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Change management of People & Technology in an ERP implementation

The American University in Cairo School of Business, Economics & Communication Department of Management. Change management of People & Technology in an ERP implementation. Mini-Project. By: Helen M. Edwards Lynne P. Humphries. Supervised by: Dr. Dina Rateb. Presented by: Fady Mahfouz.

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Change management of People & Technology in an ERP implementation

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  1. The American University in Cairo School of Business, Economics & Communication Department of Management Change management of People & Technology in an ERP implementation Mini-Project • By: • Helen M. Edwards • Lynne P. Humphries Supervised by: Dr. Dina Rateb • Presented by: • Fady Mahfouz Semester: Fall 2007 Course: MOIS 549

  2. Agenda PowerIT Organizational Background Situation before ERP implementation ERP implementation Key Success Factors ERP Acquisition process & usage Investigations’ findings Recommendations & Conclusion

  3. PowerIT Organizational Background • Based in north England • Products: Power supplies and AC/DC converters • Revenue: £ 40 millions (steady growth) • Workforce: 200 employees • Organization:

  4. Situation before ERP implementation • The company had an internal IT dept. • Production is automated using an MRPII • Other stand-alone application (MS Excel, etc) • ERP was regarded as an investment to: • Modernize practices, and • Provide an integrated software solution • Initial investment: £ 360,000 • Decision was taken by the CEO & CFO • Business development manager was recruited to manage the implementation

  5. People Technological Organizational ERP implementation KSF ERP • Gap between ERP & requirements. • Company size • Data quality • Process standardization • Level of customization (modules) • The right choice for a package • Top Mgmt. support • Vendor support • Project team competence • Cross-functional cooperation • Assessing risk and change management for the 3 important dimensions:

  6. Acquisition process & Usage System is a failure • Unable to fulfill fundamental requirements • Money drain • Bad support service • Low morale 18 months Team to Investigate

  7. Investigations’ findings Identify Project Need Tender Invitation -> System choice Detailed Specs & Roll out • Lack of top management support • Conflicts between Bus. Dev. Mgr & other mgrs • Poor interpersonal skills • Bureaucracy • Users’ resistance • Poor collaboration with mgrs -> best guesses • System integration issues • Poor procedures for data migration • Data problems • Basic functionalities • User interface prblms • Mandatory meetings • No active participation • High-level process analysis • No analysis for the current system • Selection to resume with project despite the weak proposals

  8. Recommendations & conclusion Technical Organizational • List of requirements • Categorize them into • New functionality • System interface • Reports • Assess cost • Make justifications • Prioritize them • Communication • Acquisition -> new staff • Lack of trust • Unmet expectations • Lack of training • Business understanding • Lack of understanding for business processes • Lack of understanding for legacy system

  9. Thank you Open Discussion

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