Impact Of Erp Systems On Process Innovation - With A Special Focus On Mass Customization
Impact Of Erp Systems On Process Innovation - With A Special Focus On Mass Customization
...started to standardize and integrate their processes in one system to manage their key resources more effectively by implementing ERP systems. The integration of business functions and the ready availability of all types of necessary and unnecessary information have paved new ways for the customer approach. ERP systems are part of a generation of information systems which have changed the traditional mass-marketing approach. Add-on modules such as CRM (Customer Relationship Management) enable the collection of detailed information about individuals and the use of this information to tailor products and services to the individual needs of customers. First mentioned by Davis (1987) and consequently elaborated by Pine II (1993) the concept of mass customization emerged. It is characterized by the ability to provide customized products or services through flexible processes in high volumes and at reasonably low costs
When ERP was introduced it enabled organizations to practice new forms of industrial engineering, a shift away from the traditional forms where IT functioned independent of the business objectives (Venkatraman, 2000). The standardization of processes, however, forms quite a rigid system as it does not leave much room for changes in a company. With respect to the changing market and process requirements due to mass customization this rigidity could form a barrier towards process changes since once a company has a ERP system it is bound to vendor updates or costly system customization for integral changes. Mass customization has not known a big bang introduction but rather gradually evolved from changing market requirements. Therefore, its further development is subject to customers´ wishes and lives from the flexibility and adaptability of the technical systems involved. Hence this paper intends to investigate in which way ERP functionalities influence...
