The current issue and full text archive of this journal is available at
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and training. Change management is a particularly important factor in the adoption,              ERP innovation
adaptation...
BPMJ                          Therefore, change management should focus on creating an environment where the
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Hence, it is possible to describe the “dotted portion” of the modified innovation          ERP innovation
implementation mo...
BPMJ   implementation climate and implementation effectiveness in a major Australian
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ERP innovation
                                       Operations
                                       department        ...
BPMJ   a “shared services” approach to service provision was adopted, where a single point of
14,2   contact for all busin...
impacted by the change initiatives. The plan outlined the strategy, timing and          ERP innovation
execution plan for ...
BPMJ       The effectiveness of the implementation is discussed, from the perspective of the users
14,2   of the ERP syste...
Discussion with users regarding training showed that the feelings of those users               ERP innovation
who believed...
BPMJ   The climate prior to its release was one expectant of better results than what were
14,2   being achieved with the ...
in order to accurately gauge the functionality offered. However, the ABC system may          ERP innovation
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BPMJ   the Klein et al. (2001) and Aladwani (2001) models. Since most users will have little
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Bingi, P., Sharma, M.K. and Godla, J. (1999), “Critical issues affecting an ERP implementation”,       ERP innovation
    ...
BPMJ   Somers, T.M. and Nelson, K.G. (2004), “A taxonomy of players and activities across
             the ERP project lif...
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2. Erp Innovation Implementation Model Incorporating Change Management

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  1. 1. The current issue and full text archive of this journal is available at www.emeraldinsight.com/1463-7154.htm BPMJ 14,2 ERP innovation implementation model incorporating change management 228 M.J. Kemp and G.C. Low School of Information Systems, Technology and Management, The University of New South Wales, Sydney, Australia Abstract Purpose – The purpose of this research is to develop and provide a preliminary validation of a model for how change management during an ERP implementation affects the effectiveness of that ERP implementation. Design/methodology/approach – This paper proposes a revised Klein et al. innovation implementation model that explicitly considers change management. The applicability of the revised model to describe the effect of change management on the implementation climate and implementation effectiveness of an ERP implementation is assessed using a case study at a large Australian multinational organisation. Findings – Specific change management activities are identified and described. Qualitative verification of a proposed ERP innovation implementation model that incorporates the effect of change management is provided. Originality/value – Change management was seen as being an important factor in influencing the effectiveness of the ERP project. This study is the first step in the longer-term empirical validation of the modified innovation implementation model. Keywords Change management, Manufacturing resource planning Paper type Research paper Introduction Many large organisations have made significant investments of both time and capital to implement ERP systems, however not all implementations go as well as intended (Bingi et al., 1999; Kumar and van Hillegersberg, 2000). Owing to the complex nature of ERP systems, many implementations have been difficult, lengthy and over budget, terminated before completion, and/or failed to achieve their business objectives even a year after implementation (Volkoff, 1999). ERP systems are organisation-wide systems and their implementation involves multiple stakeholders, often in geographically disperse locations. Therefore, an ERP system requires data standardisation, integration of the system with other information systems and management of consultants and vendors (Soh et al., 2000). Traditional project management challenges are magnified in such environments, making the implementation more difficult, expensive and failure-prone (Holland and Light, 1999). This complexity suggests that results obtained in other simpler technology implementation environments do not Business Process Management automatically apply to ERP environments (Markus et al., 2000). The significance of a Journal new ERP system and the inherent risks in implementing such a system make it essential Vol. 14 No. 2, 2008 pp. 228-242 that organisations focus on ways to improve ERP implementations. q Emerald Group Publishing Limited Al-Mudimigh et al. (2001) suggest that, the five key critical success factors are top 1463-7154 DOI 10.1108/14637150810864952 management support, business case, change management, project management
