Enterprise System: Benefits, Challenges, and Measurement of Contribution

This essay discusses the benefits and challenges of implementing an enterprise system in an organization. It explores how enterprise systems improve decision making, provide up-to-date information, and gain competitive advantages. The essay also discusses the challenges of finding the right software, training employees, and managing technical issues. Additionally, it explains how organizations can measure the contribution of enterprise systems to performance and productivity. Overall, enterprise systems play a crucial role in enhancing organizational performance and productivity.

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Enterprise System
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Essay on Enterprise System
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Enterprise system or enterprise resource planning is a system related to cross- functional
information which provides coordination to the organization and helps in finding key process
and also helps in planning the organizational resources. Enterprise system helps the
organization to flow information within the organization and it also helps in integrating
process through sales, manufacturing, logistics, production and human resources (Giachetti,
2016). There are various principles behind adopting enterprise system by the organization
such as implement a holistic approach, identifying the stakeholders who are relevant to
enterprise system, focus on effectiveness of enterprise system than efficiency, ensuring
stability across the organization, effective leadership and effective organizational learning.
Organization should implement enterprise resource planning system in their organization
because it makes better to the organization. It helps the organization in reducing cost of
operation and decreasing order to cash cycle because enterprise system integrates with all the
aspects of the operations of the company. Order to cash cycle describes how quickly
organization gets cash for its sale of goods and services to the customers, so ERP system help
in increasing cash flow for the company and controlling their cost (Hamlett, 2019). With the
help of enterprise system, company can measure its performance across multiple locations
because it allows the organization to implement same system in different locations and it
eliminates the need of each location regarding storage of data of the customers. Due to
adoption of enterprise resource planning system, organization can increase their productivity
because it helps in accessing and integrating data over multiple locations. ERP system allows
the company to sale products faster, get order quicker and continuously invoice customers.
Enterprise resource planning system helps in accessing the multitude of information related to
organization or provide up- to date information, without enterprise system this information is
difficult to obtain for the organization with other system related to resource planning
(Rouhani and Mehri, 2018). Because of enterprise resource planning, information comes
from only one source rather than from multiple sources, so it becomes more accuracy and
relevancy because enterprise system provides various reporting tools to the company, which
helps the company in making information timely and provide up- to- date information related
to productivity and performance of the organization (Hwang and Min, 2015).
Enterprise resource planning helps in streamlined the processes of the business. As per the
ERP report 2018, company implement enterprise system to improve the performance of their
business through connecting company’s supply chain management, planning and scheduling,
financial management, project management and other management towards the organization,

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so enterprise resource planning system helps in automating workflow across all the above
department, so it will result in accurate and faster operation for their business. Data in excel
and sticky notes are not useful in case of collaboration because data cannot be shared by
using the above system, so enterprise system allows company to access the same data as this
system can take all the data at one place and it helps the organization in accessing data easily
(Sadrzadehrafiei, et al, 2013). By implementation of enterprise resource planning,
organization can improve experience of their customers because it helps the company to
provide adequate products to the customers, provide timely information within the
organization and correct orders, so enterprise system helps in meeting the needs of the
customers and increasing the level of satisfaction of the customers. Enterprise resource
planning also helps in improving decision making process within the organization as data are
available at one place, so it will be easy to find what is the need related to resource for
increasing the performance of the organization. When organization implement ERP systems
in their company, so it will help the organization in increasing efficiency of the organization
and also helps in gaining competitive advantages (Dezdar and Ainin, 2011).
But there are also some issues or challenges which may face by the organization while
implementing system related to enterprise resource planning in their organization such as
finding the best software because there are various software available related to ERP system,
ensuring adequate training to their employees in managing the enterprise resource planning
system, sufficient amount of testing is considered while implementing an enterprise resource
planning system within the organization, enterprise system leads to high cost (Soja and
Pekosz, 2009) and it also consume time of the employees who are managing that system,
complexity in the management of configuration and company may also face technical issues
and data quality issues while implementation of enterprise resource planning system by the
organization (Alfred, 2018). Although enterprise system has some challenges but it also has
various benefits to the organization which helps in increasing productivity and performance
of the organization. So, organization which has enterprise resource planning system can
perform better and enhance their growth than organization which does not have enterprise
resource planning system in their organization.
Enterprise resource planning or enterprise systems do huge contributes to the performance
and productivity of the organization. As enterprise system store all relevant data for the
business in a usable format, so that it helps in improving the experience of the customers and

