Organizational Learning and Impacts of ERP Implementations

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Organizational Learning and Impacts of ERP
Implementations

• MIS 262 Velianitis
• Phil Devereux and James Pratt

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Introduction

• Most (70) ERP rollouts fail, why?
• ERP Systems have become increasingly integrated
  an encompass more end users.
• A need for well-managed integrations between
  different systems and cooperating businesses.
• Increases the need for organizational learning.
• There is no perfect handbook for organizational
  learning due to company differences.

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Organizational Learning

• Learning theory states that people learn new
  skills through structures called schemas.
• Employees are required to learn a large amount of
  information in a short amount of time.
• This is due to the change from an outdated legacy
  system to a modern ERP.
• As the ERP system increases in complexity, the
  amount of end user training must increase.

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IT Learning Strategy

• A company must develop and IT learning strategy
  that supports the overall goals of the business.
• Layered view of Training Learning Strategies.

SIGMIS conference on Computer Personnel Research,
2003
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Training with an ERP Project

• In 1999 the average US Company trained more of
  its employees than ever before, IT comprised 9
  of the total organizational spending on training.
  (Symposium on Applied Computing, 2009)
• Training is seen as the largest organizational
  learning aspect in relation to an ERP
  implementation.
• There are three groups which must be trained for
  any ERP implementation to be successful
• Technical Support Organization (TSO)
• Management
• End User

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Training with an ERP Project cont.

• An organization must select a TSO as the starting
  team to any ERP implementation.
• The TSO groups are the subject matter experts
  from various departments throughout the
  organization.
• Management must also be trained in the business
  aspects of an ERP.
• The final training team is the end-user, these
  are the people whom will be using the ERP on a
  daily basis.

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Benefits of Successful ERP Implementations

• One of the major downfalls of implementing an ERP
  system is the lack of evidence associated with
  whether the ERP system is cost effective for your
  business.
• A business must properly identify the
  organizational impacts of implementing an ERP
  from a financial standpoint.
• ERP systems are still in the growth stage of the
  maturity model and therefore still uncertain as
  to long term benefits.

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ERP Implementation and End User Training

• Another major organizational impact that stems
  from ERP implementation is customer side quality,
  i.e. customer end user.
• Does the organization tailor to customers who are
  closely tied to your business process?
• This must be taken into account, as no company
  would want to lose customers over quality issues
  related to an ERP implementation.

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ERP Implementation and End User Training cont.

• We have developed a three step process in
  training your end-user in order to account for
  quality and customer focus.
• Step 1 Define and Emphasize Ownership
• Step 2 Develop Training Material
• Step 3 Test, Implement and Train

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Conclusion

• An ERP implementation is a grueling undertaking
  that is laden with risk and sometimes
  un-calculable rewards.
• Despite this, more and more companies decide that
  this risk is worth it as outdated legacy systems
  continue to become a thing of the past.
• These risks can be minimized by increasing
  organizational learning through the use of a
  proper end user training program.