Blog 5 : Integrating Change

Change management strategies for successful ERP implementation

Synopsis

In this paper provides some arguments build about Change management strategies for successful ERP implementation. Enterprise Resource Planning (ERP) system is a system integration tool to assist an organisation at particular organisational areas in share data and knowledge, cost-saving, and business process performance. Generally, ERP system provides efficiency and effectiveness of system integration across organisation’s functionality, such as finance and accounting, marketing, sales, production, logistics, freight, and many more. An ERP system is suitable for all business processes. On the other hand, there is a failure system in some ERP. Many organisations face some difficulties in workers’ resistance to change an ERP system. They can implement ERP system effectively by promoting the strategies of Change Management in the workplace. This purpose of this paper is to show synchronising the strategies of Change Management and ERP implementation in overwhelming the user resistance to change.

Aladwani (2001) asserted, “Some of the technical strategies that have been proposed to determine ERP success.” There are two most critical marketing research streams are strategic marketing and consumer behaviour. There are three phases of framework process-oriented in workers’ resistance to ERP implementation, such as:

1. Knowledge formulation
2. Strategy implementation
3. Status evaluation.

Critiques

Generally, many workers will shock from something change in their workplace, and most of them feel comfortable with the existing system and they think they need to some efforts to learn. Rabaai (2009) assert that “Resistance to new technology is a noted phenomenon in many cultures, but is one that requires effective change management strategies driven from the top.” Change Management plays the core roles in successful ERP implementation. Epicor (2012) stated, “Employees need to  be introduced to new processes and job roles over a period of time so that they can accept and internalize these developments.”

Reflection

This is some Aladwani’s best work. Notwithstanding this article quite old for today’s research, this article is good and can also be used as a reference for beyond research paper.

REFERENCES

Aladwani, A.M. 2001, ‘Change Management Strategies For Successful ERP Implementation’, Business Process Management Journal, vol. 7, no. 3, pp. 266–275.

Epicor 2012, Best Practices for ERP Implementation [White Paper], Dublin, California: Epicor Software Corporation.

Rabaai, A. 2009, ‘THE IMPACT OF ORGANISATIONAL CULTURE ON ERP SYSTEMS IMPLEMENTATION: LESSONS FROM JORDAN’, viewed 30^th September 2013, http://eprints.qut.edu.au/29838/1/THE_IMPACT_OF_ORGANISATIONAL_CULTURE_ON_ERP_SYSTEMS_IMPLEMENTATION.pdf

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Blog 4: Risk? What Risk?

Synopsis

Ubiquitous leverage the business process modelling approach can accomplish the current process visibility requirement and can be used for future business process improvement projects. The challenge for intellectual is the use of process modelling tools, methodologies, and principles in academic materials. Business process modelling can be visualised by using flowcharts; which have been part of the SD (Software Development) and have been popular in the management; and by using process mapping. In the future modelling will expense in million-dollar ERP implementation, and many organisations will consistently use the simplest drawing tool in their blueprint. They will more focus on the highest implication on benefits, budget, and time in process implementation. It shows the critical failure factors are: strategy, tools, and stakeholders.

Critiques

Rosemann’s insights, tools, and principles are useful to assess the unsuccessful process model. A process model has two standard complexities, such as modelling and process (Rosemann, 2006). The paper found the typical unsuccessful process models are:

1.    Inadequacy of strategic connections

Solutions for successful corporate strategy are:

1. Establish direct or indirect connection to all critical business issues.
2. Well-modelled can assist the real corporate attention and funding competition.
3. An organisation executes their strategy for ongoing process work assistance.

2.    Inadequacy of Governance

Solution is the establishment of clear specification with all model initiative changes adjustment to meet the objectives.

3.    Inadequacy of synergies

Rosemann (2006) suggested that “Be aware of all stakeholders with potential interest in modelling and try to migrate them to one platform.”

4.    Inadequacy of qualified modellers

Solution: business process analyst requires a specific competency in the projects.

5.    Inadequacy of qualified SMEs

Solution: the critical success factor in the project is the use of right combination of SMEs.

6.    Inadequacy of user buy-in

Solution: a project manager has to ensure the appropriate model visualisation.

Reflection

This article is relevant to topic in week 10 “risk associated with changing workflow processes” and it is very useful because the author’s insights, tools, and principals can be used in business processes practice. He elaborated how to change the potential pitfalls become successful in process modelling using tools and approaches.

REFERENCES

Rosemann, M. 2006, ‘Potential pitfalls of process modeling: part A’, Business Process Management Journal, vol. 12, no. 2, pp. 249–254.

