CHAPTER 9: ORGANIZATIONAL CHANGE AND BUSINESS PROCESS RE-ENGINEERING – Flashcards
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Organizational commitment plays an important role in:
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ERP implementation.
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__________ must be committed from the beginning of the process to the end of the system implementation.
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higher-level management
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Change management
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focuses on gathering all the benefits of the people involved in the change and it will also reduce the risk of failure during ERP implementation. all members should be informed of what changes are taking place, and the reason for being applied.
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Organization Project Maturity Model
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OPM3 is based on the experience in implementing the system. OPM3 will help the organization understand the concept of implementation as well as help the organization have a successful system. OPM3 is important since it plays the role of meeting the budget and expectations of the ERP implementation.
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The three steps involved in OPM3 are:
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knowledge, assessment, and improvement.
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Business Process Re-engineering method includes five steps, which are,
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preparation define the "as is" process map out "to be" processes test and measure new processes re-evaluation.
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What are the steps in business process re-engineering?
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Step 1 is preparation, which deals with setting the goals and vision and identifying team step 2 is define the "as is" process, in which we evaluate the cross-functional issues. Step 3 is map out "to be" process, which is related to ERP and is based on "best practices". Step 4 is test and measure, which deals with making sure the goals and visions are met and also continue examining the process and make adjustments where needed. step 5 is Re-evaluation, which involves improving processes, when necessary.
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Why is BPR important in an ERP implementation?
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BPR is important since they both depend on "best practices". When BPR and ERP are used together, organizational boundaries will be crossed and change management process will become extensive. ERP and BPR rely on one another to get the best outcome. Without BPR, ERP would not be a success.
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What does the organizational project management maturity model do for a company's ERP implementation?
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The OPM3 helps companies understand the ability to implement an ERP system. The highly skilled companies have a greater chance of implementing an ERP system. OPM3 creates a framework through the "best practice" in an organization.
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What are the steps involved in OPM3?
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The steps are knowledge, assessment, and improvement. Knowledge deals with understanding the value of the system implementation. Assessment deals with evaluating the current state of the organizational project. Improvement deals with the strengths and weaknesses of the highly used areas.
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What is the role of project management office in an ERP implementation?
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The project management has to make sure that all the tasks are completed on time. The manager keeps the executive and team members up-to-date on their portion of the project. The manager's main role is to make sure that all aspects of the project are on track.
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Why is change management critical to the success of a project from the beginning?
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Change management is critical from the beginning since the plan will already be set. Change management is based on communication. The communication plan will determine the ERP benefits after the implementation has happened. If something goes wrong in the middle of the project, the plan will be looked at thoroughly to determine what has been done and what should have been done.
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What is usually the critical path of ERP implementation?
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A company must develop a logical and strategic reason to implement an ERP system. If the reason is not set, then the ERP system will not meet the management's expectations. Not meeting the expectations will result as a failure to implement the system.
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What is the role of the cross-functional lead in an ERP implementation?
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The cross-functional lead will provide leadership throughout the ERP implementation level. The leader will make sure that the deliveries are made on time and that the members are following the plan. The functional leads main focus is on the flow of the project. The project should be on track and followed as requested by the leader.
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Organizational change
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means to change biz structure & processes throughout the organization. A change in mission Restructuring operations New technologies Mergers Major collaborations "Rightsizing" - layoffs? New programs such as Total Quality Management
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There are two key areas to consider to ensure organizational commitment:
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A well-defined Communication Plan Organizational Project Management Maturity Model (OPM3)
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Change management
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is the process of developing a planned & methodical approach to change in an organization
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A business process
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is defined as a set of logically related tasks performed to achieve a defined business outcome.
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Re-engineering
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is when a business essentially dismantles existing processes into individual activities and puts them back together in a new set of business flows or sets of business flows.
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Business Process Management
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"A management discipline that treats processes as assets that directly contribute to enterprise performance by driving operational excellence and business process agility"
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The Four Rs of Biz Process
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Roles—establishing a set of defined user roles that will not change with employee absences or departures Relationships—identifying the interactions necessary to complete a process Rules—developing a fixed set of process steps that will be followed in most situations Routing—electronically transferring forms and documents for review, approval, and so on.
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The OPM3 consists of three stages or steps:________, assessment, and improvement.
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knowledge
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The objective of ________ is to minimize the risk of failure and maximize the benefits of the change.
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change management
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Within an ERP project, ________ requires crossing organizational boundaries and a more extensive change management effort because of the high anxiety towards it by the workforce.
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BPR
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________ is a methodology for assessing whether an organization has the skills in place to successfully implement an ERP system.
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OPM3
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Two factors that help ensure organizational commitment to the ERP project include the OPM3 process and a(n) ________ plan.
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communication
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A change in the ________ would be an example of an organizational change.
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mission
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Half of all ERP projects fail to deliver all the anticipated benefits because they do not do a good job of:
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managing change.
