Effective Technology Acceptance in Erp Implementation Projects Through Training & Education

Topics: Enterprise resource planning, Enterprise system, Business process management Pages: 20 (5403 words) Published: October 5, 2008
Effective Technology Acceptance in ERP Implementation Projects through Training & Education

Abstract: Many firms are implementing enterprise resource planning (ERP) systems. The expensive nature of these systems requires that effective usage of these systems be attained in order for an organization to derive the expected benefits from the technology. Nearly all ERP implementation projects requires a well established Project Management (PM).We made a survey about SAP enterprise resource planning implementations at a division of a major pharmaceutical manufacturing company in order to determine adequate training& education methods for effective and efficient ERP implementation. In this research our focus is training and education phase of ERP implementation project. In order to analyze the effects of training and methods for adequate training for effective ERP implementation projects; we conducted interviews with the employees after their ERP training process and representatives of global training companies.

Keywords: Education & Training, Technology Acceptance Model, ERP Implementation, Project Management, Critical Success Factors

I. INTRODUCTION

Today no one would dispute that information technology (IT) has become the most important cornerstone of an enterprise’s ability to successfully compete in the global marketplace. As IT power and presence have expanded, companies have started viewing it as a competitive advantage rather than costs, even more critical to their success. ERP software package, as one of the most important IT systems is now gaining the universal attention from most enterprise worldwide. Market researcher International Data Corp (IDC) predicted a compound annual growth of 11% for the worldwide ERP market from 2001 to 2006, reaching US$39.6 billion at the end of the forecast period. Bingi et al. (1999) suggest that implementing an ERP system is a careful exercise in strategic thinking, precision planning, and negotiations with departments and divisions. It is important for companies to be aware of certain critical issues before implementing any ERP package. Careful consideration of these critical success factors (CSFs) will ensure a smooth rollout and realization of full benefits of the ERP solution. Education/training is probably the most widely recognized critical success factor, because user understanding and buy-in is essential. ERP implementation requires a critical mass of knowledge to enable people to solve problems within the framework of the system.

I.1. Definition and Significance Of The Problem

For many firms, a significant part of the enterprise resources planning (ERP) implementation problem lies in the area of project management (PM). PM for ERP application packages has four distinct stages as Concept/initiation, Development, Implementation and Closeout/operation maintenance. PM implementation stage starts with training. Training is an important driver of ERP implementation success (Russo et al., 1999; Stratman and Roth, 1999). Training offers a good opportunity to help users adjust to the change that has been introduced by the ERP system, and helps build positive attitudes toward the system. Teaching each of the various user groups how the ERP system works is important in creating awareness (Stratman and Roth, 1999). Further, training provides hands-on experience for the users: they appreciate the quality attributes of the system and its potential benefits. Inadequate training has been one of the significant reasons of many ERP systems failure (Gupta, 2000). In ERP implementation projects, despite millions of dollars and hundreds of deployment hours, many projects fail because of the lack of adequate training (Kelley et al., 1999). A particular challenge in ERP implementation is to select an appropriate plan for end-user training and education. ERP training should address all aspects of the system, be continuous and based on knowledge transfer principles wherever...

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