Systems Research and Behavioral Science
Syst. Res. 23,157^168 (2006)
Published onlineinWiley InterScience (www.interscience.wiley.com)
DOI:10.1002/sres.751
&
Research Paper
A Knowledge Management System
for ERP Implementation
Yuan Li*, Xiu Wu Liao and Hong Zhen Lei
School of Management, Xian Jiaotong University, Xian, China
An enterprise resource planning (ERP) is an enterprise-wide application software
package that integrates all necessary business functions into a single system with a
common database. Its implementation is a complex process in terms of technology pre-
paration and organizational change management. Although the importance of knowledge
management (KM) in ERP implementation has been recognized, how to conduct
knowledge management has not received deserved attention till now. The main objective
of this paper is to develop a KM system to manage the knowledge of ERP implementation
process. To accomplish this, the article first identifies the types of knowledge in ERP
implementation. It then summarizes various KM activities based on a six-stage model. At
last, it proposes a KM system that consists of cooperative working platform, consulting
platform, individual KM platform, organizational KM platform, and knowledge transfer
platform. This system can effectively manage knowledge and provide support for the
successful implementation of an ERP system. Copyright # 2006 John Wiley & Sons, Ltd.
Keywords enterprise information systems; enterprise resource planning; knowledge manage-
ment; systems research; systems engineering; systems approach; MIS; management information
systems
INTRODUCTION
In today’s dynamic and unpredictable business
environment, companies face the tremendous
challenge of expanding markets and rising custo-
mer expectations. This compels them to lower
total costs in the entire supply chain, shorten
throughput times, reduce inventories, expand
product choice, provide more reliable delivery
dates and better customer service, improve
quality, and efficiently coordinate globe demand,
supply and production (Li, 2000a; Li and Li, 2000;
Umble et al., 2003). In order to accomplish these
objectives, more and more companies are turning
to the enterprise resource planning systems
(ERP). An ERP is a packaged enterprise-wide
information system that integrates all necessary
business functions, such as product planning,
purchasing, inventory control, sales, financial
and human resources, into a single system with
a shared database (Alavi and Leidner, 2001).
Copyright # 2006 John Wiley & Sons, Ltd.
* Correspondence to: Yuan Li, School of Management, Xian Jiaotong
University, Xian 710049, China. E-mail:
Contract/grant sponsor: NSFC; contract/grant numbers: 70121001;
70472039; 70571063.
A successfully implemented ERP can offer
companies the follow ing three major benefits
(Yusuf et al., 2004):
* Automating business process
* Timely access to management information
* Improving supply chain management through
the use of e-commerce
In the past few years, thousands of companies
around the world have implemented ERP
systems. The number of companies that plan to
implement ERP is growing rapidly. AMR
Research, an authoritative market forecast insti-
tution in America, indicated that the ERP market
would grow at annual rate of 37% in recent
5 years. The sales of the ERP packaged software
are estimated to be around $20 billion by the year
2000 and the eventual market size is predicted to
be around $1 trillion by the year 2010 (Rajagopal,
2002). Even in China, a developing country, ERP
has also become a main product in the software
market and the sales have approached six
hundreds million RMB in the first half of 2002
(Li, 2000b; Li et al., 2001; Chaudhry et al., 2005;
Dan et al., 2005; Wang et al., 2005; Xu et al., 2005).
Surprisingly, given the significant investment in
resources and time, many companies did not
achieve success in ERP implementation. It is
estimated that the failure rate of ERP implemen-
tation ranges from 40 to 60% or higher (Umble et
al., 2003). Some surveys and researches indicate
that successful outcome is also not guaranteed
even under ideal circumstances. Researchers
consider that the factors such as organizational
change and process re-engineering, the enter-
prise-wide implications, the high resource
commitment, and high potential business bene-
fits and risks associated with ERP systems make
the implementation a much complex exercise
(Kumar et al., 2003; Tchokogue
´
et al., 2005). It is
therefore not surprising that numerous compa-
nies have abandoned their ERP projects before
completion or have failed to achieve their busi-
ness objectives after implementation (Cliffe,
1999). Many experts and scholars have investi-
gated this issue from various angles. Some pro-
vide valuable insights into ERP implementation
process and others identify a variety of factors
that can be considered to be critical to the success
of an ERP im plementation. These factors include
top management support, business plan and
vision, organizational change management and
culture, business process re-engineering (BPR),
data accuracy, education and training, and ven-
dor selection and support, etc (Tchokogue
´
et al.,
2005; Kumar et al., 2003; Somers et al., 2004;
Umble et al., 2003; Sheu et al., 2004; Motwni et al.,
2002; Mabert et al., 2003; Al-Mudimigh et al.,
2001; He, 2004). Although different authors
may have their own diverse perspectives, they
all co nsider that the most important factor
that influences successful ERP implementation
is management, instead of technology; and
technology is only a minor factor. Thus, it is
especially important to investigate the issue of
how to enhance management in ERP implemen-
tation process.
