Implementing the ERP solutions in NALCO extending the Technology Acceptance

Model at Organizational Level (TAMO)

To be the reputed Global company in Metals and Energy sector

To be recognised for the world class operations, strong growth and
financial performance.
To achieve sustainable growth in business through diversification,
innovation and global competitive edge.
To intensify Research and Development for technology development.
To satisfy the customers and shareholders, employees and all other stake
holders.

Provide dynamic, integrated solutions that improve customers products

and optimise their operations
To maximize capacity utilisation and optimize operational efficiency and
productivity.

Aligning
the
technical
and
engineering aspects of all projects,
expansion
schemes,
technoeconomic evaluations with the
Business
Development
Department.
Implementation
and maintenance
of Electronic/IT
systems including
Enterprise
Resource Planning
systems.
Develop and implement new,
efficient technologies and
strategies, policies and plans to
promote and protect NALCOs
commercial interest in tune with its
objectives and targets and make

Coordination of
technical and
engineering matters
with all the
consultants in
matters of process
flow sheet, layout,
energy balance and
technological
aspects of all
segments of the
projects.

DRAWBACKS OF PAST LEGACY IT SYSTEM

LACK OF INTEGRATION BETWEEN PROCESSES AND UNIFORMITY ACROSS
UNITS.
NON-UNIFORM PLATFORMS : SYBASE ,APT, POWERBUILDER,FOX,CRYSTAL
REPORT
DISPARATE SYSTEMS UNDER DISTRIBUTED CONTROL AND NO VERSION
CONTROL

IMPLEMENTATION OF ERP (SAP) AT NALCO

DISTRIBUTE
D IT
SYSTEMS

JULY
2008

ERP PROJECT
NVISION

JAN
2010

TRAINING &
SIMULATION OF
USERS

ADDITION
OF
MODULES

NOV
2010

JAN
2011

RECOVERY CENTRE AT
DAMANJODI AND USE OF
RFID

JAN
2012

BANDWIDT
H INC

JAN
2014

NALCO ERP PROJECT HIGHLIGHTS

Various modules of SAP were implemented/ integrated as ERP Project NVISION which includes :
MATERIALS
MANAGMENT

SALES &
DISTRIBUTION

PRODUCTION
PLANNING & QUALITY
MANAGEMENT

HUMAN RESOURCE
MANAGEMENT

FINANCE &
CONTROLLING
SRM AND CRM

MARKETING
BI AND DMS

Simultaneous Implementation at Corporate Office, Plants, Regional Offices.

PWC as End To End Consultant.
Wipro was the Implementing Strategy
500 Licensed Users
Main Data Centre is at its Bhubaneswar Corporate Office and Data Recovery Centre
at Damanjodi

IMPORTANCE OF MONITORING NEW IMPLEMENTATIONS

1
2
3

Training- Is it satisfactory or more training required?

Efficiency- Has the new implementation achieved its

target of higher efficiency?
Behavioural patterns and Apprehensions- To
understand the behavioural patterns and apprehensions of
individuals for adopting and using the new technology

Improvement- Suggestions regarding the area of

improvement by the end user

Expectations- Understand the expectations that the

end user has from the new technology

Why TAM?
Productivity Paradox- Low
returns
from
high
organizational
investments
in IT.
Underutilized systems due
to low user acceptance of IT
at work
What is TAM?
(Technology Acceptance
Model)
TAM theorizes an individuals
behavioral intention to use a
system on the basis of two
beliefs
Perceived
Usefulnes
s
(Performan
ce
Enhancing)

Perceived
Ease of
Use
(Effort
Reducing)

Why TAM2?
To better understand the
determinants of perceived
usefulness construct so as to
design
organizational
interventions
promoting
acceptance and use of new
systems
2 Additional
Constructs

Subjecti
ve Norm

Social
Influence
Processe
s

Internaliza
tion
Image
Job
Relevan
ce
Output
Qualit
y
Result
Demonstrab
ility

TAM2
Cognitive
Instrume
ntal
Processes
Ease
of use

Output Quality

Subjective Norm

Choice of Performance depends on the believe of

one or more referents and it overshadows
personal perception of behavior and its
consequences
Significant in mandatory usage settings wherein
performance is rewarded and non-performance is
punished

Social
Influen
ce
Proces
ses

Internalization
Incorporating a superiors belief
into ones own belief structure
thinking that it actually might
be useful and thus develop an
intent to use. Applicable in
mandatory
and
voluntary
settings

Image
If important members in the group profess
performance, then performing the behavior would
elevate his/her social standing and status in the
group

Job Relevance
Users knowledge about job
situation
is
used
to
evaluate the degree of
relevance of the system to
the job at hand

Result
Demonstrabilit
y
Tangible and discernible
results of using the
innovation positively
relates with user
acceptance

Perceived Ease of
Use
The less effortful a system is
to use, the more using it can

