Thirdly, compared with the developing world, the speed of Chinese ERP implementation growing is still lower and strand in a dilemma. It is time to understand that they should break through the shackles of the old conventions but get advanced western technology to utilize in local enterprises.
3.2 Principle research questions
As mentioned before, ERP can be seen as an important concept in enterprise management, but most past ERP implementation researches focus on technologies or a general business scope (Markus, et al, 2000; Liang, et al, 2004), and normally point to the failure of applying in the real world(Liang et al, 2004; Avison & Malaurent, 2008). Under the global information, Chinese large-sized enterprises do face many failures when applying ERP system, but there are still so many firms continuous fulfil this system. From the western ERP system experience, there should be some potential theories we can learn, and more and more ERP challenges of Chinese state-owned enterprises worth to be concerned.
As concerning at above aspects, this paper is guided by the following research question as main principle research question related to ERP implementation:
Describe and explain a real-life ERP implementation as a primary case while combining with ERP models, and find out the specific difficulties or strengths of ERP implementation in Chinese large-sized enterprises.
Apart from that, in this proposal I intend to assume that beside culture, language and other external factors, there may be more internal factors existing inside the enterprise causing failure. Basically, this attempt has been made to address four main questions not commonly addressed in other studies on ERP implementation, and the dissertation will be guided by these research questions related to ERP implementation:
1. How can I describe and explain a real-life ERP implementation as the primary case effectively using some ERP model?
2. What are the specific difficulties of ERP implementation in Chinese large-sized enterprises?
3. The impact and solutions of western experiences dealing with projects and which can be used to solve major difficulties effectively.
4. And how can we utilize experiences of western ERP implementation to promote state-owned firms’ operation.
4 Innovations with explicit reference to the relevant existing literature
4.1 literature review
ERP is an information system that supports to manage all vital operations within a firm, such as: logistics coordination, operations and financial management. It seeks to integrate and streamline a large portion and work flows of a business by using Software system, and provide information accessible to a wide variety of individual components (Jacobs and Whybark, 2000). ‘Once ERP systems are successfully implemented, significant benefits such as improved customer service, better production scheduling, and reduced manufacturing costs can be gained’ (Ge & Voß, 2009, p.501).
To support an effective coordination of a firm’s activities, more and more firms are implementing ERP systems. Without exception, Chinese enterprises have been involved in this trend (Zhang et al, 2005). It used to consider that Chinese large and middle sized enterprises are the potential ERP users (Huang & Palvia, 2001). At present, large enterprises still take the most important components of Chinese economy and maintain the main ERP users (Liang & Xue, 2004). However, limited researches have been done to specialize in Chinese large enterprises’ problems or suggest countermeasures in implementation of ERP system. Under different cultural background and lacking of professional personal (Liang et al, 2004), more and more problems appeared, such as the slow pace of information delivery and poor coordination within the organization. Besides, the language causes communication barriers between Chinese users and international ERP vendors (Liang & Xue, 2004). Apart from principle, United States Intelligence Community (2008) published the ‘information sharing strategies’, and it is considered as the comparatively structural model to integrate E-Operations inventory system with ERP Systems to practice(USIC, 2008).
As mentioned above, although ERP software vendors are experiencing global expansion, more methods are needed when applying the ERP system in China.
4.2 Innovations with explicit reference
Studies focusing on Chinese ERP market in recent years revealed some common obstacles in ERP implementation process, e.g. the misfits between an ERP system and organizational culture (Davison, 2002); the variety of ownership structures, including state-owned, private-held, joint-venture, foreign-owned etc. (Jacobs & Whybark, 2000); the language barrier(Liang et al, 2004), and so on. Basic on these factors above, I will try to make a co-examination of large enterprise and ERP; in addition, find some more innovations and also make the outcomes on the basis of previous literature, in order to make them reliable and reasonable.
1. Under a different structure, large companies have their own specific situation.
Recently, research on SMEs (Small and Medium-sized Enterprises firms) is becoming a hot topic, because these companies’ number constitutes a great majority part of China’s total industrial sector (Liang and Xue, 2004). But China is a special case of ownership structures. Most large firms are state-owned enterprises and hold the main economic lifeline in China. And also, past researches are considered focusing on a general aspect and not in depth in this industry, especially for ERP aspect(Markus, et al, 2000; Liang, et al, 2004). This research will examine the success and failure case of ERP implementation projects in Chinese large organizations from the perspective inside the organisation. One Chinese large state-owned firm will be selected as the primary object of this research.