  2. 2. and training. Change management is a particularly important factor in the adoption, ERP innovation adaptation and acceptance phases of ERP systems implementation (Somers and implementation Nelson, 2004). Somers and Nelson (2004) reinforces the key role change management has in an ERP implementation by observing that many ERP implementations fail to model achieve the expected benefits possibly because companies underestimate the effort involved in change management. This paper proposes an extended innovation implementation model that explicitly 229 incorporates the impact of change management. As a first step in the longer-term empirical validation of the modified innovation implementation model, we examine the applicability of the model to describe how change management during an ERP implementation affects the implementation climate and implementation effectiveness in a major Australian Organisation. Literature review ERP systems are an example of an innovation – a “idea, practice, or object that is perceived as new by an individual or other unit of adoption” (Rogers, 1995). Implementation of an innovation is described as “the process of gaining targeted employees’ appropriate and committed use of an innovation” (Klein and Sorra, 1996). When introducing an innovation such as an ERP system to an organisation, the implementation process needs to be managed so that the expected benefits are achieved. Users require ongoing support from the organisation such as training, maintenance and equipment upgrades in order to achieve implementation effectiveness. It has been suggested that many new systems fail due to implementation failure, rather than innovation failure (Klein et al., 2001). The factors leading to implementation effectiveness can be described using the model proposed by Klein et al. (2001), Figure 1. Change management is not explicitly included in this model, although its effect would be expected to influence implementation climate. For an ERP system, change management is required to prepare users for the introduction of the new system, reduce resistance towards the system and influence user attitudes towards that system. Approaches to managing change can be drawn from marketing research, and from studying the implementation life cycle (Aladwani, 2001). The ERP adoption model (Aladwani, 2001) suggests that change management and management support should positively influence system awareness, feelings towards the system and the intention to adopt that system for users to actually adopt the system. Change management initiatives for a new information system should focus on changes specifically in the areas of technology, business process and organisation, and culture (Benjamin and Levinson, 1993). There is a strong focus in the literature on culture and politics as significant impediments to change (El Sawy, 1985). Management Implementation Support Climate Implementation Implementation Innovation Effectiveness Effectiveness (Use) (Use Time 2) Effectiveness Figure 1. Klein et al. (2001) Financial Implementation innovation Resource Policies and Availability Practices implementation model
  3. 3. BPMJ Therefore, change management should focus on creating an environment where the 14,2 change can be implemented (Motwani et al., 2002). Suggested activities include: . project championship (Beath, 1991; Martinsons, 1993); . training (Igbaria et al., 1997); . communication of system features and benefits (Debrabander and Thiers, 1984; 230 Markus, 1983); . communication of new business processes and organisational structure (Grover et al., 1995; Joshi, 1991); and . rewards and incentives (Allen and Kilmann, 2001; Joshi, 1991). Research model The Klein et al. (2001) innovation implementation model, Figure 1, does not explicitly consider the impact that change management has on implementation climate. A climate favourable to the implementation of a new system represents favourable user experiences and attitudes towards the implementation. Therefore, by managing the change that occurs during the implementation at an individual or departmental level, user attitudes towards the system are more likely to be positive and the overall implementation climate is more likely to be favourable. The construct of “change management” has been added to the innovation implementation model to represent the effect that change management can have on implementation climate. The modified model is shown in Figure 2. The implementation climate for an innovation can be described as the sum of employees’ observations and experiences regarding the innovation. The Aladwani ERP adoption model describes the situation where users’ awareness, feelings and intention to adopt an ERP system are affected by change management and management support. User awareness, feelings and intention to adopt an ERP system are equivalent to the experiences and observations of users during an ERP implementation (ie. implementation climate), therefore the Aladwani ERP adoption model can be considered as providing a greater level of detail regarding change management and implementation climate. Management Support Change Implementation Management Climate Implementation Innovation Effectiveness Effectiveness Figure 2. Financial Implementation Modified Klein et al. (2001) Resource Policies & model Availability Practices
  4. 4. Hence, it is possible to describe the “dotted portion” of the modified innovation ERP innovation implementation model shown in Figure 2 in greater detail to reflect the definitions of implementation change management activities and climate in the ERP adoption model. The list of change management activities (from the ERP adoption model) has been updated to also include model the additional information systems change management activities discussed previously. Through using this model, Figure 3, the impact of change management on implementation climate and innovation effectiveness can be investigated. Specifically, 231 the research questions are: RQ1. Do the identified change management activities affect the implementation climate? RQ2. Does implementation climate (feelings awareness response, favourable feelings response and favourable adoption intention) impact the effectiveness of the ERP implementation? Research methodology As a first step in the longer-term empirical validation of the revised innovation implementation model, we examine the applicability of the revised model to describe how the change management activities during an ERP implementation affect the Management Support Change Management Activities Implementation Climate Communication of ERP benefits Communication of ERP operations Communicationof system features Favourable Communication of changed Awareness processes Response Involvement of individuals and groups Favourable Implementation Quality of ERP interface Feelings Response Effectiveness Quality of training Level of adoption costs Opinion leader support/ project Figure 3. champion Favourable Proposed ERP innovation Timing/phases of ERP Adoption implementation model implementation Intention incorporating change Rewards & incentives managenment
