Organizational Learning in the Context of ERP Implementation

1
Organizational Learning in the Context of ERP
Implementation

• Dr. Jimmy Huang (Nottingham University)
• Prof. Sue Newell (Bentley College)
• Prof. Robert D. Galliers (Bentley College)

2
Introduction

• Research importance, objectives and motivation
• Theoretical foundations
• Methods
• Case background and discussion
• Conceptualizing ERP implementation
• Implications

3
Importance

• The growing popularity of Enterprise Resource
  Planning (ERP) systems
• The increasing failure in ERP implementation
• The mounting difficulties in maximizing IT
  investment

4
Research Objectives

• To develop an integrative organizational learning
  perspective to examine technology implementation
  
• To conceptualize learning processes and dynamics
  within the context of ERP implementation

5
Research Motivations

• Organizational learning literature is often
  under-valued by researchers in the area of
  technology implementation
• The need to develop an alternative theoretical
  perspective to make sense of ERP implementation

6
Theoretical Foundations

• Overriding theoretical framework A logic of
  opposition (Robey Boudreau, 1999)
• Theoretical perspective Organizational learning
  theories
• A conceptual model of enterprise system
  experience cycle (Markus Tanis, 2000)

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A Logic of Opposition

• Shortfalls of the deterministic logic
• The interplay between promoting and opposing
  forces in the context of IT-related
  organizational change
• The four theoretical perspectives proposed
• Politics
• Culture
• Institution theory
• Organizational learning

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Organizational Learning

• The tension between cognitive and behavioral
  change
• Learning modes
• Generative versus adaptive learning
• Single-loop versus double-loop learning
• The importance of time
• The inclusion or exclusion of context

9
Enterprise System Experience Cycle

• Project chartering
• The project
• Shakedown
• Onward and upward

10
Methods

• An interpretive in-depth longitudinal case study
• Research context
• Data collection
• 37 semi-structured interviews
• Documentation
• Observation
• Informal dialogues
• Data analysis

11
Case Background

• Growing competition pressure Low profit margin,
  reducing demands and a very mature market
• A business case was conducted in 1995 and
  implementation started in mid-1996
• A nearly 3 year project for Europe North
  America
• The new system went live at the beginning of 1999

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Case Discussion

• Project chartering
• The involvement of IT service provider business
  case
• Enhancing users awareness and understanding of
  ERP
• The project
• Mapping existing new business processes
• Configuring ERP software

13
Case Discussion

• Shakedown
• Some of the organizational changes, i.e.
  suppliers, logistics and centralization
• Performance benchmark
• Onward and upward
• Developing synergy from ERP and knowledge
  management program

14
Conceptualizing ERP Implementation
Learning Mode
Generative learning
Adaptive learning
Onward Upward Shakedown
Context dependent
Learning Context
The Project Project Chartering
Context independent
15
Conceptualizing ERP Implementation
Learning Mode
Generative learning
Adaptive learning
Onward Shakedown
Upward Creating synergy through integration
Context dependent
Learning Context
Stakeholders Learning prior to ERP Project
The Project Project Chartering
Context independent
16
Implications

• ERP experience cycle as a learning experience
• Learning is not an universal concept throughout
  the cycle of ERP implementation
• Stakeholders, in particular user groups,
  learning is often under-valued and poorly managed
  
• The need to integrate ERP with other
  organizational initiatives