Page 315 - Using MIS

other way around. Although such process changes are also implement the standard ERP blueprint, and if, over time,
difficult to implement, once the organization has converted every software company develops essentially the same ERP
to the standard blueprint, they need no longer support a features and functions, then won’t every business, world-
“variation.” wide, come to look just like every other business, world-
So, from a standpoint of cost, effort, risk, and avoidance wide? How will organizations gain a competitive advantage
of future problems, there is a huge incentive for organiza- if they all use the same business processes?
tions to adapt to the standard ERP blueprint. If every auto parts distributor uses the same busi-
Initially, SAP was the only true ERP vendor, but in the ness processes, based on the same software, are they not
meantime other companies have developed and acquired all clones of one another? How will one distinguish itself?
ERP solutions as well. Because of competitive pressure How will innovation occur? Even if one parts distributor
across the software industry, all of these products are begin- does successfully innovate a business process that gives it
ning to have the same sets of features and functions. ERP a competitive advantage, will the ERP vendors be conduits
solutions are becoming a commodity. to transfer that innovation to competitors? Does the use of
All of this is fine, as far as it goes, but it introduces a “commoditized” standard blueprints mean that no com-
nagging question: If, over time, every organization tends to pany can sustain a competitive advantage?

DisCussion Questions

1. Explain in your own words why an organization might 4. Explain the following statement: An ERP software
choose to change its processes to fit the standard blue- vendor can be a conduit to transfer innovation. What
print. What advantages accrue by doing so? are the consequences to the innovating company?
2. Explain how competitive pressure among software vendors To the software company? To the industry? To the
will cause the ERP solutions to become commodities. What economy?
does this mean to the ERP software industry? 5. In theory, such standardization might be possible, but
3. If two businesses use exactly the same processes and ex- worldwide, there are so many different business models,
actly the same software, can they be different in any way cultures, people, values, and competitive pressures, can
at all? Explain why or why not. any two businesses ever be exactly alike?

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