Contribution of Enterprise Systems to Organizational Performance and SCM Adoption

RUNNING HEAD: Enterprise System
Enterprise System

Enterprise System 1
Executive Summary
Enterprise system are application software packages that helps an organization in data analytics,
information flows, business processes and reporting. This report focuses on various contributions that
enterprise systems make to the performance of an organization along with the manner with the help of
which such contributions can be measured. This report also provides the principle drivers behind the
increasing adoption of supply chain management systems by businesses and the necessary
organizational change management considerations for the successful adoption of enterprise system.

Enterprise System 2
Introduction
Enterprise system are large- scale application software packages that assist an organization in
information flows, business processes, data analytics and reporting. Enterprise system enables an
organization to significantly reduce its information technology cost along with the minimization
of manual input of data. These systems have the capability of replacing multiple independent
systems that are responsible for processing data for the purpose of supporting specific business
processes or functions (Nordmeyer, 2018). This report focuses on the contributions made by
enterprise systems towards the performance of the organization, measurement of such
contributions, principle drivers behind the adoption of supply chain management system by
businesses and the necessary organizational change management considerations for the
successful adoption of an enterprise system.
Contribution of Enterprise Systems to Organizational Performance and Its Measurement
Enterprise systems contribute towards the performance of the organization in a variety of ways.
Enterprise systems assist in communicating the critical firm- wide information on the
performance of business to the managers of the organization instantly which enables them in
making right decisions at the right time thereby enhancing the performance of the organization.
Moreover, it helps in improving the efficiency and quality of production, distribution and
customer service by way of integration of internal business processes of the company in finance,
sales, custom logistics, production, etc (Papajorgji & Petraq, 2015). Also, the performance of the
organization automatically improves when a uniform organizational culture is created where
similar information and processes are used by everyone for performing business activities.
Enterprise systems help in reducing the cost involved in hardware, software, transaction
processing and IT support staff. When the costs of the organization are reduced, its performance
significantly increases (MANGIN, HOVELAQUE & BIRONNEAU, 2015). Furthermore, the
functions of the different departments are synchronized in an effective way with the help of
implementation of enterprise systems in the organization. The time required for the processing of
documents such as payrolls is reduced to a great extent. Enterprise systems enable transparency
and information visibility within an organization which in turn facilitates various operations