Enterprise Resource Planning Research Enterprise Systems Research Center University of Arkansas Paul Cronan, David Douglas, & Pam Schmidt Information Systems Walton College of Business 1Cronan, Douglas and SchmidtHICSS

ERP Learning & Attitudes Paul Cronan & David Douglas (with Pam Schmidt & Omar Alnuaimi) ERP Learning – traditional classroom approach includes in examples and exercises Learners follow examples and then use SAP to learn functionality Attitudes – in our experience What if – Real world experiences – real problems Demonstrate and utilize integration Higher level of learning Attitudes toward SAP 2HICSS Cronan, Douglas and Schmidt

ERP Learning & Attitudes ERP implementations run into the many millions of dollars Many fail because of attitude and change management The impact is not totally accounted for because of all the people who interface with the system Benefits – more/better system usage and better decision making 3HICSS Cronan, Douglas and Schmidt

ERP Simulation Game – Learning & Attitudes ERP Simulation used at the Walton College (UA) to learn ERP & SAP Cereals -- made to order manufacturing supply chain; sales process, procurement process, production process, entire cash-to-cash cycle ERP Simulation reacts real-time to multiple teams’ decisions – SAP is the interface between simulator and participants 4HICSS Cronan, Douglas and Schmidt

ERP Simulation Game – The simulation program, ERPSim, automates the sales process such that each firm receives a large number of orders in every minute, the procurement process to account for delivery delays, the production process to account for capacity constraints, inventory, and raw materials. 5HICSS Cronan, Douglas and Schmidt

ERP Simulation Research Companies & Students ConocoPhillips – July 2008 – 22 new hires February 2009 – 29 new hires July 2009 – 20 new hires Pre, Post, & 2 nd Post (+90 days) Simulation Instrument “self assessment” of ERP & business knowledge – 16 items attitude toward SAP Student Samples – Spring (35) plus Fall (46) for a combined sample of 81 6HICSS Cronan, Douglas and Schmidt

ERP Learning Factors (self-assessed) – Enterprise Systems (ES) Management Knowledge - the extent to which an individual understands the impact and use of an ERP system (and the integrated information it provides) on the organization as a whole. Business Process Knowledge - the extent to which an individual has a general understanding and knowledge of business terminology, business processes, and their inter-relatedness. SAP Transaction Skills - the extent to which an individual has the user skills required to utilize SAP to perform transactions. 7HICSS Cronan, Douglas and Schmidt

ERP Attitude Items – Attitude/feeling about SAP SAP’s ease of use integrated business processes ERP Performance Expectancy (expectations regarding gains in job performance) Effort Expectancy (ease associated with the use of the system) Attitude toward using technology (affective reaction to using the system) 8HICSS Cronan, Douglas and Schmidt

ERP Simulation Research Company Support can be found the - Walton Enterprise Systems web site – 9HICSS Cronan, Douglas and Schmidt

July 2008 New Hires Sample HICSS Cronan, Douglas and Schmidt

ERP Simulation Results – July 2008 Factor NPre ERPSim Mean Post ERPSim Mean DifftSignific ance ES Management Knowledge Business Process Knowledge SAP Transaction Skills222.6 below avg 5.3 above avg Attitude about SAP Attitude - SAP’s ease of use Attitude – integrated business processes Attitude – ERP HICSS Cronan, Douglas and Schmidt

Results – User Acceptance of IT 2008 FactornPost ERPSim Mean MinMax Performance Expectancy (job performance) Effort Expectancy (ease) Attitude toward using the Technology Table 3: User Acceptance of IT (Post ERP Simulation – Conoco Phillips) 12 HICSS Cronan, Douglas and Schmidt

Results – Simulation Experience 2008 Table 3: User Acceptance of IT (Post ERP Simulation – Conoco Phillips) Factor NSimulation Experience Mean MinMax The ERP Simulation was a worthwhile learning experience I learned about Enterprise Resource Planning as a result of the ERP Simulation I learned about SAP as a result of the ERP Simulation I learned how to use SAP to accomplish business processes as a result of the ERP Simulation SAP is a great system to accomplish integrated business processes HICSS Cronan, Douglas and Schmidt

