The Transition from Transactional to Value Creation Engine

This paper aims to shed light on how the use of ERP technologies can create value and strategic advantages. One of the most popular questions about use of ERP technologies whether it is operational or unique value driver? The relevance of this question is grounded in the increasing strategic uses of ERP technologies. The unique contribution of the current paper emphasis value propositions of ERP technologies. Prior researches have long been interested in investigating the operational contributions of ERP technologies. The paper move away from the operational contributions towards a more organic approach. A dynamic matrix with key value creation parameters has been established. This empirical paper is based on a survey carried out among small and medium sized companies to ascertain the extent to which ERP technologies can be used as strategic and value creation tool. According to analysis of this paper, value creation contribution of ERP technologies varied according to IT infrastructure, information resources available, and organizational culture. The results introduce clear understanding for superiority and significant value creation contributions of ERP technologies. The results found that optimization of cost structure is still the most superior contribution and may improve value creation of ERP technologies in different ways. Such results are expected to assist companies to better analyze and adapt ERP scenarios to leverage its value and returns