Report on Technological era and the implementation of (Enterprise Resource Planning) ERP

ERP (Enterprise asset arranging) is fundamentally a framework or the product that better helps the associations for the administration along with the integration of the predefined & strategic goals and objectives of the business. The ERP frameworks are critical for the associations since they furnish the associations with the single frameworks for the administration of different procedures of the firms.

The significant integration that may occur by utilizing the ERP framework incorporates the acquisition of the stock, the vital arranging, advertising of the items, sales and limited time methodologies, monetary administration alongside the administration of the human asset and the other hierarchical resources. Throughout the years, these frameworks have developed to the conceivable degree so as to encourage the mix of the business forms. They additionally give the clients remote access. An ERP framework is if not actualized by an association, at that point it will, in general, make that ERP framework inadequate through the inefficiency of the system (Investopedia, 2019).

Figure: ERP system

Features of change management in the context of an organization who is intending to implement the ERP system:

The main thing which is steady in this world is the change. Nothing is void from it. It tends to be the situation of the individual's life or an association where procedures should be defined with respect to the change. The change is if having positive consequences, at that point it should be acknowledged so as to give the firm positive results. On the other hand, the change is if having the negative outcomes, at that point it should be waved off. The noteworthy highlights of the management of the change are as given:

·         It is about basic leadership so as to receive a systematic methodology alongside the thought of the human side.

·         It will, in general, decide the long term responsibility of the higher specialists.

·         The pioneer's association is compulsory for each progression of change management.

·         The responsibility for key players is better guaranteed through the approaches to change management.

·         The correspondence is made increasingly obvious and normal by utilizing an effective & efficient medium.

·         The importance of the corporate culture is better recognized.

·         The preliminary advances are taken to better tackle the change.

·         The representatives who are influenced because of progress are better upheld by the firm  (valtech, 2019).

Determination for the reasons why it is mandatory to manage the change for the implementation of the ERP systems:

Change management is perceived to be fundamental for the usage of ERP on the grounds that it requires the organizations to streamline along with redesigning the business forms. When the Enterprise Resource planning is being actualized for the business entity then the firm is committed to contemplating the change management. Both the business procedures and the representative's duties are changed because of the usage of the ERP frameworks. One thing in such a manner is the considerable management of the progressions since this is the main key to get the advantages through the execution of the ERP frameworks (varnaaz, 2019).

When the ERP frameworks are executed at that point change management gets significance for the firm. The ERP frameworks will, in general, show the gigantic obligations alongside the potential. In spite of the fact that the execution of ERP is earth-shattering choice yet the benefits and the advantages that can be accomplished from these frameworks are going to provide the long term benefits. The execution of these frameworks can all the more likely be overseen by having regard for the change management. The change management will oversee both the assets and the business progressions. When overseen then these progressions are incorporated to the recently executed ERP frameworks so as to get the positive results. These positive outcomes better help to achieve the organizational goals and the objectives (ctnd, 2019).

According to the research study, ERP system failure in the implementation of a project is directly influential for the overall outcomes. However, researchers studied that ERP system could be made effective in the organization and risk, cost, or time related goals could be accomplished easily just by the appropriate selection of software fit. A major reason behind ERP implementation failure is poor communication system. Project management should have to confirm an effective communication system in the project team to ensure the right implementation of ERP. Thus to address change management related projects managerial team should have to ensure availability of all required systems and strategies which can make ERP implementation effective and right. Moreover, at the same time management should also avoid such strategies and practices which can have the potential to fail ERP implementation (Kohansal, 2019).

An identification of why people in organizations tend to oppose the change:

Following are the fundamental reasons that make the individuals oppose the change:

·         The representatives may have the dread for the activity uncertainty or the loss of the current employment.

·         The remunerating arrangement of the association may be adjusted inadequately.

·         The workers may get the dread for the execution of obscure.

·         The trouble level may ascend because of the weight from the companions.

·         The level of trust may get feeble. It might offer ascent to the atmosphere of the question.

·         The change may offer ascent to the legislative issues in the association.

·         The workers may have the dread for the misfortune or the disappointment.

·         The authoritative usage approach may be flawed.

·         Sometimes employees consider that change and ERP implementation should be made at the right moment to take benefit. However, when managers plan for change and implementation of ERP system then they oppose this change because they consider it an inappropriate time to implement ERP and change plan in the project.

Strategies to overcome the employee's resistance to ERP implementation and change management:

In order to defeat the obstruction for the change the below-given techniques can be contemplated:

·         The higher administration ought to impart to the representatives in regards to the change before it happens.

