Enterprise Systems: Impact and Implementation

ENTERPRISE SYSTEMS 1
Enterprise Systems
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Introduction
In the current competitive business environment, numerous organizations are increasingly
depending on the information systems to enhance efficient business operations as well as rely on
the systems to keep updated information available all the time(Wei, 2014,p.55). These systems
are referred to as enterprise systems; complex information systems that aid organizations to
integrate all data transactions with business activities to provide seamless operations. These
include Enterprise Resource Planning, Customer Relationship Management, and Supply Chain
management.
Enterprise systems adoptions by organizations are driven by different principles and these
include: Need to improve productivity is one of the organization’s objective. Through the
adoption of ES components such as ERP and CRM, organizations can manage their resources as
well as their customers (Morin & Hovav, 2012, p.156). ERP enable all the business departments
that always function as a watertight compartment tend to have little interactions. Through the
systems, departmental coordination is interacted to have real-time information. The information
shared through the systems eliminate duplication of data, thus helping in quick decision making
since information is always centralized.
The second driver is the need to reduce the operational cost. Organizations have different
operational cost such as production cost. It is the responsibility of every organization to
strategize on the best ways of getting all the activities done more efficiently at a lower cost to
remain relevant in the competitive market. High production cost tends to lower the profitability
of companies, thus through the adoption of ES such as ERP helps the organization to control

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shipments and manage inventory all integrated into a single program as well as facilitate mass
production.
The third driver to the adoption of ES by the business organization is the need to increase
business agility. Business agility refers to the ability and qualities of a business organization to
rapidly respond to both internal and external changes without losing focus on its objectives.
Business agility is characterized by the adaptability, flexibility, and balance to the changes.
Through the adoption of ES, business organizations have the capability of surviving in the
competitive envelopment for quite a long time (Qu, Ding, Shou, Zhou & Du, 2014,
p.570).Technological changes require the organization to have a skilled employee that can
rapidly respond to the changes; thus systems such as cloud computing enhance scalability as well
as reducing the complexity of organizations. Consequently, cloud computing has the capability
of increasing agility through on-demand self-service and rapid elasticity. Mobile phones enhance
communications, social media permits real-time interactions while ERP enables quick and
constrictive decisions are making. Series shows that business that has adopted
The last driver to the adoption of ES is the organization’s need to identify new business
avenues. Every business organization always thrives on creating more business avenues to have a
large market share and command (Cao & Xue, 2012, p.2629). Through the adoption of ES, a
business organization can increase their resilience in the technology industry and become one of
the major providers of the cloud services to other organizations. Additionally, when a business
implements a private cloud system and tends to have a spare capacity of the system, can decide
to sale the additional capacity as a public cloud to any other business entity thus increasing its
revenue collection.