ERP And E-Business Case Study

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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

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