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25/12/2007 by Justice Odei Som.
Information technology (IT) is said to enhance business growth and also ensure profitability due to the reduced cost of operation encountered. This contribution is perceived to be the second most important issue for CIO’s (CSC, 2001). Strategic management researchers have studied this impact for decades together with the related theories but those that stand firm include the competitive strategy framework, which is based upon a market power imperative (Henderson and Mitchell, 1997). In this, IT is seen as a means by which the firm gains competitive advantage by altering the market forces that collectively determine industrial profitability (Porter and Millar, 1985). This enhancement is either seen in the reduction of the cost of operation or the degree of differentiation that IT brings.
Another study of the influence of IT to firm performance also adopts a resource-based view that defines the capabilities and competencies possessed by the firm. These two theories comprise the most widely used theories in strategy in defining the impact of IT to business growth and strategic positioning (Henderson and Mitchell, 1997), though in the past both have been viewed as competing theories. The resource-based view depicts the firm as comprising of ‘bundles of unique resources’ (Penrose, 1959). Also, to achieve a competitive position either through a reduced cost or differentiation, these bundles of resources need to operate in complex relationships, be inimitable, sustainable and rear (Penrose, 1959; Rumelt 1984). The two theories introduce two distinct ideas to strategy: competencies and capabilities, and also the understanding of the industrial structure. To operate and deliver in a niche, firms need to assume some strategic position within the market in which they operate. Putting these two theories together, it seems that resources are themselves valuable no matter what form they are seen. But according to Porter, this is too far from normal and that resources only become valuable if they are put into strategic use to fit the industry structures. Questions then arise as to the cost-benefits of an IT project let alone that of an ERP.
An ERP decision should be one that put the firm into a strategic position or niche and geared towards the attainment of certain ends. Currently, an ERP strategy could be strategic or an ad hoc adoption (a technochase). The decision need not be made by people who think they are powerful and that their decisions should be hitherto taken. ERP has the potential to altering the rules of competition by changing how the industry or a company operates, generates competitive advantage and providing opportunities to manage the customer life cycle and experience (Porter and Millar, 1985), but these could be achieved on the condition that, the technology is used in a unique way. From the resource-based view, a resource possessed by most of the competition does not contribute to competitive advantage. Adopting an ERP solution strategically does not mean that the organisational problems will be solved automatically or processes themselves will improve, it needs the addition of change and people orientation to the new facility. This analysis is in line with the fact that IT resources alone do not provide competitive advantage (Powell and Dent-Micallef, 1997), the realization of which is by ‘leveraging complementary between business and human resources’.
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22/12/2007 by Justice Odei Som.
Less did I know that Ghanaweb had got a host of porn movies and sites. My revelation was due to the problem I had with the Northampton Academy when I was on contract helping year 11 students with their ICT coursework. My alocated space was infiltrated and it seem at the time that I have been watching porn during school time, though I taught I was just reading news from Ghana posted on Ghana web. The anguish still lives with me. I advise Ghanaweb to change their content.
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22/12/2007 by Justice Odei Som.
“Long time no hear from me”. Well, I was busy trying to locate some of the gold under the Bank of England. Though I found none, trust me when I tell you this, I have attained some experiences that have and will continue to shape my views on life and make me a better person then when I first arrived. I think I can call it “good ingredients for life”. By the way, did you know that most leaders in
I have seen man being treated like a cow of ancient days while modern man’s life is the reverse of the scenario. I have also seen that being black is a sin and this is punishable by death. May be you are not observant, so the grim in your face but if you should have dug deeper than I have, may be you would have come to terms with me. Life is a mess but not for those that own the “cold”. I mean “Mr. White” and his descendants. I hate life but also don’t know what death has in stock for me, so let me live no matter what the situation. I am troubled. I wish one day, man will be more sensible, be able to read between the lines and in fact see with more than two eyes. This I belief could be achieved through divine spiritual gains and mental correctness. To be frank, the attainment of this is not above our gift. The idea is based on who is wise, there you will find the best of fools. The search for more has brought about the confusion. Meanwhile, the lack of more is a misery. What do we do then? I know of a day and a time that life will be better for the “Blackman”. This day could be will be so short that it could pass by without anyone noticing it, meaning another opportunity to regain
In a recent research, I found out that the
To develop, a country needs to rely on not more than four strategic options; and not more than three strategic products. This helps to narrow the scope thus bringing the layman into an understanding of the national agenda. Though, this writing is intended to highlight general developmental challenges across Africa, its strategies are based towards the developmental agenda of
Just to get you thinking and observing. Have you notice what is going on in the NPP campaign to elect their presidential candidate for 2008? May be not. Am marveled where these guys got their monies? Actually, I saw them in 2000 and during the Great Alliance days. Remember, I was a Youth Organizer for the Great Alliance in the Elembelle constituency. The only good thing about them was the slang “I mean accent” from Dr. Apraku. Man, this guy was an American, but this has been converted into black cash so he has forgotten all these slangs. No problem. What ever they achieve tomorrow, that will not change people’s perception. What I keep asking is what is their strategy towards national development. General Mosquito was in the news describing these guys as thieves, may be they are stealing more than the NDC did. NPP, elect the chief thief we will welcome him. I wish you all well…….
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21/12/2007 by Justice Odei Som.
Stove-piped systems allow data to flow slowly and in batches requiring repackaging and at times reentry to facilitate its flow across different functional departments of an organisation. The zeal to integrate all business functions and ensure compliance across multi-functional departments has posed a challenge to business-IT/IS managers. The result was to set up a data warehouse available to the organisation. This serves the purpose of meeting all departmental needs and also securing both the customer and supplier. ERP package software integrates the business and IT service functions of the organisation beyond the firm’s boundaries. Certain organizations have software systems that perform some or most of the functional duties of an ERP package software, but the ability of ERP to automate all business functions in a unique fashion makes ‘its appeal clear’ to business (Hitt, Wu and Zhou, 2001).
The most widely used ERP systems is the SAP R/3 which was introduced in 1992 by SAP AG. It will interest you to know that two of the best world software companies IBM and Microsoft run their business on SAP R/3. ERP standardized and integrated environment provides a level of interoperability that no standalone system can meet. To achieve it will be very expensive to justify. The integrated nature of ERP allows data entered at one part of the process cycle to be carried forward to the next part of the cycle for further or future processing. ERP systems have made legacy systems outdated. The case of Owens Corning confirms this assertion. The business went from having more than 200 legacy systems to fewer than 10 (Bae and Ashcroft, 2004).
The selection and acquisition of an ERP package could be a difficult process requiring expertise in both business and IT. The process should be dictated by the business needs and financial capability of the organisation. By finance, I mean the total understanding of the cost and risk factors involved in an ERP implementation project. The ERP market has grown and is still growing. It has been forecasted that about 70%-80% of multinational firms will use the package software by 2010 (PricewaterhouseCoopers, 2004). This growth and popularity is attributed to a number of factors which will be stated later in this chapter of the study. In 1993 for example, ERP revenue in North America was $319 million, and then it experienced a 55 fold increase reaching at a peak of $17.7 billion by the close of 1999, a further 30% increase took the total revenue to $23 billion in 2000 (Pang, 2001)………….
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21/12/2007 by Justice Odei Som.
This blog is part of the good work being done by Business Innovations Group Consulting. Visit us to have free advice on how to handle the demands of today’s technology. It is managed by Justice Odei Som and he is the main blogger posting daily updates in the IT/IS worldon this site.
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