However, it is not only technology implementation, but mainly change management to ensure full compliance and the realization of the above benefits. How can organizations best prepare themselves to increase implementation success and organizational change. It is to investigate how change was managed through Kotter case study of how a global organization implemented the e-Procurement will be analyzed through a qualitative research approach. The reality of the situation is that e-procurement "goes wrong" for a number of reasons, but there are also some tremendous "gone right" stories.
It offers many benefits such as lasting value and savings; improved control over procurement processes (auditable processes according to rules and regulations, compliance with contracts); Provision of critical management information; and optimization of purchasing transaction costs. Implementation is not just technology but mainly change management to ensure full compliance and benefit realization and key stakeholders must be bought into the e-procurement solution as its value proposition to drive;. This article is a study on change management and transition management in e-procurement system implementation and centralization of procurement activities based.
This research aims to study and analyze the key factors of success or failure in the change management of e-procurement system implementation, how this change can be applied with Kotter's eight steps of change management and also what effect on the stakeholders after the change of organization from decentralized to centralized public procurement using William Bridge's Transition Management Concept as a framework. This paper will benefit companies that want to improve their spending management and reduce potential risks using e-Governing system as a tool and highlight the importance of purchasing department centralization to achieve profitability and manage risk.
LITERATURE REVIEW
- Factor that affect e-procurement implementation
- Key process of driving Change Management in e-Procurement (AshishBhateja, World Bank)
- How to prepare for e-Procurement implementation
- The challenges of change implementation
- Organizational Change using Kotter’s 8 Steps (Kotter, 1995)
- Establishing a sense of urgency
- Creating a vision
- Communicating the vision
- Planning for and creating short-term wins
- Make change stick
- Managing transition using (William Bridges, 1991)
The key to understanding e-procurement is to focus less on the technology and more on the changes that technology can enable. The implementation of e-procurement is such a big change management challenge precisely because it can affect every part of the organization, including those directly affected and who are not interested in the costs to the company of acquiring goods and services and the benefits that can be gained from doing better (mindtools.com). Organizational change management is necessary to implement new strategies, structures, systems, processes and/or behaviors that need to be implemented in the organization (Jurkscheit, 2014).
Misconception: (AshishBhateja, World Bank) The most important thing about implementation is the change management aspect. It is the change management and engagement with category managers and sustainability that takes time. This can help the organization spark the initial motivation to get things moving so that change can happen.
Convince people that change is needed; this step requires support from key people within the organization. Once formed, the organization's "change coalition" must work as a team and continue to build urgency and momentum around the need for change. Assembling a group with enough power to lead the change effort - Encourage the group to work together as a team.
The message will probably have strong competition from other day-to-day communications within the company and integrate it into everything the organization does. The Change Team plans to establish the structure of the change and constantly check for obstacles and constraints by empowering the people the organization needs to execute the organization's vision, and that can help the change move forward. Create short-term or smaller goals, "quick wins" that the organization can see or are achievable, with little room for failure, not just a long-term goal.
Make continuous efforts to ensure that change is reflected in every aspect of the organization, gaining buy-in from staff and leaders. Give them time to accept and let go of the change, and try to get everyone talking about what they're feeling. Emphasize how people can apply their skills, experience and knowledge once you've implemented the change.
At this stage, set short-term goals so that people can experience some quick wins; this will help improve motivation and give everyone a positive perception of the change effort. Use techniques such as goal management to link people's personal goals to the organization's long-term goals and regularly highlight success stories that have brought about change.
RESEACH METHODOLOGY
- Case Study
- Population and Sample Selection
- Data collection
- Interview Questions Framework
- Data analysis
According to the literature review in Chapter 2, the framework covered by this research consists of factors that affect the implementation of e-procurement, which are Kotter's eight steps in change process and Bridges' handling of transition concept. Did the change improve the quality of service with better strategies to solve and fulfill the tasks. What were the criteria for selecting different groups of users for change communication and training.
Empowering people to act; what were the obstacles and how did you deal with them? Planning and creating short-term wins; what was the planning for and creating short-term wins. Implement more change; what were the next steps the company had taken to ensure this e-Procurement system would run smoothly and change successfully along the way.
