Change Management of People & Technology in an ERP Implementation

PowerIT is an autonomous company of about 200 staff producing and repairing power conversion supplies. Eighteen months after adopting an enterprise resource planning (ERP) system the chief executive officer wanted an investigation into the performance of the system. This was to focus on its technical capabilities and its acceptance by users, since it was not delivering the anticipated gains in profits. The results of the investigation reported here reveal problems with the acquisition and implementation process. This case highlights the difficulties that can be encountered by organizations that attempt to tailor an enterprise resource planning system to the existing business practices. In particular, the need for careful impact analysis of proposed software modifications and effective change management within the entire project is demonstrated.