Change management’s crucial role in ERP implementation

Change is a constant in the business world, and nowhere is this truer than in the implementation of Enterprise Resource Planning (ERP) systems. ERP implementations represent a significant shift for organisations, touching the very core of their operations. From altering daily workflows to reshaping established processes, its impact is extensive.

As epic ERP MD, Stuart Scanlon, says, “Implementing an ERP system is like performing open-heart surgery on a patient who is walking around and interacting with his/her environment. You simply cannot shut an entire company down in order to implement it. The company has to remain operational with as little disruption as possible.”

Effective change management is, therefore, key for success.

ERP implementations activate a torrent of change within an organisation, which often leaves employees feeling uneasy. To address the challenges and fears surrounding these changes, you need to adopt a well-defined approach to change management. It is crucial that top management provide ongoing support and adopt a proactive stance toward change to avoid ERP implementation failures.

Change is a process, not an event. Firms must adopt a structured framework when implementing change in their organisations. Drawing from Dr John Kotter’s Eight Stages of Change Management theory (1995), we have put together a comprehensive approach to help guide organisations through the often-disruptive process of ERP transformation.

Kotter’s eight stages of change management

1. Create a sense of urgency

  • Conduct ROI analysis to underscore the tangible benefits. (See our previous article “Unlocking the ROI of an ERP system”.)
  • Identify opportunities, including non-traditional benefits through structural changes and Key Performance Indicator (KPI) reporting.

2. Form a powerful guiding coalition

  • Establish a leadership coalition capable of steering the change.
  • Drive the implementation by maintaining focus on the urgency and opportunities that form part of the transformation.

3. Create a vision

  • Develop a compelling vision of the future state, highlighting the benefits of the change.
  • Formulate strategies to realise the envisioned change.

4. Communicate the vision

  • Tailor communication methods to the organisational culture.
  • Set behaviour standards through effective messaging, shaping the organisation’s attitude toward the project.

5. Empower others to act on the vision

  • Identify and eliminate barriers to change.
  • Encourage inputs and critiques on the future vision.

6. Plan for and create short-term wins

  • Align employee rewards with the change process.
  • Celebrate small achievements as steps toward larger change goals.

7. Consolidate improvements and produce more change

  • Boldly adjust systems, structures and policies as the partnership gains support.
  • Hire and promote individuals who can actively contribute to implementing the vision.
  • Introduce new projects supporting the future vision.

8. Institutionalise new approaches

  • Integrate change into the organisational culture.
  • Establish leadership succession that upholds the future vision and embodies the change culture.

Change management stands as a cornerstone in the success of ERP implementations. A clear strategy and vision, communicated effectively from the executive team to every employee, form the foundation for success. Linking remuneration to change efforts provides a tangible incentive for employees resistant to change.

Beyond the realm of ERP projects, fostering a culture of change positions an organisation to adapt swiftly to external shifts, creating a more resilient and agile entity in our ever-evolving world. Over and above our software offering, epic ERP can help you across your business with all the change management aspects associated with your ERP implementation. Contact us today to find out how.

ERP bringing about behaviour change

Mobile ERP

Changing Behaviour from Enterprise Resource Planning:

Despite the focus on digital transformation, the value traditional approaches bring to the organisation cannot be underestimated. By having a solid foundation underpinned by proven business best practices, the organisation is in a much better position to roll out more innovative solutions. In this environment, enterprise resource planning (ERP) has become more critical than ever in managing all the elements effectively.

 

In many respects, the emergence of the cloud as a viable business platform has heralded in the digital era. This signalled the start of a behavioural change in IT departments. Whether you call it software-as-a-service, virtualisation, or hosted solutions, the shift between on-site and off-site solutions management has irrevocably transformed enterprise.

 

No longer required to fulfil an IT support and maintenance role, technology departments could now focus on bringing more innovation into the organisation by being able to develop more customised technology solutions. With cloud (whether it be in a private or hybrid model) simplifying the administrative hassle, organisations could focus more on product differentiation.

 

Along for the Ride:

 

As cloud implementations grew in prominence across industry sectors, so too did the need to adopt more traditional business practices. Companies who did not effectively analyse the business impact of cloud on existing systems and processes were found to struggle while those that took a more considered approach reaped the rewards.

 

Under pressure to align more closely with the cloud approach, ERP as a traditional business approach required a more nuanced look at itself. Gone were the days where on-premise was the priority. Cloud computing pushed mobility as a growth pillar. In this dynamic segment, ERP had little choice but to find a way of pulling information from several hosted data sources. Mobile employees and customers meant ERP had to evolve to still deliver business value.

 

Fortunately, it has not been a case of ‘me too’ strategy when it comes to ERP and how it is incorporating digital transformation elements. Instead, ERP is providing executives with the best of both worlds (the traditional and the digital).

 

Shifting Processes:

Being such a mission-critical system, Legacy ERP is not an easy one to transform into a digital process. But thanks to the growing emergence of Modern ERP that are able to provide real-time data analysis, and agility where processes are being adapted on a continual basis. This leaves many organisations having to customise and tweak their legacy enterprise resources to be more in tune with digital requirements.