The process of implementing ERP begins with
planning. After planning is completed, a project
team embarks on and then moves through a
number of discrete phases. After the system is
up and runn ing, there may be a post-implemen-
tation review and later a stabilization phase
(Parr and Shanks, 2000). In the model proposed
by Kwon and Zmud (Kwon and Zmud, 1987;
Rajagopal, 2002), ERP implementation process
can be divided into six stages: initiation, adop-
tion, adaptation, acceptance, routinization and
infusion (see Figure 1). The first or the initiation
is characterized by both internal and exter-
nal factors that influence the organization to
implement an ERP system. At this stage, the
Initiation
Adoption
Adaptation
Acceptance
Routinization
Infusion
N
ext Innovation
Figure 1. ERP implementation process
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15 8 Yua n Li et al.
organization must carefully define why the ERP
system is to be implemented and what critical
business the system will address. Additionally,
education is also given to the employees. They
will learn some new knowledge about the
development history, basic concepts, main func-
tional mod ules of ERP, and the benefits of imple-
menting an ERP. After ERP education is finished,
the implementation process enters the second
stage. Organization will carry out investment
decision and cost–benefit analysis related to
implementing ERP and select appropriate brand
or vendor. In the adaptation stage, the organi-
zation analyses the details of the various busi-
ness processes and actualizes business process
re-engineering (BPR) to exploit the full potential
of ERP. BPR has long been considered one of the
key success factors in implementing major IT
projects, such as ERP, especially in firms that
have a strong corporate culture or that rely on
legacy systems. Once the business process is
redesigned and system is customized, appro-
priate training is given to the end-users imme-
diately and resistance may be observed because
of the ‘inertia’ associated with using the previous
system. This stage is considered as the most
difficult of all the stages. In the acceptance stage,
the integration of various functional units is
realized and continuous improvements are made
to make the system easy to use and to solve
various problems. The users feel comfortable
with using the ERP system. During the fifth
stage, end-users accept the system completely.
The ERP system usage becomes a regular day-to-
day activity. Organizational integration and
internal function coordination are realized. At
the infusion stage , the system is used to enhance
the performance of the organization (Rajagopal,
2002). After years of operation, the company
may need new system to cope with business
and technology change, so the first stage will be
repeated again.
Although realizing ERP is an implementation
process of information system, it is also a process
of knowledge creation, storage/retrieval, trans-
fer and application from knowledge manage-
ment (KM) perspectives. For example, in ERP
selection process, an organization needs to know
the characteristics and functional modules of
the system, and learn implementation experience
from other organizations. After a certain type
of ERP software is chosen, most organizations
usually align their business processes with the
functionality provided by the ERP system, rather
than customizing the ERP package to match their
current processes. These organizations may dis-
card previous business processes and accept the
standardized business processes. In other words,
the explicit business knowledge incorporated in
the software is transferred to the adopting
organization (Lee and Lee, 2000). On the other
hand, an ERP system is not just a pure software
package to be tailored to an organization. It
also represents an organizational infrastructure
that affects how people work and imposes its
own logic on a company’s strategy, organization
and culture. After organizations accept the
management mode of an ERP, the tacit knowl-
edge related to the business process is trans-
ferred to the adopting organization. Extant
studies (O’Leary, 2002) show that KM is asso-
ciated with ERP implementation intimat ely.
