n Large  software  footprint  and  module  inflexibility  result  in  long, expensive  implementation  cycles  that,  when  completed,  are  already outdated n Internal orientation and architecture of ERP systems limits the ability to engage in collaboration with outside trading partners. This situation is  primarily  due  to  proprietary  application  interfaces  and  business process inflexibility forced onto a business by the ERP architecture Streamlining  internal  operations  and  allowing  financial  management of an organization’s operations was a significant benefit of ERP systems. However,  times  have  changed  for  all  firms.  Inward-focused  systems  and business processes can only deliver limited value in a world dominated by a desire, and more importantly a mandate, to work with other trading part- ners to accomplish business success. The rapid rise of the Internet exposed the inadequacy of ERP and other enterprise systems to rapidly accommo- date new business processes. As new business needs continued to grow, the increased need for agility and new business functionality has outstripped the ERP capabilities of today. There has been a dramatic shift from the internal focus of ERP systems to  collaboration  with  outside  trading  partners.  This  shift  from  internal operations to collaborative interaction with external trading partners has challenged the business processes and the IT application portfolio of most organizations. The shift to the front for CRM and other e-Business applica- tions has placed an unprecedented demand on IT systems, and the need to securely share internal, potentially sensitive, information will continue to increase.  However,  as  these  inter-enterprise  collaboration  requirements continued  to  grow,  the  technology  supporting  collaboration  proliferated. Enterprise  application  integration  and  other  collaboration  products emerged as the next hot space. EAI continues to be an important area, and will  serve  as  one  of  the  critical  pathways  to  Web  services  because  these tools are designed for connecting systems and enterprises across the fire- walls. As you will see from the Web services adoption model—introduced in the following section—pragmatic uses of Web services will carry us for the foreseeable future. As the standards and technology progress, more sophis- ticated Web services capabilities will emerge. WEB SERVICES ADOPTION MODEL Web services, like the Internet during the mid-1990s, will be adopted in phases based on what a company hopes to achieve and how it desires to operate within its chosen markets. It is important to note that there are significant  differences  that  distinguish  the  adoption  of  Web  services when  compared  to  the  rise  of  the  Internet.  Firstly,  there  is  widespread A Day in the Life of a CIO 17 74188_WY_Marks_01  2/5/2003  4:08 PM  Page 17