A Study of ERP as a Change Management Tool in Manufacturing Companies

Abstract

Manufacturing Companies today are constantly in search for ways to achieve better business performance and sustain competitive advantages through effective deployment of resources and business processes. To improve business performance, Manufacturing Companies require an efficient planning and control system that synchronizes planning of all processes across the industry. Enterprise Resource Planning (ERP) provides a centralized framework for all data and processes of an industry. It integrates all aspects of a business from planning to inventory control, manufacturing, sales, marketing, finance, customer service and human resources. Manufacturing Companies undertake ERP implementations to achieve tangible benefits including a significant return on investment. Accordingly the most common benefit of Manufacturing Company is for an increase in response time due to better availability of information. Another common benefit is increase in interaction across the company, integration of business operations/processes, improved interaction with customers, reduced direct operating and labour costs, reduced IT maintenance costs, improved lead-time, improved inventory levels and improved interaction with suppliers. A study was undertaken to assess impact of ERP as a Change Management Tool in Manufacturing Companies. This article presents the key findings, conclusions and suggestions.

On an overall basis the study has clearly demonstrated that ERP works as a change management tool in manufacturing companies. This, however to happen, calls for adoption of certain factors that facilitate the change management process. ERP is a major transition from legacy systems to an integrated platform. Such transitions are not easy. However, if the CSFs are duly taken care of, the implementation can be successful and beneficial in terms of tangible results both at the macro and micro level. At the same time companies need to take care of the gaps in the ERP implementation.

Keywords: Change Management, Enterprise Resource Planning, Manufacturing Companies