SHARING KNOWLEDGE AS A TOOL TO ACCELERATE

ENTERPRISE RESOURCES PLANNING IMPLEMENTATION

PROCESSES IN INDUSTRY
Zeplin.J.H. Tarigana,b, Djumilah Zainb, Surachmanb, Djumahirb
a

Industrial Engineering Department, Petra Christian University, Surabaya, Indonesia

b
Management Department, Brawijaya University, Malang, Indonesia
Email: zeplin@petra.ac.id

ABSTRACT

ERP system is a technology to coordinate and integrate

information system in a company and inter-companies on business
processes area. It is used by word class manufactures to increase
their performance. From many research results, it is found that
ERP implementation can improve enterprise performance quickly
but some of them says the enterprise was fail.
ERP system is a complex and expensive system, so in
implementation is needed a tool which is capable to change
company organization culture. To accelerate implementation of
ERP, organization culture components like key user affectivity
team, commitment of top management, end user competency,
vendor knowledge and consultant experience is needed. This paper
discusses a conceptual framework of the interaction effect of
above components in changing organization culture. This research
tries to explain ERP implementation success in Indonesian
enterprise especially on East Java.
Key-words: sharing knowledge, ERP implementation, key user
affectivity.

1. INTRODUCTION
Enterprise resource planning (ERP), when
successfully implemented, links all areas of a
company
including
order
management,
manufacturing, human resources, financial
systems, and distribution with external suppliers
and customers into a tightly integrated system with
shared data and visibility (Chen, 2001). Potential
benefits include drastic declines in inventory,
breakthrough reductions in working capital,
abundant information about customer wants and
needs, along with the ability to view and manage
the extended enterprise of suppliers, alliances, and
customers as an integrated. ERP traces its roots to
material requirements planning (MRP) and
manufacturing resource planning (MRP II). To
better comprehend the ERP planning and
implementation issues, therefore, a fundamental
understanding of the MRP and MRP II
mechanisms is essential. Thus, the evolution of
ERP is described in the next section. Planning for

ERP adoption generally occurs when an

organization recognizes that current business
processes and procedures are inadequate for their
current and/or future strategic needs.
There have been a few papers recently published on the
factors contributing to ERP implementation. Sun et al.,
(2001) proposed a conceptual model exploring the cost;
schedule and objective have an impact on enterprise
systems (ES) implementation. Xue et al., (2005)
described
organization
culture;
organization
environment, technical issue and partnership are
successes factor ERP implementation. Huang and
Palvia (2001) proposed ten factors (at the
national/environmental and organizational level)
concerning ERP implementation by making a
comparison of advanced and developing countries. The
national/environmental factors identified by them are
economy and economic growth, infrastructure, regional
environment,
government
regulations,
and
manufacturing strengths. They also noted that
information technology maturity, computer culture,
business size, business process re-engineering
experience, and management commitment are the

organizational level factors. Huang and Palvia (2001)

did not categorize the factors into those that contribute
to success and those that contribute to failure.
Hong and Kim (2002) described data, process and user
are organizational fit of ERP, When ERP
implementation involves adapting the existing business
processes to the standard business process of ERP, other
organizational
components
(e.g.
organizational
structure, measurement compensation, organizational
culture, training, etc.) and their interactions must also
be changed together.
Implementation of ERP in industry ERP are large,
complex and often require fundamental changes to the
way organizations perform processes. Organizational
knowledge must be incorporated into an ERP system so
that the system has a sufficient underlying knowledge
structure to achieve this support. Knowledge is a multifaceted concept and is embedded within many entities
in an organization including the organizations culture,
policies, documents, and members themselves. Because
ERP system requires to integrated processes across
department in organization, one of the most important
areas of knowledge sharing in an ERP implementation
is sharing of the knowledge that individuals process
about processes and business frameworks.
Key user must to know Top management objective with
ERP system. Vendor and Consultant understanding the
business process in organization when a key user or end
user explains their department business process.
Organizational culture influences members attitudes
towards knowledge sharing and because knowledge
sharing is critical to successful ERP implementation, it
is important to understand the relationship between
organizational culture and knowledge sharing and
develop theory that contributes to successful ERP
implementation. This research explores how dimensions
of culture influence knowledge sharing as a tool to
accelerate ERP implementation. They are key user
teams, vendor and consultant, top management and end
user in organization to implementation ERP.

