Researchers have found many reasons why change management is an essential topic in supply chain digitalization and IT system implementations during the past few decades.
From the viewpoint of successful supply chain digitalization, utilizing change management becomes essential as digitalization significantly changes the working environment (Bierwirth & Schocke 2017, 95). It has also been found that even 75% of IT-enabled changes fail because of employees’ negative responses to change in their tasks and business processes (Markus 2004, 5). For this reason, it is important to find ways to promote change through change management and at the same time reduce resistance to change.
First of all, it has to be mentioned that a software implementation's success often depends on whom this question is asked. Top management typically determines the success of the implementation based on whether the system can provide wanted business benefits and if the other metrics set for the implementation have been met. Instead, the implementation project leaders usually define the success depending on whether the implementation has stayed on schedule and budget. Whereas the end-users of the system often define success based on how smooth it is to work with the new system. (Dezdar & Ainin 2011, 912.)
There are many different kinds of challenges associated with the deployment of information systems. According to Govindaraju, de Bruijin, and Fisscher (2007, 1-6), these challenges can be classified into three different groups, namely: technological, business-process related, and organizational challenges. The first mentioned are mostly related to the complexity of the ERP systems, configuration issues, and customization difficulties. The business process-related changes can be called “content-process-related” as well. These kinds of challenges usually arise because the systems’ design is based on assumptions and generalizations about how companies work in general. The most important question then becomes to what extent enterprise processes can be adapted to fit the software’s logic. Ideally, it would be most beneficial for the company to find an information system that would fit well with its existing business processes without too much customization needed. Organizational challenges, in turn, can be addressed as context-related issues. An organization’s ability to respond to IT-enabled changes depends heavily on how employees are involved in the change process.
This proposal indeed reinforces the need to have an appropriate strategy to manage change in software implementations.
Govindaraju et al. (2006, 7) have made a comparison of Lewin’s change model and the information technology implementation model (originally presented by Zmud and Apple in 1989), shown in Table 4. The first three stages of the model take place rather at the organizational level, but the last three stages concern individual usage behavior activities.
The first stage, initiation, refers to a situation in which the organization has found an IT system that meets its needs. At the adoption stage, a decision to invest organizational resources for the IT system is made. At the adaptation level, the IT system is available for usage. Acceptance instead refers to users’ dedication to using the system. Routinization means that the users are so used to the system that it is no longer seen as out-of-ordinary.
Infusion refers to embedding the IT system deeply and systematically into an employee or an organization's work habits. However, these levels should not be thought too harshly, and sometimes they can also occur at the same time. (Govindaraju et al. 2006, 7; Hsieh & Zmud 2006, 3.)
Table 4. Comparison of Stages used in Lewin’s Change Model and IT implementation model stages, according to Govindaraju et al. (2006, 7).
Change model stages according to Lewin IT implementation model stages
Unfreezing and Change Initiation
Adoption Adaptation
Re-freezing Acceptance
Routinization Infusion
Several different kinds of organizational strategies can be used to promote software deployments. These include, for example, the development and implementation of a change strategy, change management, project management, the utilization of organizational structures and resources, management style and ideology, communication, and coordination of the change process. (Aladwani 2001, 267.) One of the most studied organizational strategies is probably change management in software implementation, specifically in the ERP implementation projects. According to Foster et al. (2007, 239), change management has been one of the most crucial factors determining the ERP implementation's success.
Li, Wu, Zong & Li (2017) found a causal relationship between sharing inter-organizational expertise and the ERP implementation effectiveness. It proved to be useful that companies get their supply chain partners involved in the ERP implementation. Based on the results, three suggestions for organizations were given, as illustrated in Figure 6. Firstly, companies should have proper organizational structures and technological environments to have a base for inter-organizational knowledge sharing. Clear organizational structures can also help companies to minimize employee resistance towards the implementation. Secondly, top management must be involved. Their role is to provide resources and evaluate the consequences of sharing knowledge with external partners. Thirdly, management should take an attentive role in organizational resources managing to enable sharing knowledge with their partners.
Figure 6. Prerequisites for knowledge sharing within the supply chain in order to facilitate successful ERP implementation (Li et al. 2017).
Quite similarly to Li et al., according to Dezdar and Ainin (2011, 914-915), the most important organizational factors on successful ERP implementations are top management support, user training and education, enterprise-wide communication, user satisfaction, and organizational impact. However, they link the top management support closely with the large-scale nature of the ERP implementations. Thereby, the importance of top-management support cannot be directly applied in smaller-scale software implementation, such as logistics management system implementation.