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 consultants are involved (Davenport, 1998 a, b).
The success of the ERP implementation is directly influenced by this training step dilemma. If employees don’t accept this technology, they don’t want to use it. It affects their attitude towards the system, so that the general performance would be decreased. I.
2. Goal Of The Study HR departments are responsible to store personnel information such as education, salary etc. about their employees. This large amount of data is not easy to hide, use or retrieve. So that they need an Information System (IS) to properly manage them.
An appropriate ERP-HR module helps to accomplish these functionalities of HR successfully. ERP-HR implementation process should be well managed and that is why we need project management in order to implement the system and make the success of the new system sustainable. Since the implementation of ERP is complex, covering as it does a combination of hardware, software, and organizational issues, effective project management allows companies to plan, coordinate, and monitor various activities in different stages of implementation (Ngai, et al, 2007).Our main purpose of this research is to measure whether the training is a useful step for HR employees according to the technology acceptance model or not and to define appropriate training methods in order to imply an efficient and effective ERP implementation project.
Based on the below examination of literature, we propose a framework based on an extension of the technology acceptance model for ERP projects incorporating satisfaction with training as a factor in perceived usefulness of ERP systems and perceived ease of use of ERP system, personal and job characteristics and environmental factors.II. LITERATURE SURVEY II. 1. Importance of PM in ERP implementation Since the implementation of ERP is complex, covering as it does a combination of hardware, software, and organizational issues, according to Ngai (2007) effective project management must be executed by the companies to plan, coordinate, and monitor various activities in different stages of ERP implementation.
Successful ERP implementation requires that the organization engage in excellent project management.This includes a clear definition of objectives, development of both a work plan and a resource plan, and careful tracking of project progress (Lauglin, 1999; Sherard, 2000). Because of this reason according to Elisabeth J. Umble, et al (2003) excellent project management is one of the critical success factors of ERP implementation projects.
II. 2. Training & Education as a CSF in ERP Implementation The “people element” and training aspect of an ERP implementation have historically received the least amount of attention.The paradox of this is that when this factor is ignored or downplayed, primarily because it does not have the largest quantifiable benefit, expenses are greatly increased in the long run. By treating resource training with little regard and financial support, it is not hard to realize
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