Enterprise integration: creating competitive capabilities

Abstract

For manufacturing firms, the concept of integration is hardly novel. The Total Quality, JIT, and supply chain management movements required improved internal and external coordination. While these movements centred on the manufacturing function, research suggests that integration of several functions at different organisational levels achieve above average financial and performance results. However, studies show enterprise integration is associated with many problems; at the root of these is a fundamental assumption: that all enterprise integration initiatives are equally important. Challenges this assumption. Argues that enterprise initiatives differ by their purpose; and proposes a framework for typifying enterprise integration initiatives that is based on the capabilities developed for the organisation. Four types of enterprise initiatives are identified. Illustrates each type with organisational examples. Discusses the managerial implications.