ERP won't solve your organisational problems

when change is introduced into a business, there will naturally be a period during which people must adapt to the new processes and procedures. In this period, work outputs and efforts may drop dramatically. The focus of change management is to minimise the length of this decline and introduce the new processes into the standard operating procedures and culture of the business, so that optimal performance levels can be quickly realised.

No matter what the size of a business, changing its processes is a challenging task, Fenner says. Since processes need to be as repetitive as possible to ensure constant quality and delivery times to customers, these business processes tend to be difficult to change. In this era of mass customisation, flexibility is a key issue and change management should therefore take the desired level of flexibility into account.

“Change has become an ongoing phenomenon and business process re-engineering has become a necessity for the survival of businesses today. One of the innovative ways to manage change in the implementation of an enterprise resource planning (ERP) system is to adopt a comprehensive change management methodology.”

The key drivers of opting for an ERP system are the introduction of industry-standard processes which are embedded in the application, integration across business functions leading to transparency, access to real-time information, analytical reporting for business decisions, and adoption of state-of-the-art technology providing security and scalability. The objectives of embarking on an ERP implementation are to align business objectives with technology solutions, evolve the organisational value chain by enhancing customer confidence and stakeholder commitment, and achieve better organisational resource and asset utilisation.

In the lead up to large-scale change brought about by business system implementations, there are multiple complex influences at play that impact perceptions that the organisation might not be ready for the change effort. These influences manifest in uncertainty, ambiguity in roles and responsibilities and in many cases, information overload. Organisational change management is often considered to be one of the most important success factors for enterprise system implementations and has even be referred to as a critical success factor.

It is interesting to note that most implementation failures are concerned with organisational, not technical issues, Fenner says. “In order to mitigate the risks of these failures, businesses must recognise that change management is critical to the success of the project. By focusing the ERP implementation on change management, an organisation is better positioned to understand, ahead of time, the risks to project success and make appropriate adjustments to the business processes to combat failure.”

He defines change management as managing modifications to an organisation's culture, hierarchy, and business processes in order to achieve a desired outcome. Therefore, change management should be seen as a continual process or method rather than a series of tools or exercises. What is important to consider is that change management must be maintained throughout each stage of the ERP implementation, from pre-adoption through implementation, to post implementation.

“One way to ensure success is to understand from the outset that an ERP system is a means and not an end. Merely implementing an ERP system will not increase the efficiency of the business - it is a tool and a process for improving operations. So, expecting the ERP system to solve all the organisational problems is like adopting performance measures but never checking on the progress of the measures. Certain factors cannot be compromised when considering adoption. One of these is that staff must actively manage the implementation of the ERP system and know what the greatest project risks are,” Fenner concludes.

Softline Accpac

Softline Accpac is a global provider of business management solutions including financial, distribution, service management, retail, warehouse management, manufacturing and CRM to the mid-range market. Its solutions are delivered to 130 countries exclusively through its global network of solution providers including over 150 throughout Africa. Softline Accpac's product line includes: Accpac ERP, Accpac CRM, Accpac RMS, Accpac Warehouse Management System and Accpac Insight.

Softline

Softline is a leading provider of accounting, payroll, CRM and ERP software solutions to small, medium-sized and large companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia. Focused on the development of accounting, payroll, CRM and ERP software solutions, Softline has a 20-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run its businesses efficiently. Softline's leading brands include Softline Accpac, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group's product offerings provide Softline customers with comprehensive, well-branded accounting, payroll, CRM and ERP software solutions. In November 2003, Softline was acquired by the Sage Group plc, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium-sized and large business community. Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll, CRM and ERP software solutions that improve the efficiencies of businesses around the world.