Knowledge management in success of ERP systems

Abstract

Special attention to critical success factors in the implementation of Enterprise Resource Planning systems is evident from the bulk of literature on this issue. In order to implement these systems,which are aimed at improving the sharing of enterprise-wide information and knowledge, organizations must have the capability to effectively share knowledge to start with. Based on a review of the literature on knowledge management in enterprise system implementation, this paper identifies two major areas of concern regarding the management of knowledge in this specific type of project: managing tacit knowledge, and issues regarding the process-based nature of organizational knowledge viewed through the lens of organizational memory. The more capable an organization is in handling these issues, the more likely it is that the implementation will result in competitive advantage for the organization. The competitive advantage arises from the organization’s capabilities in internalizing and integrating the adopted processes with the existing knowledge paradigms and harmonizing the new system and the organizational culture towards getting the most out of the implementation effort.