2. KEY USER TEAMS

The overall life cycle of adoption and use of ERP
systems within the ultimate user organization may be
the responsibility of a special group whom are usually
termed key-users; they are selected from operating
departments and must be intimately familiar with
business processes and have domain knowledge of their
areas. They will be the developers of the requirements
for the ultimate system. Key users, as a group, must
help to select the appropriate vendor and act with them
and any implementation contractor in completing the
requirements definition and implementation phases.

Phase implementation where the contractors work

under the direction by the key-user project team in ERP
implementation. In an ERP outsourcing environment,
because the systems are configurable IS packages,
customization generally involves intense cooperation
between key-users and contractors. When the ERP
system has been implemented, the key-users train their
end users, so end user know that their function (Fig.1).

ERP Vendors

Implementation

ERP Cosultants

Interaction

ERP Systems

Experience &
Knowledge
Modules ERP

Top Management

Key User

Objective &
Business
Process

Sharing
Knowledge of
Modules ERP

End User

Figure .1. Sharing in ERP Implementation

3. TOP MANAGEMENT
Many studies have stressed the importance of top
management support as a necessary ingredient in
successful ERP implementation. Commitment and
leadership in the upper echelons of management are
often cited as the most important factors of a successful
BPR project (Bradford & Florin, 2003; Sun et al., 2005;
Umble et al., 2003; Zhang et al., 2005; Hammer, 1990;
Jackson, 1997). Management comitment is a sucsess
factor to implementation ERP (Umble et al., 2003; Soja,
2006; Nah et al., 2001; Aladwani, 2001; Mabert et al.,
2001). Management has been efective, strong, visible,
and creative in thinking and understanding in order to
provide a clear vision of the future. This vision must be
clearly communicated to a wide range of employees
who then become involved and motivated rather than
directly guided.
This research focus in this variable how management
sharing and communication objective company and
business process with key user and end user in
customize ERP system.

4. VENDOR AND CONSULTANT

Vendor is the people who have developed the ERP

packages. They are the people who have invested time
and effort in research and development to create the
packaged solutions. The ERP vendors spent money in
research to come up innovations that make the package
more efficient, flexible, and easy to implement and use.
Business consultant is professionals who specialize in
developing technique and methodologies for dealing
with the implementation. They are expert in the
administration, management and control of these type
of projects. Consultant is responsible for administering
each of the phases of the implementation.
Consultant and key user discussing the current company
processes in an effort to promote better businesses
practices and better implementation result. The
consultant will leave once the project is complete, but
the knowledge of the project must stay within key user
and end user in the organization. Business Process
Reengineering RIP (1996) description in research was
result failure implementation because a poor
implementation by consultant. So explain with Grover,
et al., (1995) lack of external consultant support for
implementation ERP. Indicator in variable vendor and
consultant the research use i.e. domain knowledge,
related experience, project management, technical
competency and training (Wu & Wang, 2007).

5. SATISFACTION END USER STRATEGIC

PERFORMANCE
These are the people who will be using the ERP system
once it is in place. These are the people who were doing
the functions that are being automated or computerized
by the ERP system. With the implementation of the
ERP system, the old job descriptions will change, the
nature of the job will undergo drastic transformation
(Davenport and Nohria, 1994; Hammer, 1990), ERP
implementation to be a radical change in organization
system. It is human nature to resist change. Job profiles
will change and people will be forced to develop new
skill. If the company can succeed in making its
employees accept this fact and assist in making the
transformation, then the major obstacle in the path of an
ERP implementation. Indicators we use in variable end
user i.e. understand theory Business Process
Reengineering (RIP, 1996), understand modules and
theory ERP (Grover et al., 1995; Davenport, 1993;
Alter, 1990), quantity and quality training ERP (Grover
et al., 1995; Davenport, 1993; Hall et al., 1993).