·         Exhibit your assurance for the change.

·         The proper guidelines and the rules should be shared which are related to the change.

·         Through an increase in the knowledge of employees project management can reduce resistance to change. For instance, training sessions and meeting can be organized to communicate the possible impact of ERP implementation to convince them and control their resistance for change.

Basic modules of Technological era and the implementation of (Enterprise Resource Planning) ERP

For any organization, the implementation of the ERP system is crucial because it helps the firms in effective control and the management of the business processes. The information which is available in an ERP system can better be scanned in order to make the strategic decision regarding the organizational goals & the objectives.

In order to provide ERP solutions either the traditional one or the Cloud-based ERP systems, there exist different vendors and the suppliers in the market place. An ERP is formed through the integration of various sub-modules which collectively make the entire ERP system. In an ERP the basic modules are as given:

·         Inventory: It is about maintaining the stock in/ stock out of the firm. It can be related to both the sale and the purchase of the stock. Thus ERP system is required to be implemented in the organization to meet these requirements of inventory management.

·         Purchase: the purchase for the material, machinery and other items for business are recorded to purchase module of the ERP system. Failure of purchase-related ERP system can bring a negative impact on overall business operations of the company as without right and successful implementation of ERP system project management cannot record details of purchases and operational planning will influence.   

·         Sales & marketing: The details related to the firm’s promotional campaigns and the sales of the product are part of this sub-module. Failure of sales and marketing related ERP system will make it difficult for the managerial staff members to collect, maintain, analyze, and forecast sales and marketing related expenses, revenue, and activities.

·         Human Resource: This sub-module of the ERP system is helpful in the management of human resources. The information which is a part of this sub-module is all about the employee's job performance, their attendance, working hours, salary & bonuses, rewards & the compensations along with the job leaves and the encashment for the same. The other parameters which can be included in this sub-module may include the travelling expense etc. 

·         Accounting & Finance: This sub-module is responsible to maintain the record for the firm’s sales & the purchases along with the other expenses & the revenues etc. It better helps the firm to know the firm’s growth rate along with the profits or the losses for a specified tenure.

·         CRM (Customer Relationship Management): The customers are the king. It is mandatory to maintain their records. It better helps to get an insight of the loyal customers.

·         SCM (Supply chain management): This module maintains the data for the product from the production towards the flow of product to the final consumer.

·         Production/ Engineering: For manufacturing firms, this module plays a significant role. It is all about to maintain the information about the production/ engineering (esds, 2019).

Figure: Basic modules of the ERP system

Summary of Technological era and the implementation of (Enterprise Resource Planning) ERP

In today's era of technology, every organization is in the need for having a system that can better help a firm in the integration of the business processes. This is done by making use of the ERP system. An ERP (Enterprise asset arranging) is fundamentally a framework or the product that better helps the associations for the administration along with the integration of the predefined & strategic goals and objectives of the business. The significant integration that may occur by utilizing the ERP framework incorporates the acquisition of the stock, the vital arranging, advertising of the items, sales and limited time methodologies, monetary administration alongside the administration of the human asset and the other hierarchical resources.

The main thing which is steady in this world is the change. The change is if having positive consequences, at that point it should be acknowledged so as to give the firm positive results. On the other hand, the change is if having the negative outcomes, at that point it should be waved off. The employees may resist the specified change that is going to incur in the organization. the main reasons behind it may relate to the job security of the employees. These insecurities need to be mitigated by having conversations with the employees. Also, by exhibiting the assurance for the change.

References of Technological era and the implementation of (Enterprise Resource Planning) ERP

ctnd. (2019). How change management benefits your ERP implementation. Retrieved from https://www.ctnd.com/organizational-change-management-benefits-erp-implementation/

esds. (2019). Basic modules of ERP system. Retrieved from https://www.esds.co.in/blog/basic-modules-of-erp-system/#sthash.B3F2Q90W.dpbs

investopedia. (2019). Enterprise Resource Planning. Retrieved from https://www.investopedia.com/terms/e/erp.asp

Kohansal, M. A. (2019). LESSONS FROM FAILURE ERP IMPLEMENTATIONS. Conference: NOKOBIT 2019, 1-16.

valtech. (2019). The 8 key features of the successful change management strategy. Retrieved from https://www.valtech.com/insights/the-8-key-features-of-a-successful-change-management-strategy/

varnaaz. (2019). Significance of Change management in ERP implementation. Retrieved from https://www.varnaaz.com/significance-of-change-management-in-erp-implementation/