ERP Simulation Results (+ 90 days) Factorn Post 1 ERPSim Mean Post 2 ERPSim Mean DifftSignific ance ES Management Knowledge Business Process Knowledge SAP Transaction Skills Attitude about SAP Attitude - SAP’s ease of use Attitude – integrated business processes Attitude – ERP HICSS Cronan, Douglas and Schmidt

Results – User Acceptance of IT (+ 90 days) FactornPost 1 ERPSim Mean Post 2 ERPSim Mean DifftSignif Performance Expectancy (job performance) Effort Expectancy (ease) Attitude toward using the Technology HICSS Cronan, Douglas and Schmidt

February 2009 New Hires Sample HICSS Cronan, Douglas and Schmidt

ERP Simulation Results – February 2009 FactorNPre ERPSim Mean Post ERPSim Mean DifftSignific ance ES Management Knowledge Business Process Knowledge SAP Transaction Skills Attitude about SAP Attitude - SAP’s ease of use Attitude – integrated business processes Attitude – ERP HICSS Cronan, Douglas and Schmidt

Results – User Acceptance of IT 2009 FactorNPre ERPSim Mean Post ERPSim Mean DiffSignif Performance Expectancy (job performance) Effort Expectancy (ease) Attitude toward using the Technology Table 3: User Acceptance of IT (Post ERP Simulation – Conoco Phillips) 18 HICSS Cronan, Douglas and Schmidt

Results – Simulation Experience 2009 Table 3: User Acceptance of IT (Post ERP Simulation – Conoco Phillips) FactorN Simulation Experience Mean MinMax The ERP Simulation was a worthwhile learning experience I learned about Enterprise Resource Planning as a result of the ERP Simulation I learned about SAP as a result of the ERP Simulation I learned how to use SAP to accomplish business processes as a result of the ERP Simulation SAP is a great system to accomplish integrated business processes HICSS Cronan, Douglas and Schmidt

ERP Simulation Results (+ 90 days) FactorN Post 1 ERPSim Mean Post 2 ERPSim Mean DifftSignific ance ES Management Knowledge Business Process Knowledge SAP Transaction Skills Attitude about SAP Attitude - SAP’s ease of use Attitude – integrated business processes Attitude – ERP HICSS Cronan, Douglas and Schmidt

Results – User Acceptance of IT (+ 90 days) FactorNPost 1 ERPSim Mean Post 2 ERPSim Mean DifftSignif Performance Expectancy (job performance) Effort Expectancy (ease) Attitude toward using the Technology HICSS Cronan, Douglas and Schmidt

July 2009 New Hires Sample HICSS Cronan, Douglas and Schmidt

ERP Simulation Results – July 2009 FactorNPre ERPSim Mean Post ERPSim Mean DifftSignific ance ES Management Knowledge Business Process Knowledge SAP Transaction Skills Attitude about SAP Attitude - SAP’s ease of use Attitude – integrated business processes Attitude – ERP HICSS Cronan, Douglas and Schmidt

Results – User Acceptance of IT 2009 FactorNPre ERPSim Mean Post ERPSim Mean DiffSignif Performance Expectancy (job performance) Effort Expectancy (ease) Attitude toward using the Technology Table 3: User Acceptance of IT (Post ERP Simulation – Conoco Phillips) 24 HICSS Cronan, Douglas and Schmidt

Results – Simulation Experience 2009 Table 3: User Acceptance of IT (Post ERP Simulation – Conoco Phillips) FactorNSimulation Experience Mean MinMax The ERP Simulation was a worthwhile learning experience I learned about Enterprise Resource Planning as a result of the ERP Simulation I learned about SAP as a result of the ERP Simulation I learned how to use SAP to accomplish business processes as a result of the ERP Simulation SAP is a great system to accomplish integrated business processes HICSS Cronan, Douglas and Schmidt