  5. 5. BPMJ implementation climate and implementation effectiveness in a major Australian organisation using a structured-case based approach (Carroll and Swatman, 2000). 14,2 Case study selection The case study organisation is a major Australian Multinational Organisation. The organisation is currently in the process of implementing an ERP system, called “ABC” 232 from one of the two major vendors. It is being implemented in conjunction with re-engineering of the related business processes. The system will house the HR, finance, payroll and procurement transactions that are carried out on a day-to-day basis in the organisation. The ABC system is being implemented in a series of managed releases. As part of its implementation process, the organisation established a change management team as part of the project team. The team was responsible for preparing the organisation for the changes that the ABC system would initiate. This identified the organisation and the ABC program as being an excellent research setting for investigating change management practices in an ERP implementation. Data collection The ABC implementation at the organisation saw a variety of change management activities implemented. Various departments were recipients of a range of change management activities according to the assessed impact that the change would have and the readiness of users in those departments. Various forms of data collection were employed: . Interviews. A range of interviewees was sought, representing a cross-section of the users of the ABC system. Interviewees were recruited from two departments, which were selected based on the change management activities employed in those departments. The operations department had little focused change management, while the human resources department was the recipient of targeted activities. Five executives and three monthly paid staff were interviewed across both departments using a snowball sampling technique. The interviews were designed to be semi-structured with open-ended questions covering implementation effectiveness, implementation climate (awareness response, feelings response and adoption intention) and change management activities. Each interview lasted approximately half-an-hour, and was held in the interviewee’s office or another location nominated by the interviewee. . Review of organisational documents. Surveys, reports and other documents that were generated as part of the ABC implementation were reviewed. Documents relating to the entire change management effort were examined, with particular emphasis on documents relating to the two departments from which interviewees were selected. . Surveys. Triangulation was achieved through the collection of survey data from a small set of respondents in the two departments. The strength of the respondents’ agreement with a range of statements (Table I) was measured on a five-point Likert scale, ranging from 1 – strongly disagree to 5 – strongly agree. The statements are related to the both the system itself (content, accuracy, format, ease of use and timeliness) and the effects of change management experienced (adoption intention, feelings response, system awareness, management support, and change management effectiveness).
  6. 6. ERP innovation Operations department HR department All users implementation Median Range Median Range Median Range model Content 4.0 2-4 3.0 3-4 4.0 3-4 Accuracy 4.0 2-4 3.0 2-4 4.0 2-4 Format 4.0 3-4 3.5 2-4 4.0 2-4 233 Ease of use 4.0 2-5 3.0 1-4 4.0 1-5 Timeliness 4.0 4 4.0 1-4 4.0 1-4 Adoption intention 4.0 3-4 4.0 1-5 4.0 1-5 System awareness 4.0 2-4 3.5 2-4 4.0 2-5 Communicators n/a n/a 3.0 2-5 3.0 2-5 Communications 4.0 3-4 3.5 2-4 4.0 2-4 Traininga 4.0 4 4.0 4 4.0 4 Feelings response 3.0 2-4 4.0 1-5 4.0 1-5 User involvement 3.0 3-4 4.0 4-5 3.5 3-5 Management support 4.0 4-5 4.0 4-5 4.0 4-5 Change management effectiveness 3.0 2-4 3.5 1-4 3.0 1-4 Table I. Note: aOnly applicable for users who attended training User survey responses Analysis techniques All interviews were transcribed and these transcriptions were analysed using a three stage coding process: open coding, axial coding and selective coding (Strauss and Corbin, 1997). The purpose of coding is two-fold: to look for patterns among the data and to look for patterns that give meaning to the case study (Merriam, 1985). The open coding stage involved an exploration of the data to generate initial codes. However, the concepts in a conceptual framework can be used as initial codes in guiding the analysis provided this does not prevent the identification of other codes to incorporate new themes (Carroll and Swatman, 2000; Neuman, 2003). Hence, the model for planned change (Kolb and Frohman, 1970) was utilised to provide a framework for identifying initial change management codes. The second axial coding stage involved the analysis of codes developed in open coding for recurring themes or overlapping central categories. Selective coding involved scanning existing codes for cases that illustrate themes within the case study. Major themes or concepts were used to guide the search. In particular, multiple instances of empirical evidence were sought from the interviews, review of organisational documents and the surveys in order to strengthen and validate findings from the study. Case study Release 1 of the ERP system, comprising payroll functionality, was rolled out in September 2003 for monthly paid and executive staff (representing approximately 1,200 users). Release 2 went live in October 2004 and consisted of HR self-service functions for managers and other employees. The Release 2 user base represents a much larger number of users. Five further releases are planned covering performance management, customer service, finance, purchasing and procurement, and portal implementation. Prior to the implementation of the ABC system, each department was responsible for maintaining its own payroll and HR system, leading to duplication of the types of data stored and staff roles in each department. To alleviate these problems,
