Maximizing Benefits of ERP Systems Through Effective Project Management

to be aware of critical issues. Taking careful consideration of these critical success factors (CSFs) will ensure a smooth rollout and realization of the ERP solution's full benefits. The most widely recognized CSF is education/training because user understanding and buy-in are crucial. ERP implementation requires a sufficient amount of knowledge to enable problem-solving within the system framework. In many firms, the problem with implementing ERP lies in project management (PM).

The implementation of PM for ERP application packages consists of four stages: Concept/initiation, Development, Implementation, and Closeout/operation maintenance. The implementation stage of PM begins with training. According to Russo et al. (1999) and Stratman and Roth (1999), training plays a crucial role in the success of ERP implementation. It provides users with the necessary support in adjusting to the changes introduced by the ERP system and fosters positive attitudes towards the system.

Teaching various user groups about the functionality of the ERP system is crucial for creating awareness (Stratman and Roth, 1999). Additionally, training offers users hands-on experience, allowing them to appreciate the system's quality attributes and potential benefits. Insufficient training has been a major cause of ERP system failures (Gupta, 2000). Despite spending millions of dollars and hundreds of deployment hours on ERP implementation projects, many fail due to inadequate training (Kelley et al., 1999). A specific challenge in ERP implementation is selecting a suitable plan for educating and training end-users.

ERP training should cover all aspects of the system, be ongoing, and follow knowledge transfer principles when consultants are involved (Davenport, 1998 a, b). The success of the ERP implementation is directly affected by this training dilemma. If employees do not accept the technology, they will

be hesitant to use it, ultimately lowering overall performance.

Study Objective

The aim of this study is to examine the responsibilities of HR departments in storing personnel information including education, salary, etc.

The company needs an Information System (IS) to effectively manage a vast amount of employee data. Having an appropriate ERP-HR module aids in successfully carrying out HR tasks. To ensure the successful implementation of the ERP-HR system and its long-term success, project management is necessary.

According to Ngai et al. (2007), effective project management is crucial in the implementation of ERP systems due to its complexity, which includes hardware, software, and organizational issues. Proper project management allows companies to plan, coordinate, and monitor various activities at different stages of implementation. The main objective of our research is to assess the usefulness of training for HR employees using the technology acceptance model and define appropriate training methods for an efficient and effective ERP implementation project. Building upon existing literature, we propose a framework that extends the technology acceptance model for ERP projects. This framework incorporates satisfaction with training as a factor influencing the perceived usefulness and ease of use of ERP systems, as well as personal and job characteristics and environmental factors.According to Elisabeth J., in order for ERP implementation to be successful, it is essential for the organization to engage in effective project management. This encompasses defining objectives, creating work and resource plans, and closely monitoring project progress (Lauglin, 1999;Sherard, 2000).

Umble, et al (2003) emphasize that project management is crucial for the success of ERP implementation projects. The "people element" and training aspect of ERP implementation have often been neglected, despite their importance. However, disregarding or downplaying

training can lead to increased expenses in the long run. Neglecting resource training can result in delays, confusion, and financial difficulties during an ERP implementation project. Some companies assign a fixed cost or percentage to training, regardless of need or variable conditions (Gargeya and Brady, 2005). Insufficient training has been a significant cause of ERP system failures (Gupta, 2000).

Despite the high investments and extensive time spent on ERP implementation projects, many of these projects fail due to insufficient training (Kelley et al., 1999). The importance of user training and education as critical success factors (CSFs) in ERP implementation projects has been widely recognized in research papers. Numerous studies have focused on identifying CSFs in information system implementation. Based on a literature review, Nah (2001) identified 11 CSFs, while Somers and Nelson compiled a list of 22 CSFs.

Research shows that a lack of user training and a failure to fully understand how enterprise applications change business processes are often to blame for problematic ERP implementations and failures. Elisabeth J. Umble, et al (2003) categorize critical success factors (CSFs) into 10 categories, with extensive education and training being one of them. Umble acknowledges that education and training are widely recognized as critical success factors because user understanding and buy-in are essential.

Technology Acceptance Model (TAM)

One important measure of ERP implementation success is achieving the intended level of IT usage. According to Venkatesh (1999), system usage reflects the acceptance of the technology by users.

