In the early phases of erp implementation in any company, end user attitude towards the ERP project plays a very important role. Change management has a very significant role in improving the status of employee mindsets towards the ERP implementation. End user resistance can severely impact the growth of erp software.

There are many post implementation strategies like - routing, strategic decision making which are important for the continuity of the ERP software successfully in the organization. The successful implementation of the ERP software increases the internal competencies of the organization like -

• strong internal working expertise and automation

• enhancing the scope of functional ways

• development software applications by the third party freelancers

• streamlining business functionalities by reengineering

• extending the ERP modules in software

It is necessary to mandate, control & operate the ERP software from the implementation phase completion. It is necessary to take the user feedback to know that the erp software is working with the proper expectations or not. It ensures the success of past, present and future investments of the company.

In every implementation of the erp software successfully in an organization, there are major changes occurred in the business internal as well external environment. To run an erp software effectively, there are always the significance of the change management as well. Training and development activities are always helpful in innovating the change management in an organization.

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reference link - 

http://sites.simbla.com/b7219032-b879-cece-2596-d4795bf43a65/significanceerp

Dairyco is a dairy product based company which deals in overseas market also. The dairy products were cheese, baby milk, spreads, creams and pasteurized milk. The ERP systems were involved in the day to day business activities in 2001 by senior management. The large effects were there on the working of dairyco.

The company had their own change managers employed at the time of implementation of erp software. These change managers identified the risky areas, initialized improved business processes and all new affected areas were also redesigned. All these managers had the mix of skill set and experience of reengineer the existing business processes.

At the training time, the inhouse IT department of Dairyco company conducted training session for the employees. First of all, the super users of the software were trained for the software because they would be eligible to train their colleagues and junior staff. It was also known as the “train the trainer” approach.

The senior management wanted to ensure this thing that the users and stakeholders of the software must be ready for the use of software. The inhouse IT team was ready to support the SAP performance improvement at every stage and resolving all the issues.

Benefits of dairyco SAP implementation -

• establishing common goals and vision among all the employees

• create learning environment in the organizations

• standardization of products and services

• streamlining of business processes with the goals of organization

• reduction in cost and decreasing order rate

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An implementation of an ERP software has a wide time range effects on the organization and business processes and activities. By understanding this approach, the confecco company implemented the SAP software in a phased approach.

Firstly in the confecco company erp software, sales and distribution modules were launched and the user feedback was taken from the selected end users & customers. Most end users were kept remaining on the legacy systems. The phased approach increased the project completion time but it reduced the cost and failure possibilities of system.

In 1995, there was a mindset in the senior management that the SAP software was yet to give its return on investment. Many version upgrades were performed until the completion of 3 years. With the version upgradation, many new modules were added like - HR, CRM, business intelligence etc.

The implementation team had realized that the erp software will be resisted by the staff and only to provide training and support would not be sufficient for successful SAP adoption in the company.

Benefits -

• increasing the external linkage to the other organization

• employees ready for IT flexibility and change management

• improvement the product quality and services

• reduction in lost orders and cost

• increase in the ease and modular flexibility

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Packco incorporation adopted the erp implementation in a very feasible, soft and proactive approach. The senior management did not want to interrupt the routine tasks and operations. For this reason, a change management team was implemented in which both inhouse and external development team.

The deployment and configuration of the SAP software was the biggest and tough decision for the company. The regular interaction was necessary to happen between the end user and the software interface. For this the change management was very necessary.

Firstly all the inputs were decided by the implementation team members and many meetings were being held by the senior management especially in finance related decisions. The middle managers were also involved in the conversation with the implementation team to map the regular workflow designs and processes.

The training and post implementation team was adjoint with the PWC consultants. PWC consultants had firm believe in transferring the functional knowledge to the software members. It helped in enhancing the knowledge of the existing members.

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When a completely new ERP software is about to be launched in the organization, it is always necessary to perform the change management as well. In the entertainco company the need of change was felt needed and the change was needed permanently as per according to the management needs and business operations.

In that erp software, first it was necessary to develop software requirements as per according to the relevant stakeholders. It was also needed to develop the whole solution as per according to the system needs so that there should be no gap between the desired and gained output. At last, user acceptance testing was already necessary for end user to provide its involvement.

For the change management and user training, EntertainCo limited company prepared the inhouse development team, in which total 13 members were included from the development team of the team in which 5 of them were also included for the ERP system support.  

The company also implemented the user training workshops for onsite purposes. SAP manager was allocated to the entertainco company felt that the end user support was necessary to showcase the inner capabilities of the inner system. It created feedbacks for the SAp system to refine it.  

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The Govdep SAP ERP implementation can not be considered as a case of the successful ERP implementation, because it was being inspired from the NPWS case 1999. All the major upgrades in the post implementation phase were also inspired from the similar government agency. The last updation was performed in 2007 as SAP 7.0 in which additional modules were attached for credit management and warehousing.

The SAP manager always commented for the new IT policies implementation in Govdep, so that the ERP software and post upgrades can be implemented in a systematic and methodological manner. New frameworks were organized so that the new requirements could be fit into the new ERP software and unnecessary customisation can be prevented to reduce implementation costs.

After 2007. there was no major upgrades in the SAP software. Some functionality changes were performed due to changing requirements and for managing the internal and external environment necessities. Later on the company started to realize that there is no real benefits of implementing new upgrades in the software.

