Impact Of Appropriate Training On ERP Implementation In Car Manufacturing Industry: A Case Study Of BMW

Research Aim and Objectives

Describe about the Journal of Organizational Computing and Electronic Commerce?

Tsai et al. (2010) cited that manufacturing industry is one of the major contributors towards increasing the global economy in these modern days. Therefore, majority of companies in the care manufacturing industry expands their business largely as well as remove the geographical barriers. BMW is one of the most popular and luxury brand in car manufacturing industry. However, in order to maintain the overall process smoothly and implement automatic result generation process, companies in car manufacturing industry implement ERP system. It not only helps in developing automatic result generation process but also allows the company in monitoring as well as regular interaction with the stakeholders through one system. However, in terms of operating ERP system within the business process, companies faces many challenges such as appropriate training, lack of support from senior management, compatibility issues and costs overheads. Ifinedo (2011) argued that in order to run the organization and become an organization of successful implementation of ERP, appropriate training to the staffs not only during the ERP implementation process but also after implementation of ERP system.  

This particular research work is taken in terms of accounting the ERP implementation related problems in the car manufacturing industry with a specific case study of BMW. However, this research work tries to understand the impact of appropriate training to the staffs during and after ERP implementation within operational process BMW.

The rationale behind selection of this particular problem in relation to IT programme is to understand the reason or the way why majority of companies does not execute the ERP system properly after implementation within their organizational process by the third party vendor. According to Al-Mobaideen (2014), in order to result out the solution of major problems regarding IT programme that may faces by the companies, selection of one particular industry may considers the influential understanding that helps in providing better solution for successful implementation of ERP system.

The main aim of this research is to evaluate the impact of appropriate training process to the staff during and after implementation of ERP system in the car manufacturing industry that specifically emphasizing on the case study of BMW.

Following are the objectives of this research –

To identify the effectiveness of proper training during and after implementation of ERP system in business process

To understand the impact of proper training in ERP implementation in the Car Manufacturing Industry

To evaluate the impact of appropriate training on ERP implementation in the organizational process of BMW

Null Hypothesis

H0: Appropriate training has not any impact on the successful ERP implementation in the Car Manufacturing Industry especially in the operational process of BMW

Alternative Hypothesis

H1: Appropriate training has potential impact on the successful ERP implementation in the Car Manufacturing Industry especially in the operational process of BMW

In order to complement the research, survey questionnaires strategy is taken by the researcher. Through the set of several questions that relates with the essentiality of appropriate training in ERP implementation, the data are collected from employee as well as management of the company BMW. Apart from that, using the qualitative approach and descriptive research method, the entire research is conducted. In order to complete the research following variables are considers such as –

Hypothesis of the Research

Need Analysis: It helps in considering the activity of training as well as the history of training in the ERP implementation process of car manufacturing industry. This variables considers that appropriate training is very essential in terms of implementing successful ERP system in operational process.

Exercise Selection: In the training process of ERP system, it deals with the selected exercise such as software handling training, minor problems solving, proper use of the application, etc. These core exercises the proximity of appropriate training.

Training Frequency: It refers the number of training session within a given period of time.

Exercise Order: During training session, it involves with the sequence of exercise.

Training Repetitions: In the training process of ERP system during and after implementation, it refers the amount of providing guideline to the staffs.

Rest Intervals: During training session, it refers the amount of time regarding rest between exercises.

The main issue that relates with data regarding this research is the bias information or false information. As the data are collected from both management and staffs, they may not provide appropriate information to the researcher on order to maintain company reputation and job security.

In order to represent the information, researcher uses mean, media, mode and standard deviation. Apart from that, in order to analysis the statistics, researcher uses the statistical regression analysis model. It helps in representing the data that are collected from the employee and manager of BMW with a appropriate analytic methods.

Options  (1 = low; 5 = high)	N	Mean	Std. Deviation	Min	Max
Need Analysis
Selection of particular area of training	40	4.28	0.68	3	5
Identification of gaps on the training	40	4.10	0.67	3	5
Method Selection
Specificity of training	40	3.08	1.13	1	5
Essentiality of training	40	3.23	1.08	1	5
Training Frequency
Resistance of training	40	2.13	0.33	2	3
Respiratory of training	40	1.75	0.44	1	2
Equipment Order
Involvement of sequence of Training	40	4.28	0.68	3	5
Training staffs are helpful	40	3.08	0.80	2	5
Provide relevant training	40	4.08	0.73	3	5
The Vendor clean and comfortable facilities regarding training	40	3.00	0.55	2	4
The vendor maintain stick of necessary materials	40	3.48	0.75	2	4
Training Repetitions
Number of training guideline	40	3.05	0.75	1	5
Dependency of training towards goal of the program	40	2.95	1.13	1	4
Post Training
Support for critical problems	40	2.78	1.00	1	4
Maintain database of ERP system	40	2.60	0.84	1	5
Continuous interaction between vendor the company	40	4.90	0.30	4	5

In this research study, research has been used the descriptive statistics that are standard deviation (measurement of desperations), mean (measurement of central tendency), max value as well as min value.  However, researcher used this descriptive statistics for reviewing the entire data that support the result.

