Overcoming Knowledge
 Integration Barriers in ERP
implementation Using Action
     Research Approach

       Víctor W. Boh...
Agenda
•   Introduction
•   Theoretical Background
•   Methodology
•   Setting the Scene
•   Theoretical Model
•   Analysi...
Introduction
• Growing popularity of ERP (Davenport 2000)
                             (Davenport,
• ERP implementation ca...
Theoretical Background
Knowledge Integration
• It is based on 4 distinctive but interrelated
  dimensions: structural, tec...
Methodology
• AR provides a potential avenue to improve
  the practical relevance of IS research
  (
  (Baskerville and My...
Methodology
• Focus: Problems of knowledge integration
                                g      g
  between organizational c...
Setting the Scene
• The company
   – Over 250 employees
   – Annual sales close to US$50 million
   – Within the 200 large...
Theoretical Model
              ERP Best‐Practices
              ERP B    P    i


    Knowledge Integration Barriers

   ...
Analysis and Lessons Learnt
Structural Barriers
•  Organizational structure limits the interaction among different functio...
Analysis and Lessons Learnt
Technological Barriers
•   Islands of information with different programs that fulfill
    dif...
Analysis and Lessons Learnt
Intellectual and Socio emotional Barriers
                 Socio-emotional
• Intellectual dime...
Conclusions and Further
           Research
• Very little is known about how organizations adapt to new
  ERP system that ...
Questions?

Thank you…



      AMCIS 2009 – San Francisco, USA
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Overcoming Knowledge Integration Barriers in ERP implementation Using Action Research Approach

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Overcoming Knowledge Integration Barriers in ERP implementation Using Action Research Approach

