Understanding enterprise systems-enabled integration

A key touted benefit of enterprise systems (ES) is organizational integration of both business processes and data, which is expected to reduce processing time and increase control over operations. In our 3-year longitudinal case study of a phased ES implementation, we employed a grounded theory methodology to discover organizational effects of ES. As we coded and analyzed our field data, we observed many integration effects. Further analysis revealed underlying dimensions of ES-enabled integration. ES-enabled integration varied depending on the relationship between the integrated business units (similar plants, stages in a business process, or dissimilar functional areas) and on whether processes or data were integrated. Turning to the literature, we realized that Thompson's three types of interdependence, pooled, sequential, and reciprocal, captured the business relationships revealed in our data. Thus, we describe the salient characteristics of ES-enabled integration using Thompson's interdependence types applied to process and data integration. We also identify dimensions of differentiation between business units that contribute to integration problems. Viewing our field data through the lens of these salient characteristics and dimensions of differentiation provided theoretical explanations for observed integration problems. These findings also help managers understand and anticipate ES-enabled integration opportunities and problems.