Implementing an ERP System: CIO's First Step

Understanding Business Unit Resistance

Question

An enterprise has decided to implement an enterprise resource planning (ERP) system to achieve operating and cost efficiencies through global IT standardization.

The business units are resistant because they are used to operating autonomously.

The CEO has instructed the CIO to move quickly with the implementation to force acceptance with business unit leaders.

Which of the following should be the CIO's FIRST step?

Answers

Explanations

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A. B. C. D.

D.

The enterprise has decided to implement an enterprise resource planning (ERP) system to achieve operating and cost efficiencies through global IT standardization. However, the business units are resistant to the implementation because they are used to operating autonomously. The CEO has instructed the CIO to move quickly with the implementation to force acceptance with business unit leaders. In this situation, the CIO's first step should be to engage a reluctant business unit to conduct a proof-of-concept pilot (Option C).

The reason for this is that implementing an ERP system is a significant undertaking that requires careful planning, analysis, and collaboration across different business units. It is essential to ensure that the system aligns with the needs of the business and that the implementation process is transparent and inclusive. By engaging a reluctant business unit to conduct a proof-of-concept pilot, the CIO can demonstrate the value of the ERP system and its potential benefits, addressing the business unit's concerns about losing autonomy.

A proof-of-concept pilot is a small-scale test of the ERP system that allows the business unit to evaluate its functionality and assess its suitability for their specific needs. This approach allows for a more incremental, phased approach to implementation, which can help to mitigate risks and facilitate buy-in from stakeholders.

Once the proof-of-concept pilot is completed successfully, the CIO can use this as a basis for building a governance framework for identifying non-standard processes (Option D). The framework should be used to identify processes that deviate from the standard ERP system, and it should provide guidelines on how to manage these non-standard processes. This approach ensures that the ERP system's standardization benefits are achieved while accommodating any necessary deviations.

It is also essential to involve the CEO as the sponsor of the program (Option B) to provide visible support for the implementation process. However, this should not be the CIO's first step, as it is important to engage the business units and build a strong foundation for the implementation before seeking executive sponsorship.

Finally, requesting funding from the CEO to hire ERP consultants (Option A) may be necessary at some point in the implementation process. However, it is not the CIO's first step, as engaging the business units and conducting a proof-of-concept pilot should be the initial focus.