Nature of Enterprise Systems for Operational Efficiency and Innovation

This report discusses the nature of enterprise systems adopted by organizations to improve operational efficiency, customer intimacy, decision making, and innovation. It focuses on the case study of Toyota, a multinational automotive manufacturing company, and analyzes the risks and dependencies on the firm's supply chain. The report also provides an assessment of the success of adopting enterprise systems in reducing friction on the supply chain.

Case study

Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................1
1) Nature of the Enterprise Systems that the organisation adopted to improve or maintain
operational efficiency, improve customer / supplier intimacy, improve decision making, create
new products, services, and business models (i.e. to innovate), and to gain a competitive
advantage:....................................................................................................................................1
2.) Identify all risks including the dependencies on the firm’s supply chain that could affect or
disrupt operations on the supply chain........................................................................................3
Understanding of enterprise system development life cycle, from selection, acquisition,
implementation and maintenance................................................................................................4
3.) Provide an assessment of how successful the adoption of the Enterprise Systems was to
reduce friction on the supply chain..............................................................................................6
CONCLUSION................................................................................................................................6
REFERENCE..................................................................................................................................8

INTRODUCTION
System Enterprise is referred to as a combination of various applications, formats, and
protocols that uses by organizations to get together all process and activities of the business. This
provides an excellent service for small businesses that apply to get access throughout the
company for increasing knowledge of business (Hasan, Miah, Bao, and Hoque, 2019). This
enterprise system helps businesses for decreasing the expenses of information technology and
reduces the data for getting input level data. This report is based on a Toyota company that is a
multinational automotive manufacturing company. Its headquarter in Toyota city Japan, that is
providing different types of cars, luxury vehicles, and engines helps to increase the workings.
This report covers an understanding about nature of enterprise system that needs to improve
operation efficiency, all risk including dependencies on firm’s supply chain and provide an
assessment how successful the adoption of an enterprise system to reduce the friction of supply
chain.
1) Nature of the Enterprise Systems that the organisation adopted to improve or maintain
operational efficiency, improve customer / supplier intimacy, improve decision making,
create new products, services, and business models (i.e. to innovate), and to gain a
competitive advantage:
Toyota – Toyota Motor Corporation is a Japanese multinational automotive company that
manufactures cars and commercial vehicles. This organization was founded in 1937 and
headquarters in Toyota city Japan. It was founded by Kiichiro Toyoda and serving worldwide
area. The products which are provided by the organization are Automobiles, luxury vehicles,
engines, and commercial vehicles that attract customers and increase organizational productivity.
This is an operating business in a competitive environment by using new technology and features
that can help to increase business performance. Strategic management planning is prepared by
managers that helps to increase the business performance.
Principles of Enterprise system
Adopt a holistic approach to enterprise transformation – This principle is related to
the transformation which uses by an organization to find out the balance between short term
success and attaining the long term benefits. Toyota company organization is using this principle
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to find out the success that can help to increase business performance (Zeng, Qiyas, Arif and
Mahmood, 2019).
Identify Relevant Stakeholders and Determine their Value Propositions – This
principle is related to the identification of stakeholders that create value by employing lean
principles and practices. Toyota company is running a business with the support of stakeholders
that can help to increase business performance (Hinton, Wood Singh, and Reiners, 2019).
Focus on Enterprise Effectiveness before Efficiency – This is the simplest aspects to
monitor and control the activities which are running that can help to improve efficiency. Toyota
company should use this principle by understanding the strategic objectives, resources available,
and delivery of enterprise value proposition that increases business effectiveness.
Address Internal and External Enterprise Interdependencies – This principle is used
by Toyota company to making efforts on what is a controllable enterprise, what the enterprise's
influences and what constraints are on the enterprise. This can help to allows the organization to
find out ways to supply the products and services.
Ensure Stability and Flow within and across the Enterprise – This principle is related
to ensuring the stakeholder and customers to deliver the products and services. Such as Toyota
company is delivering better quality products and services. In this managers focuses on flow and
streamlining of delivers so customers feel happy and make a decision to buy.
Cultivate Leadership to Support and Drive Enterprise Behaviors – As leadership is
needed at all levels that make a successful business and ensures the transformation of business.
This can help to increase organizational productivity (Morel, Pereira, and Nof, 2019).
Emphasize Organizational Learning – This means the organization should focus on
their learning and must be engaged at all levels to gain knowledge and increasing understanding.
Toyota company is using this principle to increase learning and gaining knowledge that can help
to accept the new learning and increase the efficiency of a business.
