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First-order/Second-order changes
First-order change - adjustment in system, processes, or structures, but it does not involve fundamental change in strategy, core values, or corporate identity. Second-order change - transformational, radical, and fundamentally alters the organization at its core.
Resistance to change
Fear of failure Creatures of habit No obvious need Loss of control Concern about support system Unwillingness to learn Fear that the new way may not be better Fear of the unknown Fear of personal impact
AIR ASTANA
National airline Established in 2001 First flight- 15th May, 2002- Almaty-Astana Operates domestically/ internationally Shareholders: - Samuryk-Kazyna51% - BAE Systems PLC- 49%
Domestic routes
International routes
Mission
We will provide profitable domestic and international air services to the highest standards of air safety and customer service, in order to serve and compliment the needs of the Republic of Kazakhstan.
ERP-system
ERP system is a set of business applications or modules, which links various business units of an organization such as financial, accounting, manufacturing, and human resources into a tightly integrated single system with a common platform for flow of information across the entire business.
Peter Foster
ERP-implementation
2007- Top-management began to think of the ERP-system 2009- study of available solutions 2009- Tender to choose the provider of ERP-system Winner- BAS- KZ companyplatinum partner of Oracle
Stages of implementation
ERP implementation
Completion in 9 month Project team- Air Astana & BAS members Meetings with the President of Airline and Vice President of IT department were held on Fridays every week At the end of implementation process the specialists of Oracle audited the project, as it was contacted by Air Astana at the beginning of the project
It was not the introduction of the ERP-system from the ground up, but replacing of the existing fragmented system to a new and modern system, the project was a complex integration of different parts of the IS, which previously operated in the airline. Valerii Lanovenko, Head of the Oracle CIS
Concentrate on leading experience Completely involve end-users and interested parties Balanced integration and settings Be ready for changes in current business processes
Success factors
Top management support Business case Change management Project management Training
Oracle methods
Focus on best practice Participation of top-management Training technique -education at an early stage -colleague training
Effective communication
Competent projects team work, proper planning and adaptation to unexpected situations, a clear definition of roles, responsibilities and objectives were the guarantee that the large-scale project was implemented in nine months. Mutual understanding between business users and implementing team has played a key role along with the support of topmanagement of all three parties. Medet Rakhimbayev, Chairman of the Board of Directors of BAS
Problems
No communication among workers ex: any problem, direct call to IT department Difficult to shift to new system ex: previously- Excel
ERP in Kazakhstan
First implementation of the system was projected in 2006 in Exploration&Production Kaz Munai Gaz Top companies: -Kazakhstan National Bank -KazakTeleCom -Kazkahstan Temir Zholy -Astana Finance and others
Internal pressures
The need for integration and collaboration Growing number of passengers Increase in flight routes Staff expansion
Power pressure
The idea of implementing ERPsystem first came from shareholder Samruk-Kazyna as Peter Foster noted in his speech to mass media
OD intervention process
Successful implementation is first of all a professional team, which participated in the project. We constantly invest in training our staff. Oksana Borisova, executive director of BAS Given the high level of complexity, the project in Air Astana is an example of successful implementation of ERP-system, not only in CIS, but also in the world. Valeriy Lanovenko, Head of the Oracle CIS
It's not the strongest of the species that survives, nor the most intelligent, but the one most responsiveto change Charles Darwin
Thank you