Organizational Learning and Impacts of ERP Implementations

MIS 262 – Velianitis
Phil Devereux and James Pratt
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Most (70%+) ERP rollouts fail, why?
ERP Systems have become increasingly integrated
an encompass more end users.
A need for well-managed integrations between
different systems and cooperating businesses.
Increases the need for organizational learning.
There is no perfect handbook for organizational
learning due to company differences.
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Learning theory states that people learn new
skills through structures called “schemas.”
Employees are required to learn a large
amount of information in a short amount of
time.
This is due to the change from an outdated
legacy system to a modern ERP.
As the ERP system increases in complexity,
the amount of end user training must
increase.
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A company must develop and IT learning
strategy that supports the overall goals of the
business.
Layered view of Training & Learning
Strategies.
SIGMIS conference on Computer Personnel Research, 2003
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In 1999 the average US Company trained more of
its employees than ever before, IT comprised 9%
of the total organizational spending on training.
(Symposium on Applied Computing, 2009)
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Training is seen as the largest organizational
learning aspect in relation to an ERP
implementation.
There are three groups which must be trained for
any ERP implementation to be successful:
◦ Technical Support Organization (TSO)
◦ Management
◦ End User
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An organization must select a TSO as the
starting team to any ERP implementation.
The TSO groups are the subject matter
experts from various departments throughout
the organization.
Management must also be trained in the
business aspects of an ERP.
The final training team is the end-user, these
are the people whom will be using the ERP on
a daily basis.
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One of the major downfalls of implementing
an ERP system is the lack of evidence
associated with whether the ERP system is
cost effective for your business.
A business must properly identify the
organizational impacts of implementing an
ERP from a financial standpoint.
ERP systems are still in the growth stage of
the maturity model and therefore still
uncertain as to long term benefits.
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Another major organizational impact that
stems from ERP implementation is customer
side quality, i.e. customer end user.
Does the organization tailor to customers
who are closely tied to your business
process?
This must be taken into account, as no
company would want to lose customers over
quality issues related to an ERP
implementation.
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We have developed a three step process in
training your end-user in order to account for
quality and customer focus.
◦ Step 1: Define and Emphasize Ownership
◦ Step 2: Develop Training Material
◦ Step 3: Test, Implement and Train
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An ERP implementation is a grueling
undertaking that is laden with risk and
sometimes un-calculable rewards.
Despite this, more and more companies
decide that this risk is worth it as outdated
legacy systems continue to become a thing of
the past.
These risks can be minimized by increasing
organizational learning through the use of a
proper end user training program.