Contents
Introduction 4
An overview of the benefits perceived by companies in implementing an ERP system 5
Operational benefits 6
Managerial benefits 6
Strategic benefits 6
IT infrastructure benefits 7
Organizational benefits 7
The possible disadvantages and problems that may occur in implementing an ERP system; 8
Over-reliance on heavy customization 8
Poor consultant effectiveness 8
Poor IT infrastructure 8
High turnover rate of project team members 8
Poor quality of Business Process Reengineering 9
Poor top management support 9
Poor project management effectiveness 9
Poor knowledge transfer 9
Poor quality of testing 9
Unclear concept of the nature and use of ERP system from the users’ perspective 9
Too tight project schedule 10
Users’ resistances to change 10
Unrealistic expectations from top management concerning the ERP System 10
Change management 10
Importance of change management in ERP implementation 12
Strategies that companies adopt in an attempt to implement successful change 14
Relevant case studies 17
Hershey Food Corporation 17
City Technology Ltd. 19
Conclusion 20
Bibliography 20
Description
This report is based on the following requirement –
Many companies have initiated ERP projects to streamline their business processes. However these projects have an enormous impact on the companies. No matter how many implementations companies have undertaken they seem to all say that they did not get change management correct.
Task is to produce a research paper which discusses:
• An overview of the benefits perceived by companies in implementing an ERP system, and the possible disadvantages and problems that may occur.
• What is change management?
• Why is it crucial to an ERP implementation?
• What strategies have companies adopted in an attempt to implement successful change?
• Relevant case studies (At least 2)