Modelling and Analysis of Enterprise Information Systems by Angappa Gunasekaran

By Angappa Gunasekaran

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From a resource-based view, efficient and effective processes are among the difficultto-imitate internal strengths that enable firms to compete in the market (Coates & McDermott, 2002). The reasons for improving processes are manifold, including the desire to reduce defects and production cycle times, raise the efficiency of internal processes, pursue technological improvements, and re-define business strategies (Chan & Peel, 1998; Paper, Rodger, & Pendharkar, 2001). Chan et al. (1998) also listed several external factors that motivated companies to embark on the re-engineering of business processes, such as evolving customer service requirements, competition, changing market conditions, new government regulations, and political pressure.

1999) defined IT infrastructure capabilities to include information technologies, sourcing arrangements, and policies Copyright © 2007, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. Research Issues of the IT Productivity Paradox 29 that form an overall system supporting information-related activities. Broadbent et al. (1999) and Weill et al. (1999) described the IT infrastructure capabilities of an organization as a portfolio of technologies and services that consists of network infrastructure and the supporting technical and management expertise required to provide connectivity and information sharing within and across organizational boundaries.

Other studies have also re-iterated the contribution of IT to an organization’s capabilities in marketing and operations by endowing it with the ability to collect, manage, and analyze huge volumes of data (Beckett, 2000; Plakoyiannaki & Tzokas, 2002). Pereira (1999) argued that it was possible to create sustained competitive advantages in the deployment of SAP systems. SAP provides a vast number of tables and parameters for firms to configure. In many circumstances, firms may need to re-engineer their internal business processes to achieve an appropriate degree of mutual fit between systems and processes.

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