Adaptation of diffusion of innovations theory for successful ERP implementation

Information and Communications Technology (ICT) plays a criticalrole in today's organization environment and Information Systems(ISs) hold an enormous control in organizational operations withdata entering is governed by it. Enterprise Systems (ESs) suchas Enterprise Resource Planning (ERP), Customer RelationshipManagement (CRM), Supply Chain Management (SCM), AdvancePlanning and Scheduling (APS) systems are the most cutting-edgeIS in present corporate world covering all the business sectors.ERP system connects the organization's different operationsorganized into a single large integrated system with propercontrols so that interconnectivity creates an extra opportunity forgrowth and increased productivity of the depending divisions [1].Organizations invest millions of dollars to implement a suitableERP system with enormous effort consuming hundreds man monthsof an implantation team to harvest these benefits. Successfulimplementation of ERP heavily depends on human-factors [1-2].[1] and [3] presented that organization's implementation team ishighly critical to success of ERP implementation.According to the Diffusion of Innovation theory, most individualsevaluate new technology through subjective evaluations of nearpeers who have adopted the technology [4]. Early adoptersdecrease the uncertainty about a novel idea by adopting it andthen conveying near-peers through interpersonal networks [4].The present research attempts to identify any relationship between'Diffusion of Innovations Theory' and core implementation teamof successful ERP project.This research is based on a mixed methodology of qualitative andquantitative methods in two stages. In the stage one, 24 participantswere researched implementing qualitative methodology. Inthe stage two, 104 participants were researched by means ofquantitative methods. Initially, qualitative methods of interviewswere conducted to categorize the ERP project as successful orunsuccessful, impact of implementation team in success orfailure. In the stage two, short questionnaires were implementedto quantitatively categorize implementation team members basedon Diffusion of Innovations Theory. Collected data were analysedcompared with project success and impact of implementationteam. Furthermore, secondary data such as literature was alsocontributory to the main outcome and results.The research shows that most of the ERP implementation teamconsist of Early Adopters and Early Majority. Early Majority haveabove average social status, contact with Early Adopters and holdlower level of opinion leadership compared with Early Adoptersin a system [4]. Early Adopters decrease the uncertainty about anovel idea and technology by adopting it and then transmittingto near-peers through interpersonal networks [4]. The impactof human characteristics on ERP project implementation hassimilar impact as innovation establishing in the society, whichis demonstrated by 'Diffusion of Innovations Theory'. Theresearch shows, if the majority of implementation team consistsof Early Adopters, they will mitigate the uncertainty about a newEnterprise Software Solution by adopting it very quickly andthen transmitting to other employees through interpersonal andorganizational networks. The study also reveals ways in whichsensible selection of implementation team could be conducted toassist the successful implementation of ERP.