Change management of People & Technology in an ERP implementation Mini-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 Rateb Semester: Fall 2007 Course: MOIS 549 Presented by:  Fady Mahfouz

Agenda PowerIT Organizational Background Situation before ERP implementation ERP implementation Key Success Factors ERP Acquisition process & usage Investigations’ findings Recommendations & Conclusion

PowerIT Organizational Background Based in north England Products: Power supplies and AC/DC converters Revenue: £ 40 millions (steady growth) Workforce: 200 employees Organization: CEO Finance Director Business Dev. Mgr. Strategic Marketing Operations Director ProductionService

Situation before ERP implementation The company had an internal IT dept. Production is automated using an MRPII Other stand-alone application (MS Excel, etc) ERP was regarded as an investment to: Modernize practices, and Provide an integrated software solution Initial investment: £ 360,000 Decision was taken by the CEO & CFO Business development manager was recruited to manage the implementation

ERP implementation KSF Gap between ERP & requirements. Company size Data quality Process standardization Level of customization (modules) The right choice for a package Top Mgmt. support Vendor support Project team competence Cross-functional cooperation Assessing risk and change management for the 3 important dimensions: ERP HRGLAct OMSCInv CRMFABI Technological Organizational People

Acquisition process & Usage Tendering process for system procurement 18 months Unable to fulfill fundamental requirements Money drain Bad support service Low morale Team to Investigate System is a failure

Investigations’ findings Identify 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 into New functionality System interface Reports Assess cost Make justifications Prioritize them TechnicalOrganizational Communication Acquisition -> new staff Lack of trust Unmet expectations Lack of training Business understanding Lack of understanding for business processes Lack of understanding for legacy system

Thank you Open Discussion