Answer to Question 1
People-related challenges can be classified as top management, team, and individual.
One common problem occurs when top management believes the hard part of the implementation process is the decision to implement. Managers believe that once that decision is made, they can move on. Instead, they need to stay involved, ensure implementation is monitored, resources are committed, good procedures are written, and thorough training is conducted.
A second top management problem is overselling the vision of what the system will do. Often management can be blinded by the benefits of the promised system and not look carefully at the assumptions behind the promises. This can lead top management to buy more features than it needs or than the organization can implement successfully.
When an ERP system is implemented, the way work is done is changed and the culture typically bites back. Changing the culture can lead to employee resistance as the change in work habits may threaten self-efficacy, which is a person's belief that he or she can be successful at his or her job.
Implementing an ERP system requires extensive and effective collaboration; when collaboration breaks down, implementation suffers. Consultants from the vendor, IT analysts from the client firm, and end users all know things the others don't know; these missing bits of knowledge can only be learned by collaborating. Implementation changes the work people do. As a result, employees may need to be given extra inducement to change to the new system.
Answer to Question 2
FALSE
Environemental Issues
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