cultural change

Do Not Let ERP Organizational Change Success be a Nuanced Concept

Enterprise Resource Planning (ERP) implementation is a complex and transformative journey for organizations. In this process, the idea of ERP organizational change success extends beyond the conventional notion of a final destination reached during the “go-live” phase. Instead, it is a dynamic and evolving journey throughout the project life cycle, encompassing the pre-implementation phase, the go-live period, and the post-implementation phase. ERP success can become a nuance concept, emphasizing the need for objective management and acknowledging an organizationally agreed upon definition of “ERP success” is crucial.

Some ERP Organizational Change Success Concepts

Markus, Axline, Petrie, and Tanis (2000) describe two categories of ERP success: project success metrics such as being on time, on budget, and functional delivery and business value metrics such as improved inventory management, cycle-times reduction, and time to market reduction.

Stanciu and Tinca (2013) define a successful ERP project as one that accomplishes the stated and desired functionality, utilized as planned, and operational within the planned time and budget.

Ifinedo and Nazmun (2013) describe ERP success as utilizing ERP in order to improve organizational goals.

Stanciu and Tinca (2013) suggest that definitions of ERP success include system quality, information quality, and the quality of outputs.

Defining and Documenting ERP Organizational Change Success

Although it can be challenging to define and agree on ERP success (end-user perception of success may be subjective), the ERP organizational change plan needs to allow for a formal process for defining and documenting success. The organization then needs formal and sufficient mechanisms in which to measure and discuss success. Amid diverse stakeholder viewpoints, there emerges a common challenge: the subjective nature of end-user perception of success. Recognizing this challenge, the narrative emphasizes the necessity for a formal process in the ERP organizational change plan to define and document success. This formalization is vital to mitigate subjectivity and provide a structured framework for assessing success. In essence, the discourse on ERP implementation success reveals a comprehensive understanding that extends beyond mere project management metrics. It encompasses the dynamic utilization of ERP systems to achieve organizational goals, emphasizing the quality of both the system and the generated outputs. Ultimately, the call for a formalized process of defining ERP success underscores the importance of clarity and objectivity in evaluating achievement within the realm of ERP implementation and organizational change.

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