Based on the theory of KM and information
technology, it is possible to identify, capture,
transfer, and apply the knowledge created dur-
ing ERP implementation process, and provide
effective support for the successful implementa-
tion of ERP (see Figure 2). Recently, some issues
on KM in ERP implementation have been
studied. O’Leary (2002) investigated the use of
knowledge management to support ERP systems
across entire life cycle, with particular inte rest in
case-based knowledge management. A proto-
type system designed to support the use of the
ERP system is also presented. Lee and Lee (2000)
proposed a new approach to analysing ERP
implementations from a knowledge transfer
perspective. It also contributed to a bet ter under-
standing of co mpetitive advantage based on
process knowledge when standardized business
processes are implemented by an organization.
Newell et al. (2003) examine related interac tions
and impacts as ERP and knowledge manage-
ment system implemented simultaneously with-
in an organization. Haines and Go odhue (2003)
give a framework that explains how consulting
involvement and knowledge of the organization
can impact the outcome of the project based on
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A Kno wl edge Mana gement Sys tem f or ERP I mpl emen tati on 159
agency theory. Ko et al. (2005) proposed an
integrated theoretical model in which knowledge
transfer is influenced by knowledge-related,
motivational, and communication-related fac-
tors. Although the importance of KM in ERP
implementation has been recognized, how to
conduct knowledge management to support
such process has not received deserved attention
till now. In this paper, a KM system in the
framework of systems theory is proposed to
manage the relevant knowledge of ERP imple-
mentation process (Xu, 2000). To accomplish this,
the paper first identifies the types of knowledge
available in ERP implementation. It then sum-
marizes various KM activities based on the six-
stage model. Lastly, a KM system is proposed
that consists of cooperative working platform,
consulting platform, individual KM platform ,
organizational KM platform, and knowledge
transfer platform. This system can effectively
manage knowledge and provide support for the
successful implementation of ERP systems.
The rest of this paper is organized as follows:
the subsequent section introduces the basic
concepts and theory of KM. In the third section,
the knowledge sources in ERP implementation
are identified and various KM activities based on
the six-stage model are summarized. In Section 4,
a system of KM is developed. Final section will
provide a summary about this paper.
KNOWLEDGE AND KNOWLEDGE
MANAGEMENT
Knowledge management (KM) is an emerging
field (Rubenstein-Montanno et al., 2001; Xu et al.,
2001; Qiu et al., 2003; Sun et al., 2003; Zhang et al.,
2003). It has gained tremendous popularity as
one of the most promising ways for organi-
zations to succeed in information age. In extant
literatures, there are various views about knowl-
edge (Alavi and Leidner, 2001; Wong and
Aspinwall, 2004; Wiig, 1997). The definition of
knowledge adopt ed here is ‘knowledge is com-
bined with experience, context, interpretation,
and reflection. It is a high-value form of infor-
mation that is ready to apply to decisions
and actions’ (Albert and Baradley, 1997).
Although there are sundry knowledge cate-
gories, the tacit-explicit knowledge classification
is widely cited. Explicit knowledge is transmit-
table in formal, systematic way. It can be
processed by a computer, transmitted electro-
nically or stored in a database (Nonaka and
Takenchi, 1995). On the other hand, tacit knowl-
edge is associated with personal experiences
and difficult to fully articulate, and poorly
documented. Because it is subjective and intui-
tive, it is not easily processed or transmitted in
any systematic or logical manner (Lee and Lee,
2000).
Theory of knowledge management
Information technology
The successful implementation of ERP
Knowledge management System in ERP implementation
Support
Promote
Figure 2. The relation between KM and ERP implementation
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160 Yuan Li et al.
Within this context, KM refers to the strateg-
ies and processes of identifying, capturing, and
leveraging knowledge to help the firm compete.
In general, KM is regarded as a process involving
managing all kinds of knowledge to meet
existing and emerging needs, to identify and
exploit existing and acquired knowledge assets
and to develop new opportunities (Jarrar, 2002).