6. SHARING KNOWLEDGE
Many factor to influences on knowledge sharing, and it
is difficult to examine knowledge sharing separately
from the factors. Sharing knowledge and experience
vendor & consultant for customize objective and
business processes industry with top management, team

project (key user) and end user in implementation

modules ERP system. For example, the coordination
top management function and control influence are
factors that are both rooted in organizational culture and
influence the structure of decision making and the flow
of knowledge through that structure (Jones et. al.,
2006).
Knowledge is embedded in the broader context of
culture, and that culture influences the way
organizational members share what they know. It
focuses on organizational culture as a procedure and
business process of shared values that define what is
important and that guide organizational members
attitudes and behaviors. Indicator in variable sharing
knowledge i.e. team project members to understand
processes in modules ERP, team project have change
orientation in core business process, team project
believe collaboration in sharing knowledge is more
effective and efficient than individual (Jones et. al.
2006),
member of team project understand and
adequate determination of scope change (Hammer and
Champy, 1993).

7.
RESEARCH
HYPOTHESIS
CONCEPTUAL FRAMEWORK

AND

ERP software conjoins functional areas and business

processes in an integrated environment that provides a
broad scope of applicability for organizations. The
acquisition of ERP software is not without its
challenges. At a cost of several hundreds of thousands
or even millions of dollars, the acquisition of ERP
software is a high-expenditure activity that consumes a
significant portion of their capital budgets (Verville &
Halingten, 2002). As such, the research questions for
the study were: ``How do sharing knowledge to
accelerate implementation ERP in organizations?'',
``What are the processes that are involved for sharing
knowledge ERP Modules?'' A model conceptual
framework for measure the affect ERP product to
increase enterprise performance in Fig. 2

Top
Management
Comitment

H1

H5
H4

H2

Vendor &
Consultant
Services

Effectivity
Key User

End User
Satisfaction

H6

Sharing
Knowledge

H3

Figure .2. Model Sharing Knowledge as a Tool to

Accelerate ERP Implementation

Management , 2nd May.

H1

H2
H3
H4

H5

H6

= Top management commitment have a

positive relationship with more effectively to
design implementation ERP by key user team
ERP.
= Top management commitment have a
positive relationship with end user
satisfaction to use module ERP.
= Vendors and consultant have a positive
relationship with sharing knowledge to
accelerate implementation ERP.
= Key user project team ERP have a positive
relationship with sharing knowledge to
accelerate implementation ERP in context
experience and knowledge.
= Effectively key user project team ERP
have a positive relationship with sharing
knowledge to accelerate implementation ERP
in clear objective and business process.
= End user satisfaction have a positive
relationship with sharing knowledge to
accelerate implementation ERP in preparing
data management.

8. CONCLUDING REMARKS
In this paper, we had discussed a model conceptual
frame work for sharing knowledge as a tool to
accelerate ERP Implementation. In this research we
focus on sharing knowledge and experience vendor &
consultant for customize objective and business
processes industry with top management, team project
(key user) and end user in implementation modules
ERP system. From review of any literatures, we
developed 6 hypotheses that connected the top
management commitment give a clear objective and
business process to effectively key user project team
ERP, top management commitment give a satisfaction
for end user in preparing data management. Vendor and
consultant sharing knowledge and experience with key
user and end user to customize and accelerate ERP
implementation.