Davis (1989) formulated the Technology Acceptance Model (TAM), which has had a significant impact on previous studies concerning behavioral intentions and IT usage. The TAM expands upon the Theory of Reasoned Action by centering on two

variables, namely perceived usefulness and perceived ease of use, in determining usage. Perceived usefulness is founded on the concept that individuals will utilize an application only if they believe it will enhance their job performance (Davis, 1989). Nonetheless, even if an application is deemed valuable, its adoption will occur only if it is user-friendly and its benefits outweigh the effort required to operate it.

Both the user's attitude towards using the software system and their behavioral intention to use it are influenced by two determinants. Venkatesh and Davis (2000) expanded the TAM theory by examining two belief constructs that underlie it, enabling the design of effective organizational interventions to increase user acceptance and use of new IT systems.

Factors Affecting Training ; Education

Training is a widely used method for improving productivity and communicating organizational information to personnel (Gupta, Bostrom, 2006). There are four dimensions to training strategy, including training outcome, training methods and delivery mode, users, and learning content (Olfman et al., 2003). Each dimension consists of multiple components and mechanisms for implementation. In order to determine usable and combinable hunk size, task and process analysis should be conducted.

Develop learning object module in accordance with Gupta and Bostrom's definition of training methods as the means by which participants acquire knowledge. The success of training and education is directly impacted by the chosen training method. Training methods consist of materials and activities that aim to transfer necessary knowledge to the trainee (Bostrom et al, nd). Training materials pertain to the organization of documentation for participants, while training activities involve the procedures utilized to deliver training (Gupta, Bostrom, 2006). End user training combines these two components to implement different

training methods. The learning experience of a trainee is influenced by both individual differences and supportive measures.

According to Sketch (2003), training will no longer be seen as a separate event requiring follow-up, but rather as a continuous and on-demand learning process that is driven by workflow and job requirements. Bostrom et al (nd) states that learning outcomes are the results of the training process, while Heinen et al (nd) explains that knowledge gained from training programs represents an understanding of how to apply system principles to business tasks.

Methodology

In an effort to measure the technology acceptance of ERP-HR Module users through training and education, and to determine the most effective training for a successful ERP implementation project, we utilized interview techniques. Unlike quantitative methods, qualitative research methods offer a more diverse range of approaches. Data was collected through interviews and document searches.

The research was conducted within a large global organization and a global ERP education company, both of which are implementing an ERP system. The chosen ERP software for implementation is SAP, which is renowned as a leading software in this field. Interviews were used as a method to collect data that is valid, reliable, and relevant to the research questions and objectives. These interviews followed a structured approach using questionnaires that included a predetermined and standardized set of questions. (Kahn and Cannel, 1957 cited by Sauders, Lewis & Thornhill, 2000).

The interviewer will read each question and document the response on a standardized schedule, typically using pre-coded answers (Saunders, Lewis & Thornhill, 2000). In contrast, semi-structured interviews are not standardized. In semi-structured interviews, the researcher will have a list of themes and questions that need

to be addressed, although they may differ from one interview to another. This means that certain questions may be excluded in specific interviews due to the particular organizational context related to the research topic. The sequence of questions may also be changed depending on the flow of the conversation.

Depending on the nature of events within a specific organization, additional questions may need to be asked to investigate the research question and objectives. These questions can be recorded through note taking or tape recording the conversation (Saunders, Lewis & Thornhill, 2000). Unstructured interviews are informal and lack a predetermined list of questions, but it is important to have a clear idea about the aspects to be discussed. Each type of interview serves a different purpose. In survey research, structured or standardized interviews are used to collect data for quantitative analysis according to Saunders and Thornhill (2000). On the other hand, qualitative research employs semi-structured and in-depth interviews for exploratory discussions that focus on understanding not only the "what" and the "how" but also the "why" (Saunders, Lewis & Thornhill, 2000).

The use of semi-structured interviews in ERP implementation projects, specifically for Training & Education, is chosen due to the need to address "what" and "how" questions. A specific set of questions is prepared to gather relevant data for the research, while also allowing for flexibility and the potential for unexpected information. Furthermore, our research company is a major pharmaceutical manufacturer in Turkey, providing a brief background for this study.