  7. 7. BPMJ a “shared services” approach to service provision was adopted, where a single point of 14,2 contact for all business services was established. A large number of existing HR and payroll staff were moved to a new shared services department, where use of the ABC system has replaced or connects to the departmental HR and payroll systems. Business services are provided by shared services to all departments at agreed service levels and at agreed costs. A new call centre handles questions regarding the ABC system and 234 other HR and payroll queries. The new “shared services” approach was implemented at the same time as Release 1 of the ABC system, however there was not a great deal of system functionality available at that time. In order to take advantage of the new structure, interim processes using forms and direct contact with shared services were implemented. These interim processes mirrored the processes that would exist when Release 2 was released, but required more manual processing. When Release 2 of the system arrived, the processes were again updated to reflect the availability of system functionality. Implementation team Staffs from three major organisations are responsible for implementing the ABC system. Organisation staff with relevant experience and skills have been seconded to the project, for varying amounts of time as required. The hardware infrastructure and web hosting services are being provided by an outsourcing vendor while a consulting organisation is leading the implementation activities and managing the change of business processes. The ERP vendor is carrying out any required changes to the basic ERP software purchased. Change management team The change management team was formed from key staff from the organisation and the consulting organisation which had experience in managing change associated with changes in processes. The team was formed shortly after the beginning of the ABC program. Change management The change management team performed a number of tasks to diagnose, plan, deliver and evaluate the change management activities required for the ABC implementation. Implementation climate assessment Before implementation commenced, the change management team made an assessment of the implementation climate. This involved assessing the impact of the system on business processes, assessing the gap between current and required capabilities and preparing a change management readiness assessment. The implementation climate assessment helped to identify areas of the business that would require specific and targeted change management activities. Scoping and planning The information gathered during the implementation climate assessment was used to create a transition plan describing how to move from the current implementation climate to the users having the required skills and knowledge to operate the ABC system successfully. The people transition plan provided a roadmap for individuals
  8. 8. impacted by the change initiatives. The plan outlined the strategy, timing and ERP innovation execution plan for the transition of staff. Change management activities were planned implementation as a result of the people transition plan, and were detailed in separate documents (eg. training plan). model Planning was also required for the communications that would be necessary as a result of the ABC program. The communication plan detailed the stakeholders, key messages and timing of communications to user groups. Key messages included 235 system features, benefits of using the system, progress of development and impact of changed processes. Change management delivery A range of change management activities was performed during the implementation of the ABC system. Most of the change management activities were targeted at specific groups of users, rather than being intended for all users of the system. Strategies included: . Communicating information on system features, system benefits and changed processes using various options including organisation newsletters, ABC system “open days” conference room pilots of the system, and departmental briefings. . Implementing a project championship program. The change management team, with assistance from the organisation general managers and HR staff, selected change agents from functional areas to be impacted by the ABC system. These change agents, known as “Communicators” were the primary communication channel in support of the ABC system implementation. The role and function of communicators were detailed in the communication plan. . Training users across the organisation, focusing on the departments where change would be greatest. A range of training was implemented, from online courses to intensive classroom-based training days. Training was mandatory and face-to-face for users with “high” or “medium” capability gap assessments, and online and optional for all other users. . Involving affected users in all aspects of the change process. . Adopting a phased implementation to help minimise resistance to the changes. Benefits analysis During the scoping and planning phase of the ABC system, a program wide benefits baseline was prepared which included all potential business benefits arising from the ABC system. A primary tool in the realisation of business benefits for each release is the benefit action plan. It defines the required states for four key project factors: process, people, organisation and technology. Discussion Some change management activities suggested in the revised ERP innovation implementation model (Figure 3) were not considered by the change management team during the ABC implementation. These were quality of ERP interface, level of adoption cost, and rewards and incentives. In this case, a standard application was purchased with minimal customization thus largely removing the ability to customize the interface.