REFERENCES
Aladwani, A.M., 2001, Change Management
Strategies For Succsessful ERP Implementation,
Business Process Management Journal, Vol.7
no.3 pp. 266-275.
Alter, A., 1990, The Corporate Make Over, CIO,
Vol.4 No.3 December, pp. 32-42.
Bradford, M., end Florin, J., 2003, Examining the
Role of Inovation Diffusion Factors on the
Implementation Success of Enterprise Resources
Planning Systems, International Journal of
accounting Information System 4 pp. 205 225.
Business Process Re-engineering RIP, 1996, People

Chen, I. J., 2001, Planning For ERP System:

Analysis and Future Trend Business Process
Management Journal, Vol.7 No.5 pp.374-386.
Davenport, T., and Nohria, N., 1994, Case
Management and the Integration of Labour,
Sloan management Review, Vol.31 No.4, pp.
11-23.
Grover, V., Jeong, S., Kettinger, W., and Teng, J.,
1995, The Implementation of Business
Process
reengineering,
Journal
of
Management Information System, Vol.12 No.1
pp. 109 144.
Hall, J., Rosenthal, J., and Wade, J., 1993, How to
Make Reengineering Really Work, Harvard
Business Review November-December, pp.
119-131.
Hammer, M., 1990, Reengineering Work, Dont
Automate, Obliterate, Harvard Business
Review, Vol. 68 No.4 pp. 104-112.
Hammer, M. and Champy, J. (1993), ``Reengineering
the corporation: a manifesto for business
revolution'', Harper Business, New York, NY.
Hong, K., and Kim, Y., 2002, The Critical Succsess
Factor for ERP Implementation: an
Organizational Fit Persepective, Information
and Management 40, pp. 25-40.
Jones, M.C., Cline, M., Ryan, S., 2006 Exploring
Knowledge Sharing in ERP Implementation:
an Organizational Culture Framework
International Journal Decision Support
Systems 41 pp. 411-434.
Huang, Z., and Palvia, P., 2001,ERP Implementation
Issue in Advanced and Developing Countries,
Business Process Management Journal, Vol.7
No.3 pp.276-284.
Mabert, V.A., Soni, A, Venkataramanan, M.A., 2001,
Enterprise Resources Planning: Common Myths
Versus Evolving Reality, Business Horizon/
May-June.
Nah, F., Lau, J., and Kuang, 2001, Critical Factor For
Succsessful Implementation of Enterprise
System, Business Process Management Journal
Vol.7 No.3, pp. 285-297.

Soja, P., 2006, Succsess Factor in

ERP Implementation: Lesson
From
Practice,
Journal
of
Enterprise
Information
Management
Vol.19
No.6
pp.646-661.

Sun, A.Y.T., Yazdani, A., Overend, J.D., 2005,

Achievement Assessment for Enterprise
Resources
Planning
(ERP)
System
Implementation Based on Critical Success
Factors (CFS), International Journal
Production Economics 98 pp. 189-203.
Umble, E.J., Haft, R.R., Umble, M.M., 2003,
Enterprise
Resources
Planning:
Implementation Procedures and Critical
Success Factors, Europen Journal of
Operation Research 146 pp. 241-257.
Verville, J., & Halingten, A., 2002, An investigation
of the decision process for selecting an ERP
software: the case of ESC, Managment
Decision Vol.40 No.3 pp.206-216.
Wu, J.H., Wang, Y. M., 2007, Measuring ERP
success: The key-users " viewpoint of the
ERP to produce a viable IS in the
organization, Computer in Human Behavior
23 pp. 1582 1596.
Xue, Y., Liang, H., Boulton, W., Snyder, C., 2005,
ERP Implementation Failure in China Case
Studies with Implications for ERP Vendors,
International Journal Production Economics.
Zang, Z., Lee, M.K.O., Huang, P., Zhang, L., Huang,
X., 2005, A framework of ERP systems
implementation success in China: An
empirical study , International Journal
Production Economics 98 pp. 56-80.