Consequently, the study suggests defining ERP success in terms of cross-functional integration of ERP professionals. In addition, a list of critical success factors that bring about a higher level of cross-functional integration is proposed.
Research Objectives
Scope of the Study
Methodology of the Study
Contribution of the Study
Structure of Research
Furthermore, it has been proven that internal integration or so-called cross-functional integration is not only an important factor in business and operational success, but also the foundation for extended supplier and customer integration (Flynn, Huo, & Zhao, 2010; Barratt). , 2004; Fawcett & Magnan, 2002). There are two main areas of cross-functional integration research, which are (1) research conducted to demonstrate the benefits of internal integration on firm performance (Turkulainen and Ketokivi, 2012; Droge, Jayaram and . Vickery, 2004; Basnet , 2013) and (2) ) another area of research, which is less numerous, focuses on the preconditions of internal integration (Pagell, 2004; Emery, 2009).
Integration in Organizational Context
Cross-functional Integration
Level of Cross-functional Integration
No Integration Most of the time manufacturing, logistics and purchasing do not interact to realize the customer's requirement. Most of the time manufacturing,. logistics and purchasing do not work together to realize customer requirements.
Enterprise Resource Planning
ERP Success
Avoid post-launch turbulence and ensure smooth business operations, what ERP users perceive as ERP success. The above aspects of ERP success should be combined as ERP success evaluation metrics (Markus & Tanis, 2000).
ERP and Cross-functional Integration Researches
On the contrary, some literatures are doubtful whether the existence of ERP system will spontaneously create cross-functional integration. Research Question 2: Is CSF the main reason for different levels of firm cross-functional integration after ERP implementation.
Critical Success Factors of ERP
- Top management support and commitment
- Project management
- Business process management and business process reengineering
- ERP team composition, competence and compensation
- Change management
- Business plan and vision
- Interdepartmental communication and cooperation
- Organizational Culture
- Vendor/consultant support
- System development and stabilization, testing and data quality In realization phase business blueprint is interpreted, configured, and
Pre-implementation of ERP, communication from top management on the vision of the future integrated firm that precedes ERP implementation (i.e. centralized database that is accessible to all functions) promotes a more strong cross-functional organization (Rowe, Amrani, Bidan, Marciniak, & Geffroy-Maronnat, 2005; Gosain, Lee, & Kim, 2005). Business process reengineering (BPR) is a drastic transformational approach to the processes of the organization in order to achieve a vast improvement in cost, quality, service and speed. Team selection of project competence across the organization has been proven to be one of the most important factors contributing to ERP success (Agarwal, 2014) resulting in higher user satisfaction after implementation (Wu & Wang, 2006) .
Training should be provided to all users from top management to operational staffs to unlock the full potential of the system (Dezdar, 2012; Ainin, 2011). The broader terms of business plan and vision are related to the goals and objectives of the ERP projects (Dezdar & Sulaiman, 2009). Top management support is one of the most important critical success factors for ERP implementation.
Qualitative Research Design
- Research Objectives
- Conceptual Framework
- Research Questions
- Research Methods
Finally, the conceptual framework of ERP CSFs and cross-functional integration can be illustrated as shown in Figure 5. Are CSFs the main cause of the company's different levels of cross-functional integration after ERP implementation. Proposition 2: Certain characteristics and behaviors of external consultants promote higher levels of cross-functional integration.
To our knowledge, the existing literature has never explicitly defined the meaning of ERP success in terms of cross-functional integration. Therefore, this study begins by exploring the definition of ERP success in terms of cross-functional integration. Change agent' is ranked as the first factor that improves cross-functional integration.
Definition of ERP success in terms of cross-functional integration
List of critical success factors to enhance cross-functional integration
Ranking factors Positive terms and phrases Frequency Negative terms and phrases Frequency 1 Change agent Talented individual; E2E business. Key users develop test script on their own to ensure that knowledge gained from ERP consultants is sufficient;. IT staff who have to support users after lack of motivation and not proficient in ERP.
If key users are weak in business process; the project becomes IT driven project. ERP implementer partnership with business; consultants and recommend their clients to improve organization (i.e. reorganization) before starting ERP project; Be part of the ERP implementation mostly as the mediator between ERP consultants and ERP user organizations. Not clearly mentioned by participants Respect in seniority, prevents young key users from giving direct feedback;.
Change agents are the most important key to promote cross- functional integration
Change agents’ characteristics
Change agents are appointed by external consultants or their colleagues as key contributors to the ERP implementation. The quote below supports the idea that change agents are willing to go beyond their scope to deeply understand end-to-end processes. Change agents usually care about the performance of the company as a whole, not their own function.
