Discuss about the Exploring Organization Change Management.
In today’s scenario, it is very common for having the system Failure in the organisation. It is been known that the IT is been fully aligned to all the business strategies and the key role is to identify the risks and to prevent from the threats occurred. The IT governance covers the whole scenario and highlights the current corporate failures. The IT governance covers the main principles of the organisation, policies, procedures etc. It mainly focuses on resolving the issues regarding to the system failures of the organisation. The main objectives includes optimising of the resources used in an organisation, business performance implementing through IT strategies, goals etc. IT mainly aims to empower and deliver the strategic business value so as to avoid the risks and the failures being affected in an organisation. In today’s world it is essential to have the quick responses in the business market, globalisation of the products and services being provided and the cost of an organisation or enterprise that have the strategies to implement the business initiatives and to meet the challenges so as to avoid the risks. (Barker and Frolick, 2003).
ERP technology is used for allowing the company for increasing in the productivity for the business functions. ERP is highly complex and is difficult to implement and most of the time ERP requires the long process for implementing the operations on time and accessibility to the significant resources. Regarding to the ERP technologies many company have accessed to the ERP technology and its applications for the business operations and other companies have faced the implementation failure using the ERP (Decker et al., 2012).
The organisations mainly focus on having the dynamic interaction between the implementation factors being made using the ERP applications. The ideas involved in the system failures associated with the ERP are in different forms regarding to an inappropriate functioning of the system and trying of the implementation process. In the bitter case scenario of an ERP system the main thing has affected the most is the software customer a failed implementation. Most of the ERP software’s has been ended up because of the failed services. Moreover the failures generally implies on a slowdown of production and services running expressively over budget, hugely changing to the budget to go live date and making to the desired return on the investment. It is essential to focus on the failures of the ERP system failures. It is essential for every organisation to focus on the ERP system failures. It is necessary to look after the causes of ERP failure.
ERP is basically a system which is built to plan and manage the resource of an entire organization in a very efficient way in a productive manner which produces profit. It is a synchronized configuration of software which connects the whole business in a single place at a fingertip of a user who controls the business. It saves paperwork and resources by creating and collecting accurate data from business environment.
In this efficient system some failures occur which will be discussed below these failures factors are assessed are based on information based on information provided by participants and compiled from the documents containing ERP implementation which includes all information such as project plans ,meeting schedules as well as email communications and so on. There are some critical failures listed below:
Not effective transfer of knowledge: In ERP systems as we all know communication is most important factor if knowledge or information is not correctly transferred to the system this system wouldn’t show the desired results and produce errors between incoming and outgoing resources from organization. This happens when some poorly trained and inexperienced consultants are associated with ERP design and they can’t deliver professional training to the users there training material and user documentation is meaningless to the users. This happens to the ineffective transfer of knowledge, which leads to not so sufficient skills to use for project manager and project team members.
Less Efficient IT Infrastructure: In business IT infrastructure security and reliability are 2 most important factors and an ERP system is a part of it .so it must be well built to process the knowledge and update it every time the new resources added or less from the management as well as this system make sure that this information is secure and accessed only by authorized personnel’s. This also happens when management are having financial issues in developing ERP systems and due to low budget, low performance infrastructure hardware is proposed by consultants and project manager. This leads to slow processing of ERP systems due to less cost and substandard hardware which is more economic, less efficient and affects the productivity of company in negative ways.
Poor project management effectiveness: During ERP implementation ,due to limited ERP knowledge or having poor management skills some non-effective management of ERP is done .This leads to failure of ERP implementation because there is failure in plan, manage and maybe in leading of the project .An ERP system is complex and it is necessary for project teams to collaborate with top management ,consulting each and every department ,all kinds of users which will use this system along with some experienced consultants helps during implementation process. These projects are challenging and demanding because it involves all tedious work of managing processes. This work requires human resources which is skilled and trained in all purposes to attain less error in management of ERP. All activities of different levels of ERP implementation could not be conducted together that is testing of system and its configuration after implementation of ERP. Some users would not understand easily the process of new implementation due to their over-tight schedules which leads to poor adaptation of business processes. For healthy management the project manager can conduct the performance alliance based on communication, training and skills of every individual and help them to evaluate.
