CPM systems are a new class of enterprise application that seeks to unlock the latent potential of data generated by Enterprise Resource Planning (ERP) systems. It appears to be a foregone conclusion that the use of such systems improves organizational performance thereby leading to competitive advantage but there is little academic research to support such an assertion. Using the dynamic capability theory of strategy, this research paper explores the mechanisms whereby such systems might possibly impact the firm’s performance through altering its capability portfolio. A two-part CPM performance model is developed framing implementation outcome in terms of three capability constructs, IT infrastructure, human capital and strategic leadership. It is suggested that these capabilities, moderated by the organizational culture must be aligned and developed to produce a successful implementation outcome. We propose that a successful implementation outcome provides the catalyst for a series of transformations resulting in the creation of new capabilities that may improve organizational performance.

This paper should be considered a “research in progress”.