The importance of knowledge management for ERP systems

Abstract

Enterprise resource planning (ERP) software provides a coherent integrated electronic business management environment, frequently controlling all logistics and billing for an enterprise. Many companies are now reliant upon these systems for their daily operations; maintaining and adapting them in parallel with their business as it evolves, adding new suppliers and customers. The process of managing the development of the ERP software requires detailed knowledge of systems. ERP systems often become unique to an enterprise and may have tens to millions of pounds being invested in their development. The value of knowledge management (KM) specifically for the management and operation of ERP systems is becoming evident. Managing ERP systems knowledge has been identified as a critical success factor if a firm, its suppliers and logistics providers are to retain control of their business and not be controlled by their systems. Case studies of KM practice for three global organisations from within the UK Aerospace and Defence industry have been undertaken. This study identifies leading practices, with references to the literature, for effective KM of ERP systems.

Keywords:

• ERP
• knowledge management
• aerospace

Acknowledgements

The authors would like to thank the aerospace sponsor organisations for their time and continued support of our research into ERP. We would like to acknowledge and thank Karthikeyan Paramasivam MBA and Professor Richard Vidgen, both from the School of Management at the University of Bath, for their contributions and support of the research.