Author name: devintellore

Enterprise Resource Planning (ERP) systems can surely enhance any organization’s efficiency, streamline processes, and improve decision-making, if leveraged properly. And while AI, LLMs, GenAI & RPA etc are probably the future game-changers; business owners understand that they will require a single, unified platform which will help run their businesses – efficiently and effectively. However, despite the clear benefits, one of the biggest challenges in any ERP implementation is resistance to change (we mentioned “resistance” in our last article here). Employees worry about disruption to their familiar lifestyles, working styles and possibly be scared about losing their jobs. So while business owners may have chosen the right ERP system, the right implementation partner with the right budget, have control over the right datasets etc and generally done all things right. Without addressing “resistance” that employees and other stakeholders might have, business owners cannot successfully implement an ERP system. In this article, we’ll explore the major causes of resistance to ERP implementation that we have identified from working with more than 100 clients from the last 7 years since we began operations. And remember, as Steven Pressfield mentioned: Here are the various stages (or states) of Resistance to Change during ERP Implementation We have listed the following stages of resistance that we have experienced from our humble experience. They may not follow a set order but we have experienced in one way or another. 1. Denial The first stage (or state) of resistance is denial. Employees do not believe (or have any awareness) that the ERP system is necessary and that it will impact them directly. This often occurs in the early stages of planning when leaders announce the upcoming implementation. For example, the CEO of a manufacturing company consulted with Intellore Systems (us) to implement an ERP system that would improve supply chain management (& overall efficiency). According to this CEO, employees in the procurement and accounting department were living in two states – 1. Maharashtra and 2. Denial. (That was funny indeed.) He also mentioned that employees from these two departments would have the most questions for us. He was WRONG. They DID NOT ask even a single question. They were in complete denial and mentioned that they were “FINE” and didn’t really require an ERP system as they were already functioning without any ERP systems (some even argued that business was not growing and the new ERP system would add to unnecessary costs). 2. Anger & Frustration (& possibly prayers as well) As the ERP implementation progressed anyway (we convinced the owner and other stakeholders), the employees began to see the implications of the change, the denial turned into frustration (followed by even more denial and frustration) which occasionally turned into blind rage (okay this is not what happened – but you get the idea). This stage is marked by complaints and concerns (and lots of “I told them this would happen”). Employees may feel anxious about their ability to adapt to new technology and processes. (and pray that the ERP system, consultants or developers associated with this project magically disappear.) For instance, when a non-profit organization implemented a new ERP system, some staff members expressed anger about not being able to interact with donors directly (they were not interacting to begin with) and instead having to learn a new software system. They often complained to the founder that our assigned developer was cold (gasp!) and did not explain properly (she had prepared a detailed thorough manual which listed the steps – In two languages!) But they felt overwhelmed by the sudden appearance of an ERP system in one of their systems (we hosted it on the cloud) and were concerned that this system would slow them down and possibly replace them. It did not. 3. Bargaining (or negotiating) At this stage, employees (only those who are resisting change) will negotiate with leadership and offer alternatives to avoid using the new ERP system. Delays, requesting modifications, finding faults are some of the observed behavioural traits. Bargaining often occurs when employees fear job loss or there is a significant shift in their role. We had partnered with a healthcare provider that introduced an ERP system to manage patient records. The administrative staff, concerned about many things (fear amongst them), requested that they continue using their previous system alongside the new one. The previous system relied on excel sheets, images of bills scanned and hold your breath – details on text messages exchanged with suppliers. 4. Disengagement After bargaining, employees may feel defeated and resign themselves to the inevitable change, often leading to low morale and disengagement. Productivity might dip as employees experience stress or uncertainty about their place in the organization post-implementation. (not our words.) This stage is critical because it can severely affect performance if not addressed. The introduction of the new ERP system caused significant anxiety among the accounting and inventory management team for one client. They worried that automation would render some of their roles and responsibilities redundant, leading to mass disengagement from the project. 5. Acceptance (not exactly like the image above. Also ALL Images are meant for illustrative purposes only!) The final stage is acceptance, and this is where employees begin to understand the benefits of the ERP system and start to embrace the new ERP System. This shift occurs when employees receive adequate training, see the ERP system functioning in real-world scenarios, and begin to realize how it can make their work & life easier. So, while the accounting team went into depression, the procurement team of this manufacturing company was elated upon finding that the new ERP system streamlined inventory tracking, they became more enthusiastic about using the software. Eventually, their enthusiasm rubbed off on the accounting team as well! (HR remains sceptical – but we will keep you updated about their well-being!) So while we have looked at the stages (in detail), we would also mention some major causes as well. Some major Causes of Resistance to ERP Implementation (in our