There were many changes occurred when the SAP implementation started to think that how business processes and operations could be performed together to get more value. There were many issues when the complete method of using the ERP software was heavily optimised and customised.

There were some issues where the increasing number of employees was the main reason of the change in the erp system working. Their travel and transportation was manageable for more than the 600 users. Later on after some customisations, it was manageable for the user capacity of more than 2000 users.  

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When the Govdep implemented the erp software in its premises, it was not easy to continue it with a single version because the government policies are regularly changed. The restructuring of public agencies are regularly necessary and the business processes and data are necessary to be streamlined together. So Govdep had to upgrade the whole system on a continuous basis.

Govdep had already acquired some newcomer agencies in which new burdensome business processes were implemented which were described as per according to the new erp software of SAP because the consolidation of data was very necessary. So there was little flexibility and much burden in the workflow.

At some areas, Govdep had to restructure the complete work environment. Just like the - At Finance department, regular and new standard workflows were decided and implemented. To the end user, it was made mandatory to provide training sessions for performing the business operations effectively.

There were two type of training sessions were organized - online and face to face. The online trainings were usually for those users who were interested in taking training in their own time and in face to face training phase, the trainers themselves provided the training to the relevant staff. Training sessions were organized in the routine sessions so workers can not feel the extra workload.

The financial management team was also made capable the software training to the other staff members and the erp implementation team was responsible for maintaining the changes required in the system.  

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Envico is an australian company which is engaging in the supplying and distributing the waste disposal and recycling management, energy and transport facilities. It is being operated from the last 40 years and it is originated from a french-parent company. The company has more than 150 branch offices and has more than 3500 employees for work.

Why did ERP was implemented into Envico company -

There were following reasons for implementing the erp software in envico company -

• The company information were decentralised instead of being centralised and integrated. So the consolidation of data was not easy. Further growth of data would not be possible without the proper implementation of erp software.

• It was necessary for envico to find the proper IT support team to manage the implementation of erp software. It became possible when they found the SAP erp vendor for their project integration and collaboration.

How ERP software was implemented into Envico company -

Envico was the direct sponsor for the implementation of erp software SAP ECC version 4.6. The HCL company was selected as the main implementation vendor for the erp project. The total cost was more than AUD 25 million.

The HCL technologies performed the 80% of the application modular development tasks whereever for the third party application development envico inhouse development team participated in it.  

In 2000, the overall implementation phases of SAP ERP software was completed. The bigger quality of this implementation was that the whole erp implementation was based on the phased approach. One office installation did not impact the other office working.

Benefits -

• empowerment of employee productivity

• establishing common vision and goals among staff members

• better communication among the business units

• proper linkages with the external parties

• standard user interface and business learning within organization

• better understanding of processes and control

• better reporting and auditing

• improvement in logistics management

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Why companies undertake ERP software ? -

ERP is the burning necessity of the today’s era. To conquer this competitive scenario of the technological era, companies have the need to adopt the ERP software. There are different needs of the companies behind using the erp software but the most common needs can be discussed here -

• Every department has a mix of data. Finance have some, sales have something different and different business branches can also have the different data. When the complete ERP software is being used by the whole organization, then there should be no possibility of different data sets. It improves the decision making.

• By having one saturated erp software, a company can be able to coordinate the manufacturing, inventory and shipping department activities together. So that they can together communicate with each other properly.

• By identifying the opportunities for the mergers and acquisitions, companies have the need to adopt the integrated erp software. By using the proper erp software, companies can automate some of the manufacturing process. It can reduce the cost and time and increase the productivity.

• ERP can make the productivity level of employees in the manufacturing level more smooth. ERP can reduce the work in progress inventory and it can also reduce the proper entry load of the inventory and stock handling. Really, to improve the supply chain management, ERP software can also help in it.  

• This is a problem in the multiunit organizations that employee time cannot be measured and benefits and services from the company can’t be communicated easily. This problem can easily be fixed with the ERP software properly.  

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ERP systems are capable to handle data, any type of data like - material, capital assets and financial transactions. Those system can handle the data input in bulk and processes the information. ERP systems have shown the tremendous performance in the following segments like - general insurance, assembly, retail and education etc. Today to centralise the data in cloud is a sensitive issue.

The use of cloud ERP systems have given more control over the financial resources to the organizations. The growth of the businesses is possible today due to increasing popularity of the cloud erp software. These cloud erp software have also contributed to the infrastructure development and maintenance in an organization.

The ERP software has always contributed the organization to bring all the distributed information system to the centralized information system and can also establish the correlation between the parameters. The proper implementation of an ERP software depends upon the decision making done in the early phases of the implementation phase.

Today the implementation of ERP software in an organization is being considered necessary by the top level administration. The craze of the ERP software development has been increasing from 60s to till today because of the increasing IT innovations in the whole world. The ERP software should be feasible enough to handle the multiple processes within the minimal effort and coding.

Sometimes ERP systems are controlled to work as per according to the organization norms, conditions and terms and its working can be changed as per according to the situations. The implementation time for the ERP software changes as per according to the organization and industry.  

Sometimes there is an extreme condition occurred in an organization that they operate an ERP software both the legacy systems and ERP software together. It can create the data anomalies within the departmental coordination. To operate the legacy systems becomes an extra cost perspective for the top level administration.

To take on the benefits of the ERP software takes a time. This time can be long or short in terms of duration. For more assistance, an organization must take the advice from the vendor time to time for future updates. It is crucial for getting updates from the vendor for achieving the positive results.

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