In order to conduct the inferential statistics, researcher is selected the regression analysis model. The dependent variable for regression analysis is effectiveness of appropriate training. The independent variables for this study are the need analysis, method section, training frequency and post training. These are the major independent variables for this study.    

Following is the inferential statistics for this particular study –

Impact of appropriate training on successful IT programme = I + X1 * Need Analysis + X2 * Method Selection + X3 * Training Frequency + X4 * Post Training + e

I = Intercept of the Model

X1 = Coefficient of Need Analysis  

X2 = Coefficient of Method Selection

X3 = Coefficient of Training Frequency

X4 = Coefficient of Post Training

E = error term

Data is very much useful that helps in better analyzing of data. Collection of data is helpful that derives the accurate result in terms of enabling standard format for the research work.

Data source

Al-Mobaideen (2014) acknowledged that source of data helps in penetrating the research work as well as extracting relevant information according to the requirements. In order to conduct the research study, two types of data sources are mainly used primary and secondary. Primary data are mainly collected from the selected respondents through survey questionnaires. On the other hand, secondary data are collected from the external sources that are already published such as journals, books, news, articles, blogs, websites, etc. However, in order to complete this study, researcher used both primary as well as secondary data. Primary data are collected from the employees and management of the BMW company through survey questionnaires and secondary data are collected from the journals, books, and websites.

Research Strategy

Data Techniques:

In order to collect data, two types of data collection are mainly used such as qualitative and quantitative. Qualitative data collection technique helps in recording the data in a narrative form and allows the researcher in better analyzing as well as describing of the selected research topic. On the other hand, quantitative data collection techniques allow helps in adding more value on the theoretical concept.

In this particular research study, researcher is using qualitative as well as quantitative data collection techniques for developing the research study with better analytical way. Employees are considers as the quantitative research technique and management of the BMW are considers as the qualitative research technique.

Regression Statistics
Multiple R	0.62
R Square	0.40
Adjusted R Square	0.33
Standard Error	0.55
Observations	40

Table 2: Regression Analysis Model

ANOVA
	df	SS	MS	F	Significance F
Regression	4	6.92	2.30	7.79	0.03
Residual	35	10.60	0.32
Total	39	17.6

Table 3: ANOVA Model

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	2.82	1.47	1.93	0.07	-0.18	5.84	-0.19	5.80
Need Analysis	0.32	0.35	0.86	0.40	-0.42	1.10	-0.42	1.11
Method Selection	0.70	0.21	-3.80	0.01	-1.09	-0.32	-1.15	-0.30
Post Training	0.60	0.12	4.36	0.06	0.32	1.01	0.33	1.09
Training Frequency	0.61	0.10	3.26	0.03	0.30	0.96	0.10	1.22

In order to confirm the statistical test that closely relates with the hypothesis of this particular study, researcher used the regression analysis model. In order to better analysis of this particular research study, researcher used the multiple regression analysis models. Researcher used the impact of appropriate training during and after implementation of ERP in the operational process of BMW as the independent variables for regression analysis and need analysis, method selection, training frequency, as well as post training are used as the dependent variables.

According to the regression analysis model, it has been seen that the value of the R square  is 0.40. Apart from that, it has been also seen that adjust R square as well as the standard E square also positive. Therefore, from the above analysis report, it can be said that the need analysis, method selection, training frequency and the post training are correlated with each other and its has positive effect on the training. The regression analysis demonstrates the appropriate training has positive impact on the IT programme success.

Therefore, regression equation for this particular analysis is –

Y = I+ X1 *1 + X2*2 + X3*3 +X4*4

Here, Y stands for the impact of appropriate training on project success

I = 2.82

X1 = 0.32

X2 = 0.70

X3 = 0.60

X4 = 0.61

So, the regression equation is

Impact of appropriate training on successful IT programme = 2.82 + 0.32 * Need Analysis + 0.70* Method Selection + 0.60 * Training Frequency + 0.61 * Post Training

In this particular research study, researcher analyses the various critical success factors in terms of implementing the ERP system within operational process of the business organization (Shatat and Udin, 2013). According to the author of this research paper, ERP dramatically changed the organization process such as improve performance, increase the capacity of work load, increase skills of staffs, improve profitability, etc. In this particular research, the analysts represented that clear understanding of the organizational goals and training to the staffs during the implementation as well as after implementation are the most critical success factors of ERP system implementation. Through analysis, researcher of this study represented that inadequate training and education is the key reason that make the system failures and unable to execute the appropriate performance. Apart from that, technical difficulties are also the reason of failure (Ifinedo, 2011). In major cases it has been identified that bugs in the software application that installed for developing ERP system are the problems that interfacing with the system. It has also potential effects on the hardware difficulties. Therefore, this study, descried that in order to implement the ERP system successfully within the operational level of the companies in business industry especially in the car manufacturing industry appropriate selection of software application and training especially the software related is the key aspects.

