The role of the Enterprise Resource Planning (ERP) Systems in Digital Transformation - Guidelines and recommendations for a case study company
Nordlund, Annika (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025101726118
https://urn.fi/URN:NBN:fi:amk-2025101726118
Tiivistelmä
Digital transformation is a strategic initiative designed to modernize a business by systematically adopting digital technologies, encompassing the transformation of business processes and operations. Digital transformation has become a necessity for companies to remain competitive. An Enterprise Resource Planning (ERP) system is an integrated suite of business applications that has a shared process and data model. The ERP system should be the first step and the backbone of the digital transformation journey. The integration of artificial intelligence (AI) and other digital transformation technologies into ERP systems can enhance productivity and efficiency, improve decision-making, optimize manufacturing operations, enhance customer satisfaction, and facilitate the creation of new business models.
The objective of this thesis was to support the digital transformation journey in a selected case study company. Specifically, the focus was on the role of ERP system implementation within the digital transformation journey. The case study company was a Finnish family-owned company specializing in indoor climate and indoor environmental products, services, and solutions. Data collection methods included document analysis of the case company's intranet and semi-structured interviews with senior executive team members of the case study company.
Results showed that the ERP system is expected to provide a foundation for digital transformation, enabling new ways of working, improved data utilization, and future integration with technologies such as AI. It is seen to offer significant benefits; however, these benefits are dependent on the ability to harmonize data and processes, invest in skills, have strong leadership, and foster a culture of continuous improvement and collaboration. The culture and history of independent units are seen to make change management more challenging. It is seen that transformation requires not just technical ERP skills, but a broad set of competencies in data, change management, business process understanding, and leadership. No significant changes were expected in the case study company’s business model, but AI and automation were seen as enablers of the future.
Based on the results, recommendations were made for the case study company. It was recommended that the company should define what digital transformation means to it, a digital transformation roadmap should be created, process and data harmonization targets should be clarified, change management activities should be followed up, the need for skills and competencies development should be considered, and the use of AI should be supported.
The objective of this thesis was to support the digital transformation journey in a selected case study company. Specifically, the focus was on the role of ERP system implementation within the digital transformation journey. The case study company was a Finnish family-owned company specializing in indoor climate and indoor environmental products, services, and solutions. Data collection methods included document analysis of the case company's intranet and semi-structured interviews with senior executive team members of the case study company.
Results showed that the ERP system is expected to provide a foundation for digital transformation, enabling new ways of working, improved data utilization, and future integration with technologies such as AI. It is seen to offer significant benefits; however, these benefits are dependent on the ability to harmonize data and processes, invest in skills, have strong leadership, and foster a culture of continuous improvement and collaboration. The culture and history of independent units are seen to make change management more challenging. It is seen that transformation requires not just technical ERP skills, but a broad set of competencies in data, change management, business process understanding, and leadership. No significant changes were expected in the case study company’s business model, but AI and automation were seen as enablers of the future.
Based on the results, recommendations were made for the case study company. It was recommended that the company should define what digital transformation means to it, a digital transformation roadmap should be created, process and data harmonization targets should be clarified, change management activities should be followed up, the need for skills and competencies development should be considered, and the use of AI should be supported.