Towards a model for determining the scope of ICT integration in the enterprise: The case of enterprise resource planning (ERP) systems

The question of integration of information systems (IS) into the planning and execution of operational activities has been the focus for researchers from different constituencies. Organisational theorists recognise the need for "integrating mechanisms" (Galbraith in Pennings, 1983) for co-ordinating the actions of sub-units within an organisation. Centralisation has been seen as a defensive reaction by organisations when placed under increasing external control (Mintzberg 1981), and also as a way to improve the efficiency of information processing, at least for routine tasks (Galbraith 1973). In the meantime, researchers have been sceptical about the ability for structured information systems to deal with the complexity of the information flows within the organisation (Dearden 1972). Frameworks have also been identifying characteristics of the tasks themselves that have a bearing on the amount of information processing required (Gorry & Scott Morton 1971; Earl & Hopwood in Lucas et al. 1980; Adam 1998). The real world is complex and moving, thus managers require flexibility in their interpretation of the mixed signals arising from this complexity. Hoewever, managers are working in environments where highly integrated information systems blur the distinction between what is real and what is virtual. A framework for integration would allow organisations to question which areas of activity are worth integrating, and conversely which areas are better left under local control. Where integrated, managers require processes for the maintenance of data integrity (people, tools, procedures, ...). Based on field work involving two multi-national manufacturing companies, this paper proposes a framework for integration, which would allow managers to consider the conditions under which a realistic level of ICT adoption could be expected.