The integration of enterprise systems and the supply chain to an organization is becoming more critical in an ever-changing, globally competitive environment. Quick response will require close relationships, especially communications and information sharing among integrated internal functional groups as well as the suppliers and customers of an organization. Texas Instruments (TI), headquartered in Dallas, Texas, has come to realize this requirement for building and maintaining its competitive edge. Thus, it sought to implement an enterprise resource planning (ERP) system with a focus on linking it with a global electronic commerce (e-commerce) setting, an innovative and current issue (Weston, 2003). There were a number of major players, including project management direction from Andersen Consulting Services, software vendors such as SAP and i2 Technologies, hardware vendors such as Sun Microsystems, and various suppliers and customers of TI. The purpose of this case is to provide some aspects of implementation of strategic systems that provide valuable lessons for success. We begin and rely on the foundation of a strategic systems implementation model, which is initially described. A description of the case follows, with the various stages as related to strategic systems implementation described. We complete our discussion with implications and conclusions.
A process-oriented framework for ERP management is presented to help guide the discussion of this case (see Cliffe, 1998; Davenport, 1999; Miranda, 2002; Sarkis & Sundarraj, 2000).
As can be seen, the process suggested above can be arduous, but this necessary effort must be anticipated for the successful integration of complex and strategic systems into an organization.Top
Implementing A Global Erp System At Ti
Texas Instruments Incorporated (TI) is a global semiconductor company and the world’s leading designer and supplier of digital signal processing (DSP) solutions and analog technologies (semiconductors represent 84% of TI’s revenue base). The company has manufacturing or sales operations in more than 25 countries and, in 1999, derived in excess of 67% of its revenues from sales to locations outside the United States. Prior to the implementation of ERP, TI had a complex suite of stand-alone nonintegrated marketing, sales, logistics, and planning systems consisting of thousands of programs that were based on many independent databases and were running on proprietary mainframe systems.
Key Terms in this Chapter
This work was previously published in Encyclopedia of Information Science and Technology: edited by M. Khosrow-Pour, pp. 1397-1401, copyright 2005 by Information Science Reference, formerly known as Idea Group Reference (an imprint of IGI Global)
Mass Customization: Producing basically standardized goods but incorporating some degree of differentiation and customization.
Reengineering: Activities that seek to radically change business processes and support systems in an organization.
Enterprise Resource Planning (ERP) System: An information system that spans organizational boundaries with various organizational functional modules and systems integrated and managed by one system application.