  9. 9. BPMJ The effectiveness of the implementation is discussed, from the perspective of the users 14,2 of the ERP system. Analysis of effects of the change management on the implementation climate was completed through interviews with organisation staffs from two departments. The operations department was identified as an area that required little change management before the introduction of the ABC system, while the HR department required intensive change management to prepare for the release of the system. 236 Effect of change management on implementation climate The effect of change management on implementation climate will be assessed using the three aspects of implementation climate (system awareness, feelings response and adoption intention) proposed in the research model (Figure 3). System awareness. A high level of system awareness was achieved during the ERP implementation. When questioned, users were able to explain the features of the system in considerable detail, and were able to recall a large number of the benefits of using the system mentioned by the change management team before the release of the system. This finding was confirmed by the survey data (Table I). System awareness was primarily achieved through communications. The users gave this a relatively high-median score of 4.0, Table I. This suggests that, the communications aspect of the ABC program was well managed. Differences were seen in the ability of users to discuss the changes that were made to the processes as a result of the system implementation. HR staff were much more able to describe the changes that had occurred throughout the department. For example, HR staff were able to fully describe the role of the new shared services department and the way in which processes relating to management of information had changed. Operations department staff described Shared Services as “a transaction processing centre” and “where you go when you need help”. While these descriptions are accurate, they are certainly not a complete explanation of the role of shared services in the ABC system implementation. This suggests that, the role of Shared Services was not fully communicated to all users before the release of the system. Some of the differences in the ability to explain process change may lie in the fact that HR staff are much closer to the processes that have changed, as they use the system on a daily basis. However, operations department staff should be able to explain the role of shared services more comprehensively than they did, as executives within the operations department are responsible for managing both their own and their employees’ HR data, and the interim processes between Release 1 and 2 required direct contact with shared services. A failure to understand the role of shared services impacts on the ability of users to know where to get help if required, and may therefore affect the feelings of users towards the system. This then has an effect on the feelings response of users towards the system. Feelings response. Feelings towards the system should be impacted by user involvement and user training. For staff that did not have a particular role in the development of the system, regular briefings and communications helped them feel informed about the progress of development. The HR department was the recipient of targeted change management activities while the operations department had little focused change management. This difference was reflected in the higher median score for user involvement for the HR group (4.0) compared with the operations department group (3.0). It is also reflected in the ratings of feelings response, Table I.