Poor quality of BPR (Business process Re-engineering): For resolving problems associated with business process mismatching BPR is conducted. This Business process Re-engineering is conducted for correcting system configuration problems created misleading elements by project team members .It’s a matter of fact that the business processes are not ready reengineered to fit with ERP systems, as well as project teams are also not ready for adaptation of new business processes .BPR allows project team to understand that how ERP system according to business processes and plans. This leads to better adaptation to every new business process and system usage of ERP process. So before implementation some analyses are conducted to evaluate the software functionalities for business requirement. If the analysis would be made on conducting the poor implementation in ERP, mainly leads to misbalance in business process. BPR is a very divine process of feedbacks within the organization to develop better ERP systems which leads to help in growth of company (Aladwani, 2001).
Implementation of ERP is not so easy ,most of the organisations that accomplished this will give many benefits to their users and workers as well .This improves productivity off business of both large and small scales will implement ERP systems to attain an good position by developing business processes and by developing efficient communication. When an errorless ERP system is developed it successfully provide advantages to companies. But to build an accurate ERP system these failures are elements which would be eliminated, are as follows:
Knowledge transfer in ERP: This is most common failure of ERP systems, a common ERP system must having a good communication network where all data and knowledge flows easily but in a secure manner. This knowledge must be anything such as stock prices, resource management, employee working in company and money flowing as capital along with all the transactions performed by the company in a specific period of time is updated securely in ERP systems. On technological level, the qualities of servers and network used in ERP system of large scale industry must be efficient to update and secure all the information which is kept on ERP servers. On cultural level, all users of this system will update the knowledge on real time basis in ERP for better monitoring of all commercial activities of their company. (Imran et al., 2016).
Efficient IT Infrastructure: An ERP is designed in such a way so that it can initially handles all resources and transactions of the company .On managerial basis ,it should designed in a way so that it must be both secure and reliable system that should update itself or manually both but in both ways it works perfectly . on technological basis, it must be secure and automated in a way so that if it may update in improper manner it corrects itself by learning from old ERP models .on cultural basis, some trained and skilled employees are required to build the efficient ERP for the company which will further update itself according to needs (Palaniswamy and Frank, 2002).
Project effectiveness: During implementation of ERP, the poor management skills of the team leader of project leads to poor project effectiveness of ERP after implementation .So it is necessary during ERP implementation and planning is done by skilled and trained employees and most of them having the experience in business strategies .On managerial basis ,project effectiveness depends on works of employees that how they design the billing system, the resource log and IT infrastructure of ERP. On technological basis, ERP implementation is done after consulting the IT employees so that they can ensure the reliability and security of ERP .On Cultural basis, ERP implementation project is a matter of teamwork where if each individual makes their effort in building the better, reliable and secure ERP.
Improvement in quality of BPR (Business Process Re-engineering): Improvement in quality of ERP requires BPR (business process re-engineering) where all problems are resolved regarding business process mismatching. These problems are generally created by company fellows itself due to which failures occur in business. To overcome this BPR is conducted in ERP time to time for identifying the problems. On managerial basis, company and its employees are always ready to join new business plans concluded during BPR .On technological basis, BPR is conducted in a proper way to resolve problems of EPR effectively .On cultural basis, all employees show their interest in adapting new ways of business strategies that how business plans and processes in a motivated way (Robinson, 2002).
Two major lessons that can be learned by analysing the ERP failure at the case company can be viewed according to the major perspectives i.e. Planning and Implementation.
The major lesson which is being learned from the ERP failure i.e. FoxMeyer Case as it is the largest drug wholesaler with the annual sales approximately 5 million $. The basic principle of the company is to deal in the healthcare services. It was not a failure of automation according to the FoxMeyer but it was the failure occurred from the management side. And management has the unrealistic expectations. And to overcome from this failure the analysis was made on the market research and product evaluation which was implemented by the FoxMeyer. And then he purchased the warehouse automaton from the vendor and chose a consultant for integrating and implementing the systems in the proper form. The major lessons which were made on the software selection for the high level technical and operational expertise, contingency plan for how to survive in case of system failure and the stakeholder’s involvement which majorly include the end users and the customers.
