Using MIS (9th Edition)
Using MIS (9th Edition)
9th Edition
ISBN: 9780134106786
Author: David M. Kroenke, Randall J. Boyle
Publisher: PEARSON
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Chapter 7.8, Problem 4ESSB

Explanation of Solution

ERP (Enterprise Resource Planning) software vendor can be a conduit to transfer innovation:

  • If all the organizations use the same processes and same software for conducting their business operations, they will be eventually giving the same products to their customers.
  • ERP software vendors give a standardized service to all the organizations as they follow the same set of standardized procedures.
  • Therefore, in the nonappearance of any change in the software used, organizations want to innovate new ways to distinguish themselves from the competitors by differentiating its services/ products or company processes.
  • ERP software vendors act as a medium to transfer innovativeness to the organizations.

Consequences to the innovative company:

  • It will get a competitive edge over its rival by accepting new business processes or developing their products or service...

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