Q1) Describe at least two benefits of using enterprise systems.
Answer:
A study conducted by Sykes, Venkatesh, & Johnson (2014), revealed that the most successful rms u!lize
their enterprise systems more than the less successful ones. The leaders of these organiza!ons achieve a
dispropor!onate level of success through the exploita!on of the vital link between organiza!onal
capabili!es and enterprise systems. Therefore, one of the main merits of enterprise systems is that they
provide organiza!ons with dis!nc!ve capabili!es. According to Sykes, Venkatesh, & Johnson (2014), such
capabili!es confer the rms with several prac!ces that culminate in compe!!ve advantage. Firstly, the
high performing organiza!ons emphasize on three factors that result in the maximisa!on of value. These
include integra!ng the rm, op!mizing the processes of the business and the analysis of the system data
to enhance decision making. Secondly, organiza!ons that realize the strategic value of enterprise systems
are able to u!lize modules that are speci c for the industry. Thirdly, successful rms are more willing to
incline the strategic components of enterprise systems in order to create sustained compe!!ve
advantage. In addi!on, they standardize and simplify other areas of the business and thus only permit
minimal modi ca!ons. Tian & Sean Xin (2015) note that the CLP Group is an example of an organiza!on
that has been able to achieve a high level of opera!onal discipline and efficiency through the u!liza!on
of enterprise systems. Consequently, the group has been able to achieve its strategic goals. Therefore,
the extent to which enterprise systems contribute to compe!!ve advantage seems to di4er among
rms. However, the more successful rms report that enterprise systems are integral determinants of
their compe!!ve advantage.
