Organizational Learning in the Context of ERP Implementation

Organizational Learning in the Context of ERP Implementation Dr. Jimmy Huang (Nottingham University) Prof. Sue Newell (Bentley College) Prof. Robert D. Galliers (Bentley College)

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

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

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

Research Motivations n n 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

Theoretical Foundations n n n 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)

A Logic of Opposition n Shortfalls of the deterministic logic The interplay between promoting and opposing forces in the context of ITrelated organizational change The four theoretical perspectives proposed: • • Politics Culture Institution theory Organizational learning

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

Enterprise System Experience Cycle n n Project chartering The project Shakedown Onward and upward

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

Case Background n n 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

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

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

Conceptualizing ERP Implementation Learning Mode Adaptive learning Generative learning Context independent Learning Context dependent Onward Upward Shakedown The Project Chartering

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

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