Implementing the ERP solutions in NALCO extending the Technology Acceptance

Model at Organizational Level (TAMO)

To be the reputed Global company in Metals and Energy sector

To be recognised for the world class operations, strong growth and financial performance.

To achieve sustainable growth in business through diversification, innovation and global

competitive edge.

To intensify Research and Development for technology development.

To satisfy the customers and shareholders, employees and all other stake holders.

Provide dynamic, integrated solutions that improve customers products and optimise their
operations

To maximize capacity utilisation and optimize operational efficiency and productivity.

 Aligning the technical and engineering
aspects of all projects, expansion schemes,
techno-economic evaluations with the
Business Development Department.

Coordination of technical
and engineering matters
Implementation and
with all the consultants
maintenance of
in matters of process
Electronic/IT systems
flow sheet, layout,
including Enterprise
energy balance and
Resource Planning
technological aspects of
systems.
all segments of the
projects.

Develop and implement new, efficient

technologies and strategies, policies and
plans to promote and protect NALCOs
commercial interest in tune with its
objectives and targets and make more profit.
DRAWBACKS OF PAST LEGACY IT SYSTEM

LACK OF INTEGRATION BETWEEN PROCESSES AND UNIFORMITY ACROSS UNITS.

NON-UNIFORM PLATFORMS : SYBASE ,APT, POWERBUILDER,FOX,CRYSTAL REPORT

DISPARATE SYSTEMS UNDER DISTRIBUTED CONTROL AND NO VERSION CONTROL

IMPLEMENTATION OF ERP (SAP) AT NALCO

DISTRIBUTED IT ERP PROJECT TRAINING & ADDITION OF RECOVERY CENTRE AT BANDWIDTH

NVISION SIMULATION OF USERS MODULES DAMANJODI AND USE OF RFID INC
SYSTEMS

JULY 2008 JAN 2010 NOV 2010 JAN 2011 JAN 2012 JAN 2014
NALCO ERP PROJECT HIGHLIGHTS

Various modules of SAP were implemented/ integrated as ERP Project NVISION which includes :

MATERIALS MANAGMENT SALES & DISTRIBUTION FINANCE & CONTROLLING MARKETING

PRODUCTION PLANNING & HUMAN RESOURCE SRM AND CRM BI AND DMS
QUALITY MANAGEMENT MANAGEMENT

Simultaneous Implementation at Corporate Office, Plants, Regional Offices.

PWC as End To End Consultant.

Wipro was the Implementing Strategy

500 Licensed Users

Main Data Centre is at its Bhubaneswar Corporate Office and Data Recovery Centre at Damanjodi
IMPORTANCE OF MONITORING NEW IMPLEMENTATIONS

1 Training- Is it satisfactory or more training required?

2 Efficiency- Has the new implementation achieved its target of higher

efficiency?

Behavioural patterns and Apprehensions- To understand the behavioural

3 patterns and apprehensions of individuals for adopting and using the

new technology

4 Improvement- Suggestions regarding the area of improvement by the

end user

5 Expectations- Understand the expectations that the end user has from
the new technology
 Why TAM?
Productivity Paradox- Low returns from
high organizational investments in IT.
Underutilized systems due to low user
acceptance of IT at work
Why TAM2?
To better understand the determinants
of perceived usefulness construct so as
to design organizational interventions
promoting acceptance and use of new
systems

2 Additional Constructs Subjective

Norm
What is TAM? Social
(Technology Acceptance Model) Internalization
Influence
TAM theorizes an individuals behavioral Processes
intention to use a system on the basis of Image
two beliefs
TAM2 Job
Relevance

Perceived Perceived Cognitive Output

Usefulness Ease of Use Instrumental Quality
(Performance (Effort Processes Result
Enhancing) Reducing) Demonstrability

Ease of
use
 Subjective Norm Output Quality
How well do the systems
Choice of Performance depends on the believe of one or Job Relevance perform the task
more referents and it overshadows personal perception of Users knowledge about job Used in profitability test while
behavior and its consequences situation is used to evaluate the choosing multiple relevant
Significant in mandatory usage settings wherein performance degree of relevance of the systems, the one with highest
is rewarded and non-performance is punished system to the job at hand output quality is chosen

Social
Internalization
Influence Incorporating a superiors belief into Result Cognitive
Processes ones own belief structure thinking that
Demonstrability Instrumental
it actually might be useful and thus
develop an intent to use. Applicable in Tangible and discernible Processes
mandatory and voluntary settings results of using the innovation
positively relates with user
acceptance

