This study which is going to describe in this report, is about to the implementation of enterprise system in different organizations. The selected article has use the critical factors to analyze that how the organizations are implemented enterprise system in their organizations. For the effective learning about organizational enterprise system, it has analyze two different organizations that how these have been implemented the enterprise system. These both selected organizations have recently implement the enterprise system in their operations and culture but these both have the different results for the implementation of enterprise system (Ke, 2016).
By the empirical evidence, this study has provide the main reasons of the different results of the implementation about enterprise system. It has concluded that enterprise system has different most important factors which creates difference in results and outcomes of different organizations by implementing the same system. there are four most important factors are discovered which includes the knowledge acquisitions, distribution of information among staff and management about the implementation, different interpretations of the information in different organizations which creates the different outcomes and results for both and also the memory of organization. Every organization has different memory so the outcomes of the system implementation are different from each other.
Multinational organizations are the companies which have their operations in some countries but not in all countries of the world. These organizations have the geographical representatives of their presence and these are running their operations at national level in different nations. Multinational companies are linked with the main head quarter in home country and these are financially linked. Most of multinational companies have adopted the same strategies and decisions like head quarter and home country organizations. These have different cultures in different nations because it is the need of organizational culture to adopt country specific culture.
On the other hand, global organizations are the companies which have their operations at international level in all countries of world. Main difference in global organizations is about that these have the independency for the operations and delivery of products and services. These can deliver their products everywhere and anywhere in the world. The projects of global organizations are not bound with the home country operations and these have robust knowledge for the management system. These companies have information sharing when there is need to share most important information among different nation’s companies having the link as global organizations (Johnson, 2017). This study has include one global organization and other is multinational organization in this case.
Knowledge management system is the complete process for creating and sharing of the important information among organizations. It is also about to managing and using the important information by protecting the hidden information. It has been using the multidisciplinary approach for achieving the organizational goals and objectives with the best use of information.
This system is about to create the relevancy among information and different knowledge management systems of the different organizations. It is about to any kind of the information system that is the information technology system for the collaboration, for locating the knowledge resources and for using the knowledge in organizations (KMT, 2016). This management system has responsibilities to use information in a secure form that it should not reveal to competitors in the market.
As this case is about to the organizational learning by the implementation of enterprise system. It has use two different organizations in this study for the evaluation purpose. These two organizations have different cultures and the different locations.
First one organization which is used in this study for the analysis is CPM Company which is a PC organization. It is personal computers and computer peripheral manufacturing organization which has the almost 800 employees in it. It has been located in south China. It is international organization and performing its services and dealing with international customers.
Second organization which has been used and selected by this study is MEM and it is the public listed company which is multinational company and it is a multinational electronics manufacturing organization. It has 750 employees in its organization and has been located in North China.
These both selected organizations have the different structure as one is multinational company and other one is global company. These both have different number of employees and locations. By having different culture as both have different locations, so culture is dependent on location. These both organizations have implemented the enterprise system in the organization and these both has been evaluated by outcomes after the implementation of enterprise system that which has better performance and what factors are the main causes to produce different results as both are manufacturing organizations and have implemented the same system in recent years in the organization.
According to the CIO of CPM organization, the management of the organization was facing many difficulties before the implementation of enterprise system. It has adopted the enterprise system when it was in the crisis. The management decision making and the inter dependency for the coordination increase the strategically problems for the company. Due to the fast expansion in business, it became ineffective in its early adoption of enterprise system. There was lack of information support among management and data of business was located in the different departments.
There is chaotic coordination among the different departments. For example, the accounting system of this organization does not recording the sales for the long time period and missing delivered goods and that system was correcting by physical count.
Other organization which is MEM, has goal to cut down the cost and reducing the lead time in organization. It has been focus on the integration of databases which are located in different countries. By following the current strategy, this organization requires to adopt the enterprise system in its organization and mainly in headquarter as it is multinational company and has a link with headquarter operations.
By the implementation of this system, it has configuration and reduce cost along with lead time of company to provide the products after manufacturing. Knowledge sharing in this organization is through headquarter of company till the sites and it provides training by the expert team about different languages and different cultures, trainers provides them training in different spoken languages of employees. Although training is provided by different languages but the employees and management were facing the issue of the language barrier which is resolved by the personal manager as the personal manager describe and explain the matter to the employees in an effective way.
