Extended enterprise

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Extended Enterprise is a concept that is derived from the Enterprise terminology in application to both internal and external business relationships and associated services extended across multiple divisions (the holding, subsidiaries and branch offices) in one or more countries.

[edit] Context

With the evolution of networked technologies, efforts have been made to integrate and consolidate all business resources (humans and systems) for improved management and operations within a global competitive environment. This generalized effort is termed Extended Enterprise Resources Management.

Independent software vendors or ISVs have been working over the years to create Extended Enterprise Resources Management software or EERM software. With the turn of the new century, the web had become a dominant networked environment and EERM technologies have been repositioned by ISVs as a means for an extended enterprise to move all of its operations online. This apparent virtualization of operations allows for the usage of a decentralized workforce, where a worker can connect to the enterprise with a compliant browser running on a computing device. Another example of usage is that where browser-based terminals are placed on stations within a manufacturing environment to track manufacturing processes.

It is important to realize that both resources (human and system) are not in the same location as the EERM software. The software is a substitute for the physical location of the extended enterprise and can even be placed outside the premises of the administrative company of the extended enterprise in a facility of an internet services provider (ISP) where it can best be made to run with high-speed connections for all resources.

The existence of EERM software has serious consequences for the way companies operate and compete. Instead of making the investment capital to own and operate EERM software, smaller single entity startup companies can pay to use the EERM software on a subscription model to effectively run and rapidly expand their operations into extended enterprises. The affordability of an EERM solution means increased competition between emerging entities and the larger established extended enterprises. To restate the obvious, an enterprise can use the EERM software to virtualize its operations as in virtual enterprise for the development of Collaborative Networks.

Note that the existence of EERM software with specialized functions, such as planning and projections for manufacturing, financing, etc. that are targeted for different industries has resulted in a terminology that is complementary to Extended Enterprise Resources Management. This is the well known terminology Enterprise Resource Planning or ERP. These specialized functions are what distinguishes one EERM software from another, and have an impact on the cost of these technologies.