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Avoid the pitfalls of implementing SAP in different cultures

Avoid the pitfalls of implementing SAP in different cultures

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Avoid the pitfalls of implementing SAP in different cultures

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  1. Avoid the pitfalls of implementing SAP in different cultures Prof. Neil Maiden Centre for HCI Design, City University Dr. Marina Krumbholz Celerant Consulting

  2. Overview • Motivation • Studies • Evidence • The CAREs method • Conclusions

  3. Motivation • World-wide implementations - diverse national cultures • Higher level of organisational and cultural change • CRM, B2B - interaction between different cultures

  4. The pharmaceutical organisation • World-wide, workforce of nearly 29.000, £2.8 billion turnover for year 1999 • On the 01/01/99 it decided to create a more efficient distribution company • It aimed to develop common operating strategies for the laboratory businesses • One step was the implementation of SAP R/3

  5. Studies Background • Aim: investigate nature and extent of the impact of culture on SAP implementations. • 3 studies: Scandinavian, the UK and German subsidiary • Studies focused on the SD and WM modules • A preliminary version of the CAREs method was used

  6. The 5 parts of the method used for all three studies • Observations: background information • Interviewee selection: selection factors • Interview questionnaires: 1. basic questions 2. SAP implementation questions 3. culture-related questionnaire • Interviewing: interviewing process and technique • Data analysis: process of producing model fragments

  7. Evidence elicited from the studies • Organisational and national cultures have an impact on the efficiency of the SAP implementations • The employees’ expectations get violated which give rise to the culture-related problems • SAP R/3 “implicit culture” clashes with the client’s culture

  8. 1st study: Scandinavian subsidiary • A culture-related problem with the WM module:

  9. 2nd study: the UK subsidiary • A culture-related problem with the SD module:

  10. 3rd study: the German subsidiary • NO CULTURE-RELATED PROBLEMS!!! • “SAP fits perfectly. We are more professional now. The whole company is more hierarchical and united. The hierarchy is much better as work gets more regulated and everything is more structured” • Is it because the culture of the German subsidiary does not clash with the “implicit culture” of SAP R/3?

  11. current business new business process & software process & software solution solution new models of applies predicted advice for current corporate & analysis possible handling national culture problems culture The CAREs method(Culturally Aware Realisation of ERP systems) • Inform SAP implementation teams about the culture-related problems that may arise

  12. Component 1: The Culture Elicitation Technique Stage 1: Observations Stage 2: Background Questions Stage 3: Culture-statement Questionnaire Stage 4: Culture Mining Approach Component 2: The Modelling Technique Stage 1: Identification of Relevant Data Stage 2: Specifying the Elements for a specific Action Stage 3: Instantiating the Meta-schema Stage 4: Interpretation of the instantiation Component 3: Cultural Predictions Stage 1: Identify relevant cultural predictions The 3 components of the CAREs method

  13. Component 1: The Culture Elicitation Technique Stage 1: Observations Stage 2: Background Questions Stage 3: Culture-statement Questionnaire Stage 4: Culture Mining Approach Component 1: The Culture Elicitation Technique • Aimto gather information about the culture, the SAP implementation and the prevailing atmosphere

  14. Component 2: The Modelling Technique Stage 1: Identification of Relevant Data Stage 2: Specifying the Elements for a specific Action Stage 3: Instantiating the Meta-schema Stage 4: Interpretation of the instantiation Component 2: The Modelling Technique • Aim:to identify and explain culture-related problems

  15. Component 3: The Cultural predictions (CUP) • Aim:to predict an agent’s level and nature of reaction to the changes caused by the SAP implementation • The outcome is a list of cultural predictions that describe the level and nature of reaction of this agent, depending on her/his national culture.

  16. Experts opinions on CAREs • “I do not find the observations only useful but necessary; from my experience, 80% of projects fail because this kind of methodologies are not used” • “It is very useful because it formalises what good consultants should be doing. In detail it formalises everything that should be done and emphasises what good consultants should be looking at” • “It is a very holistic approach and it covers the important things in ERP implementations. Moreover, it structures the implementation team as well”

  17. Future work • Integrate CAREs with SAP implementation methodologies (ValueSAP) • Effect and influence of the leader of the customer organisations to the efficiency of the SAP implementation