Change Management for ERP Implementation

ERP (enterprise resource planning) is a tool or software that helps businesses and companies to manage and integrate their business functions and processes. The business functions could be accounting, supply chain, finance, accounting, HR, procurement, inventory, project management, and customer relation management. Today, we’ll discuss the change management for ERP implementation, its role, process, and tips and best practices.

The ERP system offers a single access point and a centralized database for company’s database and processes; it allows them to achieve visibility and efficiency in their operations. The objective of ERP system is to automate their align their organizational processes, offer a real time data insight, and limited manual errors to make informed decisions.

ERP Change Process

• Developing a comprehensive ERP plan for project goals, objectives, stakeholders, budget, and resource allocation
• Analyzing existing processes and systems and preparing for ERP implementation
• Configuring ERP system, testing, and integrating with the company’s system and processes
• Officially launching the ERP system into the company; offering training to employees on how to employ the system with support and assistance.
• Monitoring the company’s performance by regularly analyzing it to make sure it satisfies the company’s needs and demands

Role of ERP in Change Management

Implementation of the ERP system brings a lot of changes to the company and requires careful planning, execution, and management.

• Comprises of reorganizing various processes, adopting new technology, and integrating various functions and departments of the company
• System changes have a great impact on employees and the organization.
• Causes disruption, delays, and ultimately failure of implementation if poorly managed changes
• Anticipating, managing, and following the impact of changes through ERP implementation
• Plays a critical role in the success of ERP implementation
• Making employee engagement, preparation, and offering timely support throughout the change process

Change Management for ERP Implementation – Tips and Practices

Let’s discuss the top tips and practices to change management for ERP implementation; they’re as follows;

All Stakeholders Onboard

Suppliers, partners, customers, employees, managers, and leaders are the key stakeholders of the company. It is necessary to bring all the stakeholders on board for the ERP change process and make sure to address their needs and concerns about the implementation process. However, it allows you to reduce the employee resistance rate and improves the success of the company. The stakeholders offer you key insight and valuable feedback to improve the ERP system and ensure that it satisfies the needs and demands of the company.

• Connecting and engaging with the key stakeholders and addressing their needs and concerns
• Regularly communication with stakeholders and informing them about the progress and the implementation process
• Offering training and support to stakeholders to comprehend the ERP system; their roles and responsibilities
• Encouraging feedback from stakeholders to recognize the weak areas for improvement
• Building a supporting workplace culture to promote collaboration among stakeholders

Open Communication

Open communication makes sure to inform all the stakeholders about the ERP implementation, comprehending their purpose and impact, and preparing them for the upcoming changes. Effective communication focuses on building trust and confidence among employees and stakeholders; and promotes a culture of collaboration and transparency. However, some of the main and best practices for ERP change communication process are as follows;

• Developing a communication plan outlining all the goals and objectives; the target audience for every stage of the ERP implementation process
• Making sure right and timely communication is relevant to the needs of every stakeholder
• Employing multiple communication channels to approach all the stakeholders and encouraging them to give their feedback
• Offering training and support to all the stakeholders and their impact on roles and responsibilities
• Transparent communication helps them to recognize the weak areas for improvement.

Offering Support and Training

It is necessary for companies to conduct training programs and offer support to employees regard ERP system and how it impacts them. Training programs and the support system would help them to decrease the change resistance, improves the employee engagement productivity.

• Conducting training programs for employees to ensure that they comprehend the ERP system
• Employing multiple training methods and strategies to make sure that it satisfies the learning needs of all employees
• Offering easy access to online resources and how to use the ERP system
• Motivating employees to ask questions and offer valuable feedback to recognize potential problems
• Developing a support helpdesk to offer support and assistance

Adapting Changes

The business environment is constantly changing and companies should be ready to adapt to the new challenges and opportunities. The ERP system should be flexible enough to respond to market changes and satisfy the needs and demands of the company.

• Selecting the right ERP system that is flexible to meet the needs and demands of the company
• Building a culture of continuous improvement and innovation
• Reviewing and analyzing the ERP system
• Motivating employees to share their feedback and recognize the improvement needed areas
• Building a supportive culture to promote collaboration and engagement

Monitoring Performance

Regularly monitoring and evaluation of ERP implementation process would help businesses and companies to recognize the weak areas for improvement. It helps them to make sure the successful implementation of changes.

• Setting measurable and achievable goals and objectives for ERP implementation
• Tracking key metrics and KPIs regularly to measure the growth and progress
• Conducting surveys and focus group studies to recognize feedback and recognize weak areas for improvement
• Developing a comprehensive change management program to analyze the change management system
• Building a continuous improvement system culture to ensure that the ERP system meets the needs and demands of the company

Conclusion: Change Management for ERP Implementation | ERP Change Management Best Practices

After an in-depth study of the change management for ERP implementation; we have realized that ERP implementation is a step-by-step process. If you are learning about the ERP change management best practices; then you should keep in mind the abovementioned steps involved in the process, the role of ERP in change management, and best tips and practices.