ERP Implementation and Organizational Change Management (OCM)

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ERP Implementation and Organizational Change Management (OCM)

ERP Implementation and Organizational Change Management (OCM)

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ERP Implementation and Change management which is also called OCM while Implementing Enterprise Resource Planning software for your business is one of the best steps for the growth of your business. While implementing any MRP or Business software there are changes in the internal and external processes of a company. These processes can include Automation or new workflows and hierarchy distribution within each department.

Further the importance of change management in ERP implementation is to make sure the existing process are optimum to meet the needs of the software that can create resistance within the people are satisfied by the current business processes. In this blog post we will discuss how you can maintain and manage the organizational change handling during the implementation of Enterprise resource planning software for your business.

In simple words – Change is needed in the existing processes for betterment of the workflows – Therefore either the current workflow will be changed based on the software implemented or else the software will be customized as per the business flows. Although most of the time – Current flows within the departments are changed as customizations with some software may be costly or time consuming.

As a manufacturer or a trader during implementing any ERP software you will surely keep a second thought on acceptance of ERP software by the user. Since any new system implemented in the business the user adaptability takes time. As an owner you always keep positive vibes on improvising the process with the new software as your business will reduce manual entries and gain complete insight of the business in few clicks. Although; one of the major mistake done by business owners is to ignore change management that will occur, after implementing new system.

There are user who may not want to go for organizational process changes and some can embrace the changes quickly keeping abreast with the technology. Some employee may hesitate to adopt the changes and some may reject the completely new software by sticking with legacy systems.

How Organizational Change Management can be managed (Best Practices)

Change management in ERP implementation helps you to provide a structure through which business manages and maintain the changes in the processes/structure/culture in the organization – OCM helps and involve employees to accept the changes that occur in the organization. Once the employee migrated to the new changes it ensure implementation of ERP software are successful. Following are some of the best practices to adopt while undergoing change.

Proper Planning

Planning is one of the important part for a smooth OCM – Planning is done with the help of ERP vendor and internal team members. During planning phase you need to outline each and every step of your processes. Some of the areas include timelines, roles, responsibilities, training schedules, etc. Optimizing the best of industry practices can ensure of less unexpected issues and powerful execution of ERP project. Planning also provide you to understand the ROI on your ERP investment.

Communication

Communication plays an important role for OCM your employees and stakeholders should be informed about the decision of implementing and ERP software. Showcasing the positive impact on the growth of business and changes in the job roles and opportunity that the system will provide can encourage employee to accept the ERP software. Continually updating information throughout the implementation, with employees being encouraged to ask questions and seek out support before, during and after the process ensures active engagement.

Support & Training

Training and support is always ignored by many organization after implementing the ERP software, understanding the deeper areas and functions of ERP software build more confidence on what all can ERP software can provide. Also it is important to gain technical knowledge so that the dependency on vendor can be reduced. The main users (lower level employees) should be trained effectively on various functional and technical aspects of the ERP solution.

The major issue with organizational change management is that many people don’t understand what it exactly means specifically for ERP implementation and some may feel to have changes in processes and workflows for betterment of the business. The above components such as planning, training, communication & support help you to emerge with proper OCM while implementing ERP software for your business.

What can happen if you Implement ERP without OCM

Change management plan for ERP implementation is important. If OCM is not followed properly during the implementation of ERP project there may be employees who may not understand what areas of job responsibilities which will change and impact their jobs. Further it may not motivate the users to accept the new processes and stick to the old processes and legacy system. Research shows that 65 to 70 % of projects fails due to ineffective OCM. It helps people to understand how the changes will be fruitful to their job position.

As an Example :

A change in CRM – process will add streamlining of leads and bring more responsibilities & accountability to the Sales manager and after sales & service department for closing the sale and maintaining customer satisfaction. If inputs during the implementation is not communicated properly and training is not provided to the users then the company may miss leads which can bring up further losses in business.

OCM is more about offering soft skills and less technology driven. OCM should be near the heart of your ERP project so that users can able to see what, why & how you’re implementing it.

How Globalteckz help you with ERP software Implementation:

Globalteckz Software and Services is a leading organization offering ERP software implementation for business ranging from Manufacturing Trading and Services industries. Our company is located in Mumbai (India) and has a team of 35+ employee ranging from ERP developers, Project leads, functional experts. We have implemented ERP software for many clients across the globe.

Check out our client list :

For more information on ERP software development contact us on sales@globalteckz.com

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