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Role Changes of Key Users and Their Influencing Factors in ERP Implementation

Role Changes of Key Users and Their Influencing Factors in ERP Implementation. WANG Ying, PAN Mianzhen ， LU Lu ， MAO Jiye Renmin University of China. Self Introduction. Supervisor: Mao Jiye Research Area: Knowledge Management Information Systems Contact:

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Role Changes of Key Users and Their Influencing Factors in ERP Implementation

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  1. Role Changes of Key Users and Their Influencing Factors in ERP Implementation WANG Ying, PAN Mianzhen，LU Lu，MAO Jiye Renmin University of China

  2. Self Introduction • Supervisor: Mao Jiye • Research Area: Knowledge Management Information Systems Contact: E-mail: wangying_alice@yahoo.cn Cell Phone: 13910191904

  3. Contents • Background • Theoretical Basis • Methodology • Findings • Conclusions

  4. Background • 51% of enterprises believe that ERP system introduction is not successful • More than 70% of the ERP implementation does not reach the managers’ expectation • Success rate of Chinese enterprises is only around 10% • Implementation team is considered to be one of the most important key successful factors Renmin University of China

  5. Background • The implementation of ERP systems is a kind of organizational change • Staff’s acceptance of changes is one of the key success factors of the transformation • Key users’ job satisfaction and the successful implementation of ERP are significantly and positively correlated Renmin University of China

  6. Background • Studies haven’t pointed out what changes may happen on them after implementing ERP, such as their occupation development, job roles, personal abilities, professional level and so on, • And which factors will effect these changes. Renmin University of China

  7. Research Questions • (1) Ware the connotations of the concept of key users’ role changes in implementing ERP? • (2) Which are the influencing factors of the key users’ role changes?

  8. Theoretical Basis-Organizational Change Theory • Refers to the planned and goal-directed change activities carried out in organizations • Changes have impacts on people‘s psychology • Managers should pay close attention to employees’ reaction when transforming in different time Renmin University of China

  9. Theoretical Basis-Organizational Change Cognition Theory Employee’s cognition of change includes: • Cognition of the change’s effectiveness • Cognition of the coordination of staff members • Cognition of the rights and interests’ protection of the employees Renmin University of China

  10. Theoretical Basis- work role transition theory • The modes of employee’s work role transition can be divided into four types: replication, absorption, determination and development • Along with personal development and role development two aspects of results • Organizational induction- socialization processes, prior occupational socialization and motivational orientation, and work role requirements • Views the work role transition as a dynamic process Renmin University of China

  11. Research Method • Exploratory case study • Grounded theory oriented data analysis method

  12. Research Context • D company is a multinational enterprise basing on the geophysical exploring business, has diversified developing orientations, public utilities and other industries. • In June, 2003, D company’s ERP project officially started, mainly involving three participants: the project leading group, Beta consultant company and ERP executive group of D company .In February, 2004, the on-line application began. Renmin University of China

  13. Key User’s Work • (1)Early stage: join in the training about the ERP systems’ concepts and function knowledge • (2)Blueprint stage: combine the existing process, involve in the design of future processes • (3) Demand collecting stage: collect the key requirements of business department Renmin University of China

  14. Key User’s Work • (4)Implementing and popularizing stage: configure the system, unit and integration test, prepare ERP manual. • (5) On-line perpetrating stage: operation training. • (6) Going online and after online support: maintenance of the system, judge and answer the end users’ various questions, improve the system. Renmin University of China

  15. Conclusions • Deplored the connotations of concepts • Found their links Renmin University of China

  16. Implications—for managers • Pattention to what psychological effects the ERP implementing may bring to the key users, give the key users training and timely communication • Provide the key users good conditions for implementing ERP • Pay attention to creating a harmonious work atmosphere, give them the full trust and authorization Renmin University of China

  17. Implications—for managers • Be aware of the key users’ important functions for successful implementation of ERP • Select who is familiar with the business processes, business contents, enterprise culture, management style Renmin University of China

  18. Implications-for key users • Improve personal abilities, increase cross-sector business knowledge, expand horizons • Full-time involve into the project, active learn, learn from consultant about system knowledge • Communications with other module key users, try to do work by themselves, accept ERP Renmin University of China

  19. Thank you!

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