One of the major investments of information technologies in large companies in the past decade has been the enterprise system. Although the enterprise system has the advantages of managing and integrating almost all of the business processes in the whole company, there have been strong criticisms that the enterprise system often imposes its own logic or business process on a company and lacks flexibility and adaptability in today's dynamic business environment. The goal of this paper is to outline a new approach in enterprise system development. We analyse the factors that affect the adoption of enterprise systems. Market and business changes, and advances in information technologies call for a more flexible, open, and scalable enterprise architecture. We describe the process that Dell Computer Corporation took in adopting its component-based enterprise system architecture. The Dell example has demonstrated the importance of fit between business information systems and fundamental organizational dimensions of the company including strategy, business environment, and organizational structure. We also discuss the design methodologies for component-based enterprise system design. We take a coordination perspective, both at the software level and the organizational level, in addressing the design methodologies for component-based enterprise system development.
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