Business process innovation through enterprise resource planning implementation: A case study of pharmaceutical industries

• Main Author: Frias, Noil A.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Enterprise resource planning; Pharmaceutical industry—Technological innovations; Databases and Information Systems; Technology and Innovation
• Online Access: https://animorepository.dlsu.edu.ph/etd_doctoral/1467; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=2506&context=etd_doctoral
• Institution: De La Salle University

Enterprise systems are among the information technology (IT) solutions aimed at transforming the organization’s business processes. This IT investment has been considered a major cost among organizations hoping to streamline business processes to maintain competitive advantage. Implementing IT solutions such as enterprise resource planning (ERP) system has become an inevitable action to remain at the forefront of business process improvement. The challenge is to continuously seek business process refinement, either revolutionary or evolutionary, once enterprise systems become operational. Specifically, this study seeks to put forward into investigating this area by asking the question: How does dynamic capability, through ERP, influence business process innovation (BPI)? Using the lens of dynamic capability theory, two cases were examined to investigate business processes of two companies employing a computerized information system. A case approach was used as a guide to investigate. The findings confirmed that through sensing, seizing, and transformation practices, an organization enables capability for process improvement. However, the presence of an enterprise system allows the organization to meaningfully harness process innovation compared to that of a functional information system. The findings also suggest that business process innovation can be achieved through an adoption process of ERP system. A top-down approach on business process improvement initiative further enriches the business process during post implementation. While implementing a functional information system allows few dynamic capability practices, the resulting changes can be considered as incremental and short-lived particularly at the individual perspective. The innovation framework derived from the two cases provides organizational adoption of business process improvement or innovation.