The Role of ERP-systems in Strategies for Synergy Capture

University essay from Lunds universitet/Företagsekonomiska institutionen

Abstract: Problems: A driving force for change in business is the availability of enterprise resource planning systems (ERP-systems). They have a great impact on companies, not only because they constitute exceptionally large investments, but also because they hold the promise of integrating companies more closely, hence, they should be important in the pursuit of synergy. In SCA Packaging, the landscape of information systems is very fragmented and therefore costly to maintain and causes anti-synergies within the company. SCA Packaging has recently decided to introduce a common ERP-system, and is therefore interesting to study. Purpose: The purpose of the project is to explain the role of ERP-systems in strategy for capturing synergy. Method: We have studied contemporary strategy and built a single case study around the decision to introduce a common ERP-system in SCA Packaging. Conclusions: A common ERP-system is considered to be a prerequisite for capturing cross business synergies within SCA Packaging. However, the main obstacle for realising the cross business synergies is in the non-standardised processes and product codes within the company. Potential cross business synergies were not the reason behind the decision to buy a common ERP-system, but had a significant effect on the choice of system. The main reasons for introducing a new system were rather problems with existing fragmented and outdated information systems. The most important synergies in general, seem to be vertical integration synergies and synergies related to the IT-function itself.

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