A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001

Enterprise Resource Planning (ERP) is a real-time enterprise-wide package that integrates cross-functional information by using a single database. The ERP system leads to effective business process improvement; therefore, most organizations replaced their legacy systems with the ERP systems. Nonetheless, several companies were unsuccessful in the ERP implementation. From the PriceWaterHouseCoopers' survey, people were the significant obstacle in the implementation process. So, the study about human factor considerations in Thailand will benefit for the organizations that will be implement the ERP systems in the future. Zmud separates the ERP implementation into 4 phases; namely, Chartering, Project, Shakedown, and Onward and Upward phases. Human relates differently to success of each implementation stage. In the chartering phase, level of management in the software selection team will stipulate the boundary of the ERP project, software and consultant consideration. This selection team should comprise both IT and business representatives. However, all management takes responsibilities in top-down change agents. For the project phase, the high-level management involves the steering committee for making final decision whereas the middle management allocates their human resources to the project team including looks over the outcome of training and practices. Nevertheless, the project team also considers on human resources planning, especially key-users timeframe and workload. People involvement brings about the most profit in process design. Most conflicts, particularly between departments, are found in this phase and can impact on the project progress. Meeting is a channel to end up all contrarieties. Also, the communication boosts the same understanding between the project team and business units. Motivation is a tool to encourage the team members. The full contribution of these people is required. Furthermore, intensive training and practice buttresses the readiness of people, not only the project team but also end-users, for the ERP changes. About the shakedown phase, shift of political power and fear of changing in business processes are the key issues for creating the resistance. The management dtives their employees to change their traditional processes to the new one. Howsoever, the project team acts as supporters to facilitate the end-users' usage. These services will boost the ERP users' acceptance. Another important factor is retention. The organization will suffer when they lose their ERP specialists. Activity for keeping the specialists should be developed. In the onward and upward phase, the management handles their limited IT staffs for upgrading the ERP version. The implementing team in the project phase is considered to be main actor. Testing and training become the most significant factors. Only changing pat1s are trained to end-users. When these human factors are concentrated on each phase, improvement of business processes is fulfilled. Additionally, they also effect the achievement of taking the ERP benefits and completing the ERP implementation on time.