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Blog 3 (Week 8) : Implementing Process Management

SYNOPSIS

The article discusses about the managing the successful Enterprise Resource Planning (ERP) projects through planning, implementing and operating using Risk management system. It focuses on the identification of major issues in managing ERP projects and developing a risk management framework; proposed by analysing the risk and effectiveness in the ERP implementation projects at UK-based energy services group; and identifying the risk factors to produce some suggestion in the mitigating measurements. Nowadays, business has changed to the global market. It gives some challenges for an organisation by adopting ERP system to accomplish competitive advantages performance, including obtaining customer expectation and market expansion. The reason is ERP can assist them, especially large enterprises in the solution of the fragmentation issues by integrating all organisations’ workflow. Moreover, there are a major issues in the initiation projects that the effectiveness these systems operation. Furthermore, a successful ERP implementation involves several factors:

1. Clear the aim of business strategic.
2. Top management has strong commitments.
3. Excellent project management
4. Change Management (CM) organisational.
5. A great implementation team
6. Provide good education and training.
7. Focus on performance measurement.

The frameworks risk management are identifying, logging, reviewing, managing, and closing risk. To conclude, UK-based service group succeed in implementing ERP system in their business process.

CRITIQUE

Managing risk across various phases of project and equal emphasize to effective project management, organisational transformation and IT adoption are the key to success in ERP implementation (Dey, Clegg & Bennett, 2010). It is the way to perform the business in the market. Besides, an organisation can use the roll-out strategy, which can support business processes. Berg, Kugeler & Rosemann (2011) support that a successful project management needs some checklists in some tasks; such as:

1. Sensibility;
2. Influence;
3. Motivation;
4. Information and training;
5. Training and consultancy;
6. Documentation, which must be transparent in the business processes and documenting some acceptance report achievements.

REFLECTION

This article is very useful for me, because the author shows about managing a project becomes successful by selecting a suitable ERP vendor for business process functionalities. An organisation will implement the system successfully by following the critical success factors requirements.

REFERENCES

Becker, J. Kugeler, M. & Rosemann, M. 2011, Process Management : A Guide for the Design of Business Processes, 2^nd edition, Springer, Berlin, Heidelberg. Dey, P. K.  Clegg, B. T. & Bennett, D. J. 2010, ‘Managing enterprise resource planning projects’, Business Process Management Journal, vol. 16, no. 2, pp. 282–296.

Blog 2 (Week 6) : Design Principles & Process Management

SYNOPSIS

An organisation defines a BPR (Business Process Re-engineering/Redesign) as their best business strategic practices. The main objective of BPR can be used by a successful organisation for processing their business in a long term. It means BPR has main focus on a process of a business. The main challenges in using BPR are get from the designing and developing the process boundaries (technical); and create a social reaction against the organisational changes (socio-cultural). Utilising an expert approach, which is the best practice for an organisation can perform productivity in the business. There are three major factors involved the best practice in resolving the technical business challenges by using QOBE model (see Fig 1).

Fig 1. QOBE model.

There are varieties of business strategy to accomplish an organisation’s objectives, but the most organisations utilise the approach of TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) as the best practice. This is the stages of TOPSIS approach:

1. Utilise QOBE indicators to express the basic business strategy,
2. Measure using positive score as math approaches to get the highest rank, and sorted to the low score.
3. Utilise the satisfaction measurement in the business strategy and create sub-model from it by analysing from the indicators.
4. Simplify the sub-ideal model as a best practice as same as measurement in the second stage are taken.
5. Indicate the positive score in the result by using ranking.

CRITIQUE

The author approaches using TOPSIS methodology in part of Business Process Redesign (BPR) to perform an organisation’s business process. The factors that involved in the business process to produce a better product quality are

1. Organisation
2. Information from internal and external environment.
3. IT infrastructure. (see Fig 2).

Strategy is the core of the business processes. If the management make a mistake in their decision, they will get difficulties for their market.

Fig 2 . BPR performance schema.

REFLECTION 

This article gives me some knowledge in performing the business process. I think TOPSIS is the best win-win solution for a successful enterprise in the market. They can process the business effectively and efficiently. Eventually, it gives me understanding how to make a customer satisfaction.

REFERENCES

Hanafizadeh, P. Moosakhani, M. & Bakhshi, J. 2009, “Selecting the best strategic practices for business process redesign”, Business Process Management Journal, vol. 15, no. 4, pp. 609–627.

Blog 1 (Week 2) : Business Processes and Organisational Design

Synopsis:

This article focuses on the definition and characteristics of the BCM (stands for Business Case Management); the importance using knowledge work automation; and the necessary steps to overcome the weaknesses in work knowledge support and recommend a novel strategy.