The second case was made on the ERP implementation failure on the Hershey Company. As it is the largest chocolate manufacture in the North America. Its sales are roughly around 80% chocolates and 20% non-chocolate. Hershey selected SAP’s R/3 ERP software and used other software’s for managing the integration. And they chose to Big Bang Approach rather than the Phased Approach. The Failure arises on the order fulfilment, processing and shipment started to arise. And they were unable to meet the its commitment regarding to the delivery and hence they just lost their credibility in the market as the distributors who ordered the product was not able to deliver the supply to the retailers. Hershey implemented was on the ERP software on the time cost of the company around 150 $ US million in sales. The main reasons of failure were arise due to over squeezing implementation schedules, wrong approach, customer activities etc. The Learning outcomes from the failure were made on the proper ERP implementation that should not force on the unreasonable timeline. To not have the fixed schedule on cutover during busy seasons, for this the organisation must reduce the orders in the cutover period.
The ERP software can be rollout for a company form the single implementation failed process. The ERP implementation should efficiently integrated with the both internal and external information management covering towards the organisational and implementation of the ERP failure that have occurred recently.
The basic impact that intends on the implementation failure of the ERP system in the Company
Conclusion
According to the organisational requirements of the system failure generally occurs due to organisational database is not well maintained on the basis of the identification of the threats or the failure causes is due to the failing of the techniques or because of untrained teaching and the operations performed are not properly done and the root causes for resolving the failures it is essential that the personnel’s should be well trained and expertise in performing the operations and implementing the ERP using the ERP software’s of an organisation that should have the continue process in the business operations and the strategies being design and planned according to the proper implementation of the ERP technologies. It basically provides the systematic approach for converging the failure causes and implementing the effective actions for the appropriate usability of the tools and technologies focusing on the operations being performed to the organisational behaviour.
References
Aladwani, A.M., 2001. Change management strategies for successful ERP implementation. Business Process management journal, 7(3), pp.266-275.
Barker, T. and Frolick, M.N., 2003. ERP implementation failure: A case study. Information Systems Management, 20(4), pp.43-49.
Decker, P., Durand, R., Mayfield, C.O., McCormack, C., Skinner, D. and Perdue, G., 2012. Predicting implementation failure in organization change. Journal of Organizational Culture, Communications and Conflict, 16(2), p.29.
Hawari, A.A. and Heeks, R., 2010. Explaining ERP failure in a developing country: a Jordanian case study. Journal of Enterprise Information Management, 23(2), pp.135-160.
Imran, M.K., Imran, M.K., Rehman, C.A., Rehman, C.A., Aslam, U., Aslam, U., Bilal, A.R. and Bilal, A.R., 2016. What’s organization knowledge management strategy for successful change implementation?. Journal of Organizational Change Management, 29(7), pp.1097-1117.
Jones, R.A., Jimmieson, N.L. and Griffiths, A., 2005. The impact of organizational culture and reshaping capabilities on change implementation success: The mediating role of readiness for change. Journal of Management Studies, 42(2), pp.361-386.
Palaniswamy, R. and Frank, T.G., 2002. Oracle ERP and network computing architecture: implementation and performance. Information Systems Management, 19(2), pp.53-69.
Robinson, P., 2002. ERP (Enterprise Resource Planning) Survival Guide. online at BPIC, The Manufacturing Planning Resource, available at https://www. bpic. co. uk/erp. htm, accessed June, 16.
Roy, S. and Sangle, P.S., 2016. Exploring Organization Change Management Techniques for Successful ERP Implementation. Journal of Management Research and Analysis, 3(3), pp.136-144.
Teltumbde, A., 2000. A framework for evaluating ERP projects. International journal of production research, 38(17), pp.4507-4520.
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