158 Zhang, Tian, and Li
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ences and lessons learned from companies that have implemented ERP successfully,
such as Meiling Co., Ltd and Star Co., Ltd.
The Importance of Knowledge Sharing in ERP
Implementation
Consequently, the information center in charge of the implementation and control
of ERP was established focusing on knowledge sharing. Yongxin has accomplished the
sharing of inside information and technology ever since. Meanwhile, it gradually set up
a market-oriented computer-aided management system, which covers all the operational
processes of the company. Unfortunately, as a state-owned enterprise, Yongxin con-
fronts many challenges in the implementation of ERP. In one aspect, only a few employees
understand the function and effectiveness of an ERP system. In another aspect, the top
managers do not realize the objectives of ERP system in each step of the whole circle,
which eventually affects the efficiency of the system.
Knowledge sharing mainly means the sharing and combination of tacit knowledge
(Tang, 2001). During ERP implementation, Yongxin would have more efficiently achieved
management objectives had it understood the concepts of ERP system sooner and had
it utilized lessons learned and previous specific practice (Ghosn & Bengio, 2003).
This case analyzes the challenges and countermeasures during the enterprise inner
knowledge sharing from this experience.
CASE DESCRIPTION
The Foundation of Information Center
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 combina-
tion 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.