TABLE OF CONTENTS:
Abstract iDeclaration
iii
Acknowledgements ..iv
CHAPTER 1: INTRODUCTION AND SCOPE OF
RESEARCH
1. 1 Introduction
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1
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1. 1. 1 Multinational enterprises (MNEs)
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.1
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1. 1. 2 Value chain integration and information system (IS)
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.5
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1. 1. 3 Strategy and value chain model
|
6
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1. 1. 4 ERP system. .
|
8
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1. 1. 4. 1 Factors contributing to the problem
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10
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1. 1. 4. 2 Selection and evaluation of ERP systems
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10
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1. 1. 5 Axapta Microsoft solution software
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..11
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1. 2 Problem statement
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.11
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1. 3 Purpose of the research
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12
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1. 4 Research hypotheses
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13
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1. 5 Research design
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13
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1. 6 Research methodology .
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14
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1. 7 Methods of collecting data
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.14
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1.8 Importance/value and benefits of the study
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.16
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1.9 Limitation of the study
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.16
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1.10 Demarcation of the study
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17
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v
CHAPTER 2: LINKING STRATEGY WITH INFORMATION
TECHNOLOGY
THROUGH A VALUE CHAIN APPROACH
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2.1 Introduction
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.19
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2.2 The interdependence of technology and strategy
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19
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2.3 The role IT plays within strategy
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20
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2.4 The importance of a strategic IT plan within an
organisation
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22
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2.5 The value chain and IT, linked to the strategic management
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23
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2.6 Definition of the value chain concept
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25
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2.7 Different graphic representations of the value chain .
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27
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2.7.1 Porter's value chain .
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.27
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2.7.2 The customer - centric value chain
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29
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2.7.3 Scott's value chain
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.31
|
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2.7.4 Walters and Lancaster's value chain
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.33
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2.7.5 Value nets
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36
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2.7.6 The electronic - business value chain
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.37
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2.8 ERP system and e - business: An evolving relationship for
value chain extension
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40
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2.9 The value chain selected and customised for the purpose of
this study
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41
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2.10 The value chain's system through ERP system integration.
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43
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2.11 The impact of IT in the value chain system
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..44
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2.12 Conclusion
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45
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vi
CHAPTER 3: AN OVERVIEW OF ERP SYSTEMS
3.1 Introduction
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.48
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3.2 The background of ERP systems
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48
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3.3 Defining the concept of an ERP system
|
49
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3.4 The general model of an ERP system compared to a value
chain
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51
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3.5 The role and benefits of an ERP system
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.53
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3.5.1 The advantage and disadvantage of an ERP system
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..54
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3.5.2 The characteristics of an ERP system
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..55
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3.6 ERP system: The hub of an MNE
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..57
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3.6.1 The modules of an ERP system
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58
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3.6.2 ERP system package
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61
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3.7 Global ERP system configuration
|
61
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3.7.1 Alignment between ERP system configuration and
international strategy
|
62
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3.7.2 Types of international strategies
|
.64
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3.7.3 ERP systems for organisations that use an MNE strategy
|
65
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3.8 Strategic factors for the evaluation and selection of an
ERP system
|
66
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3.8.1 Selection of an ERP system
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.69
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3.8.2 Methodology of an ERP system
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..70
|
|
3.9 The implementation of an ERP system 71
3.9.1 Factors affecting the implementation process 73
3.9.2 A strategic approach to ERP implementation ..74
3.9.3 Cost of ERP implementation 74
3.10 Conclusion 75
vii
CHAPTER 4: A CASE STUDY OF ERP SYSTEM - AXAPTA
MICROSOFT SOLUTION
SOFTWARE
4.1 Introduction 76
4.2 The background of Axapta ..76
4.3 The analysis of the Axapta Microsoft system 77
4.4 Axapta supports the entire business operation ..78
4.5 The selected key features of Axapta Microsoft solution
software .79
4.6 The generic modules of Axapta Microsoft solution .81
4.7 Conclusion ..84
CHAPTER 5: RESEARCH METHODOLOGY
5.1 Introduction .85
5.2 Qualitative and quantitative study ..85
5.3 Research design ..85
5.4 Methods of collecting quantitative data .86
5.5 Sampling method and sample size ..88
5.5.1 Sampling method .88
5.5.2 The sample size 88
5.6 Questionnaire design for quantitative study 89
5.7 Response rate ..90
5.9 Data analysis 92
5.10 Conclusion 92
viii
CHAPTER 6: RESEARCH FINDINGS AND INTERPRETATION OF DATA
ANALYSIS
6.1. Introduction
|
93
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6.2. Qualitative findings
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.93
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6.2.1. Axapta software integrates MNEs' value chain and
supports MNEs' strategy
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..93
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6.2.2. Strategic factors of an ERP system evaluation .
|
95
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6.2.3 Summary (section 6.2.1 to 6.2.2) for hypothesis 1 (H1)
|
97
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6.2.4 Axapta's software evaluation .