Scope of common enterprise system
HRM – Enterprises system is a system that helps the HRM department to resource the
employees to get g work done by using their skills, talent, experience, and abilities that helps to
increase the business performance. HRM is considered as the wider scope of Toyota company
which uses new technology to recruit the employees, assigning them roles and responsibilities,
managing performance, and control the functions that can help to increase the performance.
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Supply chain – All organization wants to increase their sale and productivity by
improving the supply chain system that attracts customers and deliver the best quality of
products. With the help of the enterprise system, Toyota company can bring improvements in the
supply chain of products and services that increase efficiency (Andrianto, 2019).
Easier business planning and procurement – Enterprise system is considered as
aspects which use by organizations to make the easy working planning and continue the
operation in a competitive business environment. Toyota company is using easier business
planning with the help of the system that makes the decision and increases business productivity
(Kwilinski, 2019).
Therefore, Toyota company is using enterprise system to maintain data in business format,
mechanize the client facility, provide resources and its uses, make the decision, improve
efficiency, maintain operations, improve supplier intimacy, creating new products, etc. that
increases business effectiveness in the competitive business environment (Ali, van Groenendaal
and Weigand, 2020).
2.) Identify all risks including the dependencies on the firm’s supply chain that could affect or
disrupt operations on the supply chain.
An organization becomes successful as its selling and supplying activities are going on
continuously. The Supply chain process improves a company’s financial performance that is
different from resilience and stability problems. If an organization can supply the products and
services properly then it can manage the organizational efficiency. As firms mainly depend on
the supply chain process that helps to deliver the products and services up to customers easily
that can increase business performance. In the context of Toyota company, different types of
products and services are provides by an organization by informing customers and encourage
them to buy the products. This organization is facing many challenges and issues at the time of
supplying the products and services that are:
Quality Customer Service – The supply chain is centralized on the needs of customers
that is all about giving the right quantity and right quality of products. This challenge is facing by
Toyota company as customers are not satisfied with the quality and quantity of products that are
reducing the number of customers.
Costing – This is another issue that is facing by an organization at the time of supplying the
products as it increases the cost of raw material, energy, labor, and other items due to economic
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constraints. This can be challenging for Toyota's company to bear the heavy loss at the time of
supplying products and services that also increases the cost of operations. To reduce this issue
management of such an organization needs to control the cost by executing the plans efficiently
and make plans to improve the production.
Supplier relationship – For running a business there is a needs to have good relations with
suppliers who can provide raw material and products at fewer prices and manage the business
activities. The managers of Toyota company are facing these challenges as it requires good
relations with suppliers who can help to work and increase organizational productivity
(Edgeman, 2019).
Qualified Personnel – For an organization that wants to sell and increase the supply chain
process becomes difficult to find out the talented and interested person so they can work
accordingly and participate in increasing the working. In context to Toyota's company, there is a
need for talented and marketing people who have special knowledge and experience that can
help to maintain proper supply chain management which can increase the number of customers
and deliver the quality of products.
Risk Management – In all organizations, the market is not same, needs of people are
different, climate-changing, etc. are becoming challenges for the organization to manage such
risk because of their need to special knowledge of upcoming trend, products and high range of
resources that are difficult for the organization to manage them and operate a business
successfully.
Therefore, such issues are faces by Toyota company which depend on the supply chain and
affected the operations. This can be challenging for the organization to manage such activities,
higher cost, risk management, searching of talented employees, managing quality, etc. that can
help to increase business performance and efficiencies. The managers bring new technology with
the help of the enterprise system and overcome the problems which they are facing that increase
productivity.
Understanding of enterprise system development life cycle, from selection, acquisition,
implementation and maintenance
Enterprise system development life cycle – This refers to architecture is a dynamic,
interactive process of changing and uses of new technology in an organization so improvements
can be brought in an organization and increase the business performance. Toyota company is
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using an enterprise system development life cycle to increase the delivering activities, meeting
with customer’s needs, and filling the organizational objectives. The description of the
development life cycle are as defined:
Planning – This step is to find out the scope of the problem and define the solutions that
can help to increase the working and maintain the performance. Toyota company is using this
stage by arranging resources, cost, time, benefits, and other items that help to manage the
activities and increase the workings.
System analysis and requirements – In these phases, the team considers the functional
requirement of the projects and solutions. Toyota company is using this phrase to analyze the
system and requirements that can help to fill the expectations. This helps to increase business
performance by analyzing needs and filling the requirements.
System Design –This phase is related to the state in detail the necessary specifications,
features, and features that use to operate the business. With the help of system design, Toyota
company’s managers satisfy the functional requirements of the proposed system that take place
to perform well.
Development – This stage is related to the development of an organization by identifying
requirements, introduce new methods, and the start of production that can attract customers and
increase productivity. The managers of Toyota company are focused on the initiation in which
they bring changes and new technology to improve the business and increase business
effectiveness. This can increase the working of an organization by involving all resources and
activities that are important for business and increases workings.
