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GUiDe ERP and the Standard, Standard Blueprint

have the same sets of features and functions. ERP solutions If every auto parts distributor uses the same busi- 317
are becoming a commodity. ness processes, based on the same software, are they not
All of this is fine, as far as it goes, but it introduces a all clones of one another? How will one distinguish itself?
nagging question: If, over time, every organization tends How will innovation occur? Even if one parts distributor
to implement the standard ERP blueprint, and if, over time, does successfully innovate a business process that gives it
every software company develops essentially the same a competitive advantage, will the ERP vendors be conduits
ERP features and functions, then won’t every business, to transfer that innovation to competitors? Does the use of
worldwide, come to look just like every other business, “commoditized” standard blueprints mean that no com-
worldwide? How will organizations gain a competitive pany can sustain a competitive advantage?
advantage if they all use the same business processes?

DiSCUSSion QUeStionS

1. Explain in your own words why an organization might 4. Explain the following statement: An ERP software
choose to change its processes to fit the standard blue- vendor can be a conduit to transfer innovation. What
print. What advantages accrue by doing so? are the consequences to the innovating company?
2. Explain how competitive pressure among software ven- To the software company? To the industry? To the
dors will cause the ERP solutions to become commodi- economy?
ties. What does this mean to the ERP software industry? 5. In theory, such standardization might be possible, but
3. If two businesses use exactly the same processes and ex- worldwide, there are so many different business models,
actly the same software, can they be different in any way cultures, people, values, and competitive pressures, can
at all? Explain why or why not. any two businesses ever be exactly alike?