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The Relationship Between Organizational Culture and ERP

Posted on 17 November 2016 by Joey Benadretti

joey_the_culture_of_erp.jpgHaving a great company culture is no longer optional. Today’s employees expect nothing less and regard it as strongly as they do salary and other benefits. Company culture is simply the personality of a company coupled with the core values and ethics, which then supports that company’s processes and procedures. Company culture is the backbone for what an organization does as a collective team to reach an ultimate goal.Impact of ERP on Culture

Organizations need technology to improve information flow, reduce costs, streamline processes, offer product variety, link with suppliers, and reduce response time, and to remain relevant and competitive.  

ERP is the backbone of business intelligence for an organization, giving managers an integrated and holistic view of all processes. It effectively coordinates the instrumental actions within the business, converting the company’s culture to one primarily supported by technology. This technology empowers employees to do their jobs better and more efficiently, boosting employee morale and contributing to the company culture.

Impact of Organizational Culture on ERP

Change management is critical when implementing an ERP system into any business.  ERP systems bring new methods, processes and procedures, and easing employees into this new transition is imperative. When you implement ERP you are changing the way people work. Perhaps one of the greatest challenges an organization can face is migrating from a culture of disconnected silos of information, where the reality is one of using multiple, disparate systems, to a fully integrated enterprise-wide solution platform with ERP as its foundation. Company management, in cohesion with the software vendor, must make a priority of educating users of the new system so that they gain a solid understanding of the impact their contributions make to the successful deployment and utilization of the new system.  If there is not a total “buy in” of the new solution by each and every employee, the organization cannot leverage the levels of efficiencies and accomplishments promised by the ERP software.

Employee attitude is the key ingredient for success. This is best managed through user training and change management, reducing any resistance to change.   

If implemented and introduced properly, ERP can be a beautiful unfolding of the next chapter in a company’s culture and progress.

 


Joey Benadretti

Joey Benadretti is the President and Joint Managing Director of SYSPRO USA. He is a champion of US manufacturing and is a strong advocator of the rebuilding of the US manufacturing base.

Benadretti’s footprint in the software community has established him as an influential and innovative leader, where he has been a driving force in gaining significant international industry recognition for SYSPRO, including multiple 'Company of the Year' awards as well as a long list of other top industry honors and accolades.

Benadretti is passionate about community initiatives, education and supporting institutions that boost the local workforce.

 

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