Implementation –This phase states when a majority of the program is written and projects
are started to move in a production process then a new system should be placed instead of old
that can help to increase the working, improve profitability by bringing changes and get
completion of a task. This provides an opportunity for the Toyota company to implement all
plans and changes in their organization so they can work easily and increase business
performance.
Operation & Maintenance – This stage involves all activities that should be performed
and it boost the organizational profitability by meeting with desires and capabilities. Toyota
company is using this step by focusing on all actions and changes which maintain operations
properly.
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Selection – This is the process of selection and recruiting talented people in an
organization so they can accept the challenges and bring innovation in their organization that
helps to take the competitive benefits. Toyota company is using this selection process for hiring
talented and skilled employees in the organization and getting the work done in a certain time
that helps to maintain good performance and increase the workings by accepting challenges
(Elmhadhbi, Karray, and Archimède, 2019).
Toyota company is a larger size organization that is selling different types of products and
services by introducing new technology and analyzing the customer's needs. This helps to deliver
the best quality of products in a competitive business environment. The managers of such
organizations introduce new technology to improve the quality and supply chain process. By
using enterprise system development life cycle managers can compete with others and make the
effective process to sell the products and services by improving quality (Farnell, Saddington and
Lacey, 2019).
3.) Provide an assessment of how successful the adoption of the Enterprise Systems was to
reduce friction on the supply chain.
For the organization, it becomes important to operating their business by using a system
concerning enterprises that help to increase business efficiency and maintain good profitability.
Enterprise system are used by Toyota company for attaining the business goals by performing all
activities such as deliveries, sales, and account receivable that increases working by
communicating properly. This system also uses to improve customer relationships by solving
requirements and improving productivity.
For reducing supply chain friction Toyota company need to take many actions that can help to
increase the working and maintain good performance in the business world.
Maintaining data of business in proper format – by using an enterprise system chosen
organization can maintain the data in the proper format that can help to keep records and increase
the workings. Toyota company needs to stored and consist of customers' data in systems that can
help to provide information accordingly regarding new products and services (Farnell,
Saddington and Lacey, 2019).
Factors that contribute to the organization readiness by implementing enterprise systems
Resources are scale available as required – Enterprise system can improve the supply
chain by improving the productivity and arranging the resources which are available in an
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organization. This indicates that businesses need to stock extra information or need admission to
supplementary processing that can help to increase the working and maintain good business
productivity.
Safe purchaser data – This activity should be done by the organization to keep safe
purchaser data. This can help to increase the working and maintain good performance by
improving in supply chain and increase the effectiveness.
Focusing on cost – Cost is the main factor that is reducing the activity and performance
in case of increasing cost. The cost of a supply chain in Toyota company is increasing due to
changes in interest rates, labor, transportation, delivery, and other activities that impact an
organization. The manager of the chosen organization needs to focus on the cost that is important
to help to increase the business performance.
CONCLUSION
From the above report, it can be concluded that the enterprise system is those systems that
can help to improve business performance. Enterprise systems are implemented for gaining
access to business information in the organization, increasing employee efficiency, and reducing
duplication of company data. The business systems allow the company to reduce its information
systems expenditures and reducing the manual level of data entry. The system development life
cycle is considered as a system that uses to run the business by making plans and increase the
performance by attaining business goals. Different challenges are arises such as risk
management, costing, supplier relations, and qualified personnel that increases business
activities.
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REFERENCE
Books and journal
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employment legislation: a systematic literature review. Ajis: Australasian Journal of
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manufacturing automation modeling and control: A systems architecting
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the information economy. Research Papers in Economics and Finance. 3(1). pp.7-16.
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Cham.
Elmhadhbi, L., Karray, M. H. and Archimède, B., 2019. Toward the Use of Upper-Level
Ontologies for Semantically Interoperable Systems: An Emergency Management Use
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Farnell, G. P., Saddington, A. J. and Lacey, L. J., 2019. A new systems engineering structured
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Liao, Z. and Zhang, L., 2019. Elastic Timeslot-based Advance Reservation Algorithm for
Enterprise Video Conferencing Systems. IEEE Access.
(Hasan, Miah, Bao and Hoque, 2019) (Zeng, Qiyas, Arif and Mahmood, 2019) (Hinton, Wood
Singh and Reiners, 2019) (Morel, Pereira and Nof, 2019) (Andrianto, 2019) (Kwilinski, 2019)
(Ali, van Groenendaal and Weigand, 2020) (Edgeman, 2019) (Elmhadhbi, Karray and
Archimède, 2019) (Farnell, Saddington and Lacey, 2019)
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