It consists of four basic processes: knowledge
creation, store/retrieve, transfer, and appli-
cation. Knowledge creation is the most important
process in knowledge management. It is realized
by the interaction between the tacit and explicit
knowledge inside an organization. Four possible
conversion modes between the two types of
knowledge have been identified: socializati on,
externalization, combination, and internalization
(Nonaka and Takenchi, 1995; Alavi and Leidner,
2001). The knowledge creation begins in the
socialization mo de. It refers to conversion of
tacit knowledge to new tacit knowledge thro-
ugh social interactions and shared experience
among organizational members. After new tacit
knowledge has been created, it is formalized and
standardized for facilitating communicating
with other organization members. This leads to
the creation of new explicit knowledge. Once
new explicit knowledge has been created, it can
be reconciled with other explicit knowledge
created by other organizational members and
the knowledge is expressed in a format that it can
be retained at organization. Once new explicit
knowledge has been created, the member inside
organization can combine the new explicit know-
ledge with own intrinsic knowledge to produce
new tacit knowledge. After new tacit knowledge
is shared with other members inside organi-
zation, the knowledge creation activity begins
again. Knowledge creation therefore is viewed as
a spiral growing process.
The KM in ERP implementation faces a num-
ber of challenges: (1) the pivotal knowledge in
ERP implementation is possessed by software
vendor and consultants. They will vanish soon
after the ERP implementation is completed. How
can their knowledge be transferred into the
adopting organization? (2) In ERP implementa-
tion process, there exist a lot of knowledge gaps.
They include the gaps between external vendor,
consultants and internal experts, the gaps be-
tween internal experts and end-users, the gaps
between end-users from different business units.
How can these gaps be eliminated? (3) In ERP
implementation, a lot of new tacit knowledge
will be created through discussion, communi-
cation, imitation and practice. How can such
tacit knowledge be converted to organization-
available knowledge? (4) The cross-functional
interconnectivity of an ERP system requires the
employees involve in implementation process to
have more cross-functional knowledge, how do
they access such knowledge? (5) When some key
employees, such as the members of project team,
retire or change job, they will take with them
valuable knowledge and skills associated with
ERP project. In order to prevent or reduce
interruptions in activities, and enhance overall
ability to cope with changes in personnel, how
can an organization store their knowledge and
skills?
THE IDENTIFICATION OF KNOWLEDGE
IN ERP IMPLEMENTATION
In an ERP system implementation, there are
usually three major part ies involved the project
implementation: the organization imp lementing
the system (the implementer), the organization
developed the ERP sy stem (vendor) and an
organization aiding th e implementation (the con-
sulting company). Each o f the se parties contr i-
butes different knowledge to the project.
The Knowledge From the
Consulting Company
ERP is not a simple software package. Although
there are detailed instructions in product man-
ual, it is usually difficult to combine the function
of software with organizational business. Hardly
any organization has the necessary knowledge
and skills to implement an ERP project success-
fully without extern al help (Rubenstein et al.,
2001). An organization may expect consultants
to transfer their implementation knowledge to
their employees so that they can contribute to
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A Kno wl edge Mana gement Sys tem f or ERP I mpl emen tati on 1 61
successful implementation and learn to maintain
the system independent of the consultants.
Thus, bring consulting company into ERP imple-
mentation can improve the success rate of project
and avoid unnecessary mistakes. Generally, a
consulting company may possess abundant
knowledge which includes an in-depth under-
standing of the management idea related to
ERP, insights into business process incorporated
in the basic architecture of the ERP soft-
ware, the expertise of BPR, the approach of
project implementation, a nd the accumulative
experience by providing services to other organi-
zations. A consulting company can help organi-
zation employees learn more know-how about
ERP implementation that is not included in
standard training provided by ERP vendor.
Additionally, the practical experience of the
consulting company can help project member
to save time and increase implementation effi-
ciency.
The Knowledge From the Vendor
The main roles that ERP vendor plays in ERP
implementation include: (1) providing the imple-
menter with ERP software and documents;
(2) offering standard education/training pro-
grams in connection with their products, includ-
ing the function of software, modules, business
process, operation approaches and so on; (3)
cooperating with consulting companies to imple-
ment ERP. On the one hand, ERP implemen-
tation requires mass knowledge to enable
employees to solve problems within the frame-
work of system. If employees do not understand
how a system works, they will not be able to use
the system correctly. On the other hand, educa-
tion/training is a learning process. It is impos-
sible for employees to master all necessary
knowledge in education/training. Employees
need time to learn in practice. Therefore, the
knowledge from the vendor, especially standard
education/training knowledge should be collec-
ted, stored consciously and op en to all employees
inside or ganization . Managing vendor knowledge
can provide users w ith convenience for l earning
and reducing education/training c osts.