In today’s world, ERP implementation is like navigating a minefield. Enterprise Resource Planning (ERP) systems promise the moon (or stars) – streamlined operations, better data visibility, and an end to all your business headaches (and annoying neighbors). But, like every major decision in life (think: marriage or choosing a mobile data plan), ERP implementation comes with its fair share of challenges. For small and medium-sized businesses (SMBs), these challenges are particularly tricky. The stakes are quite high. In this article, we will look at the top challenges SMBs face during ERP implementation, with some practical advice from the Dalai Lama (or Steven Pressfield) himself about implementing ERP systems towards the end of this post. (Do not become this guy while implementing ERP for your business!) Image Source: Variety But here is the spoiler: there is no magic bullet, panacea or quick fix. As an SMB owner, the ERP implementation is probably going to turn you into Homelander (or something worse). And your employees into annoying little kids. But it is still better than being bankrupt. 1. Budget Blues: The ERP Sticker Shock Alright folks, sit tight! You’ve done your research, and you’ve found the perfect ERP system(too good to be true). It promises everything from automatic invoicing to making your coffee (or tea). But then comes the price tag – a sum that makes you wonder if you’re buying an ERP or an F35 stealth fighter jet. And that is a big challenge that small businesses face during implementation of their ERP system (the new kid on the block!) Pitfall: Businesses often underestimate the total cost of ERP implementation. It’s not just the software license; it’s the customization, the consulting fees, the training, and the maintenance (yes, these are charges too) that add up. Budgets often quickly spiral out of control. Solution: Plan thoroughly and budget realistically. Think beyond the initial license cost. Consider training, customization, and any potential costs that might crop up down the road. And any other costs in case there is a fire! (Image created using Canva) 2. Customization Conundrum: To customize or not to customize? (One Size Doesn’t Fit All (And no XXL doesn’t always fit!)) ERP systems are like clothes in a mall – they’re made to fit most people, but probably not perfectly tailored for you. For SMBs, the need for customization can be a double-edged sword. Pitfall: Excessive customization can lead to delays, increased costs, and the system becoming too complex to manage effectively. It’s easy to fall into the trap of thinking, “Let’s tweak this, and this, and… ooh, let’s add this feature too!” And before you realize, well – please read point 1. Solution: Keep it simple. Focus on the core functionalities that your business truly needs. Avoid the temptation to over-customize and stick with standard features unless necessary. Over customization can be a traumatizing challenge to small businesses during ERP implementation. Avoid unnecessary stress and injuries. 3. Data Migration Disasters: Bad Data In, Bad Data Out! Data migration might sound like a simple “copy-paste” operation, but it’s not. If your existing data is inaccurate, outdated, or inconsistent, migrating it to the shiny and precious new ERP system will make things worse. Pitfall: Data migration can become a nightmare if not handled correctly. Many businesses fail to clean their data before migration, resulting in a new ERP system that’s clogged with garbage data! Solution: Take the time to clean up your data before migration. Invest in a solid data cleansing process to ensure that what goes in your new ERP system is accurate and useful. Bad data in means bad results out. 4. Resistance to Change: The Human Factor (Image Created Using Canva) “Resistance” a term that author Steven Pressfield uses quite heavily. Resistance signifies the barrier that we have to overcome when we embark on an activity such as building six pack abs, starting a business, writing the book we always wanted to and implementing ERP system crucial to our business. No one likes change, especially when it involves learning a new system that interrupts the daily flow of work. Implementing an ERP system means employees will need to adapt, and not everyone will be thrilled about it. And then there is the steep learning curve. A challenge faced by Small businesses while implementing ERP systems – and rarely talked about. Pitfall: Lack of buy-in from employees can make or break your ERP implementation. If the people using the system are not on board, even the best ERP system will fail. A business owner informed us that we will have to convince his employees from various departments. We thought it would be easy but we encountered some really stiff employees! Eventually, we realised that their resistance came from the inconvenience of learning something new. In this case, a new ERP system. Solution: Involve your team early in the process. Communicate the benefits clearly and provide comprehensive training to ease the transition. Take feedback. And empower employees by showing them how the new system will make their work easier in the long run. Invest in training, not just for the IT team but for those who will be interacting and using the system daily. We had a couple of training sessions for the employees, guiding them through the process, answering their queries and often acting as tech support!  