  10. 10. Discussion with users regarding training showed that the feelings of those users ERP innovation who believed the training was excessive or inadequate were less positive towards the system than the feelings of the users who believed that the training was adequate. implementation Those who attended training scored a much higher median score for the feelings model response questions (a median score of 4.25 for those who attended training, compared with 3.0 for those who did not). This suggests that training assists in improving the feelings response of users, and thus improves the adoption intention. 237 Adoption intention. Although users could easily identify problems and frustrations with the system, general resistance to the system amongst users was low. Most believed that the system was necessary and would not attempt to delay progress. All users had been keen to have a look at what was actually in the system after hearing about it for many months before its release. The high level of adoption intention expressed in the interviews is confirmed by its relatively high-median score of 4.0 in the survey results. Adoption intention was improved through change management activities such as project championship and phased ERP implementation. Users in both departments supported the idea of a phased implementation. However, the downside of a phased implementation was that if one release is delayed, the completion dates for future releases are also delayed. Release 2 of the system was released seven months after its intended release date. As change management needs to occur prior to the release of the system, the change management team implemented the change activities far earlier than required. Communications were then required to reassure staff members that the system was still being implemented, and would be released when it was ready. One user commented: They kept sending messages saying that the system was still coming. But no amount of communication is going to change the fact that the system isn’t here yet. It made the system team seem really incompetent. Discussion with users regarding the project showed that the late release of Release 2 was the main reason for any user resistance towards the ABC system. Effect of management support on implementation climate Interviewees commented that there was an attitude of overall support from the organisation, and that their manager was in support of the system prior to its release. This indicates that, the organisation as a whole was publicly very supportive of the system and was able to show encouragement through the provision of resources. Some managers spoke of showing supportiveness of the system when dealing with their own staff, even if they were personally somewhat sceptical of the benefits claimed. The high level of management support was confirmed by survey data relating to the attitude of managers towards the project. All users surveyed responded with “Agree” or “Strongly Agree” when asked about the level of support for the project from both managers and the organisation as a whole, Table I. Implementation effectiveness The feelings of all interviewed users towards the system prior to its release were positive. All interviewees indicated that, they logged into the system when it was released just to see what was available. All change management activities mentioned in planning documents prepared by the change management team were implemented prior to the system being released.
  11. 11. BPMJ The climate prior to its release was one expectant of better results than what were 14,2 being achieved with the legacy systems. HR staff were satisfied on the whole with the way the change in their department was managed. However, operations department staff were neutral. Staff were not overly interested in the system and the benefits using the system can bring. Some users claimed that they are unaware of how to use the system or when usage of the system is required. This suggests that, the capability gap 238 assessment for the operations department may have been incorrect and more formal user training was required. Their necessary capabilities required were rated at a low level and their current skills were seen as adequate, which did not necessitate a formal change management process in this department. Conclusions This study identified the major activities used in an ERP implementation through a case study of the ABC program in the case study organisation. It has shown that change management is an important factor in an ERP implementation. The implementation of the ABC system followed the research model shown in Figure 3. The change management activities affected the implementation climate. In turn, the implementation climate affected the effectiveness of the implementation. The change management activities had the required effect on the climate for implementation. The activities implemented assisted in informing users about the system, and enabling the provision of skills required when the system was implemented. There were noticeable differences between users who had participated in change management activities either through optional involvement or the provision of extra change management activities in some departments and those who did not participate. Some aspects of the change management program could have been better managed. Managers tended to publicly support the implementation of the ABC system, but privately believed that the system would not be of much benefit. A theme often discussed in interviews was the fact that often users did not understand why the organisation had undertaken the ABC implementation and did not believe that it was necessary. Many wondered why a system that cost so much was being implemented when it was not providing any greater functionality, and at times was less efficient than legacy systems. This suggests that managers should be informed of the motivation for implementing the ERP system, rather than just being informed of benefits and be expected to advocate the system within their departments. It also suggests that the change management activity, “level of adoption cost” should be specifically addressed as part of the change management process. There are indications that the users’ expectations for the system were different to the actual features of the implemented system. Some users gave a very low score for the survey question relating to whether the features of the system were as expected. This indicates that although users were aware of the system and its benefits, the actual system did not have the features expected by users. This could be a result of the change management team overstating the benefits, or not explaining them clearly, or the users misunderstanding what they were being told. This suggests that communications about the system must be very clear and match with what the system actually offers. The users were disappointed and resistance towards the system increased when it was different to what they expected. It would have been beneficial for more users to see the system for themselves prior to its release