BCM is a support system that is created for improving the work performance in many corporations, which create the work process effectively. BCM performs much better from the traditional system termed as  Case Management (or CM) systems, which used manually, paper-based systems, creates many postponed in their tasks. It is due to the difficulty in automating from the previous tasks. Besides, the existence of technology might be insufficient to assist the dynamic user transformation. There are 14 features of BCM  which includes:

1. The depth of knowledge.
2. Diversity.
3. Can be used in the long term.
4. Sophisticated information.
5. Collaboration and synchronisation.
6. Various members, various task.
7. Interrelation between circumstances.
8. Important characteristic timescales
9. Involves the external activities.
10. Exposure condition difficult to obtain the Corporate Developments.
11. Robust confirming requirements.
12. Heritage.
13. Security.
14. Isolated pouches of automation.

All features in the BCM platform is involved in the standard Business Process Modelling (BPM). Becker, Kuleger, and Rosemann (2011) elaborate the aim of process models involve Application system Design and Organizational Design (see figure 1). As a result, many organizations leverage the BCM to overcome the difficulties in terms of accomplishing the business roles effectively.

Figure 1. The aims of BPM (Becker, Kugeler, and Rosemann, 2011, p. 51).

Critique:

The author approached using BCM as it is quite promising for improving and supporting Knowledge-Intensive Business Process (KIBP) effectively. It can be useful because of its flexibilities, capabilities to handle customers, and provide a quality of service. Besides, it can be used by organization for integrating their organizational structure, and eventually they can meet the high quality products.

Reflection:

This article gives me some benefits. First, it gives me proper understanding how to implement the knowledge worker effectively and efficiently in terms of  growing  the organizations faster, get some profits and become a market leader through Business Processes and Organizational Design. Ultimately , it also gives me detailed description to response the market demands rapidly to meet new customer’s needs.

References

Becker, J Kugeler, M, and Rosemann, M 2011, “Process Management: A Guide for the Design of Business Processes, 2nd edition, p. 51, Springer-Verlag Berlin Heidelberg, New York.

Panian, Z 2011, “A Promising Approach to Supporting Knowledge-Intensive Business Processes: Business Case Management”, World Academy of Science, Engineering, and Technology, vol. 75, pp.642–648.

RELATED ARTICLE:

• 1.  Business Processes and Organizational Design

Introduction

Hi folks.. Nowadays, some organization lost their leading position in the market, because they fail to manage their business processes. Nowadays, a successful organization who can compete intensively in the marketplace, has to notice several crucial factors. First, an organization can be able to lead, build, innovate; and manage the business processes. Second, they have to analyze the market demand-oriented and execute some decision as a part of their strategic management.

Additionally, a successful organization will concern in some factors. First, choosing a product line in the market that can build their image. Second, they have to analyze the customer behavior environment, provide a high service quality, and build a customer’s satisfaction. The other strategies have to be implemented by them. First, they have to develop the market trends rapidly to anticipate from their potential competitors, response rapidly based on the customer’s needs in the market, and build some branches to expand their business network.  For example, Nokia company (as known as Nokia Aktiebolag), who produces mobile phones, was a market leader but they already left behind far away from their competitors, like Apple Inc. and Samsung Corporation. In the history, they were a largest mobile phone vendor in the world for almost a decade. Since 5 years ago, Nokia sales fell significantly in the market, even they left behind from the new competitor like HTC corporation today. There are some reasons that affect their sales. Firstly, they did not design their new business processes and their organisational. Secondly, they didn’t transform their design principles and process management, because they still used their principles to produce the old-fashioned mobile phone while their competitor started to produce smartphones based on Android platform. Moreover, they did not apply their previous process management into the new one, such as overseeing the transformation in their strategy. Similarly, they did not forecast the risk in the future, which happened today. It means they lost their loyal customers that already become their competitor’s customers, such as Samsung’s user, Apple’s user, and others. Lastly, they just changed their product integration with Microsoft Windows Phone as their platform one of their product, Nokia Lumia since 2011. In the same year, they left their own platform, Symbians, because there is a small number of customers use this product.

A blog’s writer provides some best practice in the business process modelling how to compete in the marketplace. Moreover, the writer will elaborate further about :

1. Business Processes and Organisational Design … (Blog 1 / Module 2).
2. Design Principles and Process Management ……. (Blog 2 / Module 6).
3. Implementing the Process Management ………… (Blog 3 / Module 8).
4. Risk? What Risk? ………………………………………. (Blog 4 / Module 10).
5. Integrating Change …………………………………… (Blog 5 / Module 12).

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