Enterprise Systems and Organizational Issues in IS


Today’s machinery and equipment industry is a highly volatile market, giving rise to frequently instable and inapprehensiblebuyer-supplier-relationships and to turbulences with respect to reliability of deliveries. With this paper we propose a minimalinvasive approach how to overcome existing capability limitations in production planning, scheduling and procurement ofERP-systems by using real options as means for coordinating the divergent interest of buyers and suppliers. Following thedesign research paradigm, we first describe how real options can be integrated in a contemporary ERP-system. In asupplemental evaluation, the attitude toward using this approach is discussed. This final discussion provides insights whethercompanies in the machinery and equipment industry are willing to adopt our real options approach, or if they prefer the use ofother, not necessarily IT-enabled, means for handling the poor delivery reliability.