Change Management of People Case Study Example | Topics and Well Written Essays - 1750 words

Change Management of People - Case Study Example Thus, from this point of view use of 3rd party option would provide them high level of software development expertise and application domain expertise. Though, they are from outside of the company they lacked the local company related knowledge. 2.0 Major Problems Encountered During the Selection and Implementation Phases of the Project Enterprise Resource Planning (ERP) system at present situation is in huge demand by both manufacturing as well as service organizations since they provide a strong integrated result to the information system as organization needs. With ERP package an employee can be able to run their company with a single system which can incorporate the whole business process and can make an enterprise-wide view of major corporate information. ERP software is a set of functions that connect various systems in an organization such as manufacturing, sales force, human resources, financial, data warehousing and document management. It also helps the organizations to han dle task which may include order processing along with production scheduling. Companies experience huge challenges and problems at selection as well as implementation of the all stages of ERP system life cycle (Almahdi, â€Å"Introduction†). The Chief Executive Officer of Power IT decided to implement ERP system in the organization by purchasing it from the third party vendor. The staffs were not able to develop such software due to lack of domain knowledge. Thus, through tendering process the software was acquired. For the selection process the CEO, financial director and business development manager need to undergo various selection processes. An invitation was sent to the potential stakeholder by the business development manager. The tender was then reviewed properly by comparing it to the major requirements of the system and three vendors were selected. They again made presentation about the product to Power IT and desired vendors got the contract. The process of implemen ting the software throughout the organization was discussed with the vendor. Regardless of the major benefits that ERP software packages provide in incorporating and managing multi-functional procedures of business, there are several problems and barriers that can be related to such an implementation. The most important challenge is to amalgamate existing legacy method and function with the ERP system in an attempt to provide a common interface. Moreover, implementation of ERP systems is intricate, challenging, high-priced project and time consuming for every organization. The difficulties of ERP implementation assist to plan in a better way and facilitate more successful ERP implementation. The different barriers that can be raised during implementation of ERP system are organizational, technical and managerial barrier (Almahdi, â€Å"Barriers and Difficulties of ERP Implementation†). 3.0 Problems Encountered After Implementation ERP system was implemented in order to fulfil l the requirements of the business. However, after eight months of using this system it was found that the system was not performing well and it was not meeting the business