The organizational effects when integrating a cloud-based ERP system

Abstract

As new technologies continue to advance, they are also being integrated into widely adopted systems, such as Enterprise Resource Planning (ERP) systems. Cloud-based ERP systems are gaining popularity, particularly among Small and Medium-sized Enterprises (SMEs). Due to the limited customization options and pre-configured processes of these systems, enterprises are often required to adapt their business processes when implementing a cloud-based ERP system. The extent of these changes can vary, ranging from minor adjustments to significant overhauls, depending on the approach chosen by the enterprise. Additionally, some changes might be necessitated by external factors beyond the enterprise's control. The modifications made to business processes during the integration of a cloud-based ERP system can have diverse impacts on the entire organization. Whether these changes result in a positive or negative effect depends on how effectively they are managed. Implementing a change management strategy can assist organizations in navigating these changes and mitigating resistance from their employees. Furthermore, the changes stemming from the integration of a cloud-based ERP system can also influence the organizational culture. Key considerations during times of change include leadership styles, communication practices, the involvement of relevant stakeholders in the project, and the selection of an appropriate project management method tailored to the specific enterprise. These factors can be managed with the support of effective change management and, if addressed thoughtfully, can significantly impact the organizational culture.