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

12 November 2009 Change Management of People and Technology in an ERP Implementation The business of PowerITis about the repairing of power conversions supplies. This business is a medium size business that consists of around 200 people and having an annual turnover of £40 million. The business of PowerIT has recently deployed an ERP system for the enhanced business management. This case is about the detailed analysis of firm’s off-the-shelf enterprise system and its associated problems. Case 1 [Figure 1] PowerITs has decided to acquire a 3rd-party modified off-the-shelf solution. The main reason behind the implementation of the 3rd-party modified off-the-shelf solution is the less effective system development skill of the PowerITs internal IT department. In other words we can also say that PowerIT did not want to take the risk of such huge development. Therefore PowerIT has decided to acquire 3rd-party modified off-the-shelf solution (Edwards and Humphries). In the analysis of this system the case writers have declared the different areas of the system implementation with different ranks. For example the “Software Development Expertise” regarding the 3rd-party modified off-the-shelf solution is ranked as “HIGH”. This signifies that the system development firm that is going to develop the system is possessing high quality system developers; those are having extensive expertise in the system development. In this scenario the PowerIT lacks and not have such competent experts and professional for such a huge development. In this case in-house-development of the system can be a failure. The case writers have ranked the second aspect of the 3rd-party modified off-the-shelf solution as “HIGH” that is about the “Application Domain Expertise”. In this scenario we can also have better expertise of the overall system development through the 3rd-party modified off-the-shelf solution. The main reason behind this aspect the high professional skills those are acquired by the business system developer firm through offering varied solutions for the enhanced business management. However in case of the PowerIT corporate the overall IT department was not involved in such system development areas so these people have no such pervious skills and experience. Here we can say that in such condition the 3rd part solution will be the better choice. “Local Company Knowledge” is a factor that often involved in the business management systems development. This factor is ranked as “LOW” in case of the 3rd-party modified off-the-shelf solution. This main reason behind this aspect is less knowledge of the corporate internal process to the 3rd part developers. This aspect sometime delayed in the effective system development and deployment. In the case of PowerIT system development the in-house-development regarding the system will be successful because the internal IT department possesses the more comprehensive knowledge regarding the business process and operations. This is harder for the 3rd party developer to take a deep insight into the overall organizational processes and operations. The major problems encountered system selection was regarding the appropriate system selection that would be suited to the overall PowerIT business process and operations. In case 3rd-party modified off-the-shelf solution we need to deploy a system that effectively manages the overall business. However the 3rd-party modified off-the-shelf solutions are generic in nature and we need to customize them for the fulfillment of overall organizational needs and requirements. For the PowerIT new system 3rd-party modified off-the-shelf solution selection, the corporate needs to assess the overall business requirements and selection of appropriate system that can effectively suit the business requirements, that was really hard to decide and customize. The major problems encountered after implementation are unnecessary operations and requirement that are concerning the PowerIT business. In this scenario the PowerIT corporate end users (system working employees) got some operation additional and unnecessary to the PowerIT business and regarding them as additional for the overall business operating. In such scenario they have demanded for the system modification, so that system can suit the overall business needs and requirements. Case 2 [Figure 1] PowerIT ERP system implementation investigators have stated operational areas regarding the ERP system success. Here we have four main classes of the ERP system success factors. The ERP system of the PowerIT has offered no advantages in enhancing the business market values and offering no significant advantages to business operational management. There we can rank the PowerIT ERP system as “ Class C”, because it is partially used through business processes. The data and operational controls are not so effective. As well as this system is offering such huge benefits to business operations. There it is ranked as “Class C”. Some of the aspects of the 3rd-party modified off-the-shelf ERP solution are not changeable, in other words, we do not change them, and any change can affect the overall working of the system. The main reason behind this aspect is the generic nature of the 3rd-party of-the-shelf system. These systems are developed to address the business operations of almost all organizations. In this scenario we need to change some of the organizational aspects so that this system can suit the overall business options. Some technical changes to the 3rd-party of-the-shelf systems are made to suit the overall business operations and needs. In this scenario we will customize the system according to PowerIT business needs. For the ERP system’s successful implementation at PowerIT business, the management needs to address and implement the five main success factors. The main point is regarding the management of utilization of the ERP system regarding the enhanced business management. The old system was not appropriately fulfilling the business needs. The aim of management is to mold the system according to business needs. The next main factor is about the business data accuracy that can be achieved through the well suited system implementation at the business, so organization is implementing organizational and technological transformations in the business. After the enhanced ERP system implementation we attain better business benefits this will be a main factor of ERP system success at business. In the current situation the business of PowerIT has spent a huge investment in the ERP system implementation. In this regard the “scrap and replace” option will be a huge damage for the overall business structure. The next option is “system upgrade”. This aspect looks feasible but after its up-gradation if system did not suit the business needs then we will again have a huge loss. Therefore the only feasible option regarding this system implementation is the “re- implement and modification of the ERP system according to the business needs and requirements. Works Cited Edwards, Helen M. and Lynne P. Humphries. "Change Management of People and Technology in an ERP Implementation." 2005. infosci-journals.com. 12 October 2009 . Read More