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Avoid the pitfalls of implementing SAP in different cultures. Prof. Neil Maiden Centre for HCI Design, City University Dr. Marina Krumbholz Celerant Consulting. Overview. Motivation Studies Evidence The CAREs method Conclusions. Motivation.

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avoid the pitfalls of implementing sap in different cultures

Avoid the pitfalls of implementing SAP in different cultures

Prof. Neil Maiden

Centre for HCI Design, City University

Dr. Marina Krumbholz

Celerant Consulting

overview
Overview
  • Motivation
  • Studies
  • Evidence
  • The CAREs method
  • Conclusions
motivation
Motivation
  • World-wide implementations - diverse national cultures
  • Higher level of organisational and cultural change
  • CRM, B2B - interaction between different cultures
the pharmaceutical organisation
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
studies background
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
the 5 parts of the method used for all three studies
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
evidence elicited from the studies
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
1st study scandinavian subsidiary
1st study: Scandinavian subsidiary
  • A culture-related problem with the WM module:
2nd study the uk subsidiary
2nd study: the UK subsidiary
  • A culture-related problem with the SD module:
3rd study the german subsidiary
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?
the cares method culturally aware realisation of erp systems

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
the 3 components of the cares method

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
component 1 the culture elicitation technique

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
component 2 the modelling technique

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
component 3 the cultural predictions cup
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.
experts opinions on cares
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”
future work
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