Image Perceived Ease of Use

If important members in the group profess performance, then
The less effortful a system is to use,
performing the behavior would elevate his/her social standing
the more using it can increase job
and status in the group
performance
TAM 3
Experience
An integrated Nomo logical combination of
TAM2 and the model of determinants of
the perceived ease of use
Perceived TAM 3 MODEL
usefulness
Brings in the factor of experience that will
influence the effect of perceived ease of
use on perceived usefulness
Behavioural Use
Intention Behaviour
No significant effect/influence of the
perceived ease of use determinants on the
perceived usefulness determinants i.e. no Computer
crossover effect anxiety
Perceived
Has direct implications for two types of
ease of use
decision makings in organizations:
Employee IT adoption decisions
Managerial decisions about managing IT
implementation process

The important interventions obtained for IT strategy implementation
Pre-implementation phase
Organizational activities
done during system
development & deployment
periods
Minimization of initial
resistance to a new system
Developing accurate
perception regarding
system features by the
users
Design Characteristics
User Participation
Management support
Incentive alignment
Relevance of TAM 3 for IT
Post-implementation
Inferences Inferences
phase
If the design of the
Organizational, managerial Training can be used
system can provide & support activities done to manipulate
users relevant info in a after deployment period to different
timely and accurate enhance user acceptance determinants of IT
manner better level
adoption.
decision are made. Providing necessary
More complex the Help employees go
infrastructure,
system more through initial changes of
creating dedicated
significant is the user the system
helpdesks,
participation in the Make employees feel that
hiring system,
system development new system will enhance
job performance business process
process. experts, etc.
Management support Can lead to greater
can influence users Training user acceptance
perceptions of Organisational
subjective norm and support
image. Peer support
Drawbacks of TAM MODELS
TAM is based on the Theory of Reasoned Action(TRA) which states
that users are rational in their behaviour, but Individuals form
attitudes toward a behaviour by evaluating their beliefs.
TAM doesn't tell us how to make the technology easy to use for the
user
Lack of actionable guidance
 Implementation of ERP solutions in NALCO extending TAM(TAMO)

Methodology:
Why the study was conducted? Collect responses from 100 users
Perception that ERP implementation did not Factor analysis
receive an emphatic response from the
employees Objective:
To find the most relevant parameters
affecting the implementation of ERP

Field Findings Inference

Involvement 6% felt their inputs were not considered during High involvement of employees during the ERP implementation
implementation
Apprehensions Complexity: 77% Change in system: 47% Accuracy of Resistance to change and fear of putting in extra efforts /adapting to new
system:42% practices and trusting in new technology are the major factors
Training 96% respondents had undergone training; 44% - average or Additional training required-
below average training Knowledge refreshment
Knowing the system better
Capability enhancement
Training Mode Classroom : 47% Online Simulation: 45% Help-Desk: 8% Year round training will help new joinees adapt to the system quickly

Acceptance Overall acceptance: 91%; Highly satisfactory: 33%; Average or Issues pertaining to the bottom 25% needs to be addressed so as to
below: 25% increase the quality of acceptance
Implementation of ERP solutions in NALCO extending TAM(TAMO)

PU1: Streamlining & Standardization of

Processes & Practices.
PU2: Benefits of the Process.

DI1: Stakeholder management in the

decision Process.
DI2: Effective review process by senior
Management.
DI3: Training effectiveness and skills
imparted.
DI4: Risk Management.

MI1: Rewards & Recognition.

MI2: Willingness to use the new system.
MI3: User Satisfaction.

PE1: Complexity of the application.

PE2: System working as per the
Expectations.
PE3: Integration of System.
 Problems faced: Analysis:
Data maintenance
Software upgradation / improvements to be
Improvements required in customized report
done and then end users need to be trained
generation, decision making analysis, cost
Training facilities to be made available
analysis, control
throughout the year
Training requirements
Screen navigation

Advantages:
Factor Construct Inference
Perceived Usefulness Streamlining and process Process standardization will reduce the overall cost of the system and remove
standardization complexities
Design and Effective review process by senior Highlights the commitment at the top management level.
Implementation management Implementation is done rigorously
Stakeholder Management in the Roles and responsibilities of each employee is defined
decision process
Motivational Factors Rewards and Recognition Monetary and nonmonetary benefits will boost employee confidence and make
change adaption easier
Perceived Ease of Use Integration of the system Some features were first implemented in some offices as a pilot run to test the user
feedback and later, it was changed to ALL FEATURES + ALL OFFICES
Future Road Map

1 Better resistance management strategy to spread ERP across all

employees

2 Implementation of ERP across all departments to ensure transparency

and efficiency

3 More training to be provided so as to address the current issues

4 Need for high level integration across systems

5 Use Rewards and Recognition to motivate employees in all the new

implementations
Thanks!