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

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Presentation on theme: "Organizational Learning in the Context of ERP Implementation Dr. Jimmy Huang (Nottingham University) Prof. Sue Newell (Bentley College) Prof. Robert D."— Presentation transcript:

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

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

4 Research Objectives To develop an integrative organizational learning perspective to examine technology implementation To develop an integrative organizational learning perspective to examine technology implementation To conceptualize learning processes and dynamics within the context of ERP 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 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 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) Overriding theoretical framework: A logic of opposition (Robey & Boudreau, 1999) Theoretical perspective: Organizational learning theories Theoretical perspective: Organizational learning theories A conceptual model of enterprise system experience cycle (Markus & Tanis, 2000) A conceptual model of enterprise system experience cycle (Markus & Tanis, 2000)

7 A Logic of Opposition Shortfalls of the deterministic logic Shortfalls of the deterministic logic The interplay between promoting and opposing forces in the context of IT- related organizational change The interplay between promoting and opposing forces in the context of IT- related organizational change The four theoretical perspectives proposed: The four theoretical perspectives proposed: PoliticsPolitics CultureCulture Institution theoryInstitution theory Organizational learningOrganizational learning

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

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

10 Methods An interpretive in-depth longitudinal case study An interpretive in-depth longitudinal case study Research context Research context Data collection Data collection 37 semi-structured interviews37 semi-structured interviews DocumentationDocumentation ObservationObservation Informal dialoguesInformal dialogues Data analysis Data analysis

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

12 Case Discussion Project chartering Project chartering The involvement of IT service provider & business caseThe involvement of IT service provider & business case Enhancing users awareness and understanding of ERPEnhancing users awareness and understanding of ERP The project The project Mapping existing & new business processesMapping existing & new business processes Configuring ERP softwareConfiguring ERP software

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

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

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

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


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