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What is an Enterprise Wide Application?. Introduction and principles. Based on Chapter 1 in Adam, Frederic and Sammon, David (2004) The Enterprise Resource Planning Decade: Lessons Learned And Issues For The Future , Idea Publishing Group, Hershey, PS. Enterprise Wide Applications.

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What is an enterprise wide application

What is an Enterprise Wide Application?

Introduction and principles

Based on Chapter 1 in Adam, Frederic and Sammon, David (2004) The Enterprise Resource

Planning Decade: Lessons Learned And Issues For The Future, Idea Publishing Group,

Hershey, PS.

Enterprise wide applications
Enterprise Wide Applications

  • As the name indicates…

  • Keywords:

    • ….

Enterprise wide applications1
Enterprise Wide Applications

  • As the name indicates…

  • Keywords:

    • Integrated

    • Centralised

    • Best practice

    • Cross functional

    • “mega packages”

    • Costly (inc. hidden costs)

    • Highly complex

    • High impact on business


  • No simple definition

  • American Production and Inventory Control Society (APICS)

    an accounting-oriented information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders

  • Transaction-oriented / operational

Family of applications
Family of applications

  • Enterprise Resource Planning systems

  • Supply Chain Management

  • Customer Relationship Management

  • Other more specialised applications such as planning, warehouse management …

  • Merging into ERPII / XRP –encompassing all aspects of the business

A complete family tree









Late 90’s

CRM Early 00’s

Sales Force




Customer Service

& Support





Early 00’s

ERP IIProduct Data Management Engineering Change Orders

New Product Introduction Collaborative Product Design

A Complete Family Tree

Erp family history brief
ERP Family history (brief)

  • As old as Fred under a variety of names

  • “ERP” name early 90s

  • Definitely “here to stay”

  • ERP creates a level of dependence that “far surpasses the dependence associated with prior technological regimes”*

  • ERP related expertise is in need in most firms

* Markus, M. L., & Tanis, C. (2000). The Enterprise Systems Experience —

From Adoption to Success. Claremont, CA: Claremont Graduate University.

Software characteristics
Software characteristics

  • Modular

  • Centralised – single instance model

  • Reliant on large database (eg: oracle)

  • Web based interface

  • Robust but inflexible

  • Configurable rather than customisable

  • Very dependent on data entry

Goals of erp implementations
Goals of ERP implementations

  • Standardisation / centralisation

  • Control – eg: integration of financial data

  • End fragmentation of legacy systems

  • More visibility on key processes

  • Optimisation / productivity gains

  • Competitive advantage?

  • Platform for other projects = infrastructure / backbone

  • Mechanism for integration of latest technologies (eg: RFID)

Other strong points
Other strong points

  • No more uncoordinated applications – eg quality control

  • No more re-keying

  • Solution to reporting problems across the board

  • “Sorting out” HR

  • Harmonising nomenclatures – eg: product codes, inventory files …

Problems with erp
Problems with ERP

  • Impact on business processes (eg: flexibility)

  • Understanding the “fit” problem

  • Doubtful benefits realisation (50% failure rate?)

    • Measurability

    • True origin of benefits

  • Impact on firm in wider sense

    • People

    • Clients / suppliers / partners…

  • Cost / disruption factor

    • $

    • Time

    • Learning curve

  • Coping with evolution (version control)

Gorry and Scott Morton (1971)

“The integrated management information systems ideas so popular in the literature are a poor design concept. More particularly, the integrated or company wide database is a misleading notion and even if it could be achieved, it would be exorbitantly expensive”

Gorry A. and Scott Morton. M.(1971) A Framework for Management Information Systems,

Sloan Management Review, Fall,55-70.

Dearden (1972)

“The notion that a company can and ought to have an expert (or a group of experts) create for it a single, completely integrated super-system - an MIS - to help it govern every aspect of its activity is absurd”

Dearden, A (1972) MIS is a mirage, Harvard Business Review, January / February

Erp stats
ERP Stats

  • Market dominated by 4/5 vendors though listings show 50+

  • SAP (around 30%), JD Edwards/peoplesoft, Baan, Oracle, MAPICS…

  • SAP alone: 19,000 customers in 120 countries, adding up to 12 million users in 65,000 sites.

  • This number of firms cannot all be wrong!