Welcome!

CRM Authors: Xenia von Wedel, Ian Khan, PR.com Newswire, Steve Mordue

Related Topics: CRM

CRM: Blog Feed Post

2010 ERP Benchmark Preview

Why organizational change management is so important to ERP implementations

ERP at Cloud Expo

Although it is one of the key success factors for any ERP implementation, organizational change management can be difficult to quantify and rationalize.  However, a preview of our 2010 ERP benchmark study results begin to quantify the importance of a comprehensive organizational change management plan.

So far, over 2,000 organizations have participated in our study and we plan to publish results to our clients beginning early next year.  In the meantime, here are a few highlights from the study.

Highlights from Panorama’s Upcoming 2010 ERP Benchmark Study

  • Over 40% of organizations are dealing with significant change concurrent with a new ERP system rollout. An ERP system rollout alone will impose significant pressures on an organization and its resources.  Throw in other changes, such as a new CEO, acquisition of another company, or layoffs, and that change can be the straw that breaks the camel’s back.  Over 40% of companies implementing ERP software are dealing with either a new CEO or the addition of new office locations.  In addition, 26% experience a merger or acquisition around the same time as their ERP deployment, while 19% go through layoffs (that number is trending upward in the ongoing 4-year study).  The magnitude of these changes make a strong organizational change management program even more imperative.
  • People do not adapt well to change and organizational communication is weak. Over 53% of implementing organizations self-assess their ability to deal with change as fairly poor or very poor.  In addition, 47% say communication between management and employees is poor.  These types of environments are not conducive to effective ERP implementations.  Organizational change management tools, however, help address these organizational risks and barriers to make the rollouts more successful.
  • Over 60% of organizations suffer from poor visibility to data and poor integration in their old systems. This metric suggests that employees using a new ERP system have strong organizational resistance and a steep learning curve to overcome.  Poor integration between functional areas in the old system was cited by 64% of organizations as a driver for a new system, followed by poor visibility to reports and key operational data at 62%.  These metrics underscore the magnitude of change that a single, integrated enterprise software system such as ERP or CRM will entail.  An effective organizational change management plan is critical to helping employees understand and leverage the newfound operational visibility in the new system.
  • Organizations expect a lot from their ERP systems. Despite the organizational challenges outlined above, companies expect their enterprise software systems to deliver real business value.  Sixty-nine percent of companies expect their systems to improve business performance, while 39% expect the new system to standardize business operations and 39% also expect the new system to make employees’ jobs easier.  Not to be the bearer of bad news, but our experience and research shows that these goals simply don’t happen without effective organizational change management.
  • Most companies are not yet ready for the organizational changes of ERP software. Perhaps most alarmingly, a majority of companies are not ready to address the people, process, and benefits realization aspects of their enterprise software implementations.  Nearly 50% of companies in the process of implementing ERP software have not yet started their organizational change, training, or communication plans.  In addition, 42% have not developed a business case and ROI analysis, which suggests companies are not ready to measure and manage the business benefits they expect to achieve.  All of these areas need to be addressed prior to an effective implementation, which does not bode well for a large number of companies.

So what are the lessons learned from this benchmark data?  In case you don’t follow our other blogs or research briefings, organizational change management is one of the key reasons why companies succeed in their ERP initiatives, while lack of it is the reason most fail.  Success or failure has very little to do with software, which is why organizations need to carefully plan and allocate project resources to effectively handle organizational change management activities as part of their enterprise software initiatives.

How ready are you for your enterprise software initiative?

Take our organizational ERP readiness survey to find out.

Read the original blog entry...

More Stories By Eric Kimberling

Founder and president of Panorama Consulting Group. Founded in 2005 and headquartered in Denver, Colorado, Panorama Consulting Group is a niche consulting firm specializing in the enterprise resource planning (ERP) market for mid-sized companies across the globe. Independent of affiliation, Panorama helps firms evaluate and select ERP software, manages the implementation of the software, and facilitates all related organizational changes to assure that each of its clients realize the full business benefits of their ERP implementation. We minimize ERP risk, accelerate implementation progress, and increase the success and value of your ERP initiatives.

@ThingsExpo Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.