Adoption of Enterprise Systems in Organizations Report 2022

Running head: ADOPTION OF ENTERPRISE SYSTEMS IN ORGANIZATIONS
Adoption of Enterprise Systems in Organizations
Name of the Student
Name of the University
Author’s Note:

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ADOPTION OF ENTERPRISE SYSTEMS IN ORGANIZATIONS
Executive Summary
The main objective of this report is to understand about adoption of an enterprise system in
an organization. ES are built on software based platforms and databases. The most significant
examples of enterprise system include Fusion of Oracle and NetWeaver of SAP. Such
distinctive databases and storage devices are associated with large scale businesses. The
larger data volume are being controlled by these systems. Scalability and reliability of
resources are enabled with these systems as well as reliability of IT infrastructure is
maximized. ES is responsible for providing some of the major and the most significant
contributions to a business after successful implementation. Time is saved and overall costs
of the business are reduced to a high level. Moreover, there are few important drivers that
enhance ES implementation. This report has provided relevant details regarding the process
of implementing an enterprise system within an organization.

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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Principle Drivers behind Businesses for adopting Enterprise Systems...........................3
2.2 Process of Enterprise Systems contributing to Organizational Performance with Proper
Measurement..........................................................................................................................5
2.3 Important Organizational Change Management Considerations for successfully
adopting Enterprise Systems..................................................................................................8
3. Conclusion..............................................................................................................................9
References................................................................................................................................11

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1. Introduction
Enterprise systems or ES can be referred to as the large scale software packages,
which comprise of the core ability of tracking and controlling all types of complicated
operations of a business (Carayon et al. 2015). ES are utilized as a centralized command hub
that is effective in helping to make the entire business completely automated, so that decision
making process becomes quite easy to execute. ES allows business data to remain stored in a
usable format and make the entire process of customer service automated so that customers
get a consistent experience to ensure that every back office function is being streamlined and
time is saved (Ram, Wu and Tagg 2014). ES is extremely important for any organization to
ensure confidential data and information of the customers are completely safe and secured
(Rice 2013). The following report will be outlining a detailed analysis on adoption of
enterprise systems in an organization after successful identification of principle drivers,
checking of contribution of the ES and considerations of change management with relevant
details.
2. Discussion
2.1 Principle Drivers behind Businesses for adopting Enterprise Systems
The principle drivers behind businesses for adopting ES are as follows:
i) Cost: The cost factor is one of the main key drivers in the ES implementations as
because the selection procedure of the ES in an organization is mainly cost dependent. The
cost factor also have certain complexities due to which the cost of the ES implementation is
high in the medium sized companies (Shatat 2015). The cost here is defined as the software
and implementation services. The implementation of the software costs more than that of the
software itself and also the hardware cost also adds up to the total implementation cost.

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ii) Number of Users: The number of users in the current ES implementations are
increasing day by day. However it can be said that the number of users does not affect or
increase the complexities of the implementation of the enterprise system (Ramdani, Chevers
and A. Williams 2013). The complexities of the ES implementation generally depends on the
types of the users. The same type of user’s indicates that the implementation of the ES will be
easy as because it facilitates replicating a type of task.
iii) ES Project Structure: The project structure of the Enterprise system comprises of
the vendors and the third-party implementer model which have two consultants for each
suites of the models. The other members of the project team structure are the full-time project
manager of the business as well as the vendor’s project manager (Ram, Wu and Tagg 2014).
The vendor’s account manager role is also a limited role of the vendor’s representative role.
Thus the Enterprise system project structure changes according to the vendors and
consultants.
iv) Organizational Size: The organizational size of an organization is measured by the
revenue generated and not by the number of the employees. The employees working in an
organization also regard the fact that how much revenue is generated is considered how large
the organizational size is (Zhang and Wang 2016). The implementation of the Enterprise
system is to be done in the SME-sized organizations. Thus organizational size also plays a
role in the implementation of the Enterprise systems.
v) IT Maturity: The IT maturity can be defined as the levels of the information
system that are adopted by the organizations and the adaptation of enterprise system is also
associated with the maturity of IT (Soja and Weistroffer 2016). However, most of the
companies in the information technology field has adapted the enterprise system and thus
those kind of organizations might be considered to be matured in the IT field. The

