Abstract
M.A.
The study set out to assess the influence of enterprise resource planning (ERP) system software on
the value chain process of multinational enterprises (MNEs). This was achieved through the
literature review that addressed the relation between the value chain approach as a strategic tool and
ERP system theory. The ERP system is positioned as a total solution for the MNE, and it contains
the best business practices that are derived from the various generic business functions of the value
chain architecture and configuration. A set of research hypotheses was developed, which were
tested in accordance with the research methodology and the design issues for the qualitative study.
The different chapters evolved along with a case study of an ERP system, namely Axapta software.
For the quantitative study, preliminary interviews were conducted to select the MNEs that use SAP
software. Thereafter a self-administered survey was applied relating to the strategy and the value
chain integration through the ERP system to the MNE's ERP system users. The research results in
the qualitative study show that for ERP software to integrate the MNE's functional activities and
processes in the value chain system globally and effectively, it has to position itself as a value chain
system with e-business mechanisms. In addition it has to suit the global ERP characteristics as an
information interchange, sharing and service. It has to be a flexible and comprehensive, modular,
open, integrated and multifunctional system, with an option to customisation in selecting modules
that best suit the MNE's management to craft its business's activities. The above was proved through
the analyses of Axapta software attributes by means of a technical strategic planning tool, namely
the value chain approaches, and the strategic supply chain factors for ERP software evaluation.
Axapta software met the requirements of a general and global ERP system model and it is indeed a
value chain system. The following statement can be cited as the most important findings of the
qualitative study: For the MNE to derive value from ERP system integration and utilisation, the
strategic information technology (IT) plan has to be formulated and followed in order to measure
the beneficial cost and efficiency of implementing the ERP system, and to assess the suitability of
ERP software during the selection process in accordance with the MNE's objectives that will
facilitate the success of ERP implementation usage. ERP software adopted for the MNE has to
include the international architecture and configuration types that align with the MNE’s strategy and
Internet application. This must include all the necessary value chain functional modules relating to
the ERP system as an integrating tool that will influence the MNE to align its strategy to gain
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competitive advantage. Consequently, such an ERP system will allow the MNE to strengthen and
integrate all its applications and activities in the value chain system. As a result the different
organisational suppliers and partners must be linked with the MNE's value chain system to enhance
the operational sites' users to operate efficiently, more reliably and in co-ordination with the MNE.
The necessary information and data must be available across the entire organisation's system from
the trading partners to the customers so that they can be satisfied on with the necessary urgency. In
the statistical analysis conducted from the self-administered survey, the major finding is the positive
view of the employers and employees of the customisation of ERP, i.e. SAP software, which helps
MNEs to craft the software according to their objectives and with the use of a strategic IT plan.
In conclusion the study highlighted the inseparability of ERP system theory from the value chain
approaches. Therefore, the study came to position ERP system theoretically as an evaluative tool
and technically as a value chain system that becomes an evaluative tool for ERP software activities
assessment. Moreover the study pointed out the importance of the use of a strategic IT plan within
the MNE. However, the main contribution and value of this study is obviously to assist any MNE in
the process of migrating business systems. The methodical approach facilitates the selection and the
evaluation of ERP software requirements within an organisation, which can meet its growth targets
and objectives. Thus, the strategic supply chain factors for ERP software evaluation and the
application of the value chain approaches discussed in this study will contribute to the acquisition of
fit and compatible ERP software. The choice of the right ERP software will definitely allow MNEs
to derive the benefits of the ERP system across its entire value chain sites (nationally and
internationally). It can be concluded from this study that any organisation wanting to invest in ERP
system implementation must apply the methodical approach formulated in this study by the
researcher. It is recommended that the assessment of an ERP system's modular and functional
activities, together with the organisation's value chain activities, be given priority before the
acquisition and adoption of the ERP system.