21st century is a booming market for software packages claiming to provide a total, integrated solution to companies’ information-processing needs. Even companies that choose to adopt such packages are pursuing aggressive strategies of systems integration by redeveloping custom software and adopting technologies such as adopting enterprise systems. Enterprise systems ought to have serious research attention because of their immense potential for financial, technical, managerial, human, and strategic benefits, costs, and risks. The technical hitches and high failure rate in implementing enterprise systems have been widely cited in the literature (Davenport, 1998), but research on governance for enterprise systems implementation is rare and fragmented. To date, little has been done to theorize the important predictors for initial and ongoing governance success (Brown and Vessey, 1999). This research is an effort to achieve that. It examine evaluates & identifies governance in Data based Enterprise systems & categorizes them into the respective phases in the enterprise systems life cycle model proposed by Markus and Tanis (2000), and discusses how governance can be effectively communicate in the enterprise systems environment for enterprises.
The IEEE Standard 1220 defines “system” as a: “set or planning of elements [people, products (hardware and software) and processes (facilities, equipment, material, and procedures)] that are connected and whose actions satisfies customer/operational needs, and provides for the life cycle sustainment of the products” (IEEE, 2005). Similarly, an “enterprise” is defined as a: “goal directed complex system of resources – human, information, financial, and physical – and activities, usually of significant operational scope, complication, risk, and duration” (Rouse, 2005). It is also referred to as: “a collection of parts and relationships assembled together to form a whole with its own properties, attributes and purpose that make it essentially different from its constituent” (Boardman and Sauser, 2008).
Governance is defined as: “specifying the framework for decision rights and accountabilities to encourage desirable behaviour in the use of IT” (Well & Ross, 2004). Governance is not about the exact decisions made, but rather about determining who makes each type of decision, who has input into the decision, and how one is held accountable for their roles. Effective governance helps ensure that IT supports business goals, optimizes business investment in IT, and appropriately manages IT-related risks and opportunities. An overseas survey shows that enterprises that perform well in governance may gain returns on IT investment 40% higher than their competitors; those that have average performance in governance may make 20% more profit than those are inefficient in governance, given the same business strategy (Schimizu and Hitt, 2004).
Management methodologies are applicable to components of each...