This paper describes a qualitative research project involving a case study that was analyzed using grounded theory and cognitive mapping. It contributes to a theory that describes the impact of enterprise resource planning (ERP) on organizational knowledge. ERP systems produce effects that make business knowledge become more focused or “convergent” from the perspective of the organization and more wide-ranging or “divergent” from the perspective of the individual. Other important effects include changes to the organization’s core competencies and changes in the risk profile regarding the loss of organizational knowledge.