The company is a part of a large scaled global company and has implemented an ERP system as part of their global strategy. They chose SAP R/3 as the

ERP vendor. The company's ERP portfolio includes modules for production processes, finance and controlling processes, and HR processes. The production and financial modules have already been implemented, but the HR module implementation project is still ongoing.

The main focus of our study is the training and education of users. We conducted interviews with HR employees one week after the training phase to evaluate their acceptance of the technology and determine the most effective training method for implementing ERP. This section gives a brief background on The Education Company and explains why it was included in the project plan.

Framework

Our research involves several key steps, including reviewing literature, collecting data, analyzing collected data, and evaluating results. The literature review includes studying the technology acceptance model in ERP implementation, the role of training in technology acceptance, and various training strategies. We then gathered data to analyze employees' intentions towards the new ERP system after training and how characteristics of the training can contribute to its effectiveness.

The next step involved analyzing the collected data and interpreting the results. Amoako-Gyampah and Salam (2004) conducted a study on the impact of a belief construct, referred to as "shared beliefs in the benefits of a technology," as well as training and communication during an ERP implementation using SAP R/3 in a large global organization. They discovered that training influenced both shared beliefs and perceived ease of use, highlighting the significance of training in accepting technology. Therefore, our objective is to examine whether training satisfaction is linked to perceived ease of use and perceived usefulness. Bradley and Lee (2007), on the other hand, have suggested that perspectives on gender and job types affect the

perception of training adequacy and completeness. Hence, we aim to incorporate personal and job characteristics into our research model.

According to Olfman et al (2003), their analysis reveals that training satisfaction influences usefulness, which is defined as employees' perception of how easy it is to use the ERP system in their job. Our main goal is to determine the most suitable training method for an effective and efficient ERP implementation project. The training strategy, as explained by Olfman et al (2003), consists of four dimensions: training outcome, training methods and delivery mode, users, and learning content. Taking these aspects into consideration, we have developed a research model that aims to generate propositions for effective and efficient ERP training. This model is depicted in Figure 2. Throughout our research, we have followed this framework.

The successful implementation of an ERP project depends on three important factors: Training and Education, Environmental characteristics, and User factors.

Training and Education are considered critical success factors (CSFs) in many research papers on ERP implementation projects. They have a significant impact on both employee technology acceptance and the successful implementation of the ERP project.

Environmental characteristics, such as competitive pressure, directly influence ERP implementation success and end user satisfaction.

Users are another crucial factor that affects the success of ERP implementation projects. Neglecting the needs of users can lead to disastrous outcomes. The term "user" encompasses the user's capability, innovativeness, support activities, and the alignment of the user with the organization and technology. Having capable and innovative users who are well-educated, experienced, responsible, and knowledgeable positively affects the adoption of ERP systems, as these users will be more receptive to using the system.

Having users alone is

not sufficient; support in the form of training, information sharing, effective communication, and help desk activities is also necessary. Various studies have demonstrated the significance of training in driving adoption (Al-Mashari et al., 2003; Aladwani, 2001; Bingi et al., 1999; Calisir & Calisir, 2004; Gyampah & Salam, 2004; Somers & Nelson, 2003, 2004; Umble et al., 2003; Wilder & Davis, 1998; Yusuf et al., 2004).

Unless training, information sharing, effective communication, and help desk activities are provided, people will not have a better understanding of how their jobs are related to other functional areas within the company. Additionally, they will not know how to operate the new system. As a result, they will not feel involved in the new ERP system (Zhang et al., 2005).

Findings

As previously mentioned, our research company is one of Turkey's largest pharmaceutical manufacturers. It is also a part of a large-scale global company.

We conducted in-depth interviews with 5 employees from the same department but with different positions and roles. The interviews were conducted using two different approaches: group interviews with two employees together, and individual interviews with the remaining employees. The average duration of the interviews ranged from 20 to 45 minutes. Two of the interviewees, both female, are between the ages of 25 and 35, and work as Human Resources Specialists in the Recruitment subunit. Another interviewee, who is 24 years old, works as an HRIS Specialist in Personnel Affairs.

