Enterprise systems (ES) are large-scale organizational systems built around packaged enterprise system software. Enterprise system software (ESS)
• is a set of packaged application software modules with an integrated architecture, which can be used by organizations as their primary engine for integrating data, processes and information technology, in real time, across internal and external value chains;
• contains deep knowledge of business practices accumulated from vendor implementations in a wide range of client organizations;
• is a generic ‘semi-finished’ product with tables and parameters that user organizations and their implementation partners must configure, customize and integrate with other computer based information systems to meet their business needs.
ENTERPRISE SYSTEMS appear to be a dream come true. These commercial software packages promise the seamless integration of all the information flowing through a company - financial and accounting information, human resource information, supply chain information, customer information. For managers who have struggled, at great expense and with great frustration, with incompatible information systems and inconsistent operating practices, the promise of an off-the-shelf solution to the problem of business integration is enticing. It comes as no surprise, then, that companies have been beating paths to the doors of enterprise-system developers. The sales of the largest vendor, Germany's SAP, have soared from less than $500 million in 1992 to approximately $3.3 billion 1997, making it the fastest-growing software company in the world. SAP's competitors, including such companies as Baan, Oracle, and PeopleSoft, have also seen rapid growth in demand for their packages. It is estimated that businesses around the world are now spending $10 billion per year on enterprise systems-also commonly referred to as enterprise resource planning, or ERP, systems-and that figure probably doubles when