1. Summary of Pei-Fang Hsu’s paper work
“Integration ERP and e-business: Resource complementarity in business value creating”
This paper clarifies the two concepts of ERP and e-businesses and what components they consist of. An ERP-system consist of several modules, which the most common modules are such as General Ledger, Account payable, Account Receivable and Logistic. Moreover, firm uses ERP-solutions for internal reasons, sharing data real-time by using ERP-solutions across different departments.
The most common e-business technologies are XML, EDI, different kind of Extranets and Websites. E-business technologies makes it possible for a firm to share data external parts. Data such as inventory information, order status, warehouse
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Even if it did, it would bring the firm a long-lasting advantage. The replication of the solution would not be difficult for the competitors. Sense most of the firms today hires external management consults when selecting, preparing and implementing an ERP-solution. Same management consult firms are available for competitors to hire.
For a firm to get competitive advantages unique and con not replicated, the firm needs to use its ERP-solutions full potential. Moreover, an ERP-solution potential is reached when the firm shares its data with suppliers and customers. Which means a firm needs to involve their suppliers in their business processes. In addition, their customers in their business development.
To do this a firm needs to use different kinds of e-business technologies to integrate theirs ERP-solutions to their suppliers’ different kinds of IT-solutions. The integration process is costly, needs a huge amount of organizational resources and demands business process changes from both sides. However, the result of this paper indicates that the integration investment would pay off.
2. Summary of Pei-Fang Hsu’s paper work
“Commodity or competitive advantage? Analysis of the ERP value
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The promises from the vendors before the ERP implementation and the implementation result does not always correspond. Moreover, those firms believed that implementation of an ERP-solution would directly generate competitive advantages in terms of new orders and increased profit. Instead, those firms have gone through a protracted and very expensive ERP implementation.
Aim of this paper is to prove that several components in a firm needs to cooperate for the firm to benefit from its ERP investment. One important component is the organizational resources, such as managerial and tech skills and organizational change management. Moreover, earlier studies have indicated that critical success factors (CSFs) related to organizational resources are often highly ranked. Further, those studies have also indicated that organizational resources play a more important role than IT-resources for success of an ERP implementation.
The firms that have not been capable to generate competitive advantages is most likely because of the firms’ organizational resources. The organizational resources have not been capable to push through the change process, due an implementation often demands business processes
Enterprise is an internationally known car rental, with more than “7,000 neighboring and airport locations throughout North America and Europe. Enterprise is the largest car rental brand in North America, well-known for its great rates, award-winning customer service and picking up local car rental customers at no extra cost” (About). Enterprise offers great leadership opportunities to its employees and helps them become entrepreneurs. They provide over 1 million job opportunities worldwide, this private company thrives its self in customer service because they thrive on being personable by creating relationships not just transactions
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
Ziff Davis, an American publisher and internet company, wrote a small document on the top 5 reasons ERP systems fail and how to fix those reasons. The document makes an interesting point of “failure is often a perception, rather than a quantifiable measure of outcomes (Ziff Davis 2),” meaning companies may think they have failed by their perception, when in actuality they didn’t proper measure their outcomes or potential outcomes. The first reason the document goes over is “setting unrealistic expectations at the outset. (3)” The document claims that a company is eager and excited to implement the system without fully defining business requirements and goals (3). This ties back with that perception and measurement dilemma. The company perceived everything was going to be well with the implementation, but failed to measure out goals and requirements. Ziff Davis goes into the fact that companies fail to realize “the level of resource commitment the project will take (5)” and that “Done properly ERP can and will transform your business by automating and re-engineering its beating heart: its business processes. (4)” Again these point out to that perception and measurement factor. Another reason the document goes over is “Not involving key stakeholders (6)”. Ziff...
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
At the moment, Enterprise resources planning (ERP) systems had become important systems in the modern business world. The meaning of ERP itself is an integrated software package composed by a set of standard functional modules (production, sales, human resources, finance, etc.) developed or integrated by the vendor that can be adapted to the specific needs of each customer (Esteves et al. 2000).
