1. GENERAL BENEFITS OF ENTERPRISE 2. HOW DO ERP SYSTEM WORKS?

RESOURCE PLANNING
An ERP system – also called an ERP suite – is
Businesses employ enterprise resource made up of integrated modules or business
planning (ERP) for various reasons, such as applications that talk to each other and share
expanding, reducing costs, and improving common a database.
operations. The benefits sought and realized
between companies may differ; however, Each ERP module typically focuses on one
some are worth noting. business area, but they work together using
the same data to meet the company’s
1. Improves Accuracy and Productivity needs. Finance, accounting, human resources,
Integrating and automating business sales, procurement, logistics, and supply
processes eliminates redundancies and chain are popular starting points. Companies
improves accuracy and productivity. In can pick and choose the module they want and
addition, departments with interconnected can add on and scale as needed.
processes can synchronize work to achieve
faster and better outcomes. ERP systems also support industry-specific
requirements, either as part of the system’s
2. Improves Reporting core functionality or through application
Some businesses benefit from enhanced real- extensions that seamlessly integrate with the
time data reporting from a single source suite.
system. Accurate and complete reporting help
companies adequately plan, budget, forecast, ERP software can be bought using a cloud
and communicate the state of operations to subscription model (software-as-a-service) or a
the organization and interested parties, such licensing model (on premise).
as shareholders.

3. Increases Efficiency 3. THREE TYPES OF ERP DEPLOYMENT

ERPs allow businesses to quickly access
1. Cloud ERP
needed information for clients, vendors, and
With cloud ERP, the software is hosted in the
business partners. This contributes to
cloud and delivered over the Internet as a
improved customer and employee satisfaction,
service that you subscribe to. The software
quicker response rates, and increased
provider generally takes care of regular
accuracy rates. In addition, associated costs
maintenance, updates, and security on your
often decrease as the company operates more
behalf. Today, cloud ERP is the most popular
efficiently.
deployment method for many reasons –
including lower upfront costs, greater scalability
4. Increases Collaboration
and agility, easier integration, and much more.
Departments are better able to collaborate and
share knowledge; a newly synergized
2. On-Premise ERP
workforce can improve productivity and
This is the traditional model for deploying
employee satisfaction as employees are better
software where you control everything. The
able to see how each functional group
ERP software is typically installed in your data
contributes to the mission and vision of the
center at the locations of your choice. The
company. Also, menial and manual tasks are
installation and maintenance of the hardware
eliminated, allowing employees to allocate
and software is your staff’s responsibility.
their time to more meaningful work.
3. Hybrid ERP
For companies that want a mixture of both to
meet their business requirements, there is
the hybrid cloud ERP model. This is where
some of your ERP applications and data will be
in the cloud and some on premise. Sometimes
this is referred to as two-tier ERP.
5. HOW DO YOU KNOW YOU’RE READY
FOR AN ERP SYSTEM?
4. 10 THINGS TO LOOK FOR IN AN ERP
SYSTEM 1. You’re spending more time on daily
activities. If it’s taking longer to manage key
1. A common database: Centralized activities, like closing the books, too many
information and single version of the truth – disparate applications may be to blame. ERP
providing consistent, shared data and a software integrates solutions and data into
cross-functional view of the company. one system with a common interface, making
2. Embedded analytics: Built-in analytics, it easier for business units to communicate
self-service BI, reporting, and compliance and do their jobs effectively.
tools that can deliver intelligent insight for 2. You have many unanswered business
any area of the business. questions. Can you easily answer important
3. Data visualization: Visual presentation of questions about your business, such as
key information with dashboards, KPIs, and revenue per product line or number of
point-and-click analytics to assist in quick returns? If not, segregated systems and a
and informed decision-making. lack of access to metrics and KPIs may be
4. Automation. Automation of repetitive tasks holding you back. Enterprise resource
as well as advanced RPA powered planning software is designed to address
by AI and machine learning. these challenges.
5. Consistent UI/UX: The same look and feel 3. You have runaway business processes. Are
across modules – as well as easy-to-use there areas where your processes are getting
configuration and personalization tools for away from you? Maybe it’s harder for you to
processes, users (including customers and manage inventory, satisfy customers, or keep
suppliers), business units, locations, and costs in check. If so, your business processes
product lines, for example. may need to be restructured to accommodate
6. Integration: Seamless integration of growth or changing priorities – a natural fit for
business processes and workflows – as ERP software.
well as open and easy integration with other 4. You have manual processes with multiple
software solutions and data sources, data sets. Are most of your departments
including from third parties. using their own applications and processes to
7. New technologies: Support for AI and get things done? If so, chances are you’re
machine learning, digital assistants, spending too much time on duplicate data
the IoT, RPA, security and privacy, and entry. When information can’t flow between
mobile. systems, reporting takes longer, errors
8. Technology platform: A fast, proven, and happen often, and decision-making is
stable technology stack for this long-term hampered.
investment – including a low-code/no-code 5. You’re missing out on fast-moving
platform, iPaaS, data management, and opportunities. Are you spending so much time
more. running your business that you can’t pursue
9. Multinational support: Including for exciting new opportunities? Newer ERP
languages, currencies, and local business systems include advanced, intelligent
practices and regulations – as well as capabilities, like machine learning and
technical support for cloud services, predictive analytics, that make it easier to
training, help desk, and implementation. identify and capitalize on profitable new
10. Choice of deployment: Cloud, on- ventures.
premise, or hybrid.
 offer valuable insights and lessons that can be
leveraged in future change efforts
6. 5 STEPS IN THE CHANGE MANAGEMENT
PROCESS
7. SYMPTOMS OF FAULTY CHANGE
1. Prepare the Organization for Change - For MANAGEMENT
an organization to successfully pursue and
implement change, it must be prepared both  Employees are asked to change too much,
too rapidly, and they become overwhelmed.
logistically and culturally. Before delving into
logistics, cultural preparation must first take  Decisions are handed down without
place to achieve the best business outcome. consultation and feedback from the people
who will be using the new technology every
2. Craft a Vision and Plan for Change - Once day.
the organization is ready to embrace change,
managers must develop a thorough, realistic,  Management assumes that communication
and strategic plan for bringing it about. is the same as engagement – it isn't.

