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CMA Intermediate · Operations Management and Strategic Management · Digital Strategy

A manufacturing firm in Pune has approved a digital strategy, but plant managers continue to use paper-based processes and resist the new ERP. Which implementation action most directly addresses this barrier?

A structured change management programme, with training and visible leadership sponsorship, best addresses resistance. The barrier is employee adoption rather than licence cost or vendor quality, so spending more or switching software would not change behaviour, while managing the people side does.

  1. AIncreasing the ERP licence budget
  2. BRunning a structured change management programme with training and visible leadership sponsorshipCorrect
  3. CReplacing the ERP with a cheaper vendor
  4. DPostponing the strategy until the next financial year

Explanation

The problem is human resistance, not technology cost or vendor choice. Change management with training, communication and top-management sponsorship tackles adoption directly. Changing the vendor or budget leaves the resistance untouched, and postponing only delays the issue.

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