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ERP demands management support

By Warwick Ashford, ITWeb London correspondent
Johannesburg, 14 Nov 2003

Enterprise resource planning (ERP) on its own can be meaningless, says Ivanna Granelli, MD of enterprise learning company, Can!do Consulting.

"An organisation can buy the most expensive package on the market, and spend millions implementing it, but unless users are empowered and motivated to use the system properly, the company could simply end up with an ERP solution that replicates the old processes.

"ERP is not just a new package, for many organisations it`s a new mindset and culture."

Granelli says ERP software introduces huge change, affecting the way people work, business processes, and often the roles and responsibilities of employees. "Training and change management, backed by the top-level management team, are crucial in revamping the way the organisation works."

She says teaching the basic skills of using an ERP system should not be the end of ERP training. "Companies should see it only as the beginning of a process of organisational learning and continuous business improvement."

Granelli says many organisations still treat ERP as a technology initiative driven by the IT department rather than as a business imperative, with change and learning driven by company leadership.

For companies to get the most of their investment in ERP systems, she says, management needs to acknowledge and support the changes ERP will bring and link it with a programme of sustainable learning to promote effective use and adoption of the system.

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