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  • Essay / Strategic Use of ERP - 778

    IntroductionERP systems are integrated software that help integrate, connect and ensure all processes are consistent and transparent. It helps managers make decisions based on this information, which suggests the precise state of their business. ERP systems were also known as "back-office" systems, which automated time-consuming and complex processes carried out by finance and human resources departments. And now, by adding additional functionality to already advanced and fully functional “back office” systems, organizations are reaping more benefits than ever. (Davenport, 2009) Regardless of the size of an organization, to stand out and have that competitive advantage, its customers must choose it over its competitor. They must have a well-organized and successful plan in place, which requires continued commitment and the hunger to outperform. (L. Ganesh, Arpita Mehta)According to Lengnick .et.al, when organizations implement ERP systems with existing systems, it reshapes the way a company's core business processes work. It's like giving birth to a new business model through an integrated and consolidated software system. The results of Nolan and McFarlan's (2005) study show that although some ERP systems implemented for some companies are capable of providing a competitive advantage in the market, not all are. Organizations will gain this advantage because of how their businesses are managed and how they use ERP systems for their business processes. This article examines how a company differentiates itself from its competitors to secure a competitive advantage in the market. Competitive advantageDavenport (2009) states that organizations must learn to get the most out of their most... paper average managers. There were four important points regarding organizational resources, which were raised in the book by Mata et al. (1995). They believe that if some responsibility was attributed to these factors, they could become the basis for an organization to achieve a competitive gain over its competitors. The four main elements highlighted by Newman et al. The main requirements are proprietary technology, technical IT skills and managerial IT skills. Although the research led by Mata et al. (1995) in the book is hypothetical and reviews previous research, they discussed that unless managers do not manipulate the full potential of the system's capabilities, this cannot convince others to see the benefits that they see. . So we came to the conclusion that IT managerial skills were probably the only attribute that could create competitive advantage..