Leadership in Change Management Decisions for Successful ERP Implementation - A System Dynamics Perspective

Nowadays, more and more organizations are moving towards Enterprise Resource Planning (ERP) system solutions from their old legacy system solution. ERP is a project that requires a significant amount of change management to ensure a successful implementation. It involves not only large-scale technology changes, but also major shifts in process and organizational behavior. Despite this, literature have not extensively explored the interrelation between the challenge in change management and ERP implementation. This study intends to discuss and evaluate how the leadership will assist to the development of change management decisions in ERP implementation. Empirical evidence suggests that leadership responsibilities such as effective communication between management and employees, building core team productivity, increasing the quality of reengineering process and top management commitment will drive the implementation to the success. Relative Importance Index (RII) is used to define the research problem. Then system dynamics methodology was used to analyse and validate the dynamic behaviour of ERP implementation. Findings of the research paper emphasis the importance of various leadership factors in change management decisions how those will influence the success of ERP implementation in the long run.