The Knowledge From Implementer
In generall y, the knowledge of implementer
consists of the inherent knowledge and the
innovative knowledge. The former mainly refers
to the detailed knowledge of its own particular
business processes, organi zational context, cul-
ture and competitive situation, which is essential
for successful implementation. The later mainly
refers to the experience, know-how produced
by discussion, communication, and practice in
implementation process. The externalization of
the innovative knowledge, namely conversion of
individual knowledge to organization knowl-
edge, can promote knowledge sharing and pro-
ject implementation.
In addition to above-mentioned t hree kinds
of knowledge, document manag e ment is also
an important task of knowledge management.
These documents include: (1) the operation man-
ual of ERP and systems management; (2) Educa-
tion/training documents provided by the vendor
and consulting company; (3) Detailed documents
regarding implementation process; (4) Complete
records o f business process before implemen ta-
tion, the standard business process of ERP system
and their difference; (5) Complete re cords of BPR;
(6) Complete records of business process after ERP
implementat ion, and the like. The management for
these d ocuments facilitates communication, lean-
ing and practice.
In terms of the model proposed by Kwon
and Zmud, ERP implementation process can be
divided into six stages: initiation, adoption,
adaptation, acceptance, routinization and infu-
sion. In order to manage the knowledge of
ERP implementation effectively, it is necessary
to analyse the main KM activities of each
stage. To accompli sh this, Table 1 summarizes
the KM practices in ERP implemen tation
process.
A KNOWLEDGE MANAGEMENT
SYSTEM FOR ERP IMPLEMENTATION
Knowledge management systems (KMS) refer to
a class of information systems applied to mana-
ging organizational knowledge. That is, they
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162 Yuan Li et al.
are IT-based systems developed to support and
enhance the organizational processes of knowl-
edge creation, storage/retrieval, transfer, and
application (Alavi and Leidner, 2001). During
ERP implementation, there exist vast amount
of knowledge. The knowledge resides in employ-
ees, organization resources and externa l partner-
ship (the vendor and the consulting company).
Therefore, a knowledge man agement system
should ensure that the explicit and tacit knowl-
edge of external partnership can transfer into
the adopting organization, the knowledge of
employees can flow freely inside organization,
and the knowledge created during ERP imple-
mentation can be captured and distr ibuted. In
this section, a KM system for ERP implementa-
tion is proposed (see Figure 3). This system
consists of cooperative working platform, con-
sulting platform, individual KM platform, orga-
nizational KM platform, and knowledge transfer
platform (see Figure 4). This integrated KM
system of ERP implementation is expected to
offer significant potential for improvement in
ERP implementation support. The main func-
tions of the five platforms are described as
follows:
Cooperative Working Platform
The cooperative working platform consists of
communication module and document manage-
ment module. The first module provides a
vehicle to generate knowledge across entire
ERP implementation process. It provides infor-
mal setting where participants ask questions of
other participants. Participants post questions
and hope that some other participants will know
the answer or where a solution can be found. In
addition, participants may inform the actions
they took and ask if anyone knows what went
wrong (O’Leary, 2002). The advantage of such a
module is that it can accommodate specific
questions. The responses are to the point and
timely. In some cases, participants provide a
personal e-mail address for responses, which can
allow a dialogue between the asker and the
respondent. Beside s, corporate directories may
also enable individuals to rapidly locate the
individual who has the knowledge that might
help them solve a current problem. The main
object of this module is to create a channel for the
sharing and exchange of knowledge gained
through experience and increasing familiarity
Table 1. Summary of KM activities in ERP implementation process
Stage KM activities
Initiation (1) Vendor provides ERP software and document.
Adoption (2) Vendor offers training programs in connection with their products. Explicit knowledge
(know-what) could be captured from user manual and training document.
(3) Learn the experience of other organizations.
(4) Carry out investment decision and cost–benefit analysis related to ERP implementation
and select appropriate vendor
Adaptation (1) Analyse the differences of business process between standard ERP and implementer.