  12. 12. in order to accurately gauge the functionality offered. However, the ABC system may ERP innovation be different to other ERP implementations in that the change management team must implementation also provide details on modules to be released in future phases. Users may expect to see a module in the next phase, when in reality it may not be implemented for a number of model years. If the implementation is a phased implementation, care should be taken to accurately inform users of when each feature will be released. The implemented change management activities also affected different areas of 239 the organisation in different ways. Each department within the organisation received a very different range of change management activities based on the identified needs, and it is evident that the range and types of change management received impact upon the effectiveness of the ERP implementation. When assessing the need for change management in each department, the change management team implemented activities that they believed would provide the best implementation climate for the most realistic amount of work. At the end of the change management process, the change management team expected that the implementation climate across the organisation would be similar. In reality, the implementation climate differed throughout the organisation. The general attitude to the system by those in the department that received less change management was less positive than for those who were the recipients of more targeted activities. This indicates that change management is required throughout an organisation implementing an ERP system, even if the changes in one particular area of the organisation are not particularly great. Despite the problems identified by users after the release of the system, the change management activities have been successful. Users who were sceptical when hearing about the project are now generally well equipped to use the system. This indicates that ERP implementations similar to the ABC system would benefit from similar types of change management activities. The effect of change management and management support on implementation climate are supported by the case study. In addition there is support for the impact of implementation climate on implementation effectiveness. However, there may be other factors that determine implementation effectiveness. Although users may be able to use the system as intended, they are not always able to use it well. Interviews with HR staff showed that some aspects of the system such as speed of the system and quality of interface design prevent the staff from using the system to its full potential. This suggests that more implementation climate is not the only factor in determining implementation effectiveness, and that features of the system itself do play a part in the success of an ERP implementation. Further research This research is a first step in the longer-term empirical validation of the revised innovation implementation model, Figure 2. This model will be extended to incorporate the effect of system features (technology fit) on implementation effectiveness based on the research findings. The empirical validation of the expanded model is planned using survey data obtained from users involved in ERP implementations in various organisations. Structural equation modeling, using partial least squares, will be used to test the overall fit of the structural model. The research constructs will be derived from
  13. 13. BPMJ the Klein et al. (2001) and Aladwani (2001) models. Since most users will have little 14,2 understanding of the financial resource availability this construct (and its associated hypotheses) will be omitted from the analysis. The accompanying research hypotheses are described below: H1. Implementation climate is positively correlated with implementation effectiveness. 240 H1.1 Favourable awareness response is positively correlated with implementation effectiveness. H1.2 Favourable feelings response is positively correlated with implementation effectiveness. H1.3 Favourable adoption intention is positively correlated with implementation effectiveness. H2. Change management is positively correlated with the implementation climate. H2.1 Change management activities (communications issues) are positively correlated with favourable awareness response. H2.2 Change management activities (involvement of individuals and groups, and quality of training) are positively correlated with favourable feelings response H2.3 Change management activities (project champion support, and timing/phases of ERP implementation) are positively correlated with favourable adoption intention. H3. Management support is a moderating variable between change management and the implementation climate. H4. Technology fit is positively correlated with implementation effectiveness. H5. Implementation policies and practices are positively correlated with implementation effectiveness. References Aladwani, A.M. (2001), “Change management strategies for successful ERP implementation”, Business Process Management Journal, Vol. 7 No. 3, pp. 266-75. Allen, R.S. and Kilmann, R.H. (2001), “The role of the reward system for a total quality management based strategy”, Journal of Organizational Change, Vol. 14 No. 2, pp. 110-31. Al-Mudimigh, A., Zairi, M. and Al-Mashari, M. (2001), “ERP software implementation: an interactive framework”, European Journal of Information Systems, Vol. 10, pp. 216-26. Beath, C. (1991), “Supporting the information technology champion”, MIS Quarterly, Vol. 15 No. 3, pp. 355-72. Benjamin, R. and Levinson, E. (1993), “A strategic framework for managing IT-enabled change”, Sloan Management Review, Vol. 34 No. 4, pp. 23-34.
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  15. 15. BPMJ Somers, T.M. and Nelson, K.G. (2004), “A taxonomy of players and activities across the ERP project life cycle”, Information & Management, Vol. 41 No. 3, pp. 257-78. 14,2 Strauss, A. and Corbin, J. (1997), Grounded Theory in Practice, Sage, London. Volkoff, O. (1999), “Using the structural model of technology to analyze an ERP implementation”, AMCIS, Milwaukee, August 13-15, pp. 235-7. 242 Corresponding author G.C. Low can be contacted at: g.low@unsw.edu.au To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints

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