Standardizing on One ERP System in a Multi-division Enterprise
Olin Thompson & P.J. Jakovljevic - June 1, 2002

It Is A Strategy Question

In an enterprise with multiple operating divisions, should the enterprise standardize on a single set of software? The 'one vendor - one ERP system' idea, although highly attractive, has remained utopian until recently, partly owing to the functional inadequacy of any ERP suite to satisfy requirements enterprise-wide. Recent broadening of major ERP products' scope to include e-procurement, supply chain management (SCM) and customer relationship management (CRM), and the advent of Web-based product architecture may, however, tempt the corporations to reconsider deploying this concept. Although the enterprise can generate many benefits from standardization, they may also create other issues that often result in disruptions...