Humans are naturally resistant to change, our brains are wired in a way that sees change as a threat therefore, we respond in such a way. Hesitance. It is why when organizations approach new ideas and projects, change and operations/ project managers must take the lead by articulating the implementation of new ERP systems as a vision and picture of the future of the organization.
Implementing a new ERP system is a factor that will impact all of the organization’s departments and employees, so it is crucial to approach this change in such a way that will inspire employees and direct them as a means of accomplishing the business objectives.
Often organizations approach change management in ERP implementation with a project mindset looking at the small picture, rather than with a vision looking at the overall scope of the company. Projects can be approached as something to do that has a definite end, whereas a vision is a longer-term goal with an open end. The main difference is that the project approach mindset gives the impression that the project has an end and employees may ask, “How do I complete this project”, evoking the idea that there will be an end to this implementation plan. Similarly, how a construction project’s end goal is to deliver a finished product, factors such as following a schedule, calculating time and cost come into play with a short-term focus, the end deliverable.
Approaching enterprise resource planning with a vision mindset allows for a bigger emphasis on the long-term, the value that is added to the end consumer. The benefits and its usage. Questions such as how are we going to use it, will it add to work responsibilities of employees, will it improve company efficiency, will it aid in achieving quick ROI, will it lower operational expenses, arise. Although ERP systems have always been approached as the holy grail of business solutions there are times where the implementation methodology has not delivered results, but why is that? Of course, more than one answer arises.
When a project is being implemented by the implementation team, two stakeholders are involved. The implementation partner (IP) and the customer. Most implementation partners and their project team have a project mindset, their objective is to resolve immediate obstacles of the project and bring it to the end of term. Usually, the easiest approach is looked at, with a completion outlook and not consumer added value. ERP systems must be observed as an overall vision for the company with no definite end goal but rather as something you are working on every day and growing. It differs from the project mindset because here we look at the value that’s added after implementation. ERP is implemented with the expectation that there will be future benefits. That is the ongoing company vision.
These different approaches can also be looked at differently. An example can be observed in the case of a customer asking the question, How can I enter and approve an invoice in NetSuite Cloud? An individual with the project mindset would suggest:
Manually enter it in AP to validate it and send it for approval. Once it is approved you can enter manual payments, then when the statement comes, you can upload it into the cash application manually following a manual reconciliation. Then you can regularly run the process to create accounting, accounting for the transactions, both invoices, payments and reconciliation. In about 99% of ERP implementation processes, this solution is applied. This type of project plan and management mainly focuses on getting the task done but it hasn’t been successful in adding extra value, time is spent on entering data but the controls are not being improved. Tasks such as lowering costs or improving relationships with vendors aren’t being catered.
In comparison, a vision outlook can be approached differently. Let’s say the vision for the company is having a few custom process automation. Then you would suggest to a customer to automatically import invoices onto the system, do a basic verification followed by a manual hold. A notification alerting the hold would then be sent to a user who can do the final verification, and finally releasing the hold. A scheduled program can also be set up to send eligible invoices for approval, accounting of invoices, and create a payment batch. The next step would involve a payment file automatically sent to a bank once approved, followed by the bank sending a statement once payments have gone through.
This type of business process scales data entry to a minimum which would reduce user’s work and allow them to aid in tasks that would create better cash flow and strengthening relationships. So why aren’t ERP implementations focusing on the true vision that can come with a cloud software solution?
ERP Buddies is an official Oracle NetSuite Solution Provider and as a partner with many successful implementations on hand, it becomes our responsibility to continuously help companies successfully streamline their business operations and finances. Our focus also lies in synchronizing all departments with our NetSuite ERP solutions and out-of-box customizations to provide clients with better internal visibility for understanding pain points in-depth. With offices in the U.S, Canada ( North America), Philippines, India (Asia) and now also Europe, our NetSuite experts are always accessible globally and make it their priority to create a smooth and positive experience for our clients at every step of the way with heir cloud-based ERP. Our methodology revolves around understanding the client and creating a successful GAP analysis.
For added convenience, our experts will always assist clients throughout the entire implementation process, with on-site support and consultation, along with additional assistance in customizing your system to guarantee it meets your business needs and demands in an efficient manner.