Data Issues

The researcher of this study defined the effectiveness of ERP implementation on the business process management for the companies in corporate sector. However, several critical success factors have been identified in this particular research study, such as selection of appropriate application for ERP implementation, business process planning as well as reengineering, appropriate implementation of ERP system according to the business process, end user training during as well as after ERP implementation (Wang, Li and Yang, 2012). 

Apart from that, maintenance and support of third party vendor of ERP system implementation supported the successful implementation as well as creates potential impact on the business process management (Maditinos, Chatzoudes and Tsairidis, 2011). However, for the car manufacturing industry, end user training is the main aspects of successful ERP implementation. Majority of employees as well as management is unable to handle the application properly. Therefore, appropriate training is very much essential as well as effective for successful ERP system implementation in the business process. This particular research study, demonstrated that training to the whole department has to be retrained for successful ERP implementation Apart from that, vendor the ERP system implementation has to defined the job of each employee over the system specifically. Through scratch, they have to elaborate the role and responsibility of performing over the system. This helps in understanding the role and responsibility of the employees in order to handle the system.

Since 1990, the ERP system brings revolution or change in the organizational process of business sector. The strategies of information system help in adopting application software packages that fit with the organizational process and mitigate the chronicle problems. ERP system also allowed the organization in reducing extra cost such as IT team engagement, rapid implementation (Shatat and Udin, 2013). Through this article, researcher described that manufacturing industry have multiple operational process. Therefore, they have to maintain the entire process one system. In this research paper, analyst described the training is the key success factors of ERP system implementation and its success. Training to the staffs allowed in using the ERP system properly. During as well as after implementation of ERP system training is essential to the staffs. Majority of employees in the manufacturing industry is unaware about the application process of ERP system. Therefore, lack of knowledge always generates failure of the system. Training is very much important as well as essential in terms of successful ERP system implementation.

The main purpose of this particular study was to demonstrate that training is the key factors that effects in the ERP system implementation within operational process of manufacturing industry. Through the process oriented approach, researcher designed the entire study and demonstrates the steps of effecting training to the ERP implementation system. Training during the implementation stage as well as post implementation stage is very much effective (Tsai et al., 2010). Through this article, researcher identified that end user training across the operational process s the key factors of successful ERP system implementation. Education is also the corner stone for successful ERP system implementation. Training to the end user usually emphasized the operational process as well as helps in understanding the concept of ERP system and its spirit. This research paper allows the researcher in creating a useful link as well as step between the training and successful ERP system implementation.

Future Scope Of The Study

The main limitation of this particular is the time and budget. In order to conduct this research, researcher got little time. Therefore, researcher completes the study with less information that supports the study properly. Apart from that, due to low budget for conducting research paper, researcher does not emphasize the study with SPSS software. Therefore, researcher is unable to discuss properly the potential impact of training for successful ERP implementation.

Moreover, researcher only conducts the study based on the information of BMW company’s employees and Managers. However, there are number of car manufacturing companies present. Therefore, this topic has lot of scope of future work such as collect information from other car manufacturing companies may valuable or relevant with the case study.

Reference List

Al-Mobaideen, H. (2014). The Impact of Change Management on the Application Enterprise Resource Planning System (ERP) Effectiveness: Field Study in Jordan Bromine Company. jmr, 6(4), p.79.

Ifinedo, P. (2011). Internal IT Knowledge and Expertise as Antecedents of ERP System Effectiveness: An Empirical Investigation. Journal of Organizational Computing and Electronic Commerce, 21(1), pp.1-23.

Maditinos, D., Chatzoudes, D. and Tsairidis, C. (2011). Factors affecting ERP system implementation effectiveness. Journal of Ent Info Management, 25(1), pp.60-78.

Shatat, A. and Udin, Z. (2013). Factors affecting ERP system effectiveness in post-implementation stage within Malaysian manufacturing companies. IJBIS, 14(3), p.348.

Tsai, W., Chen, S., Hwang, E. and Hsu, J. (2010). A Study of the Impact of Business Process on the ERP System Effectiveness. IJBM, 5(9).

Wang, Y., Li, M. and Yang, X. (2012). The Design and Realization of ERP System for Staff Training.AMR, 472-475, pp.3425-3429.