One of our interviewees is a 36-year-old project manager working in Personnel Affairs, while the other is a 34-year-old Personnel Affairs Specialist. All three of them have previous experience with an ERP system and possess high computer literacy, utilizing computers in their

work environment. They are all eager to replace the old system and fully support the implementation of the new ERP system. Additionally, all of them have completed university education, with one even holding a master's degree.

During the ERP Implementation training, two types of training were provided. One type involved a help desk activity where trainees from the Personnel Affairs subunit were expected to have knowledge of the program. The other type of training began with an initial session covering general concepts of SAP, followed by a demonstration of the program. This research allowed us to address two questions: how education should be approached and what type of training is most effective for ERP Implementation.

Three out of five interviewees emphasized the importance of educators knowing their students and assessing their knowledge level in order to develop an appropriate education plan. They also highlighted the need for educators to ensure that students fully absorb the education provided. The effectiveness of education is determined by those who provide it, how it is provided, and the documentation used. Additionally, preparing students psychologically for education is crucial. According to the Technology Acceptance Model (TAM), all five interviewees stated that education significantly improved their usage experience and helped them adjust more easily. The company we interviewed had two different education programs in place.

The first daily education is specifically designed for human resources specialists and is primarily delivered through presentations. During the education sessions, participants had the opportunity to ask questions. Two interviewees expressed that they found the education sufficient as they were able to effectively use SAP after the training. They also mentioned that they felt more comfortable with the software

and were able to utilize their existing knowledge to navigate through the program, even without further education. Additionally, they highlighted that the education helped them gain a deeper understanding of the overall principles behind SAP and saved them time in their work.

According to them, education has helped to speed up work and improve efficiency. They believe that this education has been effective. However, there are some differences in the education provided for technical subjects. It is considered permanent for this group, but not enough. They also feel that the consulting company they relied on was inadequate. Initially, they faced issues because they were not informed about the advantageous features and components of the new system. Nonetheless, overall they find it acceptable.

The limitation of this system is that we can only interview with one company. Additionally, an interview with only 5 people may not be sufficient. However, these are the results we have obtained from the available sources. Our recommendations based on this research include selecting the consulting company wisely, defining the scope of education and educators, identifying personal and occupational characteristics, and developing education accordingly.

Conclusion

The "people element" and training aspect of ERP implementation have historically been given less attention (Gargeya and Brady, 2005). Insufficient training has been a significant factor in the failure of many ERP systems (Gupta, 2000). As a result, user training and education have been extensively discussed in various research papers.

Despite the lack of empirically supported research on training methods, we opted for training in ERP implementation. The primary objective of this study is to identify the suitable training methods for achieving effective and efficient ERP implementation. Upon examining the literature, it

became evident that training plays a crucial role in the successful implementation of a new ERP system. Additionally, training allows users to gain practical experience and to comprehend the system's quality attributes and potential benefits. According to Davenport, ERP training should encompass all aspects of the system, be continuous, and adhere to knowledge transfer principles, particularly when consultants are involved.

Contrary to the literature, our research focused on training subjects in the technical sphere and found that consultants did not give enough attention to the training. This continuous but inadequate training resulted in users being unable to fully understand the system's quality attributes and potential benefits, causing difficulties in their adoption of the new system.
However, a different training program designed for human resources specialists was found to be sufficient, with participants reporting increased comfort with SAP usage after the education.
Furthermore, according to the literature, training strategy encompasses four dimensions: training outcome, training methods and delivery mode, users, and learning content (Olfman et al, 2003). The level of knowledge achieved should be addressed as a desired training outcome.

In our research, it was found that the trainers did not consider the importance of the knowledge level. According to the interviewees, they were able to handle the program by relying on their previous knowledge, even without receiving formal education. Our findings highlight the significance of selecting the right trainers and consultants, as well as determining the scope of education, personnel characteristics, and knowledge levels, in order to establish appropriate training for successful ERP implementation. However, it is important to note that this investigation has limitations. Future research is needed to examine the generalizability of these results, as

they are based on a single organization. Additionally, the interview sample size of 5 people may not be sufficient. Further studies are necessary to identify optimal training methods for efficient and effective ERP implementation.

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