Changing the ERP System in a Non-for-Profit Global Organization

By

ACKNOWLEDGEMENT

This research became possible only because of support from my research supervisor and my loved ones. Hence, I would like to say thanks for their support.

DECLARATION

This research is my own work and does not represent the ideas of the university. This project belongs to me and only me.

ABSTRACT

The researcher studied the topic changing the ERP for nonprofit organization. The researcher did indepth study on the change and ERP literature. Mixed research method was used and the researcher came to meaningful conclusion. The researcher concluded that although people resist change but updating or changing ERP can be very beneficial for the business.

TABLE OF CONTENT

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Introduction1

Problem statement1

Significance2

Research Questions3

Research Methodology3

Significance4

CHAPTER 2: LITERATURE REVIEW5

Change Management and Resistance to Change5

Definition of ERP17

History of ERP18

The evolution of enterprise resource planning20

Theoretical Background21

Change process theories and ERP implementation21

Approaches to the study of change22

Process Theory in ERP Implementation24

Stage models25

ERP implementation methods26

Critical events chain27

Execution of cutover28

Project team and key users training29

ERP system configuration30

Business process redesign30

Formation of project organization34

Changes in Performance due to ERP System Implementation35

Information Availability37

Information Quality38

Standardization38

Inventory Management38

On-time Delivery39

Profitable39

Customer Satisfaction39

Advantages and Disadvantages39

Integrate financial information40

Integrate customer order information40

Standardize and speed up manufacturing processes40

Reduce inventory41

Standardize HR information41

Inflexibility42

Long implementation periods42

Overly hierarchical organizations42

Major Vendors43

SAP43

Oracle44

CHAPTER 3: METHODOLOGY45

Mixed Research45

Classification of research methods45

Multi-method studies46

Mixed method studies46

Steps in mixed methodology46

Strength and weakness of the mixed research47

Strengths47

Weaknesses47

Instrument for data collection48

Data analysis48

Reliability/Dependability48

Triangulation50

Validity51

Ethical Considerations53

CHAPTER 4: DISCUSSION54

Critical Success Factors54

Change management54

User involvement55

Teamwork and communication56

Training59

Top management support63

Effective project management66

Consultants support68

Critical failure factors70

Poor consultant effectiveness70

Poor quality of BPR70

Poor knowledge transfer71

Unrealistic expectations from top management concerning the ERP systems71

Too tight project schedule71

Users' resistance to change72

Poor top management support72

CHAPTER 5: CONCLUSION73

Recommendations to Organizations80

REFERENCES82

CHAPTER 1: INTRODUCTION

Introduction

Enterprise Resource Planning System (ERP) has become an integral part of organizations and enterprises. It is an integration of business management practices and modern Information Technology (IT) that helps an organization or an enterprise towards meeting its specific business objectives. ERP is a software architecture which supports the streaming and distribution of scattered information across all functional areas in an organization of in an enterprise, and provides the management executives a comprehensive overview of complete business and management execution which influences their decisions.

Change in an organization has never been an easy task whether it is small or big; the change in the ERP system in a Global Organization is even more daunting task to confront with. However, with right and balanced change management processes it is possible to give the organization with a renewed nervous system that helps it keep more efficient, relevant and adaptive in the ever-changing world. This research paper will address the When, Why, What, Whom and How's about the change in ERP systems in non-for-profit Global Organizations.

Problem statement

Changing an ERP system in an organization is somehow compared as painful as 're-writing the Enterprise Central Nervous System' ; yet, the organization opt to go for it in order to remain relevant in the modern world and to secure their survival through increased efficiency. Non-for-Profit Global Organizations, similar to any Business Enterprise are now required to be IPSAS (International Public Sector ...