 Managers focus on changing processes

3. Implement the Changes - After the plan and systems but fail to consider the way
has been created, all that remains is to follow employees work, what they believe about
the steps outlined within it to implement the the technology, and how it will affect their
required change. Whether that involves jobs.
changes to the company’s structure, strategy,
systems, processes, employee behaviors, or  Insufficient information is provided as the
other aspects will depend on the specifics of project progresses. Stakeholders may not
the initiative. understand timelines, expectations, and
what participation will be required of them.
4. Embed Changes Within Company Culture
 The IT department may believe that they
and Practices - Once the change initiative has own the project and fail to account for and
been completed, change managers must support the day-to-day challenges that arise
prevent a reversion to the prior state or status after going live.
quo. This is particularly important for
organizational change related to business  Siloed work efforts are still in place because
processes such as workflows, culture, and there was no confirming agreement across
strategy formulation. Without an adequate departments.
plan, employees may backslide into the “old
way” of doing things, particularly during the
8. KEY BENEFITS OF CHANGE
transitory period.
MANAGEMENT IN ERP IMPLEMENTATION

5. Review Progress and Analyze Results - 1. User Adoption - Change management helps
Just because a change initiative is complete organizations achieve higher user adoption rates
doesn’t mean it was successful. Conducting by actively involving employees in the change
analysis and review, or a “project post process. By addressing concerns, providing
mortem,” can help business leaders training, and soliciting feedback, change
understand whether a change initiative was a management promotes acceptance and buy-in
success, failure, or mixed result. It can also from end users, leading to a smoother transition
and increased system utilization.
 of change. Leaders should provide regular
updates to employees, addressing their concerns
and keeping them informed about the progress
and impact of the change initiative. Transparency
2. Minimizing Resistance and Disruption - builds trust and reduces uncertainty, which can
ERP implementations can be disruptive and met help alleviate resistance and foster a more
with resistance from employees who are supportive environment.
accustomed to existing processes. Change
management identifies potential sources of 3. Build a Strong Change Management
resistance and develops strategies to mitigate Team - Change management requires a
them, ensuring a more seamless transition and dedicated team with the right skills and expertise.
minimizing disruption to business operations. Identify individuals who are passionate about
driving change and enlist them to lead and
3. Managing Expectations - Change support the initiative.
management facilitates effective communication
and manages stakeholders' expectations 4. Develop a Change Management Plan - A
throughout the ERP implementation journey. By well-structured change management plan outlines
providing timely and accurate information, the necessary steps and activities to implement
organizations can address uncertainties and build the change successfully. It should include clear
trust among employees, resulting in a more objectives, a timeline, resource allocation, and
positive and supportive environment during the strategies for addressing potential risks and
transition. challenges. The plan should be flexible enough to
accommodate adjustments while providing a
4. Maximizing Benefits Realization - ERP roadmap for the change process.
systems offer numerous benefits, including
streamlined processes, improved data visibility, 5. Identify and Address Resistance - Change
and enhanced decision-making. Change often triggers resistance from employees who
management ensures that employees understand may fear the unknown or perceive the change as
these benefits and are equipped with the a threat. Proactively identify potential sources of
necessary skills and knowledge to leverage the resistance and develop strategies to address
system's capabilities, maximizing the return on them. Involve employees in the change process
investment by soliciting their input, providing training and
support, and addressing their concerns with
9. STRATEGIES FOR EFFECTIVELY empathy and understanding.
MANAGING ORGANIZATIONAL CHANGE
6. Empower and Engage Employees-
1. Create a Compelling Vision- A clear and
Employees who feel empowered and engaged
compelling vision is the foundation for effective
are more likely to embrace change. Provide
change management. Leaders must articulate a
opportunities for them to participate in decision-
