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Chapter 1 • Introduction to Enterprise Systems for Management 5

Ad Hoc Unscheduled
Summarized Infrequent
Unstructured Forward Looking External
Wide Scope
Strategic Planning
Decision Requirements
Information Requirements

Semi-Structured Management Control
Prespecified
Scheduled Detailed
Frequent Historical
Internal Narrow
Focus
Structured Operational Control

Finance Human Accounting Operations Marketing
Function Resources Function Function Function
Function
FIGURE 1-1 Management Pyramid with Information Requirements

Enterprise systems, therefore, are a crucial component of any successful organization
today. They are an integral part of the organization and provide computer automation support for
most business functions such as accounting, finance, marketing, customer service, human
resource management, operations, and more. In general, they play a critical role in both the
primary and secondary activities of the organization’s value chain. 1

Information Silos and Systems Integration
As organizations become larger and more complex, they tend to break functions into smaller units by
assigning a group of staff to specialize in these activities. This allows the organization to manage
complexity as well as some of the staff to specialize in those activities to enhance productivity and
efficiency. The role of information systems has been and always will be one of supporting business
activities and enhancing the workers, efficiency. Over time, however, as business changes and
expands, systems need to change to keep pace. The result is sometimes a wide variety of information
systems and computer architecture configurations, which creates a hodgepodge of independent
nonintegrated systems. These systems ultimately create bottlenecks and interfere with productivity.
In today’s globally competitive environment, an organization will find it very difficult to
operate and survive with silo information systems. Organizations need to be agile and flexible,
and will require the same from their information systems. These systems need to have integrated
data, applications, and resources from across the organization. Integrated information systems
are needed today to focus on customers, to process efficiency, and to help build teams that bring
employees together that cross functional areas.

1 Porter, M., and Millar, V. (July–August 1985). How Information Gives You Competitive Advantage. Harvard Business
Review.