And in the end, it was the heartfelt gratitude from the owner and the sense of satisfaction and smiles (no smug smiles) that we received from now trained employees that truly made us happy. (Of course, we were paid well, thank you for your concern.) 5. Choosing the Wrong Implementation partner: The ERP Love-Hate Relationship Now you have selected your shiny ERP system. Now selecting the right ERP implementation vendor is like choosing a business partner (not romantic – never mix the two!) – you’ll be working closely with them for years, so it’s important to get it right. (Still not romantic partners!). They must have skin in the game! Pitfall:

Running a Tech Company revolves around strategies, planning, execution, Top line, bottom line, digital transformation and what have you. But sometimes the most profound moments happen outside the boardroom. Take, for instance, my encounters with Snehalaya, a non-pro@t in Ahmednagar, India. The Transformers (no pun intended) then become the transformed!!I first visited Snehalaya when a close friend Shashikant Satbhai invited us to discuss some projects Snehalaya was planning. I visited Snehalaya with a lot of curiosity about what it takes to run a non-profit and seeking answers for “The Why” for the people who work there. Non-profits in India come with controversies, skepticism, bad news, and overall bad PR.But after spending a day there, I wasn’t thinking about sales projections or bottom lines; I was overwhelmed, humbled, and utterly inspired. Since then I have visited Snehalaya multiple times and have had the opportunity to witness first-hand the transformative effects of their work. In my mind, three things stand out when I think of Snehalaya. Snehalaya isn’t just a place; it’s a catalyst for good. One memory that sticks with me is visiting their school, which made it the Top 3 finalists in the World’s Best School for Overcoming Adversity (Read the full article here https://www.snehalaya.org/post/we-are-top-three). Picture this: lunchtime, kindergarten classes, and the sound ofchildren’s laughter filling the air like sweet music. Oh Boy!, the children’s playful banter was such a sweet melody to the ears that you would want to just sit down and watch the kids play. The second is when we (Intellore) were recognized for our contribution to Snehalaya’s digitization initiatives. In an interview, the representatives of Snehankur narrated the journey of Snehankur. It was evident that Snehalaya wasn’t just providing shelter or assistance; it was nurturing hope and restoring dignity to those who had been stripped of it. But a few stories of rescuing children who were victims of sexual assaults were heart-wrenching and left us with deep anguish about the world we live in.But that fuelled our determination to help(I should be candid enough to admit that it was the volunteers and great team at Snehalaya that fuelled our determination). And the third which struck me the most was the desire to digitize their operations, and their push for digital transformation. In a world where digital transformation is often associated with corporate profits, Snehalaya is leveraging technology to bring Honesty, Integrity, Transparency, and Trust to the work they do. Today Snehalaya serves over 19,000 beneficiaries each year running 22 projects across four key areas, education, healthcare, rehabilitation, and awareness, that help beneficiaries thrive in life. Snehalaya is truly a beacon of hope for those who find themselves lost and hopeless. You can learn more about Snehalaya at www.snehalaya.org And while it’s easy to feel overwhelmed by the enormity of the challenges we face as a society, organizations like Snehalaya serve as a beacon of hope, and agents of positive change reminding us that even the smallest actions can transform lives. At Intellore Systems, we will be more than just a business (profits still guide us), but we are committed to making a meaningful difference in the world. By providing our technical expertise and resources, we hope to empower Snehalaya to reach even more people and make an even greater impact. As I reflect on my experiences at Snehalaya, I am reminded of the words of Mahatma Gandhi, who said, “The best way to find yourself is to lose yourself in the service of others.” Lastly, I would like to appeal to the generosity of individuals like you to continue its vital work. I urge you to support Snehalaya in whatever way you can. But before you do, please visit Snehalaya (Don’t take my word for it) and see for yourself.Together, we can be catalysts for change, building a world where compassion triumphs over adversity and all individuals are allowed to thrive, without any fear or invisible glass ceilings. And, if you are short of time you can make a charitable heartfelt donation to Snehalaya at www.snehalayacrm.org/donateonce Devendra Abhyankar For more information about our Salesforce consulting services and how we can help your organization achieve success, please contact us [email protected] (North America)[email protected] (UK and Europe)[email protected] (Rest of World)