Student Sample HICSS Cronan, Douglas and Schmidt

ERP Sim Results – Student Sample FactorNPre ERPSim Mean Post ERPSim Mean DiffTSignifica nce ES Management Knowledge Business Process Knowledge SAP Transaction Skills Attitude about SAP Attitude - SAP’s ease of use Attitude – integrated business processes Attitude – ERP HICSS Cronan, Douglas and Schmidt

Factor N Simulation Experience Mean MinMax The ERP Simulation was a worthwhile learning experience I learned about Enterprise Resource Planning as a result of the ERP Simulation I learned about SAP as a result of the ERP Simulation I learned how to use SAP to accomplish business processes as a result of the ERP Simulation SAP is a great system to accomplish integrated business processes HICSS Cronan, Douglas and Schmidt Satisfaction with Simulation Experience Student Sample 28

ERP Simulation Research ConocoPhillips – how do these new hires feel about SAP today (one year on the job)? Other Company Samples Hitachi Consulting Tyson Foods Wal-Mart Canadian Company Samples What about employees who have been using SAP/ERP – can we influence their attitude about ERP/SAP and its role in the company? 29HICSS Cronan, Douglas and Schmidt

ERP Simulation Research More information regarding these studies can be found at: Information Technology Research Institute Working papers at the Walton College Web site - ‘New Hires’ WP ( ) ‘Students’ WP ( ) Slides can be downloaded from Walton Enterprise Systems web site – HICSS Cronan, Douglas and Schmidt

ERP Competencies Research Project (w/HECM) Objective - What learner characteristics (factors) determine competency and knowledge transfer? Link between performance and characteristics. Measures – Objective measures (knowledge, transactions, process, etc.) Self assessment Usage (ERPSim game) Performance data (assessing competency within a situation adding complexity) 31HICSS Cronan, Douglas and Schmidt

ERP Simulation Research Learning Studies - Compare “ERP Simulation approach” to “traditional lab exercise approach” for ERP Learning Learning and Attitude ERP Knowledge and Adaptation Research (Pam Schmidt) Decision Making - ERPSim Performance (profit, etc.) ERP Implementations User Acceptance Virtual Teams 32HICSS Cronan, Douglas and Schmidt

ERP Knowledge and Adaptation Research Pamela J. Schmidt University of Arkansas ERP Hierarchy of Knowledge Types ERPsim attributes that promote learning Research Model of ERP Adaptation Preliminary Results HICSS Cronan, Douglas and Schmidt

Hierarchy of Knowledge (Sein et al. 1999, Kang & Santhanam ) 34HICSS Application -Tool-conceptual -Tool-procedural -Tool-command Business Context -Bus. Motivational -Bus. Procedural -Task Interdependencies - Collaborative Problem solving Cognitive Knowledge Skills Cronan, Douglas and Schmidt

ERP Knowledge Transfers (Santhanam et al. 2007) HICSS Know-Why: Top among users Know-Why: Top between users & tech support Cronan, Douglas and Schmidt

Simulation Attributes: Learning Value ( New Hires Sample, N=38) HICSS % Simulation Attribute 73% Use of an actual 'live' SAP R/3 system. 36% The experience of running a 'real' business 36% Knowledgeable SAP facilitator. 30% Quick reference sheet of SAP transaction codes 30% Opportunity to experiment and make mistakes 18% Teamwork 18% Doing simulation training in few days vs. weeks. 12% Competition among teams. 12% Enjoyment of the “Muesli game" P. J. Schmidt Cronan, Douglas and Schmidt

ERP Knowledge Effects on ERP Adaptation HICSS ERP Hierarchy of Knowledge UI Navigation Skills Business Context Business Process Knowledge Finance & Accounting Knowledge Hypotheses: Simulation preview of ERP (EUCS) Increases Self-Efficacy Informs cognitive appraisal of ERP use Contributes to Satisfaction Cronan, Douglas and Schmidt