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organizations adapting the ES is usually trying to strengthen their IT infrastructural
backbone.
vi) Organizational Ownership and Profit Making Status: The decisions of the
implementations of the enterprise system are associated with the organizational ownership
and the profit making (Sykes, Venkatesh and Johnson 2014). The organizations owned by the
single individuals, have different kinds of decision making. However, the organizations
owned by the public sectors have a different kind of decision making and business operating
process and thus the decision making affects the implementation of the enterprise system.
vii) Organizational Reach: The two factors that are affecting the ES implementation
are the SME’s having a global reach and the other being the standard business processes
(Njihia and Mwirigi 2014). The organizational reach thus also plays a role in the
implementation of the enterprise system in the organizations and the global or local templates
also affects the ES implementation.
2.2 Process of Enterprise Systems contributing to Organizational Performance with
Proper Measurement
ES has been contributing towards organizational performance to ensure that better
effectiveness is being achieved in the business without much complexity. Each and every
business has its own collection of services, products and processes (Giachetti 2016).
However, several businesses face some of the most distinctive operational problems. It is
being observed that progress and growth of the business enhances exponentially with the
successful incorporation of ES in their operations. Change has made numerous businesses
failure in adaptation as well as reaching of the goals and objectives, however, it is being
observed that the business becomes extremely optimized with ES to improvise efficiency and
increase growth (Sykes, Venkatesh and Johnson 2014).

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There are numerous advantages that are being obtained after successful adoption of
ES in the business and these advantages are as follows:
i) Better Information Management through Business Automation: This is the first
and the most important benefit that is being provided to the organization after successfully
adopting ES is better management of information through automation of business (Bahssas,
AlBar and Hoque 2015). The performance measurements and metrics are extremely
important to evaluate total progress of the business and even aiding in setting up the future
goals. When the business grows, it becomes quite difficult to calculate sales margin
manually, hence ES allows better business automation.
ii) Improvised Workflow and Efficiency: Overall workflow is highly improvised and
every process gets streamlined. It even makes the entire access of workflow extremely
simplified by incorporation of user friendly interfaces (Soja and Weistroffer 2016). It allows
the employees in acquiring relevant information, required for the job.
iii) Process Streamlining: Anther significant contribution of ES in improving
organizational performance is that it allows process streamlining (Goodyear 2017). All types
of functions of the business are being integrated and data is stored in several systems and
locations. ES enables data streamlining and centralization as well.
iv) Integrated Approach: ES even is responsible for providing an integrated approach
by integrating several procedures, which are required to run that particular business
enterprise. The main procedures of a business involves accounting, CRM, order management
and many more.
v) Transparency through the entire Organization: ES is also responsible for
maintaining a transparency through the entire organization (Costa et al. 2016). Data and
information are the most important and significant assets of a business and hence data

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integrity and security are enhanced for ensuring that business information is eventually
processed as well as accessed by the most appropriate people. Since, ES allows maintenance
of information at one place to obtain updates, it becomes quite easy to maintain transparency.
vi) Redundancy Elimination: It helps in eliminating redundancies with the help of a
non centralized data management system (Zeng and Skibniewski 2013). The redundant data
often leads to confusion and inconsistency, hence issues related to data redundancy is well
resolved with ES implementation.
vii) High Customization: ES enables high customization, thus businesses do not face
any issue regarding modification of existing or ongoing task. Customized output is hence
obtained in the business and customer satisfaction is being gained (Ann Sykes 2015).
Inventory and sales management becomes much easier for the business, even if the inventory
data is being housed on separate platforms. ES is also helpful in maintenance of the upgraded
data as well as facilitation of real time data.
viii) Data Security: Data integrity and security is highly maintained with ES and
hence order entry, shipping stock count and other business processes are well executed
without much complexity (Bahssas, AlBar and Hoque 2015). This particular system also
allows the business in restricting the employees’ accounts only to processes, which are
absolutely relevant to the roles.
ix) Reduced Costs: ES is also responsible for reducing the IT infrastructure costs and
expenses to a high level. The business, hence would be getting high optimal value of the
variables. As a result, overall budget of the company is also enhanced to a high level.
x) Improved Planning: Enterprise systems allows focused and improved planning of
the business, only after ensuring that business is gaining high effectiveness and efficiency
(Kasemsap 2018). It enhances practical advices and intelligence of the organizational system.

