ENTERPRISE RESOURCE PLANNING AND THE COMPETITIVE ADVANTAGE: THE EASE OF INTEGRATING INFORMATION BETWEEN CORPORATE HEADQUARTERS IN THE UNITED STATES AND FACTORIES IN MEXICO

Abstract

The current interest in Enterprise Resource Planning (ERP) software systems is based primarily on the principle of the system: generating real time data, enabling linkages across functional areas and divisions, and, thereby, promoting the integration of information across all of the units of a business at one time. Indeed, in practice, such a system not only cultivates accurate and timely information which is available for all operations in a company, including those in global locations, but also fosters more effective decision making and the attainment of the competitive advantage. This study, therefore, examines the benefits of implementing an ERP system, in general, and SAP R/3, a type of ERP system in particular, in the headquarters of major corporations in the United States, as well as in the factories of these corporations located in Guadalajara, Mexico. More specifically, eight corporations which have adopted SAP R/3 and include AT&T, Compaq, Eastman Kodak, Hershey Foods, Hewlett‐Packard, IBM, Intel, and Motorola are examined, and the benefits and merit of having the same SAP R/3 software system in their installations in Guadalajara, Mexico are explored.