By Thomas H. Davenport
This can be a no-nonsense advisor to the advantages and pitfalls of company - huge info platforms. what number organisations might doubt the promise of an built-in firm approach (ES)? no longer many, judging through a $15 billion undefined. the combo of an ES as a platform for organizational details and net know-how for getting access to it provides as much as the proper answer for company-wide info sharing in actual time. no longer strangely, small and big businesses world wide are both contemplating an ES, within the means of enforcing one, or residing with the implications. but, says Tom Davenport, until managers view ES adoption and implementation as a enterprise determination instead of a expertise selection, they are risking sadness "Mission severe" offers an authoritative and no-nonsense view of the ES possibilities and challenges.Suggesting ESs aren't definitely the right selection for each corporation, the writer offers a suite of directions to aid managers evaluation the advantages and dangers for his or her companies. to achieve success, argues Davenport, a firm needs to make simultaneous adjustments in its details structures, its company strategies, and its enterprise method. Such adjustments are defined intimately with broad examples from actual organisations. Bolstering his competition that ESs will be seen as enterprise vs. know-how tasks, Davenport spells out the explicit enterprise switch pursuits that are meant to be formulated previous to ES adoption and monitored all through its implementation. the 1st strategic advisor to the ES choice, "Mission serious" might be vital to normal managers and knowledge know-how experts in any respect phases of the implementation procedure.
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Example text
The quote specifies a legally binding product configuration, price, delivery date, shipping method, and so forth, all determined in real time from the system. When the customer accepts the quote (via the Internet, let's say), a sales order is recorded. The system schedules the shipping (including shipping points and truck routes), then works backward from the shipping date to reserve material availability, order needed parts from suppliers, and schedule the computer assembly in manufacturing. The customer's credit limit is checked.
Or they can yield no benefit at all while still costing hundreds of millions of dollars to install. The choice is yours. What will it be? Most companies would, all other things being equal, choose the benefits. But all other things are not equal. Choosing to get business benefits from an ES project means treating it as a business project, not a technical one. It means setting up clearly defined objectives at the beginning, and monitoring their achievement throughout the life of the project. It means putting business executives in chargenot technical managerswho can make the organizational changes necessary to achieve benefits.
Despite these difficulties, ESs are the answer to the Information Age's wildest dreams. The concept of an integrated set of information technology (IT) applications that could meet all of an organization's information needs has been with us since the beginning of information systems in business, but has been unrealizable before the modern ES. We have gotten what we wished for; now we only need to make the business and organizational changes necessary to take advantage of our fulfilled dreams. Page 7 Business Benefits of Enterprise Systems I've already pointed out that ESs are difficult to put in place from both a technical and business change standpoint.