Contribution of Enterprise System in Improving Organisational Performance

This report explains the contribution of enterprise system in enhancing the organisational performance. It also elaborates about the principle drivers that lead to adoption of the supply chain management system and the organisational change management strategies required for effectively adopting successful enterprise systems.

ENTERPRISE SYSTEM

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Executive Summary
Technology has not only changed the ways of working but has also influenced the
performance level of an organisation. This is because of the smoothness and efficiency it
provides to the operations. Companies have installed various types of Enterprise system as
per their requirement. In this report contribution of the enterprise system in enhancing the
organisational performance has been explained. Along with tis it also elaborates about the
principle drivers that lead to adoption of the supply chain management system. Maintaining
the demand and supply balance is one of the major drivers in this regards. Since Enterprise
system changes the ways of doing work hence managing changes is highly crucial in the
organisation. There are various types of organisational change management strategies
required by the company for effectively adopting successful enterprise systems.

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Contents
INTRODUCTION.................................................................................................................................2
Enterprise system’s contribution in improving organisational performance..........................................2
Principle drivers for supply chain management system adoption..........................................................4
Organisational change management required for successful enterprise system adoption......................5
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7

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INTRODUCTION
In the era of technology, organisations are using technology for conducting operations. For
bringing smoothness in the work, it is essential that organisations take use of various
information technology systems. In this regards enterprise systems plays a very crucial role.
In various types of available enterprise system, organisations select one for themselves on the
basis of the requirements they have. These systems are capable of improve the organisation’s
performance. In the implementation of these systems, organisational change management is
highly required (Fui-Hoon, Lau and Kuang, 2001). There are several factors that stop the firm
from implementing enterprise systems. This report exhibits the contribution of enterprise
system on the performance of the firm. It also describes the ways in which contribution is
measured. It also showcases the major drivers of supply chain management systems. In the
last section of the report, various considerations for enterprise system adoption are measured.
Enterprise system’s contribution in improving organisational performance
In any organisation, enterprise system plays a very crucial role as it helps in improving the
performance of their units. The first thing that enterprise system does is that it improves
efficiency and smoothness of the work process. Apart from this there are several other ways
in which enterprise system improves organisational performance and these are as follows:
 Automation of client’s service process: Enterprise system such as ERP supports in
effective utilisation of resources. This will help the firm in aligning all the resources
along with back and front end processes in one line (Shang and Seddon, 2002). This
will not only improve the effectiveness of the organisation but also enhance the
performance of the firm.
 Managing data: Today data has become one of the most crucial aspects of the
business. These enterprise systems are highly efficient in the data management and
producing results as per the requirement. It plays a crucial role at the time of decision
making that too when specific decisions are need to be made as it is required in
performance improvement of organisation.
 Resource Scaling: Enterprise systems help companies in their resource scaling in both
upward and downward direction as per the need of the firm according to situations.
This helps the organisation in using their resources for the longer period of time

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which is necessary for improved performance (Hendricks, Singhal and Stratman,
2007).
 Process standardisation: Enterprise systems supports in making of standard
procedures as well as enforcing it in the processes. This is necessary for production of
best quality product and services. It is crucial for obtaining higher satisfaction of
employees at the same time it improves organisational performance. It also helps in
improving the image of the company in the minds of the consumers.
 Strengthening supply chain management: Supply chain management is a crucial
aspect of improving organisational performance. Strengthening of supply chain
management helps in achieving better performance. With the help of data acquired by
the enterprise system, supply chain management can be streamlined (Da, 2011). This
can be done by evaluating how, where and when customer orders and supplier
delivers. Delivery of products on the right time that too at lower cost can only be
achieved using enterprise system.
By these methods contribution can be measured. This can be done with the help of
performance metrics which varies according to the factors. Analysing next and previous
values can help in measuring the contribution made by enterprise system. The changes in the
values are easily noticeable (Bi, Xu and Wang, 2014). Number of errors in the process can
also be checked and hence their numbers also diminishes. Return on Investment is one of the
major metrics in this regards. These metrics are necessary for inconsistency removal. Few
other measures are:
 Enhanced repeat sales
 Enhanced sales of products and services
 Improved customer retention rate
 On time completion of tasks
 Improved sales conversion rates
 Output production also gets increased
 Improved network performance
 Improved public image