2. Not why they fail, but what can be learnt inside this scope.
The continuing development of ERP systems has been considered by many researchers and practitioners as one of the major information system developing trend in this decade. However, research in the ERP area is still lacking and the gap in the ERP literature is huge. Academic studies reveal foreign ERP system is partially not suitable for Chinese firms’ situation and the successful implementation rate is still quite low (Ge & Voß, 2009). I reverse the thinking and thought that there should be a salutary lesson from failure cases, and is that possible to use experiences of western countries to enhance the Chinese-specific enterprises’ operating quality?
For the above, I would like to argue that we can learn more from western ERP software. Lessons learnt can be of relevance to other application types and other developing countries. During the last decade, numerous failures have shown that no universal system can be implemented in different countries successfully without resolving misfits resulting from cultural differences (Davison, 2002), language misleading(Liang et al, 2004). Most of the past research works realized on ERP international projects have been done focusing western type companies. So through this research, I address it from another perspective: what can we learn from western ERP system to improve Chinese ERP system. This assumption allows me to study ERP systems from a broader perspective which linking western and eastern world.
3. There will be a high potential to discover those unforeseen and unexpected new factors, which influences the ERP implementation outcome when applying in China; that means, my assumption has a high rate to be implementing successfully.
Though there are several relevant research papers that examine ERP success and failure from the vendor perspective (e.g. Liang and Xue, 2004), the comprehensive research of business analysis and ERP application with the large enterprises is rare. At the same time, many firms have not yet exploit the full potential benefits of utilising ERP in their organizations (Ge & Voß, 2009). The use of previous theories will provide important and original insights in business phenomena; and by referring to the professional experience of an ERP consultant and an entrepreneur of state-owned enterprise in China, while combining with the real case, there could be a high possibility to find out specific improvement method that pointing on our sample firm type.
5. Research Method
5.1 Using secondary data
Although secondary data are used most frequently as part of previous case studies or survey researched, they will be continuously utilized in my action research. Two main reasons are that, firstly it has fewer resource requirements and have a large amount in numbers. When designing a research plan at the beginning, secondary data can found the source to answer research questions and to address objectives (Bryman and Bell, 2007). They are considered as higher-quality data comparing with those could be obtained in my own research (Saunders et al, 2009). If there are feasible secondary data existing, it is no need to consume time or spend money to research again. And also, some official data I hope to use is impossible to collect by myself. Although access to those data may be difficult or costly, I will try to obtain them depend on the situation and bearing in ethical considerations.
Secondly, secondary data may result in unforeseen discoveries. Although the outcomes and definitions from secondary data may be unsuitable for my research purpose, and I need to consider the theoretical situation and complication when analysis them in my dissertation, re-analysing data can also lead to unforeseen new discoveries (Saunders et al, 2009). As part of literature review I have used, I will use some documentary secondary data, such as data published by government, survey-based data, and combining them with other sources of data, like raw data and compiled data that have received of selection or summarising (Bryman and Bell, 2007). These sources will be used frequently compared to other data in my dissertation.
5.2 Structured observation
It is likely to be easier to use this approach where I am using a case-study, action research or ethnographic research strategy (Saunders et al, 2009). One important purpose of my research is to observe the Chinese enterprises’ scope when applying ERP system. A period of attachment to the organisation which I select will be necessary, because I want to achieve a creative perspective and the deep insight within the organisation. The reason I can get an access in the sample organisation is that I was an internship there. I can start a research project by utilising existing contacts and my experience to establish a track record that I can refer to in approaches for case-study; Or after the proposal questions been evaluated and accepted, I can apply the organisation’s permission to undertake research. They should be able to trust my stated intentions and the assurances I give about the use that will be made of any data provided.
Therefore, these factors determine my working role of ‘Observer as Participant’. Primary, secondary and experiential data may be all worthy to collect and analyse. I need to ensuring familiarity and understanding my characteristic of the organisation, while allowing myself sufficient time (Saunders et al, 2009).
