Organizational Learning in Organizational Learning in the Context of ERP the Context of ERP

ImplementationImplementation

Dr. Jimmy Huang (Nottingham University) Dr. Jimmy Huang (Nottingham University) Prof. Sue Newell (Bentley College)Prof. Sue Newell (Bentley College)

Prof. Robert D. Galliers (Bentley College)Prof. Robert D. Galliers (Bentley College)

IntroductionIntroduction

Research importance, objectives and Research importance, objectives and motivationmotivation

Theoretical foundations Theoretical foundations MethodsMethods Case background and discussionCase background and discussion Conceptualizing ERP implementationConceptualizing ERP implementation Implications Implications

ImportanceImportance

The growing popularity of Enterprise The growing popularity of Enterprise Resource Planning (ERP) systemsResource Planning (ERP) systems

The increasing failure in ERP The increasing failure in ERP implementation implementation

The mounting difficulties in The mounting difficulties in maximizing IT investment maximizing IT investment

Research ObjectivesResearch Objectives

To develop an integrative To develop an integrative organizational learning perspective organizational learning perspective to examine technology to examine technology implementation implementation

To conceptualize learning processes To conceptualize learning processes and dynamics within the context of and dynamics within the context of ERP implementationERP implementation

Research MotivationsResearch Motivations

Organizational learning literature is Organizational learning literature is often under-valued by researchers in often under-valued by researchers in the area of technology the area of technology implementationimplementation

The need to develop an alternative The need to develop an alternative theoretical perspective to make theoretical perspective to make sense of ERP implementation sense of ERP implementation

Theoretical FoundationsTheoretical Foundations

Overriding theoretical framework: A Overriding theoretical framework: A logic of opposition (Robey & logic of opposition (Robey & Boudreau, 1999) Boudreau, 1999)

Theoretical perspective: Theoretical perspective: Organizational learning theories Organizational learning theories

A conceptual model of enterprise A conceptual model of enterprise system experience cycle (Markus & system experience cycle (Markus & Tanis, 2000)Tanis, 2000)

A Logic of OppositionA Logic of Opposition

Shortfalls of the deterministic logic Shortfalls of the deterministic logic The interplay between promoting and The interplay between promoting and

opposing forces in the context of IT-related opposing forces in the context of IT-related organizational change organizational change

The four theoretical perspectives The four theoretical perspectives proposed:proposed:• Politics Politics • CultureCulture• Institution theoryInstitution theory• Organizational learningOrganizational learning

Organizational LearningOrganizational Learning

The tension between cognitive and The tension between cognitive and behavioral change behavioral change

Learning modes:Learning modes:• Generative versus adaptive learning Generative versus adaptive learning • Single-loop versus double-loop learning Single-loop versus double-loop learning

The importance of timeThe importance of time The inclusion or exclusion of context The inclusion or exclusion of context

Enterprise System Experience Enterprise System Experience Cycle Cycle

Project charteringProject chartering The project The project ShakedownShakedown Onward and upwardOnward and upward

MethodsMethods

An interpretive in-depth longitudinal An interpretive in-depth longitudinal case studycase study

Research context Research context Data collectionData collection

• 37 semi-structured interviews37 semi-structured interviews• Documentation Documentation • ObservationObservation• Informal dialogues Informal dialogues

Data analysis Data analysis

Case BackgroundCase Background

Growing competition pressure: Low profit Growing competition pressure: Low profit margin, reducing demands and a very margin, reducing demands and a very mature marketmature market

A business case was conducted in 1995 A business case was conducted in 1995 and implementation started in mid-1996 and implementation started in mid-1996

A nearly 3 year project for Europe & North A nearly 3 year project for Europe & North AmericaAmerica

The new system went live at the beginning The new system went live at the beginning of 1999of 1999

Case DiscussionCase Discussion

Project charteringProject chartering• The involvement of IT service provider & The involvement of IT service provider &

business casebusiness case• Enhancing users’ awareness and Enhancing users’ awareness and

understanding of ERPunderstanding of ERP The project The project

• Mapping existing & new business Mapping existing & new business processesprocesses

• Configuring ERP software Configuring ERP software

Case DiscussionCase Discussion

ShakedownShakedown• Some of the organizational changes, i.e. Some of the organizational changes, i.e.

suppliers, logistics and centralization suppliers, logistics and centralization • Performance benchmark Performance benchmark

Onward and upward Onward and upward • Developing synergy from ERP and Developing synergy from ERP and

knowledge management programknowledge management program

Conceptualizing ERP Conceptualizing ERP ImplementationImplementation

Onward Upward

Shakedown

The Project

Project Chartering

Learn

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Conte

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Conte

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Learning Mode

Adaptive learning Generative learning

Conceptualizing ERP Conceptualizing ERP ImplementationImplementation

Onward

Shakedown

Stakeholders’ Learning prior to

ERP Project

The Project

Project Chartering

Upward

Creating synergythrough integration

Learn

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text

Conte

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depend

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Conte

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independ

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Learning Mode

Adaptive learning Generative learning

ImplicationsImplications

ERP experience cycle as a learning ERP experience cycle as a learning experienceexperience

Learning is not an universal concept Learning is not an universal concept throughout the cycle of ERP throughout the cycle of ERP implementationimplementation

Stakeholders’, in particular user group’s, Stakeholders’, in particular user group’s, learning is often under-valued and poorly learning is often under-valued and poorly managed managed

The need to integrate ERP with other The need to integrate ERP with other organizational initiativesorganizational initiatives