|
.99
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6.2.5 Axapta's value chain system 99
6.2.5.1 Porter's value chain and Axapta's value chain
architecture ..100
6.2.5.2 Walter and Lancaster's value chain and Axapta's
attributes 101
6.5.5.3 The customer-centric value chain and Axapta software
.103
6.2.5.4 Scott's value chain and Axapta software .104
6.2.5.5 Value nets and Axapta software value chain architecture
..104
6.2.5.6 The e-business value chain model and Axapta software
architecture .105
6.2.6 Summary (section 6.2.3 to 6.2.4) for hypotheses 2, 4 and 5
(H 2, H 4 and H5) 105
6.2.7 Axapta as an IT integrative tool for MNEs' value chain
systems .107
6.2.8 Summary (section 6.2.5) for hypothesis 6 (H6) . 107
6.3. The findings of the empirical study for hypothesis 3 (H3)
108
6.3.1 Section A: Demographics
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108
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6.3.1.1 Organisation profile
|
.108
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6.3.1.2 CEO/CIO profile
|
108
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6.3.1.3 Manager profile
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109
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6.3.1.4 End-user profile
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111
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|
ix
6.3.2 Section B: Views of CEOs/CIOs on strategic management,
SAP and training 113
6.3.2.1 SAP software and training profile 113
6.3.2.2 Section C: Strategic management, SAP system and value
chain 114
6.3.2.3 Section D: General information ..114
6.3.3 Section B: Views of managers and end-users 114
6.3.4 Section C: Views of managers and end-users on strategic
management, SAP and training 119
6.3.5 Results of statistical testing 120
6.3.5.1 Job level / full-time employees cross-tabulation 121
6.3.5.2 Departmental objectives/ strategic IT plan
cross-tabulation 122
6.3.5.3 SAP software selection cross-tabulation 123
6.3.5.4 Awareness of training cross-tabulation ..124
6.3.5.5 Training / Responsible for the training cross-tabulation
.. 125
6.6 Conclusion 126
CHAPTER 7: CONCLUSIONS AND RECOMMENDATIONS FOR FUTURE
RESEARCH
7.1 Introduction
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127
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7.2 Achievement of the objectives
|
128
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7.2.1 Primary objective
|
128
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7.2.2 Secondary objectives
|
.129
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7.3 The value and the contribution of the study
|
131
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7.4 The methodical approach for ERP software assessment
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131
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7.5 Conclusion and recommendation
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133
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7.6 Areas for future research
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..133
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x
References ..135
xi
Table of figures
Figure 2.1: Porter's value chains model 28
Figure 2.2: The traditional value chain 30
Figure 2.3: The customer-centric value chain .31
Figure 2.4: An alternative view of the value chain drivers 32
Figure 2.5: The value chain components model 34
Figure 2.6: Value chain structure and process 35
Figure 2.7: The e-business value chain .38
Figure 2.8: Prominent applications of the Internet in the value
chain . 39
Figure 3.1: Integrated modules in ERP solutions 49
Figure 3.2: The general model of an ERP system 52
Figure 3.3: The conceptual model of ERP system linkages with
supply chain factors 68
Figure 3.4: Outline of the methodology .71
Figure 6.1: The module activities of Axapta depicted in the
Porter' value chain 100
Figure 6.2: Axapta cost/value drivers depicted in Walters and
Lancaster's value chain 102
Figure 6.3: Full-time employees reporting .. 111
Figure 6.4: Views of managers and end-users of SAP software
efficiency ..115
Figure 6.5: Responsible for SAP software training (Responded)
.116
Figure 6.6: Responsible for SAP software training (Not
responded). 117
Figure 6.7: Level of agreement ..118
Figure 6.8: General information/ statement 120
Figure 7.1: The methodical approach 132
xii
Table of tables
Table 2.1: The key business design differences
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37
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Table 3.1: Characteristics of an ERP system
|
.56
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Table 4.1: The selected key features for Axapta Microsoft
solution
|
.80
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Table 5.1: The usage of ERP software in randomly selected MNEs
|
.87
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Table 5.2: Relationships between questions in the
self-administered questionnaire survey and the primary and secondary objectives
and research hypotheses
|
90
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Table 5.3: Response rate to the self-administered survey
|
91
|
|
Table: 6.1 General ERP system modules compared to Axapta
software package modules..........
|
96
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Table 6.2: Organisation profile
|
.108
|
Table 6.3: CEO/CIO profile
|
109
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Table 6.4: Manager profile........
|
110
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Table 6.5: End-user profile
|
112
|
Table 6.6: View of CEOs/CIOs on strategic management, SAP and
training
|
113
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Table 6.7: Views of managers and end-users of the acquisition
of SAP software
|
115
|
|
Table 6.8: Cross-tabulation for question a2 (What is your
current job level?) with a5 (How many full-time employees report to you?)
.121
Table 6.9: Cross-tabulation b 9.1 (SAP software supports my
department's objectives) with b 9.8 (The IT strategy plan in our organisation
influences the extent to which SAP software can be successfully implemented)
122
Table 6.10: Cross-tabulation b 9.1 (SAP software supports my
department's objectives) with b 9 2
(senior managers were consulted regarding the selection of ERP
software used in my organisation) 123
xiii
Table 6.11: Cross-tabulation b 9.5 (Sufficient funds were made
available to train employees in SAP software usage) with c 10.3 (I received
sufficient training on the usage of the SAP) 124
Table 6.12: Cross-tabulation c 10.3 (I received sufficient
training on the usage of the SAP software) with b 8.3 (The training is done
on-the job with experienced employees) ..125
xiv
Appendix
Appendix A: Self-administered survey for CEOs/CIOs
|
143
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Appendix B: Self-administered survey for managers and the
end-users
|
146
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Appendix C: Cover letter for questionnaires to MNEs
|
149
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Appendix D: List of organisations consulted in preliminary
telephonic surveys.
|
.150
|
Appendix E: List of organisations included in the
self-administered surveys .
|
.151
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Appendix F: Statistical analysis
|
152
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Appendix G: Frequencies and descriptive data for the CEOs/CIOs
|
163
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Appendix H: Frequencies and descriptive data of end-users and
managers
|
.168
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xv
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