CENTRALIZED AND DISTRIBUTED ERP DEVELOPMENT MODELS: OPERATIONS AND CHALLENGES

Different approaches to enterprise resource planning systems development are often mentioned in the IS literature. However, they are not usually explained thoroughly. The aims of this interpretive case study are thus to introduce two different approaches for developing tailored ERP systems and to explain how they function, i.e., how the information about different kinds of requests flows through the network of actors, from business needs to production. In addition, the challenges in development caused by these development approaches are considered. As a result, we have identified two different models for ERP development: centralized and distributed decision making. The most significant challenges are related to communication channels, transfer of domain knowledge, and the role of key individuals in the development activities. Both approaches are considered successful overall, yet distinctive strengths and defects can be identified from each