User adaptations to system implementation in a mining company in Laos - A case study of organisational change

Abstract

The purpose of this case study was to assess post–project implementation acceptance by users of new IS/IT systems in a mining company in Laos. The report investigated how the new system changed organisational working cultures and what avoidance or acceptance factors appeared. Also, it looked at how the new implemented systems contributed to the changes in business process and working procedures within Lane Xang Mineral Limited Company (LXML), which is a Lao subsidiary of a mining company from Australia.

The change implementation was a strategic business integration of MMG, a Chinese-owned global mining company, headquartered in Melbourne that operated several mining subsidiaries in Australia, Africa, Latin America, and in Laos. In 2013, LXML went through a big change implementation in terms of IS/IT systems consisting of the upgraded computing facilities, I.T. services outsourcing, communication systems, and the introduction of the new Enterprise Resource Planning (ERP) system. Those changes inevitably brought about change in the company’s business processes and working procedures. As a result, it shifted LXML’s way of working from the conventional paper-based system to a more systematic and electronic approach. Following the change, the organisation as well as its staff were faced with cultural issues and mismatch business processes.

To gain an understanding of the factors that impacted on the IS/IT implementation within Lane Xang Mineral Limited, this paper applied two analytical frameworks to the study of user acceptance and organisational cultural differences. Data gathering was conducted by an online survey and semi-structure online interviews with staff at different levels from within the organisation. The findings were then divided into enablers and barriers to user’s adaptation to the new systems implementation on individual and organisational level. The findings were also used to compare deductively with the analytical frameworks to verify their influencing categories.

This paper is organised in three main sections, the first section introduces the case background and description of the issues from the case study. The second section is a justification of the significance of issues identified, and of the selected conceptual frames that were applied in the study. The third section is the analysis section, which explains data collection methodologies and the analytical details. Findings on the study will also be found within this section.

At the end of the paper, the study is concluded by giving recommendations as a guide to I.T. Managers at the MMG headquarters in Australia and the LXML office in Laos, on transnational I.T. implementation within MMG. The recommendations could be taken as a guide for any other organisation (not only limited to the mining industry) to explore in order to plan for an effective I.T. implementation within their firms in the future.