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Regular Paper
A Theory of Enterprise
Transformation
A THEORY OF ENTERPRISE TRANSFORMATION
William B. Rouse*
Tennenbaum Institute, Georgia Institute of Technology, Atlanta, Georgia 30332
Received 28 April 2005; Accepted 22 June 2005, after one or more revisions
Published online in Wiley InterScience ().
DOI 10.1002/sys.20035
ABSTRACT
The information technology revolution has driven the pace of competition and rapid globali-
zation. Consequently, enterprises increasingly need to consider and pursue fundamental
change—transformation—to maintain or gain competitive advantage. This need raises impor-
tant research issues concerning how transformation is best understood and pursued. This
paper outlines a theory of enterprise transformation to guide research on these issues. The
theory focuses on why and how transformation happens, as well as ways in which transforma-
tion is addressed and pursued in terms of work processes and the architecture of these
processes. A variety of industry and corporate vignettes is used to illustrate the theory. A
portfolio of research initiatives are discussed in terms of how they can advance the proposed
theory, while also enhancing practices of enterprise transformation. © 2005 Wiley Periodicals,
Inc. Syst Eng 8: 279–295, 2005
Key words: enterprise systems; enterprise transformation; strategic management; system of
systems; architecture; decision making; social networks
1. INTRODUCTION and/or how the enterprise is organized to provide these
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