THE ENTERPRISE SYSTEMS

IMPLEMENTATION:
AN INTEGRATIVE FRAMEWORK

By:
Deepali Khanna ( 09609019)
Ankit Goyal (09609025)
Nitin Maheshwari (06503866)
 Introduction
• Enterprise Systems(ES): Large-scale,
integrated application-software packages
that use the computational, data storage,
and data transmission power of modern
information technology to support
processes, information flows, reporting,
and data analytics within and between
complex organizations.
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 Why there is a need of ES:
• As the pace of change accelerates in the
twenty-first century as a result of technological
opportunities, liberalization of world markets,
demands for innovation, and continually
decreasing life cycles, organizations are
finding that they have to continuously re-adjust
and re-align their operations to meet all these
challenges like better decision-making, and
achieve a competitive advantage.

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The Enterprise Systems Implementation : An Integrative Framework
 Problems with ES:
• Half of ES implementations fail to meet
expectations (in 1997).

• More than 70 percent of ES implementation

fails to achieve their estimated benefits.

• The level of return on investment (ROI) is

rather low.

• Serious conflicts with their business strategies

and the majorities of ES projects are often
characterized by delays and cost overruns.
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 Issues Identified
• The certain issues specific to these enterprise
systems have to be taken into account like
unsuitability and extent of business processes
re-engineering required in institutionalized
business.

• ES configuration options to fit business

processes is:
• Costly
• Risky
• Time Consuming
• Difficult.

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 ES Characteristics
• ES is both strategic and operational.

• Strategic systems aim at making the organization more flexible

and responsive to customer needs.

• The evaluation of strategic systems has to be based on cost

while ES software’s operational costs and benefits are more
easily identifiable and quantifiable than the strategic ones.

• Financial techniques such as discounted cash flow, are

constantly misused while evaluating strategic IT decisions
• It is difficult to assess in quantitative terms, a qualitative terms
using techniques like Likert type scales and interviews
respectively.
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 Stakeholders Analysis
• A number of ES’s stakeholders operate outside the
organization’s boundaries.
• SCM - Co-operation between business partners
CRM - Cooperation with the organization’s customers.

EXTERNAL STAKEHOLDERS
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 Cost And Benefit Analysis
• There is a high percentage of intangible costs and
benefits.

• Intangible assets are created by investments in

software, training and organizational
transformations induced by IT.

• All three costs are taken into account while

considering ES projects: tangible costs
intangible assets
hidden costs

• Intangible or hidden and underestimated costs are

also a major concern among ES specialists.
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 Organizational Impact

• A major implication of ES deployment involves

drastic changes in the
• Organizational Structure
• Business Processes
• People Of An Organization.

• The re-engineering exercise is undertaken with the

aim of achieving the optimization and integration of
business processes according to the software’s
inbuilt best practices.

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Proposed Integrative Framework For ES Adoption
 Clarification Of The Business Vision
• A clear business vision.
• ES requires substantial business process re-engineering.
• The first step in process re-engineering is to develop the
business vision and process objectives.

 Comparing Needs vs. Capabilities And Constraints

• The decision concerning the adoption of an ES has to be
made according to both the current and the future status of
the enterprise.
• The status of the enterprise is constrained by various
technological, organizational and financial inefficiencies .
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Proposed Integrative Framework For ES Adoption
(Contd.)

 Business Requirements
• Both current and future business needs, arising mainly from
external competitive pressures, have to be balanced against
various technological, work and organizational constraints.

 Product, Vendor And Support Services Evaluation

• The phase considers the selection of ES modules that support
critical business functions.
• ES packages offers a broad functionality, they certainly exhibit
individual strengths and weaknesses compared to individual
business requirements.
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Proposed Integrative Framework For Es Adoption
 Constraints

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 Proposed Integrative Framework
For ES Adoption

 All-In-One vs. Best-Of-Breed ES Software

• Enterprises searching for competitive advantage
have the option of acquiring an all-in-one or a best-
of-breed ES.

•All-in-one approach - Multinational Colgate-

Palmolive’s SAP R/3

•The Boeing Commercial Airplane Group has

chosen the best-of-breed ES.
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 Conclusion

• A large variety of ES core and extended

modules and supporting services are
being offered by established ES vendors
and third party companies.

• The decision to acquire an ES and the

adoption process is becoming increasingly
complex in a changing and competitive
environment.

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 Conclusion Cont…
• Enterprises pursuing systems integration
should evaluate and select systems that
contribute to this goal without of course
sacrificing the functionality of applications
they believe are crucial for their business.

• Careful adoption process of vendors,

products and services provided is
necessary but the final decision has to be
made considering the amount of
organizational change required for the
adoption and the implementation of the
selected ES.
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 Thank You

Questions

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