The Balance Between Global Standardization and Local Adaptation in ERP Implementations

Authors: Ragnhildstveit, Brede Erland & Høidal, Vetle

NTNU Open: https://ntnuopen.ntnu.no/ntnu-xmlui/handle/11250/3204227

Short Description

Topic: Examines how employees in a large organization experience the balance between global standardization and local needs when implementing a new Enterprise Resource Planning (ERP) system.

Type of thesis: Digital Business Development, ERP systems in large organizations

Abstract

The implementation of standardized Enterprise Resource Planning (ERP) systems in large organizations raises questions about how such systems can be adapted to local needs without losing the benefits that standardization can provide. In this bachelor’s thesis, we investigate how employees at ConocoPhillips Norway have experienced the balance between global standardization and local needs during the implementation of next-generation SAP (S/4HANA).

The study is based on qualitative interviews with employees in various roles and combines these insights with a socio-technical and change management theoretical framework, as well as a sustainability perspective through the Sustainability Awareness Framework (SusAF).

The findings show that the implementation has led to both technical and organizational challenges, where standardized solutions do not always align with existing work processes. This has resulted in the use of workarounds and a need for organizational learning. Limited access to time and resources for training and early involvement appears to have contributed to employee frustration during the go-live phase. At the same time, the informants highlight the potential of the new system, provided that room is made for local adaptation and continuous improvement.

The analysis demonstrates that the implementation is not merely a technological initiative, but a change project that requires interaction between technology, people, and organization. The thesis shows that successful ERP implementation requires more than technical rollout; it requires an understanding of local contexts and active user participation. The SusAF framework helps identify how the SAP implementation affects both economic considerations and the organization’s ability to manage change over time.

Sustainability Analysis

Although sustainability was not necessarily an explicit objective of the system implementation, the analysis reveals that the solution nevertheless has implications for sustainability across several dimensions.

The following assumptions were made:

• The ERP implementation was carried out organization-wide

• Not all employees received the same level of training

• ERP implementation is understood as both a socio-organizational change process and a technical project

Using the SusAF framework, the following sustainability impacts were identified and represented.

In the following sections, the SusAF analysis conducted for the project is presented, highlighting the positive and negative sustainability impacts across the five dimensions: technical, social, economic, environmental, and individual.

Technical Impacts

The following enabling sustainability impacts were identified in the technical dimension:

The following enabling sustainability impacts were identified in the technical dimension:

The following enabling sustainability impacts were identified in the technical dimension:

Comment:
The ERP implementation reduces duplicate work for employees, which is beneficial as it allows them to spend time on other important tasks. However, the system is complex, which can make it difficult to navigate and may lead employees to create their own “shortcuts” to complete tasks, increasing dependency on other personnel.

Social Impacts

The following enabling sustainability impacts were identified in the social dimension:

The following enabling sustainability impacts were identified in the social dimension:

Economic Impacts

The following enabling sustainability impacts were identified in the economic dimension:

The following enabling sustainability impacts were identified in the economic dimension:

Environmental Impacts

The following immediate sustainability impacts were identified in the environmental dimension:

The following enabling sustainability impacts were identified in the environmental dimension:

Individual Impacts

The following enabling sustainability impacts were identified in the individual dimension:

The following enabling sustainability impacts were identified in the individual dimension:

Relationships Between Impacts

A sustainability impact may lead to other impacts. The following interdependencies were identified in the analysis:

• SE1 → IE2: Job aids and guides that employees can use as learning resources can lead to better process control, resulting in greater mastery and efficiency.

• SE2 → IE1: Some employees point out that training has been insufficient, and this lack of adequate training may affect long-term individual development.

• EE1 → EnE1 → EnI1: Digitized processes improve data quality and enable better resource utilization, aligning with UN Sustainable Development Goals 9 and 12. Digitalization leads to reduced paper usage and automated document management. Thus, even though ERP systems do not directly focus on sustainability, they contribute positively to the environment by digitizing workplace processes.

Summary Table