Franklyn Chukwunonso, Joshua O. Omoju, David Ikani and Mohammed B. The findings show that information and communication technologies alone cannot produce sustainable advantages, but that firms must organize and manage information and communication technologies in such a way as to leverage the complementary human and business resources. The results also suggest that adopting information technology has positive effects on innovative practices, which increases the competitive advantage of firms.
He notes that faced many challenges that have led to ICT is following the pattern of railroads several changes in their business practices and telegraphs, where, as a mainly in recent times, particularly in the last two replicable, standardized infrastructural decades. In this time period, organizations technology, its benefits are accessible to have invested large amount of time and all and cannot create competitive money to the adoption of ICTs. This study advantage.
The resource based view companies should reduce their ICT RBV is an appropriate framework to investment and innovation, which in turn guide this research due to its focus on could have profound implications for ICT resources and capabilities and also because governance. By not distinguishing between of its emphasis on sustainability of undifferentiated ICT assets like the competitive advantage.
Recently, even more framed the discussion in terms of ICT controversy, has been created by the capabilities, and argue that managing ICT assertions of Carr He argues that is a capability that can create uniqueness ICT is pervasive, increasingly inexpensive, and provide organizations a competitive and accessible to all firms.
As such, it advantage. The research objective is business opportunities, and the flexibility therefore simple: to study how to respond to changes in business strategy. In other words, this architectures and standardized enterprise paper attempts to find ways that packages suggest that this capability might information technology can be used to not be heterogeneously distributed across create competitive advantage for a firm. A resource is valuable if it helps firm implement strategies that reduce costs or There is an emerging stream of research increase sales turn-over Barney, In which recognizes that ICTs have limited dividing capabilities, it is important to value when used in isolation.
As such, distinguish between those that have value value is significantly enhanced when and those that can be a source of resources are combined with other competitive advantage. The first condition organizational resources and capabilities value is necessary for the second Mata et al. There Micallef, Furthermore, researches have ICT infrastructure has been described as shown that ICTs have limited value when an important organizational capability that used in isolation.
Do your technologies help to reduce cost structure and increase revenue? Ribadu reduce cost structures and increase aligning their information technology and revenues as seen in Table 1 above.
Mata et their products and services. As many al. Therefore, good organizational performance. This process innovation practices help enhance a firm's is known as strategic alignment.
Strategic competitive advantage. At CHAMS Plc, alignment suggests that the effect of innovative practices are the order of the information technology on performance day. These can be further proved from the will depend on how well the information data analysis below. The data shows the technology strategy and corporate strategy effect of information technology on coincide. Does information technology enable the firm to enter new markets and provide significant service quality?
A second broad set enabled the company to enter new of skills are managerial skills. In the case markets. According to Mata et al. Without them, the full these functional managers, suppliers, and potential of ICT for a firm will almost customers to develop appropriate ICT certainly not be realized. The development applications; 3 the ability to coordinate and use of many of these managerial skills ICT activities in ways that support other depends on close interpersonal functional managers, suppliers, and relationships between ICT managers and customers; and 4 the ability to anticipate those working in the ICT function, the future ICT needs of functional between ICT managers and managers in managers, suppliers, and customers.
Thus, the manage the market risks associated with development of these skills is often a investing in ICT. Firms can acquire social complex process. Therefore, technical ICT skills by hiring programmers echoing the view of Mata et al.
They then use their can say that if managerial ICT skills are managerial ICT skills to help programmers valuable and heterogeneously distributed and analysts fit into an organization's across firms, then they usually will be a culture, understand its policies and source of sustained competitive advantage, procedures, and learn to work with other since these relationships are developed business functional areas on ICT-related over time; and they are socially complex projects.
Innovation is organizational capabilities. Ribadu study, based on the above assertion, and enter new markets.
The study competitive advantage is categorized as developed a framework that parallels the external and internal. The measure of resource based view RBV of the firm. External information technology adoption, advantage is measured with three items; innovative practices and competitive how a company uses its resources to advantage. Below is a table known as Data was gathered through questionnaires phenomena table. The researchers i.
They twelve 12 non-managers completed the extracted the phenomena from the questionnaires. Also, an interview was transcript of interviews using the grounded conducted with a middle manager of the theory analysis method.
In other Analysis from the data shows that to give the researcher additional insights information technology was seen to have and exposure to carry out the study, an facilitated innovation, leadership, attempt was made to obtain previously collaboration, and good relationship in collected data.
To this end, data from a general. This list was then rated by 52 senior managers. A set of critical issues that affect ERP implementations Bingi et al. This set of CSFs is consistent with the categories of strategic and technical implementation factors identified by Holland and Light Davenport, b; Reda, ; Jacob, ; Bingi et al.
