Why Is Organizational Change The Key A Successful ERP Implementation?

successful-erp-implementation | Photo Courtesy of	 iratxo.foto	http://www.flickr.com/photos/iratxo/8464479850/sizes/q/Though customization can help, organizational change management is needed to get the most out of a cloud-based ERP implementation.

The benefits of customization and organizational change management are highlighted in a recent article on the Panorama Consulting Solutions website.

A report from Panorama reveals that only 11 percent of respondents undertook an ERP implementation without customizing their software. But customization efforts won’t be of much benefit if the company continues to operate its business the same way.

Anytime a company is evaluating whether to customize a software system, it needs to understand the benefits it expects to gain from the customization. If it’s a case where processes are being changed without a real business need, then the focus should be more on change management and getting buy-in for the new ways of interacting with the software.

The beauty of the cloud is its flexibility. Customization no longer needs to be an expensive or time-consuming process. It’s become much more simplified with workflow automation and the ability to add fields for tracking specific metrics. That’s where cloud-based architecture can really provide a fit gap for managing organizational change management versus customization of the software.

One of the challenges in implementing organizational change management is to convince managers and employees that the new way of conducting business will be more efficient and beneficial, even if it takes time to learn and adapt to the new processes, the Panorama Consulting Solutions article explains.

The key to employee buy-in is involving them early in the process and explaining the benefits. Even if they’re not making the final decisions, it’s important that they have a say in the outcome. The company also needs to dedicate resources for training, communications and performance measurement. This is critical to ensuring that employees have an easy transition and will continue to adhere to the new way of doing business.

Source: Panorama Consulting Solutions, January 2013