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Principle drivers for supply chain management system adoption
In the modern day business maintaining demand and supply is very essential. In this regards
Supply Chain management plays a crucial role. Supply chain management is crucial for
maintaining the image of the firm in front of stakeholders especially the suppliers and clients
(Sasidharan, et. al., 2012). Few of these drivers businesses adopting supply chain
management are:
 Cost reduction: Supply chain management helps in improving the service quality but
at the same time it reduces he overall cost of service delivery. It is because the best
options are provided by the supply chain management system for delivering the
services and products. Cost reduction can also be ensured in terms of the fact long
term utilisation of resources can help in reducing the cost of investment on resource
purchase. SCM enables company to take use of most cost effective resources so as to
ensure highest of profits. In the competitive business environment saving cost has
become highly essential.
 Demand measuring: By evaluating all the data, these systems are capable of
measuring the demands. In other words it helps in predicting demand which is
necessary for managing supply so that a balance can be made between the two (Saini,
et. al., 2011). More the use of systems like SCM systems more is the chance to predict
the demand accurately. In the modern day competitive environment, this is highly
essential.
 Inventory buffer: SCM systems assist in bringing flexibility in the product’s storage.
Since there is continues change in the spending of consumers hence firm need
inventory management at lowest of cost. It is also crucial that demands are fulfilled at
the required time (Wang, et. al., 2013). Such predictions can only be made when there
is thorough analysis of data obtained through previous activities. In the longer run this
helps in satisfying the needs of the company as well as the consumers.
 Low cost shipping: As there are two ways in which consumers can order products i.e.
from the outlets or from the online stores. It is easier to predict path of shipping that
costs least by the help of SCM systems. Readjustment in the system can be made as
the consumer’s choice. At the same time they will also have to ensure that no quality
issues arise in the overall process. Supply chain management system enables the
company to streamline the whole delivery process that is of the cheapest of cost
(Schubert and Williams, 2011).

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 Emerging business risk: Due to several factors, risk in the business has gone very
high. In this high risk environment, supply chain management helps in defining the
critical risk factor within the firm and with their suppliers. Risks are measured
according to product’s quality, compliances according to the laws that are applicable
laws and safety measures (Trinon, et. al., 2011). Since supply chain management
helps in prediction of the demand and supply hence it helps in the satisfying the
consumers.
Organisational change management required for successful enterprise system adoption
Adoption of Enterprise system is a long term process and as it affects the performance of the
organisation hence certain changes are required in the process. All these changes needs
change management so that there is successful adoption of enterprise system. Change
management is also necessary because enterprise system may bring disruption in the
business. Some of the considerations that are necessary for successful adoption of enterprise
system are:
 Training: In any change management process training plays a highly crucial role. This
is due to the fact that Enterprise system brings changes in the operational procedures
hence training is required in the process. The training must also be provided for
effective utilisation of enterprise systems. This is because there is transition from
manual methods of managing operations to automatic methods and hence training
becomes more essential (Panetto, et. al., 2016). Tanning must be given from top to
bottom based on the requirements of the individuals. For this a training plan is
required that brings smoothness in the process.
 Communication: In any change management, communication plays a very crucial
role. Proper communicational mechanism is beneficial for removing the confusions
from the minds of the stakeholders. In order to remove backdrops from the process, it
is always crucial that wrong information is not portrayed in front of the stakeholders
(Ningombam, et. al., 2014). Since consumers will also face challenges in case of
change of procedures hence they must also be communicated to them.
 Employee engagement: In any change process, employee engagements play a very
crucial role. The same goes with implementation of Enterprise system where
employee’s engagement plays a decisive role. In all the units employees must be
ensure that they have calculated the cost of implementation at the same time they have

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an understanding about system’s complexities (Mostaghel, et. al., 2012). This must
also be done with the help of team work. As the team helps in proper understanding of
the business process hence all the processes can be done smoothly.
 Cultural Concerns: In any organisation there are people from different cultural
background which makes its essential for them to ensure that they have a change
management plan which respects all the cultures. Every employee’s perspective about
the change process is different especially in regards to involved risks, system benefits
as well as implementation goals etc.
 Leadership approach: Since leadership approach differs from leader to leader. The
approach of leadership plays a crucial role in the way a system can be implemented. It
is calculated in terms of the fact that how much leadership is ready to apply changes
or to face the consequences of the transformation. Huge investment is required in the
whole process and leaders must be ready with required investments (Mostaghel, et.
al., 2015). For making the adoption process simpler leaders are required to motivate
the staffs. This can be done with the help rewards, benefits as well as clarifying about
the goals that is set by the organisation for itself.
CONCLUSION
From the above based report it can be concluded that in the era of technology, Enterprise
system is highly essential. This helps in ensuring that all the process are working smoothly at
the same time it also helps in improving the process methodology. In the increasing
competition, enterprise system becomes crucial as it improves the performance of the overall
organisation. There are several metrics whose previous and later values are compared for
measuring the effect of change within the organisation. Supply chain management systems
can be helpful for predicting demands and hence maintaining the demand and supply chain.
There are various drivers for adopting supply chain management systems. Since Enterprise
system changes the overall operational procedures hence proper organisational change
management is required within the organisation.

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