Change management benefits from ERP software
ERP , or Enterprise Resource Planning , is a software many corporations use to optimize day-to-day business activities such as change management, accounting, project management, and supply chain operations. Change management is the process used by companies to prepare for change, and then implement the change as smoothly as possible. The ERP Change Management Plan uses key elements of ERP to improve performance throughout implemented modifications. There are several ERP fundamental elements or best practices that provide a framework for change management:
- Access to Information
- Communication
- Making Informed Changes
- Data Protection
So what do each of these phrases mean when ERP is used for managing the effect of new business processes, changes in organizational structure or cultural changes within an enterprise? Let's find out.
Access to Information
ERP software makes any data easy to understand through its color-coded charts, graphs, and a single data center. Because ERP software has a single, compiled data center instead of a different data center for each department. Having every team leader or heads of various departments easy access to all information fosters trust throughout the company and dissuades hesitancy to change. ERP software also allows the employees to have access to this critical information. The data eases the confusion during the implementation of the new processes or organization structure allowing for less backlash. Employees will understand and see why things are happening, and what the changes put in place will ensure. Access to information builds the relationship between people, processes, and systems.
Communication
Communication is a vital part of any successful change. Communication is even more critical in business, as a lack of communication can cause employee backlash, loss of income, wrong decisions, and many more problems. People cannot accept what they do not understand. Access to data allows everyone involved in the decision-making process to communicate efficiently to their respective departments. ERP software also enables every employee to receive the same company-wide messages. This ties in precisely alongside the easily accessible information, and helps lead change as well as reducing confusion throughout employees, thus reducing potential backlash as a change rolls out. Not only does communication minimize possible confusion, it also allows inter-departmental processes to be optimized, overall providing a smoother running business. Allowing an ERP system to facilitate this change ensures that there are open communication channels between departments and across hierarchical boundaries.
Making Informed Changes
As mentioned and discussed in the last two sections, ERP software allows information to be accessed quickly and communication to be bountiful through different departments. Not only are these beneficial to the day-to-day workplace, but they also allow team leaders, managers, consultants, and anyone else involved in change management to make informed changes and decisions. ERP software keeps real-time, updated information, and keeps the related infographics updated accordingly. These informational visuals keep the people involved with change management informed for the business's best possible change in question. Because of the expanded participation in communication abilities, these team leaders can receive real-time feedback from employees, providing a different perspective on changes before they roll out and take hold. Because of how informed everyone can stay, the people involved will evaluate each change's risk-reward ratio correctly. Educated evaluation lets only the most efficient changes be made, effectively helping a business reach peak process improvement for any situation because of their ERP software. The nature of tasks or even job roles of employees change when ERP is implemented. Employees need to know what the transition from a functional oriented to a process oriented organization involves, its benefits, and how their tasks will change once the system goes live.
Data Protection
One of the most dangerous things that could happen during change management is the loss of data control. For example, if data gets released to the wrong person, that person could release the information business-wide. Suppose that information is not final or detrimental to a particular department. In that case, this is extremely harmful to the process of change management as there could be backlash before anything is final. Another example of detrimental data loss is miscommunication. If one person does not receive the correct information, this could result in miscommunication, confusing the team responsible for change management. ERP software alleviates these problems, as data is easily shared with the necessary team members, but only updated, changed, or created by authorized users in the ERP system. Not only does ERP software keep a strict list of people who can access data to change it, but it also keeps a log of who last changed information to maintain complete transparency through the change management team.
The Power to Change
In conclusion, ERP software is a well-rounded business management system that enables change management to become a much easier process. Easily accessible information, widespread communication, and transparency create an updated, well-informed team because of real-time data. Change management benefits from ERP software by allowing for a streamlined day-to-day operation for necessary decisions to encourage growth and a more flexible environment.