If you want to get a personal perspective on change, you need to focus more on the employees' perspective on change. Can you please tell what their response was / how they dealt with the situation / how the company handled such a situation. If we overcome the first two stages, what was the action of the company to strengthen the new beginning.
After all interviews are completed, information from the literature review is compared with interview results using qualitative data analysis (QDA) methods to describe the phenomenon. That is, it involves labeling and coding all data so that similarities and differences can be identified to gain a rich and complex understanding of a given research problem or the opinion of a particular population it involves. Content analysis needs to be developed, tailored to each research as a method for categorizing social contexts, verbal or behavioral data for purposes of classification and summarization with the response, as well as with what may have been found or implied.
FINDINGS AND ANALYSIS
- Factors that influencing e-Procurement System Implementation
- Process
- Organization
- The challenges of change implementation
- Staff’s resistance
- Resource readiness
- Self-interest
- Misunderstanding
- Change Management implementation
- Establish a sense of urgency
- Create a guiding team
- Innovators: (Vendor Management)
- Leaders: (Marketing specialist)
- Develop a vision and strategy
- Communicate the vision
- Enable action
- Create short-term / quick wins
- Make more change / don’t let up
- Managing transition
Company A rolled out e-procurement system without local IT support, especially the initial phase where the system encountered many errors, users were in trouble, or users had problems using the system due to minimum computer specifications required to run the system. As mentioned in the previous chapter, factors that have influenced the implementation of e-procurement are ease of use, system reliability and supplier support, since e-procurement system is related to many systems, both internal and external sites are integrated with SAP systems such as Procurement management covers two major expenditure categories and allocates resources according to procurement transaction via e-procurement system and breakdown into each type of work.
No involvement of key stakeholders in the development phase and lack of impact analysis after e-procurement system implementation results in factors of this being hindered because system design based on procurement and audit theory are less interested in business viewpoints. I am happy to have this e-procurement system and procurement team which would help to take procurement work out of my team so they can focus on core work.” No local IT to participate in the development stage, so they don't know how to integrate e-procurement system with others”.
The company has forgotten the key objective of implementing this system to create an area of checks and balances and transparency between the user and the procurement department by using the e-procurement system as a tool to gather information and drive this success. The company still needs to tailor the training to suit each level of users or vendors by preparing them to adapt to the changes by providing them with the right information and assistance on what they need to prepare when using the e-Reporting system. He found a lot of wrongdoing or mismanagement in the field due to limited knowledge of public procurement, so he recommends centralized procurement and e-procurement system to reduce the risk.
Company A creates a crisis situation and a sense of urgency by announcing to management in May 2015 that an e-procurement system will be launched and implemented on June 22, 2015 for the marketing category due to the company's largest spend in the region and the world. Due to this short time frame, related parties had to prepare important vendor master data to be uploaded into the e-procurement system, and key stakeholders including accounting, compliance, legal and users from each area were required to , that the assigned responsible person participates in providing input and be qualified as a trainer. Out of all the 700+ leading vendors on record, there were those who migrated basic information from SAP to integrate with the e-ordering system, but that basic information is not sufficient for the e-ordering system to work as the system requires it.
Company A shared vision and shared experience by using the ADKAR model to create their “awareness” about the concept and concern about this change by sending an email to all marketers and then Company A builds their “Desire” to change or purchase this e-purchasing system. Company Astart trains its administrator and marketer in detail on how to use the e-purchasing system. The final phase started when people were communicated about the change, announced new process from the head office by Supplier Management in employee meeting, that the company's purchasing authorization will be centralized and all transactions should be used through an e-Procurement system, without using manual and loss-making processes. of transparency and control as before.
They believe that this e-procurement system will harm their lives due to the increased time they spend on their work. Restructuring of work processes, procedures and policies: According to the implementation of the e-Procurement system and the establishment of the purchasing department, the company reorganizes or improves internal processes, procedures and policies to eliminate redundancy.
CONCLUSION, RECOMMENDATIONS AND LIMITATIONS
Conclusion
Recommendations
In general, the reorganization and implementation of the system does not only focus on the IT system, but it is also very important that the management team pays attention to new functions, such as procurement, which manages transactions and transfers user pressures.
Limitations