As observed by Soh et al. The ERP industry as discussed earlier has not been performing as originally expected. The average ERP implementation takes 23 months Wheatley, Another problem associated with implementation is the speed the systems themselves operate at. ERP systems run on cycle updates, rather than on real time processing. Accurate analysis necessary for quick decision-making is lost in these cyclical updates.
Problems with hidden cost Cost is a critical part of an ERP implementation for both large and small businesses alike. While the range of ERP implementation becomes broader with the introduction of fast upgrading soft- ware applications, enterprises adopting ERP systems are more costly than before.
While most experts agree that ERP failures are not systemic, the following five types of common hidden cost may increase implementation cost dramatically Slater, ; Soh et al. Frequently, ERP vend- ers offer their system packages as a solution to making the company more efficient without first looking at the corporate business processes per se.
Automating an inefficient process would only generate more problems and unnecessary spending. Moreover, removing efficient proc- esses rather than integrating them highlights the problem of inflexibility that can arise with an ERP implementation Mendel, Supply chain management reengineers the chain and adds value by exploiting the information in the value chain.
Some of the major objectives of the supply chain management are.. Some of the implementation issues in sup- ply chain management are.. Even within an area, companies want to build corporate applications through which different departments can cooperate more efficiently with each other.
In one word, they need to establish a streamline business process, which can significantly enhance the communication and coop- eration among functional departments. To achieve this goal, functional integration is required, which is the process of integrating all business functions to work together, e. According to Jacob , ERP aims to improve internal efficiency by integrating different parts in the organization, while SCM focuses on external relationships with trading partners in the supply chain.
Indeed, the proliferation of ERP systems forces companies to provide com- munication and information flow between supply-chain agents, overcoming natural boundaries. Because they both rely on very similar framework, such as intranet, extranet and electronic data inter- change, it is very possible and feasible for their integration. Most ERP system providers have been enhancing their products to include sales-force automation, data warehousing, document management, and after-sales service and support.
And the most important trend today is the integration with SCM. CSFs Building on the concept of success factors introduced by Daniel , Rockart pre- sented critical success factors CSFs as an aid to help management focus its time and effort by monitoring results in those areas that are most important in helping attain organizational goals. When CSFs are appropriately identified, they represent areas in which excellent performance is essential to continued organizational success. Monitoring CSFs is a form of "management by objective" - monitoring those objectives or activities that have been identified as being essential to the continued wellbeing of the entity.
ERP systems, if appropriately designed, can provide management with the information needed to monitor performance and measure results in meeting entity goals. Methodology Employing a case study method, information was gathered in Spring from two small com- panies , being the first one a service beverage distribuitor company and the second one a metal-mechanical manufacturing company, in Sao Paulo — Brazil. Information officers were contacted by study researchers to ascertain their willingness to par- ticipate in this work.
Both agreed to participate. Background information about each organiza- tion was gathered via informal discussions and each information officer completed a short sur- vey instrument , regarding their acquisition and implementation of ERP systems. Using a qualitative approach, results were analyzed and are reported below. Identification of CSFs The managers of information technology at the investigated companies responded to the in- strument. Responses to the set of CSFs, implementation factors and motivating factors were obtained on a five-item Likert-type scale, with 5 as high.
The IT managers also responded to a set of issues related to implementation of the new sys- tem. Both managers provided input regarding the importance of the issues. The results of the assessment of implementation issues are presented in Table I , which presents the ranking of implementation issues, shows a set of common factors for the two organizations.
The issues of employee morale, top management commitment, reengineering and integration received a score of "highly important" from both entities. In addition, implementation costs and time were considered to have moderate importance. One reflection of this is the lack of importance attrib- uted to ERP consultants and vendors. Because the service company rated most of the items in this part of the survey as a "five", the manager of the hospital was asked to rank-order these items.
This rank-ordering is provided in Table I. The majority of operational and technical issues that motivated the acquisition of the system received similar ratings from the two organizations. The operational issues of high cost structure and inability to support strategies were rated as very important by both organizations, as was the technical issue of poor quality of information.
There was little difference in the responses regarding the tangible and intangible benefits of integrating systems, which are listed in Table II. Table III represents the items different. The service company responded with "5s" very impor- tant , for the majority of the tangible and intangible benefits. To further clarify the importance of items, and their interdependency, the IT director for the service company grouped the factors.
In his opinion, the items in group A helped illustrate the importance of those in group B. Address- ing the items in group A made the following group of issues more relevant and understandable to the implementation team. Additional items mentioned by service company as being critical to the success of the system implementation was ease of use of the system, particularly by the salers. Accuracy in billings was also identified as an important factor in moving to the new system.
In addition, the new system also provided a flexible financial statement format. Table I. Ranking of general ccriitcal success factors in ERP implementation. Tangible and intangible motivating factors of integrating systems.
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