Change management of People & Technology in an ERP

implementationMini-Project

By: Helen M. Edwards Lynne P. Humphries

The American University in Cairo

School of Business, Economics & Communication

Department of Management

Supervised by:Dr. Dina RatebSemester: Fall 2007Course: MOIS 549

Presented by: Fady Mahfouz

AgendaPowerIT Organizational Background

Situation before ERP implementation

ERP implementation Key Success Factors

ERP Acquisition process & usage

Investigations’ findings

Recommendations & Conclusion

PowerIT Organizational BackgroundBased in north EnglandProducts: Power supplies and AC/DC

convertersRevenue: £ 40 millions (steady growth) Workforce: 200 employeesOrganization: CEO

Finance Director

Business Dev. Mgr.

Strategic Marketing

Operations Director

Production Service

Situation before ERP implementationThe company had an internal IT dept.Production is automated using an

MRPIIOther stand-alone application (MS

Excel, etc)ERP was regarded as an investment

to:Modernize practices, and Provide an integrated software

solutionInitial investment: £ 360,000Decision was taken by the CEO &

CFOBusiness development manager was

recruited to manage the implementation

ERP implementation KSFGap between ERP & requirements.Company size

Data qualityProcess standardization

Level of customization (modules)The right choice for a packageTop Mgmt. supportVendor supportProject team competenceCross-functional cooperationAssessing risk and change

management for the 3 important dimensions:

ERPActGLHR

InvSCOM

BIFACRM

TechnologicalOrganizational

People

Acquisition process & Usage

Develop invitationto tender

Roll outsystem

IdentifyNeed

Shortlist potential vendors

Choose vendor’s system

Produce detailed specs

Tendering process for system

procurement18 months

• Unable to fulfill fundamental requirements

• Money drain

• Bad support service

• Low morale

Team to Investigate

System is a failure

Investigations’ findingsIdentify Project Need

Tender Invitation -> System choice

Detailed Specs &Roll out

• Mandatory meetings

• No active participation

• High-level process analysis

• No analysis for the current system

• Selection to resume with project despite the weak proposals

• 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

Recommendations & conclusion

List of requirements

Categorize them intoNew functionalitySystem interfaceReports

Assess costMake justificationsPrioritize them

Technical OrganizationalCommunication

Acquisition -> new staff

Lack of trustUnmet expectationsLack of training

Business understandingLack of

understanding for business processes

Lack of understanding for legacy system

Thank you

Open Discussion