 

With the likes of predictive analytics, machine-learning, and the Internet of Things becoming part of the ERP puzzle, decision-makers are realising the need to grow into a more dynamic (technology-driven) environment.

 

This shift provides not only competitive benefits but also results in cost-efficiencies. Companies can more quickly adapt to external factors using a more fluid ERP system with their strategies (and, per implication their products and services) following suit.

 

Granted, there is still a long way to go to effectively transform this vital business system, but the signs are there that many are considering this new environment.

Epic ERP: Adapting to change

Company Culture

Despite change in the workplace being a common occurrence, the pace of it has escalated significantly in recent months given the importance of digital transformation in business. How then can employees successfully adapt to it while still maintaining focus on their daily responsibilities?

 

Virtualisation, cloud computing, artificial reality, machine-learning, and other terms have become all too common in organisations across industry sectors. With technology permeating virtually every facet of the corporate environment, decision-makers have no choice but to embrace it if their businesses are to remain relevant. Competitive (and bottom-line) pressures have become significant with many organisations feeling the pinch to optimise processes on an all too regular basis.

 

Amidst all of this, is the humble employee who must face an ongoing ‘sink or swim’ scenario. Uncertainty around job roles and responsibilities, team structures, and even business strategy result in a volatile environment where people do not know how to respond to ongoing changes.

 

Companies need to put People-first:

For many employees, the routine of their work is something they can find comfort in. Knowing what to expect from any given day (within certain parameters) mean they can prepare themselves mentally for the tasks at hand and plan their agendas accordingly.

 

Of course, there is an inevitable risk in becoming too routine and falling in to regular patterns. Innovation is one of the areas that suffer the most as is the potential to embrace new ways of doing things. The pressure to embrace digital transformation processes has changed this.

 

Companies can ill afford to ignore new technologies that promise better work efficiency, real-time data analysis, as well as a host of business intelligence and other features to increase profitability and stakeholder value. However, one of the biggest mistakes any organisation can make is to ignore the human element in this.

 

The temptation to implement the latest and greatest technology should not come at the cost of alienating employees or their positions inside the organisation. In fact, digital transformation is as much about technology change as it is about putting people first and becoming a more effective business.

 

Decision-makers therefore need to communicate to all levels of employees to ensure that when change is taking place, everybody has an awareness of what is happening inside the organisation and what the potential impact will be on their divisions, teams, and themselves.

 

Be Aware of a Cultural Shift:

While change is situational and transition becomes psychological, executives need to be more in tune with how employees are facing new technologies and different methodologies of performing their job functions.

 

This means adapting the organisational culture to be more reflective of one that is embracing technological change but doing so with employee benefits (such as becoming more efficient at doing their jobs) in mind. It is not a case of changing for its own sake but doing so in a manner that enhances the business strategy.

 

Part of the process of helping employees be more open to this change is to invest in their continuing education. Companies who invest in their people are the ones that will reap the rewards down the line. Employees should never feel that they have become surplus to requirements. Instead, they should see the business taking interest in giving them the skills needed to be successful in a business world.

 

Finally, companies must learn to analyse performance and provide insightful feedback in much clearer ways than in the past. People inside the business need to understand what exactly is expected of them, how they will be measured, and what they can do to get the recognition they deserve.

 

With the only constant being change, how best a company manages that in a digitally-rich world becomes the difference between longevity and simply surviving.

Epicor expands South African footprint

Astria Technologies

Epicor Appoints Astraia Technology:

ERP Suite of Business Solutions:

Western Cape technology consulting firm Astraia Technology has been appointed as an Epicor Value Added Reseller (VAR) through South African distributor Epic ERP. This sees companies in the region benefitting from strong local support for the global enterprise resource planning (ERP) suite of business solutions.

 

We are extremely excited to have Astraia on board. They have a solid reputation in the Western Cape and is the business partner of choice for many organisations across industry sectors. Epicor is strongly positioned in South Africa and we have seen companies embrace its cloud-centric approach to meet the requirements of the digital age. Astraia will further cement this thinking with its customers as it provides specialist consulting services that align with the Epicor strategic objectives,” says Stuart Scanlon, managing director of epic ERP.

 

David Bryant, CEO of Astraia, says this appointment is not just about the technology solutions available through epic ERP but is also a reflection of the shared values of both organisations.

 

“For us, it is about the power of relationship. Like us, Epic ERP believes in honesty, integrity, and excellence. Add to this the extent at which Epicor meets business requirements, and you have room for almost infinite possibilities,” believes Bryant.

 

According to Bryant, companies in the Western Cape are committed to capitalising on opportunities as the area has become one of the fastest-growing in the country. Astraia clients range from financial services to mining and manufacturing. The company focuses on the process of ERP and will look at integrating all its solutions to bring value through the Epicor suite.

 

Companies are more open to ERP than in the past as it has become more affordable and accessible because of the benefits that cloud computing provide. This partnership with epic ERP provides us with the opportunity to offer our customers the best in technology solutions built upon the foundation of our strong relationship with them and epic ERP,” he concludes.