Role of Enterprise Resource Planning Systems in Attainment of Competitive Advantage: A Case of Abc Bank

Abstract

Resource Planning systems have become one of today's largest IT z•.estments. They have been introduced to the finance, education, insurance, retail, and telecommunications sectors. ERP systems are used to manage a company's resources efficiently and effectively by providing a total, integrated solution for its information processing needs. Owing to its importance, most organizations are ernploying ERP systems to achieve competitive advantage. Therefore this study sought to establish how ABC Bank has used technological platform, business practices and strategies assisted by ERP to achieve competitive advantage. Descriptive surveywas used to conduct the study. The study targeted the 299 employees in operations, IT, and finance departments in all the 10 ABC branches in Kenya. A sample of 60 respondents was taken for the study using stratified random sampling. Prior to data collection the research instrument were tested for validity and reliability. After data collection the questionnaires were edited for completeness and consistency. Both descriptive and inferential statistics were used to analyse the data. The study established that ERP has facilitated adoption of technology, improved business practices and business strategies which have eventually influenced achievement of competitive advantage in ABC banks. The study recommends therefore that organisations contemplating ERP adoption should consider the success '.ersus non-success rates of employing ERP before they commit to the ERP initiative, that the top management support ERP initiative to ensure success in implementation and that that organizations adopting ERP should educate their users on how to use this technology.