Describe at least two benefits of using enterprise systems. More and more organizations are seeking to integrate the core functions of their business with technological advances. Enterprise systems facilitate this integration process through a single software architecture that links all aspects of business to function as one unit. Enterprise systems also commonly known as ES are comprehensive, large scale application-software packages, which use powers of present day information technology (IT) for supporting processes, reporting, data analysis and information flows.
These IT powers include data storage, computational, and data transmission and are done between and within complex organizations. Enterprise systems can be briefly called as packaged enterprise application software (PEAS) systems and is a perfect combination of adjectives, like “enterprise”, “packaged”, and “application”. Enterprise system is a broad term and includes Enterprise resource planning (ERP), Supply Chain Management (SCM) and Customer Relationship Management (CRM).
Enterprise systems are usually built on, software platforms like Oracle’s Fusion and SAP Net Weaver and is typically, a relational database. There are many benefits of employing an enterprise system in an organization. The two benefits of using ES systems are; Operational Benefits Organizations implement enterprise systems with the purpose of synchronizing the functions of different departments. An integrated system reduces the time used in processing documents, such as payrolls and other external documents.
Information visibility and transparency within an organization is a benefit that facilitates the different operations carried out by the various departments. Operation Bene? ts arise when the use of an ES strengthens an organization in terms of Focus, cohesion, learning and execution of its chosen strategies. observations of 43 successful US corporations suggest that IT is often used to help build integrated processes, improve employee communication, foster the development of a ‘common vision’ and user empowerment, support customer services and facilitate a flatting of organizational and operational structure.
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IT can assist in operational learning by virtue of the following: it is economical for generalizing from single to multiple settings; it is usable by others than its creators; it is informative about the general characteristics of the setting; and it can be validated by objective knowledge and objective processes that go beyond the information processing capacities of any given individual. In addition, IT applications can play an active role in accelerating the evolution of the organizational context, resulting in a shift in operational culture.
As a standardized resource widely available through the organization, IT transforms resources into capability and eventually into core capabilities. IT tools, accumulated information and application knowledge are key factors that facilitate learning behavior IT operation benefit were also identi? ed by Farbey when consolidating past research ? nding on IT bene? t. Operational bene? ts appear in employees’development of a shared vision for the future of the organization and in better communication between people, which in turn improves mutual understanding.
Also, through the integrated decision-making process, consensus may readily be created for subsequent actions. Managerial Benefits Managers find it less hectic to oversee operations and to ensure that key business objectives are achieved through enterprise systems. Because they are able to access information from a centralized server. In my point of view managers will find that the decision-making process becomes more informed and yields better results for over all accountability.
An enterprise system is a system that is used to keep business running smoothly and sufficiently. An enterprise system can help not only a business run smoothly but it can also help to keep customers happy, by making customer deliveries on time and getting them the right product. From what I learned in the book an enterprise system really contributes information of what’s going on in the business so that a business can be run smoothly.
Orders can be shipped on time, helps with the replenishment of goods; all so that business can run smoother and customers can remain happy with the supplier’s product. According to the book some of the challenges are that employees may need to learn how to perform a new set of activities and understand how the information they enter into the system can affect all the others. These systems help create a more uniform organization in which everyone uses similar processes and information, and measures their work in terms of operation performance standards.
The coordination of the firm’s key business processes allows the firm to respond more rapidly to customer demands. In Conclusion Both the Operational benefits and the Managerial Benefits are major factors in use with IT and IS corporations around the world today. The ever growing demand is making it a more technological world than the past 25 years Fast program packages in ES in conjunction with faster computers will bring and dynamic new frontier to future business and how they are operated.