Acceptance (2) New process knowledge is captured and new management idea is brought into
organization.
(3) Carry out knowledge transfer from vendor, consulting company to project team and from
project term to end-users.
(4) The training is offered to end-users. Users should learn the knowledge about ERP system
and master operation process.
(5) Learning by using.
Routinization (1) Knowledge accumulation.
Fusion (2) Knowledge sharing.
(3) Knowledge creation.
(4) The application of new KM tools (KDD).
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A Kno wl edge Mana gement Sys tem f or ERP I mpl emen tati on 163
platform
KM
Individual
platformtransferKnowledge
Add delete
modify retrieve
Individual
knowledge/documen
t
base
Organizational
baseknowledge/document
Add
delete modify
retrieve
knowledge
Make
explicit
knowledgeMake
explicit
platformworkingCooperative
module
Communication
E-mail(1)
communities
Virtual
(2)
BBS(3)
……
process
accumulative
The
of knowledge
Knowledge
learning/application
learningtimeinJust
Distribute
platformKMOrganization
Approve
C platformonsulting
managementDocument
kinds
all
including
module
associateddocumentsof
implementation
ERPwith
process.
Other
sources
andInsight
understanding
byLearning
using
Classify
Capture
ofExperience
other
organizations
Consulting documentstrainingEducation/
Figure 3. A KM system in ERP implementation
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164 Yuan Li et al.
with the ERP system. The second module mainly
manages all kinds of documents associated with
ERP implementation process, including much of
the information such as business knowledge,
detail implementation plan, the entire records of
business process change, project advancement,
and the like. All these documents will be classi-
fied and entered automatically into the organiza-
tional knowledge/document base. However, not
all questions are answered or not all questions
are answered in a timely manner in this platform.
In addition, the same question can be asked
again and again and the quality of the answers
can not be guaranteed. Therefore, the organiza-
tion can have personnel in charge of monitoring
and tracking questions and sending feed back to
consultants. The consultants will respond hard
questions.
Individual KM Platform
Individual KM platform provides technology
support for the KM activities of each employee
in the organization. Its main functions are the
construction, renewal and replenishment of indi-
vidual knowledge/document base. One of the
most important processes to establish individual
KM platform is to capture knowledge. Capturing
knowledge refers to determining what informa-
tion and knowledge should be added to the sys-
tem. During ERP implementation process, two
parts of knowledge are captured: explicit and
tacit. The explicit part is mainly related to know-
what and part of know how. It can be captured
in several forms such as user manual, training
documents, process design documents, systems
configuration, communication module, consult-
ing, etc. The tacit part is those skills and know-
how regarding ho w to operate the ERP system. It
can be transferred from consultants to project
members and then transferred to the employees
in the organization. All too often, the employees
are expected to be able to effectively use the new
system based only on education/training. How-
ever, much of the learning process comes from
hands-on use under normal operating condi-
tions. Therefore,they can gain insight and under-
standing through contacting, learning, and using
ERP system in practice. In addition, individual
can also ga in tacit knowledge from the consul-
tants and other employees. For example, when a
consultant for implementing ERP works with
end-users, if an end-user has an idea and the
consultant listens to the idea, in some cases,
providing suggestion and instruction. After
all these kinds of knowledge are captured, the
idea of KM helps each employee to convert
various kinds of tacit knowledge into explicit
knowledge, and store in individual knowledge/
document base. F urthermore, w ith t he eff ect of
incentive mechanism and organization culture, the
individual knowledge can be converted into
organization-available knowle dge (s ee F igure 5).
Organizational KM Platform
Organization KM platform provides techno logy
support for the KM activities of the organization
in ERP implementation. Its main functions are
the construction, renewal, and replenishment of
Cooperative Working Platform
Consulting Platform
Individual
KM
Platform
Organizational
KM
Platform
Knowledge Transfer Platform
Figure 4. The platform structure of the knowledge management system
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A Kno wl edge Mana gement Sys tem f or ERP I mpl emen tati on 165
organizational knowledge/document base. One
organization can be viewed as the set of many
‘individuals’. Therefore, the knowledge captur-
ing in the organization depends on the knowl-
edge capturing from each individual. During
ERP implementation process, the organizational
knowledge mainly comes from three parts.
