communication are considered as the major factors to complete a successful organizational change whether in terms of cultural, strategic, political, and operational change.
In this research paper titled as “The Impact of Change and Change Management in Achieving Corporate Goals and Objectives: Organizational Perspective” the author would like to state about how leaders and managers should try to implement a change management model which help in achieving the corporate goals and objectives and how the internal and external factors if properly assessed can contribute to the positive consequences of change. Adapting change in the business is important because it is unavoidable and has to be consider for the existence of the company. Change management is a systematic well-structured approach that deals with transforming the management, employees, processes, structure due to the influence by the internal and external aspects such as the political, social, environmental, and economic. Lewin’s change model, McKinsey’s 7s model, Kotter’s 8 step model are some of the change management model mentioned in this paper which help organizations to grow dynamically for expansion or for competitive advantage purpose.
In this research paper entitled as “The Relationship between Change Management Strategy and Successful Enterprise Resource Planning (ERP) Implementations: A Theoretical Perspective” the authors would to draw the attention towards the successful change management strategy factors being measured in three phases preparing to change, implementation of change, and to measure the impact on the user. Evolution of the business is important to thrive between the competitors, to satisfy the customers changing needs, and for this the management has to be updated with the latest innovative technology to stand out in the business market. In the preparation stage of the change management factors the organizational culture and structure must be prepared to change which should influence the individuals of the organization. In implementation stage effective communication between end-to-end user, training and development programs must be applied. Lastly the measuring impact on the user stage feedback for the previous stages must be taken and accordingly mistakes should be modified to develop and the change management strategy.
In this research paper entitled as “The Relationship between BPR Strategy and Change Management for the Sustainable Implementation of ERP: An Information Orientation Perspective” the author would like to convey about that even after implementing the ERP system it didn’t showed any positive outcome in terms of the financial performance it may be due to the resistance the ERP system faced for the organizational changes and so as to understand the impact of the relationship between the business process reengineering (BPR) strategy and change management (CM) on the performance of the ERP software system. Businesses in these days are inclined more towards the technology-based solution to improve their business performance and their financial performance as well but adapting the information technology solutions is not only complex but expensive and time consuming as well. So, the critical success change management factors should be properly addressed and executed.
In this research paper entitled as “Successful Strategies for Implementing an Enterprise Resource Planning System” the author wants to state that since the existence and implementation of ERP in the organizations the its success rate has not been that much due to the lack of the understanding about the other support factors which basically contribute to its successful impact on the organizations performance in terms of the financial gains, and better improvement in the automation of the business process. Success stories are very less than compared to the drastic failure cases of the ERP affecting the business operations, its performance, stakeholders, the working system, and the organizations people. On the basis of some significant case studies and data analysis some successful strategies were identified for the implementation of the business software solution. So, to overcome the organizational inefficiencies the top-level management leaders should acquire to integrate the organizational, environmental, and technical factors.
In this research paper titled as “Challenges Affecting the Implementation of Enterprise Resource Planning (ERP)” the author signifies about how using ERP system in large, mid-size, and small organizations helps it achieving a sustainable competitive advantage and its positive impact on profit and productivity which makes it a market leader. Every business enterprise needs some sort of system so as to support its business processes. ERP does that it acts as a backbone for the entire business as it unifies the business activities such as production, logistics, accounting, human resource and provides an accurate a timely information through its information system which thus helps the top-level management in taking effective decisions. Only when an organization can address and solve its internal organizational issues and challenges and keep up with the changing trend of technology then only an ERP system can benefit the organization directly in terms of profit and productivity.
In this research paper entitled as “Driving Change Management strategy in ERP implementation project” the authors would like to talk about the approach towards change management as how it could transform the information system, operational processes, and people of the organization for the successful adoption of the ERP implementation project. With the exponential growth in the digital evolution the amount of data that is getting generated each day is huge which is being useful in planning a busines strategy, taking a complex decision beneficial for the company. Accordingly, the management of the vast and complicated data is important which can be done by the business process software solution ERP which not only manages the data but makes sure it is flowing properly between the whole enterprise by integrating the various departments at all levels. The factors which influence the change management process are namely well-planned communication, a perfect implementation plan, resistance to change, and readily getting agreed for the ERP implementation project. If all the approaches, concept, components, and change management models if carefully evaluated can make this complex and expensive change management process easily adaptable for the people.
In this research paper entitled as “The Impact of Enterprise Resource Planning on Business Performance: With the Discussion on Its Relationship with Open Innovation” the authors would like to signify about the impact of ERP (Enterprise Resource Planning) system on the business performance of the small and medium enterprises (SMEs) which are having a crucial role in the economic development of the country and have made the business environment more competitive. The paper basic purpose was to understand the effect of ERP usage on the financial and non-financial performance of the small and medium enterprises (SMEs) and also to address the primarily put up to the effective and successful use of an ERP software system. The usage of the system is considered to be a successful when the user that is an employee of the organization thoroughly understands the business management software system and don’t resist the changes happening in the work process, culture of the organization.
Change is always inevitable it helps the person to keep moving forward and to become better professionals and to improve personalities for the betterment, yet change is less likely to arise from its own sake. It always doesn’t necessarily mean that something needs to be alter, modify it can be implied by making either important difference often which will be amounting to a loss of the original identity or a substitution of one thing for another.
Change is a procedure or a necessity that something we have to believe in that is to evolve is to change. So, as to evolve it is necessary to step beyond fear and take action towards positive change. The act of becoming different can give at times a negative feedback as well if it the process and its importance is not consider. It is required to keep in mind that when to comes to change implementation isn’t the end its just the beginning.
Change management (CM) is the discipline which is defined as the methods and manners in which the organization describes and implements change to its external and internal processes. It is a collective approach which involves understanding why the change is needed, then preparing and supporting employees, taking the necessary steps for implementing change, and have to monitor the pre- and post-change activities to make sure for the successful implementation.
Unlike people change is necessary in businesses as well, every organization for the improve and to thrive and survive in the competing market environment has to keeping changing it business processes and operations. For business change has to be deployed due to both the internal as well external environment. Change is difficult but effective change management e
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