ERP Systems in Knowledge-Intensive Companies: An Illustrative Case Study of a Publisher

The implementation of ERP may create new routines and roles for employees, including extensive training and preparation for changes. In many ways, ERP systems structure and discipline the organization, providing increased control for management and fewer dynamics for employees. Thus, it can be challenging and risky to implement an ERP system in a knowledge-intensive organization, where innovation and creativity are essential. Knowledge workers are autonomous workers and require flexibility in their work routines. This study focuses on how ERP implementation in a knowledge-intensive business is accomplished and identifies critical elements in this process. A case study was conducted in a publishing house, where editors are among the knowledge workers. The findings demonstrated changes in the organization, which became more static after the implementation because of cemented processes and the fact that there was less flexibility. This caused conflicts when the business rules and knowledge inherent in the system were transferred to the practices of the organization. Thus, practices that allowed dynamics and flexibility in procedures were abolished and replaced by new routines, which were dictated by the system. Thus, the implementation under study showed a heavy adoption process because the system was not functioning optimally for the entire organization. The editors avoided the system, and if possible, they worked around it and used manual or old systems. The new system was perceived as being rigid, resulting in rework, and information in the system was not continuously updated. Specific functional requirements for the calculation of royalties for the authors were complicated to deliver for the consulting firm, and the old system could not be phased out, because necessary functionality was missing from the new ERP system. This study highlights the challenges of implementing an ERP system in a knowledge-intensive business and has implications for practice.