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As a result, business operations are being well executed without any type of complexity or
issue.
These above-mentioned contributions of ES in a business can be effectively measured
after checking the output or profit obtained from the business (Ann Sykes 2015). With an
improved planning and high data security, it becomes much easier to bring innovativeness
and creativity in the business as well as maintaining business operations in the most efficient
manner.
2.3 Important Organizational Change Management Considerations for successfully
adopting Enterprise Systems
The most important and significant considerations regarding organizational change
management to successfully adopt ES are as follows:
i) People to be involved in the process: The main factors that needs to be managed in
order to back up the project are money, time and personnel. The organizations must involve a
personal in order to manage the outcomes of the management process (Matende and Ogao
2013). The different kinds of employees of the organization also must require to develop
better communication strategies and many projects fail due to the fact that information is not
taken from the people, those who know best about the project. Thus the more experienced
and the knowledgeable people are to be involved in the process.
ii) Vision of the new change of ES: The vision for the change of ES includes the
communication of benefits and collaborating of the various tasks which will ensure that
everyone is given a common set of terms and strategies (Zhang and Wang 2016). The proper
vision of the implementation of ES makes it possible for the organizations as well as the
employees to exploit different options in order to achieve a desired goal. The vision also

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makes the clear objectives of how the goals and objectives of the organizations may be
designed so as to meet the changes.
iii) Major Risks in adopting ES: The adaptation of the ES also has certain risks and
hazards which effect the organizations and this process involves identifying the risks and
hazards. For the adaptation of a new technique or tools in the ES, the organizations must train
their employees and also must create proper environment for the adaptation of the enterprise
system (Ramdani, Chevers and A. Williams 2013). Various tools like the risk management
matrix might be used in decision making risk analysis and these tools help to control the flow
of the work and also to manage the deadlines to help the proper tracking of the tasks.
iv) Process to manage the implementation: The process of management of the
enterprise system implementation may be done using various automated software which
helps in the management of process and controlling the work flow and deadlines (Matende
and Ogao 2013). The successful management of the implementation includes the processes to
make the ES system usable and user-friendly to the employees of the company. Thus the
management process of the ES implementation is very much important and also plays an
important role in the entire management of the enterprise system.
v) Addressing the Issue of Change: The most important aspect here is that whether
the organizations implementing the ES will get support from their employees in successfully
implementing the services of enterprise system (Lech 2014). Thus planning and anticipating
the human element for the implementation change can create a better view and aspect in the
enterprise system structure. Thus without the proper addressing of the changes, many projects
fails and thus this might also be considered as an important factor in implementation of the
enterprise system.

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3. Conclusion
Therefore, conclusion can be drawn that ES is inevitable in an organization and they
provide resource planning and customer relationship managing software. These systems and
software are mainly customized and developed by the organization according to their needs
and requirements. It allows real time access to information and expenses are reduced to a
high level. It refers to the fact that the organization would be having scope for better budget
management to increment capabilities of customer service and ensuring customer experience
standardization. Supply chain management is being streamlined in a better manner and hence
delivery of products to the customers is done more reliably. The above provided report has
clearly described about adoption of ES in any organization. Major drivers such as cost,
organizational size, IT maturity and few others are identified in the report that are required
for adopting the technology. Moreover, the various contributions of ES towards
organizational performance with the subsequent considerations for organizational change
management are well explained in this report.

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References
Ann Sykes, T., 2015. Support structures and their impacts on employee outcomes: A
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Bahssas, D.M., AlBar, A.M. and Hoque, M.R., 2015. Enterprise resource planning (ERP)
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Carayon, P., Hancock, P., Leveson, N., Noy, I., Sznelwar, L. and Van Hootegem, G., 2015.
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Njihia, E. and Mwirigi, F.M., 2014. The effects of enterprise resource planning systems on
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