How Can Organizations Achieve Competitive Advantages Using ERP Systems Through Managerial Processes?

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Enterprise Resource Planning (ERP) systems have become a standard for collecting all business areas in one system. For some organizations it is a necessity for doing business, while others use it to outperform competitors. Prior research in the area of ERP systems and competitive advantage is dispersed and insufficient. Based on literature review and in-depth interviews at two Norwegian enterprises we have developed a framework which we believe gives insight into the areas managers should focus on when implementing ERP systems. Our study supports the claim that ERP systems in themselves do not create a competitive advantage. Instead, they form an information basis which managers can utilize to outperform competitors. A good relationship between IT/IS managers and the rest of the management is crucial. The importance of top management support was highlighted and linking ERP and a data warehouse as a “bolt-on” was very beneficial in one of the enterprises. 1 All correspondence should be directed to Carl.E.Moe@hia.no