2. TECHNOLOGY 2
Enterprise Systems
Introduction
The world is changing fast, and companies are evolving now more than ever. They use
their access to modern technologies to lay down proper strategies that can be used to leap ahead
of others. These technologies, which include ERP or Enterprise Resource Planning and Supply
Chain Management helps to make the flow of information around the organization seamless. It
helps to manage the modules, improve operational efficiency as well as make the decision more
efficiently. It also helps in providing real-time information which helps in the faster and better
decision-making process. However, the problem here is that almost every company has
implemented Enterprise Resource System and Supply Chain Management in their system so it no
longer provides a competitive advantage to just implement it. In order to make sure that they are
gaining an edge over their competitors, they have to come up with better approaches and strategies
to tweak the Enterprise Resource Planning system. This can help them regain their hold in the
market. The options are out there like niche targeting, innovative ideas, as well as efficient
integration, which can help in making sure that the goal of achieving competitive advantage is met.
Enterprise Systems Integration
The main aim of Enterprise System integration is that it can help in much more effective
communication between the organizational units. This mainly helps in driving the organization to
achieve its goals. These integrations could be of two different types, namely physical integration,
and business integration. Physical integration includes the integration of devices, networks,
computer and various machines that help in assisting the business operations. Business integration
includes the integration of all the functions of the organization that helps in the management of
business processes. What this flow of information along with enterprise resource planning will do
is that it will help to increase the efficiency and effectiveness of the operations conducted in the
organization, thus providing the competitive advantage that the organization wants. Integration
should be also in the context of the suppliers. If the suppliers could be successfully integrated into
this equation, it can help the organization gain an advantage upon its competitors.
3. TECHNOLOGY 3
If we take the example of P&G, also known as Proctor and Gamble, they are one of the
largest fast-moving consumer goods producers all around the world. They are based in the USA
but have their businesses running in almost about 80 countries. They are one of the key players
who use the Enterprise Resource Planning system to manage the critical functions of their business,
from finance to production. Its method of integrating the Enterprise Resource Planning system to
its existing array of IT systems helps in lowering the costs of processes and also helps in improving
the brand value of the organization internationally (Bjelland & Haddara, 2018). Another key IT
system used by P&G is Axway, which is mainly used for transferring files to, and receive it from
its partners. These help in better management of files, faster delivery and a secure way of making
sure that files are not hampered in any way. The integration of Axway with its Enterprise Resource
Planning system has resulted in not just easier and better communication with suppliers but also
helps in speeding up the process of ordering and acquiring materials. It also helps in better
communication with customers, thus improving their ties with them, as well as meeting the goals
of the organization.
Taking another example into focus, Amazon-acquired Kiva Systems use the idea of
Enterprise System integration into practice by merging cloud robotics and Warehouse
Management Systems. This has helped Kiva not just to make their operations more efficient, it has
also resulted in better management of the warehouse. Their idea was to integrate the up and
coming technologies like Big data and the Internet of Things with Cloud Robotics, which means
they could be using the cloud as their main base where they can store data and analyze it. They
can pick up new sequences from there, which can be implemented in the day to day activities of
the organization like manual tasks. The integration can go so deep that even networks can be used,
both local and mobile, to track data and take action (Tomblin, 2010). These enable the robots to
transfer information and improve their coordination, which in turn will result in completing the
business actions faster and in a better way. It helps to cut down the time required and fulfills the
operations that are required to be completed. This particular technology has impacted the market
big time and has helped in improving the way warehouses manage their operations. This has
resulted in faster completion of work by the warehouse management.
Niche Strategy
4. TECHNOLOGY 4
Niche Marketing strategy is actually a very tactical approach, especially when the market
has a number of key players in the same niche. It helps to improve the profits significantly, and
also helps in targeting the part of the market that is left untouched by those key players. It is a part
of what segmentation of market says. It means segmenting the market, then segmenting the
segmented market, so as to micro-focus (Robey, Ross & Boudreau, 2002). What niche marketing
does more than just market segmentation is that it also helps in the segmentation of the customers.
It does reduce the demand for a product since the market in focus is quite small as compared to
the broad market reach of selecting a broad focus product. It can also hamper the growth of the
company as a whole as hyper-focusing leaves no room to focus on any other product.
Now, we can take Nike here for an example. Nike started off as a very niche-focused
company, known only for its extremely well crafted athletic sports shoes. However, recently, it
has expanded its shoe business, and as penetrated other segments like athletic clothing, and
advanced technology linked shoes. This has helped them gain a significant portion of the market.
Nike’s product is of superior quality, and by integrating technological aspects to the shoes has
helped then create a new niche market and also grab the first-mover advantage there (Matende &
Ogao, 2013). It comprises of not just shoes, but mobile applications, wearable smartwatches, and
fitness bands, as well as smart shoes, which helps in providing the customer's information that they
previously didn’t know about, like the number of steps they took or the number of calories they
burnt. All this has come together to be a winning formula for Nike and has helped them compete
with their competitors at an advantage.
Another prominent example will be the home shopping channel that is quite popular across
the world, the HSE24. They track the customers buying patterns and behaviors to find out how the
taste and preferences of the customers are changing (Hendricks, Singhal & Stratman, 2006). They
use that data to promote a product that the customers are eager to buy while creating the limited
offer tendency to fuel the customers will buy. This not just helps in more sales, but also lesser
returns, thus resulting in more profits which is ultimately better for the business. All this is possible
only with the integration of Enterprise Resource planning systems and their niche marketing
objective.
Conclusion
5. TECHNOLOGY 5
The strategies taken up by businesses are as diverse as the business themselves. They take
up strategies that are according to their business style and needs. What is important to understand
is that the data available to any organization nowadays are way too much. It depends on how they
use the data to their benefit, which can help them to achieve the competitive advantage they want
in the market. Integration of Informational and Digital Technologies, Cloud Technologies as well
as Niche targeting are just some of the many ways to integrate Enterprise Resource Planning
systems into a competitive advantage for the organization (Davenport & Brooks, 2004). The
integration provides the company to improve the relations with the suppliers and expect faster
processes while using the niche marketing plan helps to improve the quality of their products and
make sure that the loyal customers to that product stay hooked to it. The businesses themselves
have to identify which strategy will work best with their business to help them gain a competitive
advantage on their competitors by integrating it with Enterprise Resource Planning systems.
6. TECHNOLOGY 6
References
Bjelland, E., & Haddara, M. (2018). Evolution of ERP Systems in the Cloud: A Study on System
Updates. Systems, 6(2), 22. doi: 10.3390/systems6020022
Davenport, T., & Brooks, J. (2004). Enterprise systems and the supply chain. Journal Of
Enterprise Information Management, 17(1), 8-19. doi: 10.1108/09576050410510917
Hendricks, K., Singhal, V., & Stratman, J. (2006). The impact of enterprise systems on corporate
performance: A study of ERP, SCM, and CRM system implementations. Journal Of
Operations Management, 25(1), 65-82. doi: 10.1016/j.jom.2006.02.002
Matende, S., & Ogao, P. (2013). Enterprise Resource Planning (ERP) System Implementation: A
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10.1016/j.protcy.2013.12.058
Robey, D., Ross, J., & Boudreau, M. (2002). Learning to Implement Enterprise Systems: An
Exploratory Study of the Dialectics of Change. Journal Of Management Information Systems,
19(1), 17-46. doi: 10.1080/07421222.2002.11045713
Tomblin, M. (2010). Theory Development in Enterprise Systems and Organizational Learning.
Journal Of Organizational Computing And Electronic Commerce, 20(4), 398-416. doi:
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