An ERP Knowledge Transfer Framework for Strategic Decisions in Knowledge Management in Organizations

Abstract

Abstract-Enterprise Resource Planning (ERP) system implementation requires wide range of knowledge from various parties and transferring the right amount of knowledge between individuals during implementation is of paramount importance. Hence, ERP knowledge transfer has been recognized as one of the most essential antecedents for a successful ERP implementation. This study defines an ERP knowledge transfer (EKT) framework for ERP implementations based on empirical findings which also considers strategic decisions to be made during implementation for effective knowledge management (KM). It classifies specific knowledge elements under ERP package knowledge and business process knowledge separately which needs to be transferred between implementation consultants and business users. In addition, key findings inform industry practitioners on how, why and with-what various types of knowledge have to be transferred during ERP project with the effects of knowledge determinants.Index Terms-ERP knowledge transfer, enterprise resource planning, strategic decisions, knowledge management, ERP implementation. I. INTRODUCTIONAn Enterprise Resource Planning (ERP) system is a widely-known state-of-the-art information system which automates the business processes of an organization into a single integrated system [1], [2]. It helps users in various management levels of an organization to make sound decisions based on the integrated business information available through the system [3]. Therefore, it is able to increase organizational performance by lowering operational costs and maximizing revenue. Moreover, it enables businesses to improve customer services and supplier management. The implementation of such a complex system requires many resources like competent consultants, knowledgeable business users, sophisticated project management techniques, relevant change management strategies, etc [4]. Therefore, it is necessary to use sufficient levels of those resources through making correct strategic decisions by the company top management.The knowledge and capability of transferring relevant knowledge between individuals have been identified as vital sources of a company's sustainable competitive advantage [5]. Strategic alliances and globalization have made effective knowledge transfer central to an organization's success. ERP implementation requires wide range of knowledge from implementation consultants and business users. The knowledge of system functionalities and knowledge of existing business processes are among the important knowledge elements for a successful ERP implementation [6], [7]. The knowledge exists at many levels in firms, and it's transferred from individual level to groups, departments and divisions. At the start of a project, implementation consultants possess ERP package related knowledge and business users have knowledge related to company business processes [8]. Effective implementation requires business users to learn ERP package knowledge from consultants and consultants to absorb business process knowl...

A Mediating Effect on ERP KM Model for the Performance of Oil and Gas Sector in Klang Valley: A Preliminary Study

“…The discussion of the results begins with the proposed model of ERP KM Rizam 2019 as shown in Figure 2. To define the different characteristics of existing KM practice, the verdicts of this study are conversed and adapted with preceding discoveries [1], [32], [35]. Reference [1] emphasizing the definition of knowledge management solely, not explaining the relationship between KM against any dependent variables like organizational performance and financial performance.…”

“…The author examined the important variances in practicing KM in the aspect of knowledge obtaining and enablement; training and mentorship; communication; and incentive but not discussed the impact to the organizational performance. In another study, [35] defines an ERP knowledge transfer framework for ERP implementations based on empirical findings which also considers strategic decisions to be made during implementation for effective KM. The study also not emphasize the relationship between ERP, KM and performance measurement.…”

Knowledge prioritisation for ERP implementation success

“…Furthermore, both the studies state that knowledge of the software is low with clients, medium with consultants and high with vendors; whereas, knowledge of the client organisation is low with vendors, medium with consultants and high with clients. It is clear that knowledge of the software is mostly the knowledge external to the client organisation and knowledge of the client organisation is internal to the organization (Jayawickrama et al, 2014). Parry and Graves (2008) also argue about two distinct types of knowledge required for ERP implementations, i.e.…”

Strategies to Implement Knowledge Management Systems

“…KM is a resource and capability that business leaders can implement to support organizational strategic planning (Jayawickrama et al, 2014). The goal is to ensure that the discovery and documentation of the required knowledge and people involved with new projects (e.g., ERP implementation processes) will incorporate people, products, and services (Jayawickrama et al, 2014). Business leaders adopt KM practices and KMS as fundamental tools to facilitate KM strategy and knowledge capture.…”

“…A KMS is a group of systems and procedures that business leaders use to manage, capture, and store knowledge (Alegre et al, 2013). KM is a resource and capability that business leaders can implement to support organizational strategic planning (Jayawickrama et al, 2014). The goal is to ensure that the discovery and documentation of the required knowledge and people involved with new projects (e.g., ERP implementation processes) will incorporate people, products, and services (Jayawickrama et al, 2014).…”