Change Management of People and Technology in an ERP Implementation - Assignment Example

? (Assignment) Business: Case Study While adopting an ERP (Environmental Resource Planning) strategy, it is necessary to consider firm’s various characteristics such as software development expertise, application domain expertise, and local company knowledge. From the chart, it is obvious that ‘3rd party modified off-the shelf solution’ was the acquisition strategy adopted by PowerIT. Prior to the adoption of this strategy, the company had employed material resource planning system so as to enhance its production process. Anyhow, the new ERP approach gave great emphasis on software development and application domain. Although company had an internal IT department, its operation was not done in an efficient way. Similarly, the firm had poor application domain knowledge so that they struggled to carry out various functions effectively. Therefore, the company management believed that the proposed strategy would assist the organization to improve its weaker areas. 2. The case writers assert that the ‘areas of relative strength’ of the selected approach as ‘High’, ‘High’, and ‘Low’. It must be noted that a concept of expertise ‘buying in’ is associated with this approach rather than risking with unorganized development strategies. Since the proposed strategy was decided to acquire from a third party, it was possible for them to obtain high software expertise and application domain expertise. On the other hand, when purchasing an ERP approach from a third party vendor, probably the package may contain poor local company knowledge. Therefore, it is clear why the writers ranked ‘3rd party modified off-the shelf solution’ as ‘High’, ‘High’, and ‘Low’ in terms of relative strength areas. 3. Several problems encountered during the selection and implementation phases of the project. According to Edwards and Humphries, the chief executive officer and other senior managers had only a little knowledge regarding the proposed project. Since the persons at the helm of affairs lacked adequate information regarding the structure of the approach, they could not properly organize their employees. Naturally, this situation led the project to an operational failure. Similarly, PowerIT failed in the selection of business development manager also. The firm gave emphasis only on the technical skill of the manager; but the appointed manager did not have sufficient social skill which was essential while operating in a traditional manufacturing environment. As a result, it caused some personal conflicts between business development manager and other managers; and subsequently, lack of coordination in the project implementation phases. Even though none of the vendors submitted the project model in an accurate manner, the development manager awarded the contract to a vendor without considering the option for a review. Since the development manager could not get willing staff to attend the user group meetings, he made their attendance mandatory and that led to inactive participation. 4. The new system was implemented in 2000 and some organizational sections viewed the system a failure one year after its full implementation. As Edwards and Humphries say, a considerable decline in productivity was the most major issue after the project implementation. The ‘brown paper mapping’ undertaken by business development manager was another issue encountered after the project implementation phase as it was not used for any detailed analysis. It is a known fact that the effectiveness of an organization largely depends on the knowledge and experience of its employees. However, we have seen that even PoweIT’s CEO did not have adequate knowledge regarding the implemented project and it added to the strategic failure of the company. Moreover, the inefficient PowerIT management could not integrate the implemented changes into existing structure of the organization and that gradually led to customer dissatisfaction. 5. It is evident from figure 1that this project belonged to Class B. The failure of PowerIT’s ERP project could be attributed to the poor managerial strategies and it fits with Class B criteria. However, the project contained all necessary data such as software knowledge and application domain elements even though it was not properly utilized by management. In the opinion of Edwards and Humphries, Class B involves some informal or non-integrated systems and these characteristics also can be identified in the implemented project. Moreover, as found in Class B, the PowerIT could not gain maximum benefits from the implemented enterprise resource planning system. 6. The investigators suggested both technical and organizational changes. In my opinion, it will be more difficult for a firm to achieve organizational changes than technical changes. Since rapidly developing technology necessitates frequent technical changes in organizations, each firm would maintain provisions for the ease replacement of technology. Even if the company itself is not in a position to bring technical changes easily, it requires the help of technical experts. Similarly, the company may arrange effective training programs to its technicians and it would add to the proposed technical change. On the other hand, organizational changes require overall restructuring of the company management, which would be a complex and time consuming program. In order to implement an effective organizational change, the CEO and other senior managers must design a clear framework. In addition, they must be vigilant and thoughtful as the change would produce far reaching impacts on the organization. An inefficient organizational change program may adversely affect the organizational structure if the change affect the productivity and thereby profitability. 7. According to course study, there are three attributes for ERP success such as overall fitness, proper business analysis, and solid implementation plans (‘Systems Development and Project Management, 259). The first criterion suggests that a well fitting ERP approach would not have much process gaps; it clearly indicates that PowerIT’s ERP approach has almost met this criterion. Similarly, proper business analysis assists the firm to determine which strategy has to be adopted. In the given case, it is obvious that PowerIT has successfully implemented this phase, and therefore, they could select a best ERP project that fitted the strategic requirements of the company. At the same time, the firm failed in selecting a potential vendor. However, it seems that PowerIT completely failed to formulate solid implementation due to coordination flaws in management operations. 8. As the course study ‘Systems Development and Project Management (293-295) says, three key project management areas are people, communications, and change. The writer asserts that it is the duty of the project manager to supervise these areas. We saw that the project development manager appointed in PowerIT did not have adequate managerial skills and it caused some conflicts at the management level. Similarly, the project manager did not try to collect feedback from stakeholders and other responsible officials; hence it reflects the failure of project manager in ensuring communication within the organization. In addition, a new ERP project would alter the organizational structure. Therefore, implantation of a new ERP approach necessitates an effective change management system. However, it is obvious that even senior management officials lacked adequate knowledge regarding the new ERP project; hence the firm failed to integrate the implemented project into the existing organizational atmosphere. In short, PowerIT completely failed to manage the implemented ERP project. 9. In my opinion, PowerIT must upgrade the existing ERP project. It is a clear fact that the implemented project was structurally effective as it satisfies all technical requirements of PowerIT. The failure of the project was directly related to inefficient management strategies. Therefore, a well organized project upgrade would contribute to the improvement of the persisting plan. Other options such as reimplementation or modification of the project are not practicable as they would incur huge additional costs and efforts. Works Cited ‘Systems Development and Project Management.’. Edwards, Helen M and Humphries, Lynne P. “Change Management of People & Technology in an ERP Implementation.” Journal of Cases on Information Technology. 7.4(2005): 143- 159. Read More