  1. 1. Overcoming Knowledge Integration Barriers in ERP implementation Using Action Research Approach Víctor W. Bohórquez and José Esteves IE Business School AMCIS 2009 – San Francisco, USA
  2. 2. Agenda • Introduction • Theoretical Background • Methodology • Setting the Scene • Theoretical Model • Analysis and Lessons Learnt • Conclusions and Further Research AMCIS 2009 – San Francisco, USA
  3. 3. Introduction • Growing popularity of ERP (Davenport 2000) (Davenport, • ERP implementation can be complicated and problematic (Davenport, 1998) • Lack of studies about ERP implementation in terms of knowledge integration(Esteves and Bohórquez, 2007) g g ( q ) • Essence of knowledge integration: environment in which knowledge infrastructure can effectively support the core organizational capabilities (Grant, 1999) • Successful ERP implementation develops new cross- functional k f ti l knowledge, capabilities and competence f l d biliti d t for the organization (Wan, Shan and Huang, 2001) AMCIS 2009 – San Francisco, USA
  4. 4. Theoretical Background Knowledge Integration • It is based on 4 distinctive but interrelated dimensions: structural, technological, intellectual and socio-emotional (Huang, Newell, Pan and Galliers, 2001) , , ) • Tacit knowledge within the system and within the organization makes knowledge integration g g g in implementations slow and painful (Nonaka, 1994) AMCIS 2009 – San Francisco, USA
  5. 5. Methodology • AR provides a potential avenue to improve the practical relevance of IS research ( (Baskerville and Myers, 2004) y ) • AR enables to investigate the complexity within the organizational context ( g (Braa and Vidgen, 1999) • Because one of the Authors: – Part of the consulting team – Total immersion within the context of the study – Inevitably influenced by what was happening (McNiff, Lomax and Whitehead, 2003) – Participant and agent of change (Coughlan and Coghlan, 2002) AMCIS 2009 – San Francisco, USA
  6. 6. Methodology • Focus: Problems of knowledge integration g g between organizational culture and best- practices supported by an ERP system • Unit of analysis: Implementation team • Period: Three months • Data collection: multiple interviews, informal conversations, workshops, brainstorming , p , g sessions, socialization, discussions and meetings. • Action Research allowed to: Build a complete picture of the ERP implementation process AMCIS 2009 – San Francisco, USA
  7. 7. Setting the Scene • The company – Over 250 employees – Annual sales close to US$50 million – Within the 200 largest companies in Peru • The consulting firm – One of the best known consulting firms in Peru – With presence in other Latin-American countries – Clients are leading Peruvian organizations – More than 100 full-time consultants • The context – Islands of information – Power of IS department – Decision to ERP adoption – ERP Implementation process AMCIS 2009 – San Francisco, USA
  8. 8. Theoretical Model ERP Best‐Practices ERP B P i Knowledge Integration Barriers Intellectual and  Structural  Technological  Socio‐ Barriers B i Barriers B i emotional  i l Barriers Organizational Culture Organizational Culture AMCIS 2009 – San Francisco, USA
  9. 9. Analysis and Lessons Learnt Structural Barriers • Organizational structure limits the interaction among different functional areas • Rigid and hierarchical organizations inhibit change (Mohamed et al., 2004) • Relationships among areas are crucial to identify complexity and to determine implementation requirements • Firms do not know their real complexity • Fi Firms perceived ERP i l i d implementation as disruptive (Ross and Vitale, 2000) t ti di ti (R d Vit l • ERP increases bureaucratic effect because it increases formalization, standardization and centralization (Govers and Van Amelsvoort, 2007) • Implementation only succeeded when the organization was able to re-structure itself (Markus, 1983) • Strategic g p formed by key users could connect hubs of knowledge g groups y y g facilitating the processes of knowledge sharing (Pan et al., 2001) Strategic groups were formed after the first knowledge integration problem Build a new organizational structure to support ERP implementation process AMCIS 2009 – San Francisco, USA
  10. 10. Analysis and Lessons Learnt Technological Barriers • Islands of information with different programs that fulfill different tasks; hence, there is no central ownership of data • IS department was the author of the previous system • IS people were not comfortable supporting new ERP system • Parallel use of legacy systems g y y • Comparison between legacy systems and new ERP as well as a considerable duplication of effort • Routines th t coordinate efforts among all th related users R ti that di t ff t ll the l t d facilitate knowledge integration (Gersick and Hackman, 1990) Use of legacy systems only for validation reasons g y y y Users should focus only in the new ERP Users should understand their contribution AMCIS 2009 – San Francisco, USA
  11. 11. Analysis and Lessons Learnt Intellectual and Socio emotional Barriers Socio-emotional • Intellectual dimension: learning and knowledge of users • Socio-emotional dimension: feelings and the willingness to improve skills of users kill f Main barriers: • Individual knowledge isolated in organizational silos • Knowledge transfer between legacy system and new ERP system, and between consultants and ERP users • ERP users were trying to make sense of the change Create knowledge-enabling structures around existing IS Enable intra-organizational knowledge transfer and sharing User t i i as a key requirement for ERP implementation U training k i tf i l t ti Shift user perspective from individual level to organizational level AMCIS 2009 – San Francisco, USA
  12. 12. Conclusions and Further Research • Very little is known about how organizations adapt to new ERP system that implies significant contextual, social and cultural changes (Wan et al., 2001) • This study provides managers with practical suggestions to surpass knowledge integration problems: – Structural barriers: Promotion of new organizational structures formed after the appearance of the first knowledge integration problems to support the ERP implementation process – Technological barriers: IS people were reinforced in their knowledge related with the new ERP systems, and legacy systems were used only for validation purpose – Intellectual and socio-emotional barriers: Improvement in the transfer socio emotional of knowledge between consultants and ERP users; more training to make sense of changes; and collaboration among departments Training ith h li ti i i i T i i with a holistic vision is an ignored frequent issue, and a i df ti d promising topic to further research AMCIS 2009 – San Francisco, USA
  13. 13. Questions? Thank you… AMCIS 2009 – San Francisco, USA

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