Yongxin implemented an ERP system using knowledge management strategies. They organized training for top managers in 1998 and sent managers to other companies in 1999 to learn about ERP best practices. In 2000, Yongxin began building a knowledge sharing network by renovating facilities and installing systems. The ERP implementation required changes to business processes and integrating the software into operations. To address this, the information center hired both IT professionals and operational experts from across the company to help transfer knowledge between departments.
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Case Study 1 - KNOWLEDGE MANAGEMENT
Yongxin implemented an ERP system using knowledge management strategies. They organized training for top managers in 1998 and sent managers to other companies in 1999 to learn about ERP best practices. In 2000, Yongxin began building a knowledge sharing network by renovating facilities and installing systems. The ERP implementation required changes to business processes and integrating the software into operations. To address this, the information center hired both IT professionals and operational experts from across the company to help transfer knowledge between departments.
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Session 2021 – 22
Case Study Competition
KNOWLEDGE MANAGEMENT
Knowledge management improves the flexibility and innovation capacity of a
company by enabling knowledge sharing and leveraging what people know. It provides the right path and management methods for sharing of explicit knowledge and tacit knowledge. Yongxin uses knowledge management in the implementation of ERPs. Operating personnel primarily use explicit knowledge in the design, system operation, and test maintenance of ERPs. ERP management ideas and related techniques utilized by section and middle-level managers are “tacit knowledge.” Finally the implementation of Yongxin’s ERP consists of the outcome of knowledge innovation, that is, the combination of tacit knowledge and explicit knowledge mentioned above. Yongxin organized its top managers to learn ERP knowledge early in 1998. At the same time, Yin Jicai, as vice-general manager, led the management team to Meilin Company to learn their successful experience of information management. In 1999, he and the secretaries of all departments went to Star Co., Ltd. — a template enterprise of Chinese information management — where they accumulated a great deal of data about MRP, ERP, CIMS, and the trend of domestic information management development. The effort made a good foundation for the company’s structuring of its highly effective knowledge sharing network. At the beginning of 2000, Yongxin started the construction of the infrastructure for the knowledge sharing and shared network project by rebuilding the main production facility and installing the necessary controlling and monitoring system. In March 2001, Yongxin proposed the company’s development plan to each department and district. At the end of 2001, Yongxin founded the information center to make sure that the network’s construction ran smoothly with Yin Jicai as the responsible manager for network construction. He quickly realized that the ERP was more than a software system. The ERP implementation required optimum operation flow and integration in the network platform. Also, the design of business processes was unlikely to be carried out thoroughly if the business departments were negative to the project (Desouza, 2003). As a result, he 22 considered it necessary for information center employees to be familiar with basic computer knowledge and the company’s everyday operations. Thus, he appointed computer professionals as well as business elites from finance, storage and distribution departments, and other critical departments that played important roles in the process of knowledge and management ideas transference.
Questions
1. What are the challenges faced by the organization in implementation of
ERP? 2. How does the organization’s structure influence the implementation of ERP? 3. Discuss the central role of knowledge developer in the implementation of ERP? 4. How the Expert knowledge is created, shared and transferred in this organization?