ERP Simulation Learning & ERP Adaptation Exploratory Research Model 38 IT Self-Efficacy ERP Simulation Primary Appraisal (Opportunity) Secondary Appraisal (Perceived Controllability) ERP Satisfaction Cognitive Appraisal HICSS Cronan, Douglas and Schmidt

Coping Model of User Adaptation (Beaudry & Pinsonneault 2005) HICSS Cognitive Appraisal of IT Use: Opportunity or Threat Affected by level of perceived control Adaptation Strategies: Maximize Benefits Benefits ‘Satisficing’ Disturbance Handling Self-Preservation Cronan, Douglas and Schmidt

HICSS IT Self-Efficacy Primary Appraisal (Opportunity) Secondary Appraisal (Perceived Controllability) ERP Satisfaction Cognitive Appraisal.75*.53*.45*.41* * Significant with p-value <.05 (Preliminary Results) ERP Simulation Cronan, Douglas and Schmidt ERP Simulation Learning & ERP Adaptation Exploratory Research Model

41 IT Self-Efficacy Primary Appraisal (Opportunity) Secondary Appraisal (Perceived Controllability) ERP Satisfaction Cognitive Appraisal R-sq =.56 R-sq =.20 R-sq =.65.75*.53*.45*.41* * Significant with p-value <.05 (Preliminary Results) ERP Simulation HICSS Cronan, Douglas and Schmidt ERP Simulation Learning & ERP Adaptation Exploratory Research Model

Thank you to participating Universities! Ball State University California State University, Chico Emporia State University Georgia Southern University So. Illinois State Univ., Edwardsville Ted Rogers School of IT Management University of Arkansas University of Delaware University of Houston University of Nevada, Reno University of Southern California University of Tampa A request to traditional ERP and ERPsim instructors: Please participate in Spring 2010 ERP survey (ERPsim) by contacting Pam Schmidt at HICSS Cronan, Douglas and Schmidt

Research Projects – what is your interest? Learning Self-Assessment & Attitudes Students Company Employees Comparing to traditional methods ERP Competencies Research Project Knowledge Structures Team/Group Interaction Technology Acceptance Decision Modeling 43HICSS Cronan, Douglas and Schmidt

Enterprise Resource Planning Research Thank you ! 44HICSS Cronan, Douglas and Schmidt

HICSS Cronan, Douglas and Schmidt

Backup Slides HICSS Cronan, Douglas and Schmidt

Simulation Attributes: Highest Learning Value Survey of Company New Hires, Pilot Results (n=38) % Simulation training characteristics 73% Use of an actual 'live' SAP R/3 system. 36% The experience of running a 'real' business 36% Knowledgeable SAP facilitator. 30% Quick reference sheet of SAP transaction codes 30% Opportunity to experiment and make mistakes 18% Teamwork 18% Accomplishing simulation training in a few days vs. over weeks. 12% Competition among teams. 12% Enjoyment of the "museli game" 9% Time compression (non-real-time business quarters) 9% Clear business goal (revenue, ROI). 6% Challenge of the "museli game" HICSS Cronan, Douglas and Schmidt

ERP Knowledge Structures Theory: Cognitive Psychology Kraiger et al. 1993, JAP Theory: Collaborative Application Training Kang and Santhanam HICSS LEARNING Cognitive Skills Affective Applic. Knowledge Bus. Context Collaborative Task Appropriation In Use Good Practices In Use Cronan, Douglas and Schmidt

ERP Knowledge Acquisition Learning Theory: Cognitive Psychology Kraiger et al. 1993, JAP 49HICSS LEARNING Skills Cognitive Affective Cronan, Douglas and Schmidt

ERP Knowledge Structures Theory Background of Kang & Santhanam: Sein, et al (J. of End User Computing) Evolution of knowledge in organization context 50HICSS Org. Team Individ. Tool Procedural Bus. Procedural Tool Conceptual Business Motivational Time Cronan, Douglas and Schmidt

ERP Knowledge Effects on ERP Adaptation HICSS Cronan, Douglas and Schmidt