Business Process Innovation Through Enterprise Resource Planning Implementation

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 and maintain competitive advantage. Implementing IT solutions such as enterprise resource planning (ERP) system has become an inevitable action to have an efficient business process. Specifically, this study seeks to put forward the question, “How does ERP implementation influence business process innovation?”. Using the lens of dynamic capability, a qualitative case study in the pharmaceutical industry was conducted tracing the stages and experiences of the ERP implementation. The findings confirmed that there is a revolutionary transformation of the business process brought about by the ERP system implementation. Moreover, this study identified factors enabling and transforming the business process. The case site illustrates an example of a business process innovation that can be used as a reference for companies adopting an ERP system as an IT solution.