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Influence of an ERP system on the value chain process of multinational enterprises (mnes)

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par Bosombo Folo Ralph
University of Johannesburg - Master in business administration (MBA) 2007
  

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1.8 Importance/value and benefits of the study

Much of the research done before was based mainly on ERP system project implementation, but not on the technical aspects of the system. Therefore, it is imperative that a study be conducted to determine the technical influence, requirements and compatibility of ERP software related to the value chain approaches within an MNE's value chain, its configuration and architecture. The possible benefits of this study could include:

· The provision of a literature framework related to the value chain theory since most ERP architecture on the market is based on that of the value chain concept;

· The formulation of a methodical approach that facilitates ERP software selection and evaluation; and

· Clarification for any researcher, corporation and MNE management on the strategic framework of how to evaluate ERP software that will integrate, strengthen and enable the MNE's value chain processes to operate beyond national boundaries with a competitiveness impact.

1.9 Limitation of the study

The research was limited to the analysis of ERP Axapta software in the qualitative study. SAP software was studied in the empirical study due to its popularity as established in the preliminary interview. Due to budgetary constraints, the study was limited to MNEs in Gauteng.

For ERP software project implementation to succeed within an organisation, it has to be seen as a
strategic IT tool through the use of a strategic IT plan. However, for ERP software to integrate an

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MNE's value chain, it has to be grafted with ERP system software architecture and configuration in alignment with the MNE's strategy. In addition, such ERP software has to meet the fundamental requirements of the value chain concept and reflect itself as a value chain system associated with the global ERP system requirements and characteristics configured with e-business mechanisms. Furthermore, the employees and employers have to know how to manage and use it through education and training. In this study, the ERP system, i.e. Axapta software, was analysed on the basis of the different topics covered in the different chapters, and the empirical study focused on SAP software.

1.10 Demarcation of the study

The dissertation is arranged in the following chapters:

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