PUTTING THE ENTERPRISE INTO THE ENTERPRISE SYSTEM

Enterprise systems present a new model of corporate computing. They al low companies to replace their existing information systems, which are often incompatible with one another, with a single, integrated system . By streamlining data flows throughout an organization, these commerc ial software packages, offered by vendors like SAP, promise dramatic g ains in a company's efficiency and bottom line. It's no wonder that bu sinesses are rushing to jump on the ES bandwagon. But while these syst ems offer tremendous rewards, the risks they carry are equally great. Not only are the systems expensive and difficult to implement, they ca n also tie the hands of managers. Unlike computer systems of the past, which were typically developed in-house with a company's specific req uirements in mind, enterprise systems are off-the-shelf solutions. The y impose their own logic on a company's strategy, culture, and organiz ation, often forcing companies to change the way they do business. Man agers would do well to heed the horror stories of failed implementatio ns. FoxMeyer Drug, for example, claims that its system helped drive it into bankruptcy. Drawing on examples of both successful and unsuccess ful ES projects, the author discusses the pros and cons of implementin g an enterprise system, showing how a system can produce unintended an d highly disruptive consequences. Because of an ES's profound business implications, he cautions against shifting responsibility for its ado ption to technologists. Only a general manager will be able to mediate between the imperatives of the system and the imperatives of the busi ness.