Putting the Enterprise into the Enterprise System

What systems should companies use to manage all of their company components of operation? It is suggested that Enterprise Systems are the best because it is a “custom of the shelf” product that fits all your needs – from finances, HR, and operations down to logistics, sales, and marketing. It is fully customizable and easily integrated saving companies millions while enabling them to operate more strategic.

The demand for an integrated Enterprise System was fairly low. In 1992, the demand shifted through the rapid technological advances and the increased use of technology (mainly Internet). In order to maintain a competitive advantage in a rapidly changing environment, companies were looking for systems that will enable them to operate more effectively and efficiently, especially in the HR field of operation. Germany’s SAP vendor became the fastest growing software company in the world. Its sharpest competitors include the U.S. based companies PeopleSoft and Oracle. The new terminology the emerged from Enterprise Systems is Enterprise Resource Planning (ERP). The article also suggests that you need to be very careful when looking for an enterprise system because you have to be able to first align the company’s strategy, organization and culture with this new system in order to be successful. If you can’t do that then this new system will be very costly while serving very little purpose for an organization. Sometimes we need to be reminded that an Enterprise System is not really just software but rather a new way of conducting business because we will have to change and adapt to a new processes. Additionally, Enterprise Systems shall enable an organization to be more effective and efficient; however, the risks such as time and cost associated with them are just as great.
My personal view on an integrated Enterprise System (and I hope I don’t offend anyone) is that I believe it is a waste of money. Back in the ‘60s, ‘70s, or ’80, it might have been a wonderful application; however, nowadays, technology is changing every 3-6 months. Additionally, pending on the market you are serving and how much competition you have (external factors) you may find yourself in a very challenging situation like Dell, Mobile Europe, FoxMeyer, etc. How do you supposed to keep up with it? Do you supposed to upgrade your system every 6-12 months? What’s the cost associated with that?

My current employer has a mainframe-based system that was developed and implemented in the ‘60s. Last month, the Board approved a new contract with a vendor to develop and implement a new mainframe-based system. The project development has started and the implementation will take place over the next 5-6 years. Well, I have a serious problem with that because it is a $46.5 million project and over the next 5-6 years the demand will have shifted drastically forcing them to rethink the way they are currently conducting the business. There will be an increased need to further streamline the operation so this newly developed and implemented mainframe-based system will be outdated once again...