How well do the systems

perform the task
Used in profitability test
while choosing multiple
relevant systems, the
one with highest output
quality is chosen

Cognitive
Instrume
ntal
Processe
s

TAM 3
An integrated Nomo logical
combination of TAM2 and the
model of determinants of the
perceived ease of use

Experie
nce
Perceiv
ed
usefuln
ess

Brings in the factor of

experience that will influence
the effect of perceived ease of
use on perceived usefulness
No significant effect/influence
of the perceived ease of use
determinants on the perceived
usefulness determinants i.e. no
Has direct
implications
crossover
effectfor two
types of decision makings in
organizations:
Employee IT adoption
decisions
Managerial decisions about
managing IT implementation

TAM 3
MODEL

Behavio
ural
Intentio
n
Comput
er
anxiety

Perceiv
ed ease
of use

Use
Behavi
our

Relevance of TAM 3 for IT

The important interventions obtained for IT strategy implementation
Pre-implementation
phase
Organizational
activities done
during system
development &
deployment periods
Minimization of initial
resistance to a new
system
Developing accurate
perception regarding
system features by
users
the
Design

Characteristics
User
Participation
Management
support
Incentive
alignment

Inferences
If the
design of the
system can
provide users
relevant info in a
timely and
accurate manner
better decision are
made.
More complex the
system more
significant is the
user participation
in the system
development
process.
Management
support can
influence users
perceptions of
subjective norm

Postimplementation
Organizational,
phase &
managerial

support activities
done after
deployment period
to enhance user
acceptance level
Help employees go
through initial
changes of the
system
Make employees feel
that new system will
enhance job
performance

Training
Organisational
support
Peer support

Training
can be
Inferences
used to
manipulate
different
determinants of
IT adoption.
Providing
necessary
infrastructure,
creating
dedicated
helpdesks,
hiring system,
business
process experts,
etc.
Can lead to
greater user
acceptance

Drawbacks of TAM MODELS

TAM is based on the Theory of Reasoned Action(TRA) which
states that users are rational in their behaviour, but Individuals
form attitudes toward a behaviour by evaluating their beliefs.
TAM doesn't tell us how to make the technology easy to use for
the user
Lack of actionable guidance

Implementation of ERP solutions in NALCO

extending TAM(TAMO)
Why the study was conducted?
Perception that ERP
implementation did not receive an
emphatic response from the
employees

Field

Methodology:
Collect responses from 100
users
Factor analysis
Objective:
To find the most relevant
parameters affecting the
implementation of ERP

Findings

Inference

Involvement

6% felt their inputs were not considered during

implementation

High involvement of employees during the ERP

implementation

Apprehensions

Complexity: 77% Change in system: 47%

Accuracy of system:42%

Resistance to change and fear of putting in extra efforts

/adapting to new practices and trusting in new technology
are the major factors

Training

96% respondents had undergone training; 44% average or below average training

Additional training required Knowledge refreshment

Knowing the system better
Capability enhancement

Training Mode

Classroom : 47% Online Simulation: 45%

Help-Desk: 8%

Year round training will help new joinees adapt to the

system quickly

Implementation of ERP solutions in NALCO extending

TAM(TAMO)
PU1: Streamlining &
Standardization of Processes &
Practices.
PU2: Benefits of the Process.
DI1: Stakeholder management in
the decision Process.
DI2: Effective review process by
senior Management.
DI3: Training effectiveness and
skills imparted.
DI4: Risk Management.
MI1: Rewards & Recognition.
MI2: Willingness to use the new
system.
MI3: User Satisfaction.
PE1: Complexity of the
application.
PE2: System working as per the
Expectations.
PE3: Integration of System.

Problems faced:

Analysis:

Data maintenance
Improvements required in customized
report generation, decision making
analysis, cost analysis, control
Training requirements

Software upgradation /
improvements to be done and then
end users need to be trained
Training facilities to be made
available throughout the year

Screen navigation

Advantages:
Factor

Construct

Inference

Perceived Usefulness

Streamlining and process

standardization

Process standardization will reduce the overall cost of the system

and remove complexities

Design and
Implementation

Effective review process by

senior management

Stakeholder Management in
the decision process

Roles and responsibilities of each employee is defined

Motivational Factors

Rewards and Recognition

Monetary and nonmonetary benefits will boost employee

confidence and make change adaption easier

Perceived Ease of Use

Integration of the system

Some features were first implemented in some offices as a pilot

run to test the user feedback and later, it was changed to ALL
FEATURES + ALL OFFICES

Highlights the commitment at the top management level.

Implementation is done rigorously

Future Road Map

Better resistance management strategy to spread ERP

across all employees

Implementation of ERP across all departments to ensure

transparency and efficiency

More training to be provided so as to address the current

issues

4
5

Need for high level integration across systems

Use Rewards and Recognition to motivate employees in

all the new implementations

Thanks!