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analysing the data easily as they properly keep records such as order history of the customers
and what time will need in completing that order, so by enterprise system organization can
improve satisfaction level of customers, so it will help in increasing the performance of the
organization. It also help the organization in securing the data related to customers as well as
other related data to the business productivity. Enterprise systems are more reliable than other
IT system, so it will help in increasing the productivity of the organization. This system helps
in reducing the cost for the business and it provide up to date information within the
organization, so it will contribute to the performance and growth of the organization.
Enterprise resource planning system helps the organization in improving their supply chain
management, improving financial performance of the organization, project management and
also helps in managing the business process effectively and efficiently. ERP system also help
the organization in better management of the information, improving workflow within the
organization, simplicity in business accounting and transparency of data. So, enterprise
resource planning system or other enterprise systems within the organization contribute to the
performance and productivity of the organization (Mathrani and Viehland, 2009).
Organization can measure contribution of enterprise resource planning system towards the
performance and productivity of the organization through various tools such as by calculating
return on investment, total cost of ownership and quantitative analysis methods. They can
compare their performance with enterprise system or without enterprise system. Organization
can also measure contribution of enterprise system towards performance and productivity as
whether order or project came in budget or in on schedule and they can also measure by
analysing the arte of retention of customers and sales conversion (Belkhamza and Wafa,
2012). They can also measure contribution of enterprise resource system towards
organizational performance by inventory survey as well as weights survey. Inventory survey
measures performance of inventory system and it helps in managing the inventory system. It
can be measure by seven point likert scale as strongly agree, agree, neither agree nor
disagree, disagree, strongly disagree. This survey can be filling by employees of the
organization (Gupta, Sharma and Rashid, 2009). Company can also take feedback from the
employees as well as their customers regarding the product or services which are delivering
by the company, so it will help in measuring the level of satisfaction level of customers as
well as employees and also helps in measuring at what extent enterprise resource planning
system contribute to the performance and productivity of the organization. Company can also
measure the contribution of enterprise resource planning system or other enterprise system by

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measuring the quality of services, information quality and the impact of individual and
organization (Pinson, Valente and Vitoriano, 2015). Quality of services can be measure by
the company through RATER model or total quality management. RATER model helps the
company in measuring whether the products or services which are offering by them to the
customers are reliable, assurance, tangible, empathy and responsiveness. Company can also
use control chart, process mapping and cross and effect diagram for measuring the
contribution of ERP system towards the performance and productivity of the organization.
So, from the above ways organization can measure contribution of enterprise systems
towards organizational performance (Ettlie, et al, 2009).
Organization change management play an important role in successful implementation of
enterprise resource planning system or other enterprise systems because a new system affect
the whole organization, so organization change management helps to their employees in
adopting new system and they also tell what is the benefits of enterprise resource planning in
their organization to the employees and enterprise system directly impact the day to day
activities of the employees. Organization change management consideration help the
organization in successful implementing enterprise system within their organization (Reitsma
and Hilletofth, 2018). Firstly organization should do initial assessment while implementation
of enterprise systems, it includes whether business ready for adopting the enterprise system,
creating document for ERP and setting up demo of alternative systems. Organization change
management helps in successful implementation of ERP system by accepting cultural
consideration. Language, demographic, education, skill level and work personalities play an
essential role in determining how employees of the organization can perceive the goals,
benefits, risks which are associated with the implementation of ERP system in the
organization. In order to implementation of ERP system to be successful, complete buy- in
will need from every members of the organization involved in the decision making process, it
includes management as well as employees. Without entire management, enterprise system
cannot be successful because decisions need team efforts and huge involvement of top
management. If management team does not agree with the decision of implementation of
enterprise system in their organization then it will effect to the rest of the organization. Most
important responsibility of change management is to buy- in of the employees while
implementation of enterprise resource planning systems in their organization because
employees are important key in successful ERP system. They can helps to their employees by
supporting them and telling them the benefits of the enterprise system in their organization.

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Organization change management provide training and consultancy services to their
employees, so it will helps in acquiring the new system by the employees (Hassan and
Mouakket, 2016).
Organization should have strong and proven training process while implementation of ERP
software. There are various tools which can be used by the company in offering training to
their employees such as training workshops, readiness assessments, live demos,
walkthroughs, white paper, live question and answer and free trial. Communication is an
important key through all training programs which are used by the organization. It helps the
company in understanding the new system to their employees, increasing the performance
and productivity of employees as well as organization and it also help in achieving the goals
and objectives of the change management of the organization. Organizational change
management assess and accountable the performance of the organization after
implementation of ERP system in their organization and before, during and after providing
training to their employees. Employee engagement is also important consideration of
organizational change management which help in successful implementation of enterprise
resource planning system. They ensure whether all issues and opportunities related to ERP
system are captured or not. Communication and training strategy also play an essential role in
successful implementation of enterprise system. So, by adopting enterprise system in the
organization, it helps the organization in increasing their growth and increasing performance
and productivity of the organization because it helps the organization in improving decision
making, providing up to date information, gaining competitive advantages, controlling
operation cost of the company, accessing the multitude of information related to the
organization, integrating data across multiple locations and provide accurate and relevant
information with the organization because information comes only from one source not
multiple source, so enterprise system can contribute to the organizational performance.
Organization can measure such contribution by various methods or tools such as comparing
performance between before implementation of ERP and after implementation and by
calculating returns. Organizational change management plays a crucial role in
implementation of ERP system within the organization to be successful (Yeh and OuYang,
2010).

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References-
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Belkhamza, Z. and Wafa, S. (2012) Measuring Organization Information System Success:
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implementation. Management Decision, 49(6), pp.911-926.
Ettlie, J., Perotti, V., Joseph, D. and Cotteleer, M. (2009) Strategic predictor of successful
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Giachetti, R. (2016) Design of Enterprise Systems: Theory, Architecture and Methods. New
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Gupta, J., Sharma, S. and Rashid, M. (2009) Handbook of Research on Enterprise Systems.
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