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)

7. 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

8. 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

12. 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 group’s, learning is often under-valued and poorly managed • The need to integrate ERP with other organizational initiatives