Exploring successful enterprise system implementation

1
Exploring successful enterprise system
implementation

• Jay Cooprider Computer Information Systems
• Gary David - Sociology
• Linda Edelman Strategic Management
• Traci Logan CIO Bentley College
• Sue Newell Organizational Behavior

2
Over-arching Research Question

1. What is the role of social capital and knowledge
   creation/integration on the outcomes of large
   scale Information Technology Projects.
2. Motivated by studies that indicate that despite
   widespread implementation of ERP limited use of
   functionality of system and in some cases total
   rejection of the new system.

3
Methods

• Consultant perception study
• Large consulting organization
• RQ What role do information systems consultants
  play in knowledge creation and integration within
  ERP projects?
• Conducted 8 interviews over a four month period.

4
Methods

• Siebel implementation study
• RQ1What is the link between social networks and
  the generation of new knowledge during ERP
  implementation?
• RQ2What are the advantages/ disadvantages of
  enacting organizational change at the
  beginning/end of an ERP implementation process?
• 2. Conducted 7 interviews over four months.

5
Data Analysis

1. All interviews have been conducted and
   transcribed
2. Data is still undergoing analysis
3. Qualitative nature of data lends itself to tools
   such as NVIVO.

6
Systematic Literature Review

1. Searched online databases for key words (e.g.,
   "knowledge integration or systems consultants)
2. Gathered over 500 articles grouped by research
   question
3. Ranked articles on applicability
4. Took consultant articles and rated them on
   theoretical quality, rigor and robustness
5. Findings Paucity of quality empirical research
   on role of Information Technology consultants in
   ERP implementation processes.

7
Consulting articlesReview template
Author Title Journal Theory Methods Findings Contribution Rate Review
S. Bagchi S. Kanungo S. Dasgupta Modeling use of Enterprise resource planning systems A path analytic study European Journal of Information Systems 122003 Unit of analysis Individual user Theory of Reasoned Action (two Factors contribute to behavior attitude and norm), uses existing theory Qualitative case Studies combined with questionnaire ERP too Expensive not to use Need for ERP experts, hence ERP knowledge is good for career Theory had to be modified to be relevant for ERP ERP dynamics are different than in the theoretical model. My comments no surprise model had to be modified given the number of paths, despite appearance of rigor, not much in way of findings 2 LFE
Key 1 low relevance 2 medium
relevance 3 high relevance
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Analyzing different strategies to ERP adoption
Reengineering-led versus quick deployment

• International Journal of Enterprise Information
  Systems, forthcoming

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Reengineering-led vs. Quick-deployment

• Reengineering-led
• Concerted (Robey)
• Change processes before implement
• Define as is and to be processes
• Difficult implementation
• Pre-implementation transformation

• Quick-Deployment
• Piecemeal (Robey)
• Replace legacy systems
• Rely on embedded best practices
• Easy implementation
• Post-implementation gradual evolution

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Alternative Adoption Strategies
Transformation
Evolution
11
Discussion

• Consultants recognized difference between
  reengineering-led vs. quick-deployment and could
  relate to different client experiences
• All but 1 felt reengineering-led best
• But recognized most firms want to limit
  reengineering (quote)

12
Case example

• Small office furniture distributor main
  business supplier wanted them to adopt a very
  complex ERP system that would have meant drastic
  org. changes
• Refused we have been 15 years in this business
  and have perfected our processes why should
  someone else know our processes better than us
• Wanted a tool to support processes, not a system
  to impose new processes
• Went with a small software vendor
• Problems a bug versus an enhancement (purchase
  order field long and short but long not
  actually supported in rest of software so PO
  never printed on e.g., receipts!)

13
Conclusions

• Quick-deployment strategy popular with companies
  (Nah et al., 2003)
• Good reasons for this
• Previous extensive reengineering
• BUs operate independently integration may not
  be that important
• May be beneficial
• Reengineering may identify best practices not
  supported by selected software
• Reduces visible progress and so limits commitment

14
Practical Implications

• Quick-deployment strategy PLUS
• User-led post-implementation strategy
• Provide resources to facilitate emergent
  exploitation of system
• May require a new team as implementation team may
  be burnt out

15
Understanding the problems of ES implementations
Beyond critical success factors

• Working paper

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ERP critical success factors

• Nah et al. 11 factors more or less important at
  different project stages
• Relate to different aspects of project management
  and structure
• Consider these CSFs in relation to Siebel
  implementation
• Explore why CSFs problematic in practice

17
The Siebel Project

• Reduction of legacy systems but only
  sunsetted 1 system after 4 years
• Delays in module implementations sales (1 year)
  and marketing (2 years)
• Burnout of project team (quote)

18
Project Methodology

• Standard IT implementation methodology
• Core team
• Module teams PDT leader, project manager,
  process leader, architecture leader, education
  leader, deployment leader etc.
• Fit-gap analysis 1 week intensive workshop
• Vanilla, out the box implementation

19
Problems encountered

• Sustaining resources for social rather than
  technical work (quote)
• Getting things done at critical points work
  around formal system (quote)
• Leadership and team involvement
• Overall project leader x3
• Core project team
• Periphery members turnover
• Divergent common practices (quote)
• Resistance and stalemates (quote)

20
Analysis - Socio-political and cultural realities
make it difficult to sustain CSFs

• Staffing issues leadership and team composition
• Top management support
• Project champion
• Good team mix
• But reality senior management turnover
  continuous change in periphery members
• i.e., Difficult to sustain commitment over long
  duration
• Need continuous INDUCTION AND REINDUCTION

21
Analysis - Socio-political and cultural realities
make it difficult to sustain CSFs

• Formal project management methodology
• Formal methods
• Business plan
• Communication to all stakeholders
• Constant evaluation and monitoring
• Troubleshooting and testing
• But reality Work around formal processes crucial
  (quote)
• Understanding situated actions
• Need to stress INFORMAL NETWORKING

22
Analysis - Socio-political and cultural realities
make it difficult to sustain CSFs

• Organizational structure and culture
• Manage the change process
• Reality Maintaining resources for organizational
  change difficult
• Stable and successful context
• Reengineering already taken place but reality
  divergence of practice and process
• Organization change to suit software so minimize
  customization
• Reality resistance
• Recognize IMPROVISATION skills of users

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Conclusions Meta-level processes

• Induction to build and rebuild social capital
  bonds and bridges (Adler and Kwon)
• Informality to sustain CoP (Brown and Duguid)
• Improvisation to support situated learning
  (Lave and Wenger)