CPM as the international organization has not much focus on learning of its employees. This organization has no specific learning strategy as it has very lack information about the implementation of the enterprise system. With the implementation of this system, they accept that they have no knowledge about it a sit is much different than the other old system which was implemented in the organization.
They have started to get the consultancy about use of this system by the external consultant as it has no any management who have knowledge about the enterprise system. By getting the consultancy from external consultant, it has start its learning about this system and it is very difficult to convey the same learning to its employees.
In MEM, at the very start of ES implementation, employees has started to complain about the increasing difficulties for learning and it is suggested that there is ned for the hiring of native speaking any consultant which will reduce this complain of the employees about learning. It is giving focus on learning strategies for reducing the organizational problems of employees.
But after the investigation, it is analyzed that it is just wastage of time that by hiring the external consultants, there will increasing cost and the strategy of company is to reduce cost. So it is decided that employees should focus and in this way, they will reduce the language issue so it has not hire the external consultant.
There are some leadership issues has been facing by both organizations about learning. In CPM organization, the leaders are participating in the decision making in an effective way and every decision is finalize by the active participation of management and leaders. This organization has the complete structure for sharing information and learning but MEM has not participate the leaders in the decision making. It has left the most important decisions on the expert teams as there is less role of leadership in the organization as it is giving focus to external and expert team to take important decision about learning.
It is facing leadership issues as it has no control scheme for the effective management in organization. It also facing the language barrier which is the leadership issue that every employee requires special attention to understand the information. Leaders in this organization facing the issue that they have little information about decisions of the organization and there is low level of communication.
CPM has international employees but the national employees in the respective national organization. It is giving focus to the culture and has formulated the social gathering in the organization in which it is offering the free lunches. It believes that social gather allow the employees belongs to the different cultures to share the values and increase the trust. So it has the trusted culture in the organization. Culture of this firm is enabling the employees to share the different opinions and also providing increasing organizational learnings.
It is not facing cultural issues at national level but on other hand, MEM has been facing many cultural issues. Employees in this organization, as belongs to different cultures so they do not want and like to share the different ideas. At the time of meeting about cultural problems, employees remain silent at that time and not express the problems.
In this way, organization has facing the issue that they do not understand about the real problem and consider that it has no open sharing of ideas and general manager describe that the employees can speak in my presence but I am not free at all time to present in all meetings. So it is not covering its national cultural issues.
CPM has not been facing the cultural and structural issues as it has shared culture and structure that leaders and managers participated with employees. MEM has been facing issues of the culture which are described above and also the structure issues as it has competitive structure and also mistrusting among its employees. This mistrusting is the big issue for this organization.
Rating for the cultural issues will be from 10. The all issues which are common are defined in the table in the cultural issues heading. It has been evaluated that knowledge index and the knowledge economic index has been evaluated for the cultural issues.
|National cultural issues||Language barriers||Leadership issues||High employee turnover||Language barriers||Leadership issues||High employee turnover|
|Knowledge Economic Index (KEI||5||4||7||7.5||8||7.6|
Diagram based on evaluation
It is concluded that this study has evaluate the different issues by the implementation of enterprise system in the both companies which are selected in this study. It is analyzed that CPM has the little effect and the low rate of issues for the cultural problems as the CPM has the effective and best culture which is supported to the employees.
It is also evaluated that MEM has the problems for the cultural differences of employees. There is no sharing of information among employees and the employees in this organization are facing the issue of language barriers. There is low cooperation from management side that there is no cooperation for employees. It is also evaluated that MEM has increasing barriers in its organization.
Johnson, W. (2017). Differences Between International Organizations & Multinational Corporations. Retrieved from https://bizfluent.com/info-12079644-differences-between-international-organizations-multinational-corporations.html
Ke, W. (2016). Organizational Learning Process: Its Antecedents and Consequences in Enterprise System Implementation. Retrieved from DOI: 10.4018/978-1-59904-630-3.ch017
KMT. (2016). What are Knowledge Management Systems? Retrieved from http://www.knowledge-management-tools.net/knowledge-management-systems.html