5.3 Interview
Saunders et al(2009, p.209) clarified that ‘the types of data as the participant observer is that formal set-piece interviewing is unlikely to take place, Such ‘interviewing’ as does take place is likely to be informal discussion’. However, my research purpose of ‘probing answers’ requires me to prepare an in-depth interview, where I want my interviewees to explain or build on their responses. Moreover, ‘managers are more likely to agree to be interviewed rather than complete a questionnaire’ (Saunders et al, 2009, p.209). Therefore, a non-standardised (qualitative) interview seems to be a best choice. In the preparation, I need bearing in mind that organising and ensuring interview topics should be interesting and relevant closely to my interviewee’s current work, and prepare to create a full record of the interview.
6. Ethical considerations
‘Research ethics relates to questions about how we formulate and clarify our research topic, design our research and gain access, collect data, process and store, analyse data and write up our research findings in a moral and responsible way’ (Saunders et al, 2009, p.184), ethical issues can be an important factor assist the program to be successful, and it is our responsibility to act as a ethical way to respect other participants.
This project won’t aim to harm any participants in any shape or form, and try to minimize the likelihood of harm risk. I will assure anonymity and confidentiality, inform participants of potential risks and invite the third party (supervisor) to review.
When collecting data or design interview questions, I will follow Informed consent, explaining to potential participants the purposes and nature of the research project at the outset, so they have their rights to freely choose whether or not to become involved. During the research, I will keep expression netiquette, treat each case sensitively and individually, and follow the data protection legislation. Neither intrudes on a respondent’s privacy nor to abandon normal respect for an individual’s values, and gain permission before publicising my findings.
7. Gantt Chart
Organising the research process is the essential characteristic of producing scientific research. So I use Gantt Chart to provide a simple visual representation of the research tasks that make up a project, each being plotted against a time line. I will follow this systematic protocol step by step, in order to better assign the amount of time and workloads allocated.
KEY DATES:
1. April 21st: Submit proposal to tutor
2. June 3rd: Proposal returned
3. July 13th: Begin fieldwork
4. July 27th: Complete fieldwork
5. August 28th: Complete draft and hand in
6. September 11th: Final submission
8. Working structure of dissertation and future perspective
Firstly, I will discuss some general adoption issues before considering the specific case of China. Secondly, analysis ERP models which have been widely used in western countries by literature review. Thirdly, analysis real cases and interleave with a wealth of references supporting my statements (implications). In the fourth part, emphasise some problems which China should take measures from western experiences according to specific circumstances; and Section five provides some final remarks.
ERP system has great development potential in Chinese firms in the future. But when applying in practical, we will encounter problems during the present ‘trial run’. Undeniable, this proposal contains many immature plans when combing several factors together. It needs future in-depth research and professional suggestions. I will be really appreciated if corrections can be suggested when any errors appearing.
9. References
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Avison, D. and Malaurent, J. (2008), ‘ERP Introduction IN China: Analysing Cultural Problems using Structuration Theory’, ESSEC Business School, Paris, France.
Bryman, A. and Bell, E. (2007). Business Research Methods. 2nd Edition. Oxford University Press.
Davison, R. (2002). ‘Cultural Complications of ERP’, Communications of the ACM, Vol. 45, No.7, pp: 109-111.
Ge, L. and Voß, S. (2009), ‘ERP Application in China: An Overview’, International Journal of Production Economics, Vol. 122, No. 1, pp: 501-507.
Jacobs, F.R. and Whybark, D.C. (2000), Why ERP? A Primer on SAP Implementation, McGraw-Hill Higher Education, New York.
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Saunders, M., Lewis, P. and Thornhill, A. (2009).Research Methods for Business Students. 5th Edition.Prentice-Hall.
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United States Intelligence Community (2008). Information Sharing Strategies. , Accessed at 17th April
Zhang L., Lee M., Zhang Z., and Chan J. (2002). A Framework of Enterprise Resource Planning System Implementation Success in China, In Proceedings of the Pacific Asia Conference on Information Systems, Tokyo, Japan.
Zhang, Z., Lee, M. K. O., Huang, P., Zhang, L. and Huang, X. (2005), ‘A Framework of ERP Systems Implementation Success in China: An Empirical Study’, International Journal of Production Economics, Vol. 98, No. 1, pp: 56-80.