E-business refers to the application of technology with intentions to improve an organization’s business dealings. The implementation of technology is on a basis of diversified areas linked to a business’ internal procedures like the human resources, monetary systems, along with administrative systems. There are external operations associated with the business that the technology improves like sales with marketing, procurements, and customer relationships. Any business operations that an organization conducts through a computer interceded network has reference as e-business (Napier, 2006). Through an incorporation of e-business in a business, three processes undergo enhancement. The three key processes, enhanced via integration of e-business include production, internal administration, along with consumer-focused processes.
The purpose of implementing an ERP system in a company is when the company isn’t operating efficiently. Look at it like this, when your body is sick, you know you need to take medicine, you just can’t stand the taste. And in the same matter when your company isn’t operating efficiently, you’ve got to take steps to correct it. Most companies just fear the disruption, the learning, and the cost and the inconvenience of it all. “Another way to look at or understand ERP is cars have dashboards so the driver can get to where he or she wants to go. Airports have control towers to make sure everything and everyone gets to where they need to be. All of your typical individual machines have control panels so you can make them do what they are supposed to do”. (Jones, W (2006, 01). Roadmap to Fusion: Engaging Oracle Consulting on the path to your next business platform. Orcacle Corporation World Headquarters,)
...llenging to the organization is undeniable thus the organizations really have to come out with competitive transformation strategies so that they are strong enough to compete with their business competitors (Tonono, 2008).
This strategy emphasizes the use of an organization’s resources and capabilities to achieve a core competence that cannot be imitated by competitors. Furthermore, the resource based school argues that if an organization distinctively improves its internal capability; that is being able to have effective inside machinery to deliver products and services to customers, the organization will enjoy a massive advantage in the market. This school also argues that in order to have a competitive advantage, an organization must have resource and capabilities that are sophisticated to those of competitors (QuickMBA, 2010).
E-commerce means that the company runs their business online, not like the traditional business way. We have to go the shopping mall or store to get goods that we need, E-Business is the enabling of electronic communication between any two or more participants in a business relationship. It helps companies capture abroad business field, cost saving, and market opportunity. E-commerce is an important factor that is making people’s lives more efficient.
What's e-business? It is the transformation of every business process through using the internet and associated technologies. In this transformation, each part of the business becomes a part of an intrinsic network, which enables employees, suppliers and customers of a given enterprise to conduct their tasks. People usually try to make a point in differing e-business from e-commence, but as I see, e-commerce is a part of the e-business category, and an important one.
It is apparent that the only thing constant in business is change. Organizational change is often an overwhelming challenge for business leaders, managers and employees alike. The need for change may be the result of market shifts, economic environment, technology advancements or changing work force skill-set demands. Today Organizational change occurs for reasons that originate external to the organization (Chandler, 1996: Hannan & Freeman, 1984), as well as internal to the organization (Baker 1990: Prechel 1994). Thus, External constraints, internal constraints, resource dependency and increasingly growing competitive markets force organizations to change in order to maximize economic potential. Although organizational changes are usually a response in reaction to an event, companies and leaders should still expect to encounter issues. Organizations need to be more proactive and contingent on how to handle the problems that will inevitably come about. This will make the process of organizational change go smoothly as well as reduce resistance through proper management techniques. Resource dependency argues that both environmental and organizational constraints impact organizational change (Pfeffer & Salancik, 2003).
E-business is when information and communication (ICT) technologies are applied to support all the business activities. IBM’s marketing and Internet teams have founded the word “e-business” in 1996.
E-business is a wider concept that takes into account all the aspects of use of information technology in business. Apart from buying and selling, it also includes servicing customers, collaboration with business partners, and engages incorporation across business processes and communication within the organisation (Rowley, 2002)
Human resource competencies are for example important in facilitating efficiency in performance of organizations’ operations towards competitive advantage. Business knowledge, change management, and human resource distributions are examples of human resource competencies that contribute to organizations’ competitive advantage. Such initiatives are however, undermined by institutional factors such as business ‘short termism’, cost centered strategies, as well as professional factors such as lack of business skills, inefficiency in measuring and evaluating success, attitude, and organizational