compelling reason for the change, explaining how
making, share their ideas, and contribute to the
it aligns with the organization's mission and
change initiative.
values. This vision should inspire and motivate
employees, helping them understand the benefits
7. Support and Training - Change often
of change and the consequences of maintaining
requires employees to acquire new skills or adapt
the status quo.
existing ones. Offer comprehensive training
programs to ensure employees have the
2. Communicate Openly and Frequently-
knowledge and tools they need to succeed in the
Effective communication is essential during times
changing environment. Provide ongoing support,
coaching, and mentoring to help employees critical during ERP implementation. Communicate
navigate the transition and address any the reasons for the change, the benefits it will
challenges they may encounter. bring, and how it aligns with the organization's
goals.
8. Monitor Progress and Adjust - Regularly
monitor the progress of the change initiative and Establish various communication channels such
gather feedback from employees. Evaluate as town hall meetings, newsletters, intranet
whether the desired outcomes are being achieved portals, and dedicated communication teams to
and identify any areas that require adjustments or keep employees informed at every stage of the
additional support. This continuous assessment implementation.
allows leaders to make informed decisions and
refine the change strategy as needed. 4.Conduct a Comprehensive Impact
Analysis - Before implementing the ERP
9. Celebrate Successes - Recognize and system, conduct a thorough impact analysis to
celebrate milestones and achievements understand how the change will affect different
throughout the change journey. Acknowledge the departments and individuals within the
efforts and contributions of individuals and teams organization.
who have embraced the change and made a
positive impact. Celebrating successes not only 5. Involve and Empower Employees -
boosts morale but also reinforces the value of Involving employees in the ERP implementation
change and encourages a culture of continuous process increases their ownership and
improvement. commitment to the change. Engage employees
through focus groups, workshops, and cross-
10. CHANGE MANAGEMENT BEST functional teams to gather their input, insights,
PRACTICES FOR ERP IMPLEMENTATION and suggestions. Empower them by providing
training, resources, and opportunities to develop
1. Start with a Solid Change Management
new skills required to work with the ERP system.
Strategy - A well-defined change management
strategy serves as a roadmap for successful ERP 6. Provide Comprehensive Training -
implementation. The strategy should include a Effective training is vital for successful ERP
clear vision, objectives, and a comprehensive adoption. Develop a training plan that
plan for managing the people side of the change. encompasses both technical and process-related
It should address communication, training, aspects of the ERP system. Offer a mix of
stakeholder engagement, and resistance classroom training, e-learning modules, hands-on
management. practice, and user manuals. Tailor training
programs to different user groups based on their
2. Establish Strong Leadership and
roles and responsibilities.
Sponsorship - Effective change management
requires strong leadership and sponsorship from 7. Anticipate and Address Resistance -
top management. Leaders should actively Resistance to change is natural, but it can hinder
communicate the need for change, advocate for ERP implementation progress. Proactively identify
the ERP system, and lead by example. Their potential sources of resistance and develop
visible support and involvement instill confidence strategies to address them. Provide a platform for
and encourage employees to embrace the employees to voice their concerns and address
change. them empathetically. Offer ongoing support and
reinforcement during the transition to alleviate
3. Communicate Early and Frequently -
resistance and facilitate acceptance.
Transparent and consistent communication is
8. Monitor and Evaluate Progress - Establish
key performance indicators (KPIs) to measure the
success of ERP implementation and change
management efforts. Regularly monitor and
evaluate progress against these KPIs. Use
feedback mechanisms such as surveys, focus
groups, and user forums to gather insights and
make necessary adjustments to the change
management approach.

9. Celebrate Success and Continuous

Improvement:

Acknowledge and celebrate milestones and

successes achieved during the ERP
implementation journey. Recognize individuals
and teams for their efforts and achievements.
Additionally, embrace a culture of continuous
improvement, encouraging feedback, and
incorporating lessons learned into future change
initiatives.