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From Industry Specific ERP to Supply Chains ERP¡GAn Application of focused differenciation strategy

In recent years, the trend toward globalization has given rise to rigorous competition for market shares. Businesses have faced the stern demand to swiftly respond to changes in market conditions. They must keep up with environmental situations inside and outside industry, fully integrate various resources of the enterprise, and ponder how to effectively use business resources. Therefore, ERP (enterprise resource planning) systems that integrate the internal value chains of enterprise have received special attention.
It is an undisputed fact that an ERP system can integrate internal resources of an enterprise to create for it an overall advantage, improve the flow and elevate the response effectiveness of the enterprise, upgrade information system, and respond to customers¡¦ satisfaction of supply chain management. However, the universal ERP system that is adopted by most enterprises is either costly or difficult to maintain. Moreover, the universal ERP system usually fails to consider special needs of different industries. Therefore, how to ensure a rapid, saving, and effective success through the implementation of ERP systems constitutes the largest challenge faced by enterprises that use such systems. In view of this, this study investigated, from the perspective of ERP supply chain effectiveness of the ¡§differentiation focus strategy¡¨ and the ¡§bowling pin model strategy,¡¨ the impact of the adoption of industry-specific ERP systems on ERP software manufacturers and enterprises that have introduced such a system. Besides, the study used case study approach to conduct a field survey of ERP software manufacturers that have implemented industry-specific ERP system strategy and of four textile and PCB manufacturers that have introduced industry-specific ERP systems with a view to understanding operating models in which industry-specific ERP systems have been successfully introduced and implemented.
Through the analysis of this study, it was found that:
(1)ERP information manufacturers that adopt industry-specific ERP strategy locating conform to Michael E. Porter¡¦s competitive strategy and differentiation focus strategy, and at the same time verify the bowling pin model theory of Geoffrey A. Moor that technology adopts life cycle. Information manufacturers can enjoy vertical profit-base market advantages of industry-specific ERP and thus avoid competition within industry. As they focus on their specialized field, they not only can strengthen ERP¡¦s professional system functions but also can elevate their effectiveness in follow-up service and maintenance, leading to the reduction of operating costs. From cases of ERP software manufacturers, it was also found that, in areas that special industries cluster, the value of industry-specific ERP in such markets is enlarged.
(2)From the perspective of developing industry-specific ERP, after a preliminary development method is used to direct a user to put up concrete industrial characteristic demands and flow, more friendly and suitable operating systems are specified. After being examined and used by a second user, systems are re-examined, revised, and strengthened. After being introduced by a third user and verified and implemented, such systems can become mature, standard industry-specific ERP package systems.
(3)From the perspective of enterprise users, adopting the proof of concept method is more practical, accurate, and promising in selecting and evaluating suitable, correct ERP systems. This method can help estimate the outcome after introduction and make it easier to evaluate benefits, for example, keeping project flow schedule and costs under control, implementation and simulation of new enterprise flow schedule.
(4)Each industry has professional knowledge and characteristics specific to it. For example, in the case of PCB industry, use rate of base plate material and design and management of engineering data are core professional knowledge of lumber industry. In the case of textile industry, analysis of fabrics, management of characteristics of semi-finished fabrics, integration and automation of process are critical functions essential to competitiveness of this industry. A universal ERP system cannot take care of unique characteristics of various industries. Therefore, only an industry-specific ERP that is specialized in and designed to meet characteristics of a concerned industry can perfectly satisfy the core professional operation of the industry.
(5)Because industry-specific ERP systems set the best model of business flow and are concise and suitable, they produce more rapid effectiveness, less impact on organization adjustment, and require smaller investments after being introduced into a business.
In view of the preceding findings, the study concluded that the adoption of industry-specific ERP can solidly, effectively, and accurately achieve purposes of ERP systems and can ensure the achievement of potential benefits. At the same time, information manufacturers can obtain vertical profit-base market, enlarging the effect of overall supply value chains.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0717102-113404
Date17 July 2002
CreatorsSung, Mao-Lin
ContributorsChin-Fu Ho, Wen-Hsiung Wu, Yi-Min Tu
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0717102-113404
Rightswithheld, Copyright information available at source archive

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