Certain agents of change have been shown to have an advantage in an information technology environment. For example, change agents are mentioned as someone who can lead meetings and effectively direct a project. This is evidence that change agents commonly use expert power as a tactic to gain cooperation (Koslowsky & Stashevsky, 2005).
Empowering Factors
Top management establish feeling of ownership and commitment through regular communication
In the same project, top management gains buy-in from its subordinates by assigning each department to present the current functional pain points to the ERP implementers which those points are documented and the consultants attending the session must find solutions to appropriate for those problems. Furthermore, at the same time, there is other evidence that senior management really focuses on project communication which the project objectives have repeatedly emphasized. On the other hand, in unsuccessful cases, senior management tends to put pressure on the project team instead of motivation.
At [company name], the goals were not successful, the most important user in Accounting resigned due to pressure from senior management.” (Participant 002). Implementers inform us that in the absence of top management guidance, user input is low. On the other hand, in case the change agents met the criteria of having preferable characteristics, but in the situation of lack of top management support, cross-functional integration is still achievable, but at a later stage after initiation.
ERP consultant experience
In the beginning, even leadership didn't realize that this was a truly cross-functional project, even leadership was looking in silos. So only the team conveys the message that only when you work as a cross-functional team, even as a company, can you get the most out of ERP.” (Participant 045). The higher the level, the so-called senior consultants, the higher the salary and therefore the higher costs for the project.
On the contrary, inexperienced consultants can lead to a delay in realizing cross-functional integration, where the company may need some time to realize that the solutions offered can be improved. The participant tells us that the level of cross-functional integration in her company was lower after the introduction of ERP. To me, cross-functional integration is not something that happens right out of the box, it was something we ignored, it was something we had to fine-tune.
Reach Sustainability
- ERP, tool for achieving company goals
- ERP project priority
- End-to-end organization structure
- Cross-functional networking
Some units are set up to provide coverage from the beginning to the end of the process. The entire team knows wing to wing and knows how it works on the ERP.” (Participant 045). To ensure the continuous improvement of cross-functional integration, successful organizations tend to continue the network of ERP expertise within the organization.
For example, two of the interviewees who have the characteristics of being a change agent in successful ERP user organizations usually have the same problems of being overworked. On the contrary for success cases, companies tend to avoid the turnover of change agents by maintaining teamwork environment and being able to maintain the momentum of continuous improvement. So it was the team and the leadership of the ERP team that clearly brings the message to business that everything is connected.
Conclusion of Findings
In other words, "agents of change" are the main drivers that distinguish the level of success of ERP in unifying the departments of firms. Furthermore, this paper proposes that there are two factors that the firm implements to strengthen the capability of change agents. The first factor is how top management creates a sense of ownership and commitment from change agents through communication.
In other words, experienced consultants can offer different options to change agents, allowing change agents to weigh the pros and cons of each option and make a constructive decision that is right for their company. As a result, change agents can support consultants by helping to convince their colleagues in the ERP user organization. Finally, to ensure continuous improvement of cross-functional integration, the paper suggested that successful organizations tend to continue the network of ERP experts within the organization, while unsuccessful cases face the problem of change agents who decide to leave the company because they claim to be overwhelmed. and that they have no comparison in other processes.
Contributions
Contribution to Theory
Contribution to the Implication .1 Managerial Implication
In addition, the service provider companies can suggest to their customers to get the most out of the ERP systems by applying sustainability factors described in chapter 4.4. ERP implementation service providers could consider proposing their clients to maintain a long-term partnership and together plan a roadmap for ERP continuous improvement that allows mutual benefits for both parties.
Limitations and Future Research
The influence of ERP implementation on the distribution of power at the production-sales interface.
APPENDICES
Objectives: The results of this research can be used by all companies and professionals who plan to implement or upgrade their ERP system to ensure that their ERP will benefit in terms of improving cross-functional integration, which is the most critical element of ERP success. Visibility of the same set of data” by all stakeholders throughout the supply chain, encouraging fact-based decision-making and avoiding bias. In a fully integrated environment, each department can transfer and interpret information with each other with minimal effort (Ketokivi, 2012).
Each department is able to transfer and interpret information with each other with minimal effort (Ketokivi, 2012). How would you rate your firm's level of cross-functional integration, before and after ERP implementation. Based on your experience, which company is most successful in increasing cross-functional integration.
INTERVIEW QUESTIONS (cont.)
