Enterprise Resource Planning (ERP) Implementation

Managing an ERP Implementation
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Introduction
For several years now, enterprise resource planning (ERP) systems have been viewed as the technological solution that is best suited to meet organizational needs for efficiency and effectiveness in matters relating to information management and business operations (Olivier, &Pellerin, 2011). These software packages have the ability to incorporate all of an organization’s information requirements within a single computer system. This is important as it offers management an ideal outlook of the organization’s operating and managing activities (Poba-nzaou, & Raymond, 2011).The challenge with ERP systems is that they are designed and programmed by autonomous organizations outside the client organizations. They are developed around a fixed number of organizational models gleaned from the best practices identified in various areas of activity. During an implementation, it is, therefore, critical for management to put in necessary business processes to enable the company to adapt, and the system to be configured and optimized. One of the problems that most businesses face is that do not have a clear guideline on the right plan to adopt during implementation something that leads to business failure (Komorousova (2012).
Organizations are increasingly looking at the successful implementation of ERP to improve their competitiveness as they adopt changes. For instance, Business Process Reengineering is one of the approaches in change management associated with improved efficiency and performance among organizations (Goksoy, Ozsoy & Vayvay, 2012). Even though, organizations may experience failure while implementing ERP, change management is necessary as it is associated with improved organizational competitiveness (Goksoy, Ozsoy & Vayvay, 2012). ERP leaders can resolve resistance to change since their commitment and involvement affects an organization as a whole.
According to Wickramasinghe, &Gunawardena (2010), during an ERP implementation, the whole structure of the company is turned upside down. From the chain of command to user involvement, the opinions are different, sometimes in opposition, and must be properly managed. During this process, the implementation of good change management practices is extremely essential since an ERP necessarily brings about changes in how things are performed and for that reason reluctance on the part of the end-users. This aspect of the management of ERP implementation is one of the most challenging ones for managers to address, and there limited research on what should be done while this provides an opportunity for further research. Every organization has a culture, which may or may not be stable and lasting, and which may be mirrored in either openness to change or the readiness to adopt change. Change must be treated as a central part of business process development; mostly by senior manager as the manner in which the way they treat the implementation plan determine its success or failure (Wickramasinghe, &Gunawardena, 2010).
Top management support is one of the most crucial factors for success in an ERP deployment. Individuals at different levels of the organization will have to be involved in the full course of the project. The top management is one of the determining factors for the success of ERP implementation. Their attitude and orientation towards it implementation determines the success of the project. The top management is the guiding factor of the other employees (Scholtz, Calitz&Cilliers, 2013). Therefore, they must endeavor to show the correct attitude towards the implementation of the ERP.
Some researchers point out that it is essential that the top management allocate the needed resources and time for the project to be implemented properly. Failure to allocate sufficient funds for the implementation of the ERP has led to a lack of success or going over budget (Hwang, 2011). The allocation of sufficient resources for the implementation of ERP is not entirely depended on the availability of the funds. Although it is crucial that the management allocates funds to the needs according to the availability, at times, the attitude of the management towards the implementation in question determines the enthusiasm or lack of it in the zeal to allocate the funds (Dezdar&Ainin, 2011). In consideration of the crucial function of the ERP, it is essential for top management to allocate the necessary funds. In order to reduce and remove negative attitude among the teams, it is important that the top management enlightens the organization on the necessity of the implementation (Zabjek, Kovacic&Mojca, 2009).
The management has to define new strategies in order to accord employees a distinct vision of the orientation that the company is pursuing. The management team must take the lead in showing the employees the importance of such implementation. In order for the management team to do this, the management team itself should understand the essence of such implementation. This would enable them to give the necessary lead in the articulation of the right attitude towards the same direction. The management team must also endorse and offer support to all business decision that are made, and participate in resolving any disputes that may need to be resolved (Komorousova, 2012).
There are some disputes that need to be solved in order to have a smooth transition. The management team must be ready to look for solutions whenever there are issues concerning the implementation of the ERP. When the disputes are not solved in the right way at the right time, there will be negative effects that will not only affect the initiative, but also the subsequent initiatives and results. It is important that the management team understands there are likelihoods of those that are having negative attitude towards the implementation. The management team should therefore watch out to ensure that the initiative is not halted due to such malice intended disputes.
The other thing that the management must do during the implementation is to offer a plan for the implementation process. The definition of a business plan mirroring a long-term vision is important since the implementation of an ERP generally constitutes a repositioning of the organization and its business processes. For this reason, the management team must offer a careful consideration to the aims of the implementation and define their milestones and goals. This is important especially in the realization that an ERP system can determine either the success of failure of the implementation. For this carefulness, some researchers propose a vision of ERP as technological change (a project positioned with a strategy), considering that a business plan and a long-term strategy are crucial immediately the project begins and will regularly be consulted until it is completed (Jen, & Yen-Ching, 2010). This vision, which is highlighted at the start of the project, must define how the ERP and company will relate to each other. In order to avoid delays, this vision must be shared by all people taking part in the project, include the management team, employees, end users, and vendors. Before going live, the top management must ensure that they are already conversant with such a plan. This way, it becomes easier for them to sell the idea to the employees. There must be a universal agreement on the long-term vision, so that the implementation of the plan can be done smoothly (Chen, 2009).
After the top management has made itself conversant with the long-term plan, then they can involve the employees in the articulation of the same. It is crucial that the whole plan and its vision are made to belong to every members of the company. When the attitude that the implementation of ERP is for everyone in the company, it makes everyone feel responsible as being part of the project. Efforts must be put in in order to ensure that the whole plan succeeds. This is unlike when the management takes the plan as their own or for just a part of the company. Such an orientation is likely to make the whole process fail because the employees are left out, and they may not feel like they are part of the plan.
In order to have a successful implementation of the ERP, it is important that the laid down plan and strategy is consulted in the whole processes of the implementation. There should be no single moment of taking chances or risk, rather, all efforts in the implementation should be oriented towards the laid down plan (Leger, Riedl& Jan, 2014).
It is crucial to note that; since the stipulated strategies are to be followed in the whole process of the implementation; it is essential that during the stipulation of the strategies and plans, the relevant factors must be considered. If the relevant factors are not affect in the laid down of the strategies and plans of the ERP implementation, it becomes difficult to follow the stipulated plans (Dantes&Hasibuan, 2011).
Typically expectation and commitment are the main factors influencing ERP projects, and the ERP implementation approaches ought to follow a step-by-step manner. Setting unrealistic goals based on the management’s underestimation of the work often required leads to failure of the ERP process since the implementation does not meet expectations. In order to make informed decisions, and then the ERP project selection process needs to be broken down into manageable components. This ensures that implementation decisions ensure that the management is better commitment to make informed decisions since there is organizational support, while relying on the decision- making methodologies (Lee et al., 2010). Nonetheless, the project teams with proven management skills are better placed to oversee the success of ERP project implementations
The management faces a challenge in managing change given that people may not be familiar with. As such, there is a need to overcome implementation hurdles, with focusing on behavioral and psychological factors likely to give more insights on the ways to improve implementation (Rothenberger, Srite, & Jones-Graham, 2010). This includes looking into the motivation factors that affect ERP users while other approaches highlight the cultural context where uncertainty avoidance may be common in some organizations more than others. The top management is well placed to influence corporate culture emphasizing the benefits of leadership that is strongly committed to the ERP adoption success (Rothenberger, Srite, & Jones-Graham, 2010).
Taking into account both internal and external factors that influence change management in ERP adoption is crucial to managing the ERP. Ram, Corkindale & Ming-Lu (2013), emphasize that the system quality is an impo...