The first part is all documents associated with
ERP implementation. They include the operation
manual of ERP, systems management docu-
ments, education/training documents from the
vendor and consulting companies, detailed
implementation process documents, the com-
plete records of business process before imple-
mentation, the standard business process of
ERP system and their difference, the complete
records of BPR, and the complete records of
business process after ERP. The second part is
the experience of other organizations that have
implemented ERP system. The last part is the
knowledge transferred from individual knowl-
edge/document base (see Figure 5).
Knowledge Transfer Platform
Knowledge transfer platform provides techno-
logy support for the knowledge transfer between
individuals and the organization. It includes
the accumulative process of knowledge and
knowledge learning/application proce ss. The
first process realizes the transfer from indivi-
dual knowledge to organization knowledge.
Converting personal knowledge to group-avail-
able knowledge is often viewed as one of the key
problems of knowledge management. The sec-
ond process realizes the transfer from organiza-
tion knowledge to individual knowledge. In
addition, the accumulative proce ss of knowledge
can also evaluate the contribution magnitude of
individual knowledge to the organization know-
ledge. The eva luation criteria include the number
of knowledge/documents submitted, the num-
ber of knowledge/documents adopted, and the
value of knowledge/documen ts adopted. The
main objective of this process is to encourage
the knowledge sharing inside organization. In
order to assure the quality of knowledge, strict
examinations are carried out in this process.
Only approved knowledge can enter organiza-
tional knowledge/document base.
Consulting Platform
The consulting platform consists of two modules.
The first module mainly manages all kinds of
education/training documents associated with
ERP implementation process, including user
manual, documents related to system configura-
tion and main functional modules. The second
module mainly provides timely consulting for
all employees in the organization. In general,
the consulting platform contributes to the ERP
implementation in following two stages: (1) the
education/training stage; (2) the running and
Individual knowledge
Individual
knowledge base
Organizational
knowledge base
Learning by using
Communication
and consulting
Insight and
understanding
Education/training
documents
Distribute
Transfer
Figure 5. Individual knowledge platform
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166 Yuan Li et al.
debugging stage of ERP software. At the first
stage, consultants transfer their explicit knowl-
edge to the employees of organization. Organiza-
tion, therefore acquires the manipulation and
practice knowledge about ERP. At the second
stage, consultants transfer the skills of practical
work to the employees of the organization. The
main objective of this platform is to facilitate
explicit and tacit knowledge transfer of the vendor
and the consulting company, and diffuse ‘best
practice’ incorporated in the basic architecture of
the software into the adopting organization.
So far, we have discussed the main functions
of the five platforms. The five KM platforms are
highly interdependent and intertwined. That is,
each platform relies on, contributes to, and bene-
fits from other platform. The interplay of the
platforms can provide support for the successful
implementation of ERP. The integrated KM sys-
tem can offer organization the following three
major benefits: (1) help organization to capture,
organize, store, transfer, distribute, and use
the internal and external knowledge on ERP
implementation; (2) make valuable knowledge
of individual brain decompose, externa lize
and accumulate into organization knowledge;
(3) make all employees be able to share organi-
zational knowledge in ERP implementation
process.
CONCLUSION
Adopting ERP is not only a complex implemen-
tation process of information system but also a
process of knowledge creation, storage/retrieval,
transfer and application from knowledge man-
agement perspectives. Extant stu dies show that
KM is associated with ERP implementation
intimately and can provide effective support for
the entire implementation process. Although
the importance of knowledge management in
ERP implementation has been recognized, most
organizations do not explicitly manage the
knowledge created during ERP implementation
process. In order to cope with this problem, in
this paper, an integrated KM system is proposed.
The system consists of cooperative working plat-
form, knowledge transfer platform, individual
KM platform, org anizational KM platform and
consulting platform. The interplay of these five
platforms can speed up the knowledge transfer
from both the vendor and consulting company to
organization, stimulate knowledge sharing and
creation, and enhance organizational overall
ability to cope with changes.
ACKNOWLEDGEMENTS
This research was supported by NSFC (70121001;
70472039; 70571063). We are grateful to the
anonymous refere es f or their valuable comments.
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