Extended Enterprise Integration vs. Market B2B Integration
Frank G. Goethals (SAP-leerstoel Extended Enterprise Infrastructures and F.E.T.E.W.—K.U. Leuven, Belgium), Wilfried Lemanhieu (F.E.T.E.W.—K.U. Leuven, Belgium) and Monique Snoeck (SAP-leerstoel Extended Enterprise Infrastructures and F.E.T.E.W.—K.U. Leuven, Belgium)
Copyright: © 2008
The human communication processes that are involved in analyzing and designing a business and in designing, implementing, and maintaining information systems are affected by the fact that the information technology (IT) department of one company nowadays has to create software to fulfill requirements of people not only in their own company but in other companies too. In this context, the term “extended enterprise” is often used. The concept “extended enterprise” is, however, not unequivocally defined. This article first discusses the concept of the extended enterprise and opposes this form of economic organization to the two other basic forms of economic organization, namely, the firm and the market. Next, we derive from organization theory (see, e.g., Hatch, 1997; Morgan, 1996) two basic types of business-to-business integration (B2Bi), namely, extended enterprise integration and market B2Bi. We show that the extended enterprise constitutes a specific context within which information systems are being developed, integrated, and maintained, and that this context allows for/needs specific ways of integration. We discuss the role of standards and coordination for both types of B2Bi.
Key Terms in this Chapter
Market B2Bi Flexibility: Concerns the ease with which counterparties can be replaced in transactions.
Market B2Bi: The integration of the computer systems of different companies in the marketplace among which there is only a short term relationship.
Extended Enterprise Integration Flexibility: Concerns the ease with which processes can be redesigned and new processes can be implemented.
Collaborative Extended Enterprise: An extended enterprise with a collaborative mindset among the partners.
Cooperative Extended Enterprise: An extended enterprise without a collaborative mindset among the partners.
Extended Enterprise Integration: The integration of the computer systems of partners with a long term relationship.
Extended Enterprise: A collection of legal entities (N ³ 2) that pursue repeated, enduring exchange relations with one another.