Erp System

The goal of enterprue integration —to create a shared iiiforinatlon

eiiviroiiineiit that supports the delivery of products or services—becomes an

even greater challenge when business units are spread throughout the world,

decentralized, and accustomed to working their own way.

ENTERPRISE IN

Across the Globally Disbursed

Service Organization

Thiere is a paradox in managing a g]oba]

service organization. On the one hand,

there are pressures to decentra]ize operations

and outsource appropriate business

processes. On tlie other hand,

there are competitive pressures to centra]ize management

functions and integrate the dispersed operations

of the firm.

Integration is frequently considered the price of

entry for running a business [7]. For most organizations,

integration is supported through enterprise

information systems, capable of sharing information

across the extended enterprise from suppliers to customers.

They promise reduced costs, tighter contro],

higher quality, and above aU, increased customer service

and satisfaction.

Enterprise systems, however, do not a]ways meet

their goals. Spending often exceeds budgets, staff frequently

resists changes, and projects can be burdened

with technical prob]ems [10, 11]. Some fail altogether

and others produce on]y disappointing resuits [3, 8].

While creating an integrated enterprise environment

is certainly challenging for the organization

whose business units are geographically concentrated

and centrally controHed, it becomes even more cha]-

]enging when these units are geographica]ly dispersed

and individuals from around the globe must work

together [1].

This article high]ights a strategy for managing an

important component of the integration process and

illustrates the use of this strategy with a case study of

how the largest fmancing company in the world

addressed integration issues and how it succeeded in

bringing together a diverse group of business units,

business practices,...