Enterprise Information Systems: The Reality for Most Organizations

Enterprise information systems are the dream of any organization aiming for increased productivity and efficiency in the workplace. Sadly, for most organizations, this remains an idealistic dream.

Enterprise information systems are basically an integrated system of all the basic transaction process systems that are in place. They are integrated because of a central database. Instead of the individual TPS gathering data from various data sources, they can simply get it from one source. Enterprise systems are ideal since having different databases pose a challenge when it comes to the point that a company has to integrate the various TPS it has.

Most companies, however, uses legacy systems (or old systems) wherein they have different TPS that gather data from different databases. This happens because start up companies would rather buy TPS from various sources depending on their needs and on what they can afford. As they grow, their systems increase and they see the need for an enterprise system. However, at this point, they’ve already purchased different systems whose databases, most often than not are not entirely compatible with each other. As such, integrating the databases becomes a big challenge and the creation of an enterprise system seemingly impossible.

One would suggest that the solution then would be to acquire systems whose databases are compatible – if not similar – with each other so that an enterprise system in the long run would be possible. Yet again, looking at the reality of the industry right now, this is only possible if the development of systems is from within. If the company has their own information technologist or systems administrator to develop and execute such systems development, then well and good. However, most companies haven’t yet seen the importance of having their in-house IT team who would develop in-house systems for them. Most are still content with purchasing off-the-shelves systems. The result? Different TPS that have different databases.

So why not purchase TPS with similar databases? This logic does not readily occur to most organizations since different brands have different specialty databases. For example, when one thinks of an inventory system they might consider SAP but when one thinks of a customer service system they might consider Oracle. Being different systems, they would have different databases. At first, it would seem a sound investment to buy the systems they need from the companies specializing in them but in the long run, it would prove a costly mistake when the need to integrate presents itself.

So what is the solution? Either have in-house IT develop the organization’s systems or buy systems from just one brand. In both solutions, however, a careful business plan should be in place – a business plan that involves IT development be it in-house or off-the-shelf.

I wish this knowledge has been present in our organization when we thought of using information systems for our business. Now I am afraid we are enslaved by the restrictions brought about by the legacy systems we’ve acquired in the past that to have an enterprise system in our midst would mean starting from the ground up. Also, I don’t see how anything can change in the near future since most in the organization remain ignorant of the vast importance of information systems that are fully integrated and compatible with each other. For most, simply having a basic working TPS is enough. In fact, not even all business processes are supported by TPS.

Sadly, this same scenario is the reality for most organizations now. And it continues to be the reality even for start-up companies. The development of information systems simply is not in the forefront of a businessman’s mind and neither is it in the priority of a business’s goals. Most are just content with having IS in the TPS level, not bothering, and usually not even knowing, that there are higher IS available. After all, for them, information systems are merely support tools and not the main ingredient they would need to attain their business goals. Too late do they realize that information systems, in this day and age, are actually the most important and valuable tool their business could have.