ERP Systems and Competitive Advantage

Author(s):  
Thomas Kalling

This chapter describes the processes that firms and managers go through in their quests to create and sustain competitive advantages based on so-called Enterprise Resource Planning (ERP) systems. It is based on resource-based theory, combined with the strategy process perspective and with existing literature on information technology and ERP. The theoretic framework is extended through a detailed case study of a specific in-house ERP venture in a European multinational manufacturing company in the paper packaging industry. The emergent resource management framework describes cognitive and cultural factors that support or hamper progress, including uncertainty, knowledge gaps, knowledge transfer issue, and the problems of ensuring that ERP usage is converted into competitive advantage. The framework also addresses managerial implications and potential solutions to such obstacles throughout the process.

Author(s):  
Joseph R. Muscatello ◽  
Diane H. Parente

Enterprise resource planning (ERP) systems, if implemented correctly, have shown that a firm can gain strategic and tactical advantages over their competition who do not implement such systems. However, with failure rates estimated to be as high as 50% of all ERP implementations, companies can be negatively impacted by a poorly performing ERP system. The research on ERP has focused on events leading to the selection, evaluation, and implementation of the ERP system. The intent of this updated research effort is to capture new theories that can help practitioners successfully manage ERP systems by performing a post-ERP implementation examination of eight corporations and a pertinent research review. This chapter is based on a qualitative research design involving case-study methodology. The propositions derived from the case study form a broad set of considerations that influence the success of an ERP system.


2010 ◽  
Vol 3 (4) ◽  
pp. 34-50 ◽  
Author(s):  
Bernabé Escobar-Pérez ◽  
Tomás Escobar-Rodríguez ◽  
Pedro Monge-Lozano

Enterprise Resource Planning (ERP) systems integrate information from different departments in one common database for an entire organization. They have demonstrated their efficacy in a number of companies of different types. However, a problem arises in organizations with highly differentiated cultural areas; often such areas have traditionally had independent information systems and control over the interests of their area, such as hospitals. This case study analyzes the process of an ERP system implementation in a hospital. The study’s objective is to identify, by means of this qualitative research technique, the principal technological objectives that were set in the process of implementation, which of those objectives were achieved, and the deficiencies that have subsequently become evident.


2019 ◽  
Vol 17 (1) ◽  
pp. 63-70 ◽  
Author(s):  
Lei Gao

ABSTRACT Although cloud enterprise resource planning (ERP) systems are becoming popular, there are still firms that have yet to migrate to the cloud because of data confidentiality and data security concerns. Firms that plan to adopt cloud ERP systems are expected to first understand cloud ERP's data processing practices. This study proposes a case study method with a systematic content analysis of cloud ERP providers' data processing agreements. The study will explore the data disclosure, data security, data sub-processing, and data retention and deletion practices of cloud ERP providers. In addition, this study investigates the linguistic characteristics of cloud ERP providers' data processing agreements including readability, litigious language, and uncertainty language. The findings of this study can help organizations to have a better understanding of the data process practices of cloud ERP providers, as well as the shared responsibilities between cloud ERP providers and users in maintaining data security.


2010 ◽  
pp. 105-114
Author(s):  
Alok Mishra

In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the competition. This chapter discusses the Enterprise Resurce Planning (ERP) systems effects and strategic perspectives in organizations. These are significant how information technology and ERP together facilitate in aligning the business in such a way so that it should lead to excellent productivity. It further explores in what ways effects of ERP system in organizations can provide sustained competitive advantage.


2013 ◽  
pp. 665-674
Author(s):  
Paula Serdeira Azevedo ◽  
Mário Romão ◽  
Efigénio Rebelo

Enterprise Resource Planning (ERP) systems have emerged as solutions oriented to manage organizations’ resources in an integrated way. They allow the automation of department activities, make information available to users at the right time, and support more accurately their decision-making needs. However, although the implementation of these systems has brought considerable benefits to users, they do not cover all processes from all industries. Many organizations have recognized this limitation and consequently felt the need to implement specific solutions to their industry, sector, or line of business. From the collected case study business drivers and objectives, the authors analyze the advantages and limitations of ERP Systems in the hospitality industry in order to understand how this industry uses ERP Systems and solves the challenge of integrating information spread through several heterogeneous information systems.


2009 ◽  
Vol 24 (3) ◽  
pp. 251-268 ◽  
Author(s):  
Sylvestre Uwizeyemungu ◽  
Louis Raymond

Previous research has already established that compared to other types of investments, information technology (IT) investments are insufficiently or not at all evaluated. This can be partly explained by the lack of adequate IT evaluation methods and tools. In the case of enterprise resource planning (ERP) systems whose effects on organizational processes and performance are intrinsically profound and wide-ranging compared to those of traditional IT limited to some spheres of organization, evaluation activities may be an issue of great concern. This study thus aims to propose and test an alternative evaluation method adaptable to the organizational context, making it possible to measure the contribution of an ERP system to organizational performance in all its aspects. Combining a process-based model and a scorecard model, the proposed method was first designed from a review of information systems evaluation literature. It has then been validated and refined through a multi-case study of manufacturing firms: an in-depth pilot case study was conducted, and thereafter the study was replicated on two other cases. Results show that the method proposed here enables organizations to determine the extent to which the firm's operational and overall performance has been impacted by the adoption and use of ERP systems, through the automational, informational, and transformational effects of ERP on their business processes. From a practical point of view, three contributions must be mentioned: the proposed method allows for a strong contextualization of its application, it is action-oriented, and it allows comparison across organizations even though organizational contexts may totally differ.


2000 ◽  
Vol 19 (2) ◽  
pp. 105-110
Author(s):  
Binshan Lin ◽  
Chang-tseh Hsieh

The major purpose of this paper is to address some online procurement implementation issues and provide managerial implications on leveraging enterprise resource planning (ERP) investment by extending the functionality into the supply chain. In this paper we discuss issues related to the benefits gained and caveats of effective online procurement, implementation process, managerial implications, and the impact of online procurement on supply chain management. These issues are explored in the paper using a case study.


2007 ◽  
Vol 06 (01) ◽  
pp. 9-23 ◽  
Author(s):  
Ramaraj Palanisamy

This study examines capturing users' tacit knowledge in enterprise resource planning (ERP) systems. To mitigate the risks in implementing ERP systems, a knowledge based approach is followed. The ERP implementation team depends upon users for their knowledge to understand the business rules and processes required for the ERP systems. The value of ERP implementation is increased when users' tacit knowledge has been integrated into ERP systems. This paper attempts to understand how Canadian organisations are capturing the users' tacit knowledge in ERP implementation. A case study methodology is followed to accomplish the research objective. Three organisations from telecommunication, government, and retail sectors participated in the study. For data collection, semi-structured interviews were conducted with four to six respondents from each firm. The findings about tacit knowledge sharing in three firms that have implemented ERP systems are presented. The findings are categorised as follows: ERP adoption by all three firms, implemented ERP modules, users' tacit knowledge capturing and conversion, activities and approaches, users' tacit knowledge for interim modification and post-implementation. The lessons learned are given by presenting a cross-comparison of three case studies.


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