Enterprise Systems and Organizational Performance

Running head: MANAGEMENT
Business Communication
Name of the Student:
Name of the University:
Author Note:

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Introduction:
The essay provides an insight into the enterprise systems adopted by business. Enterprise
system represents massive scale application software packages that support the information flow,
business process, data analytics and reporting in the complex organizations. Integrated Enterprise
System helps in tackling varied processes on the behalf of the business thereby ensuring its day
to day running. Companies thus prefers in embracing the various enterprise systems like
Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP). The essay
provides a discussion on the principal drivers behind the adoption of the Enterprise System.
There is also discussion on the contribution of the Enterprise System on the performance of the
organization along with a mention of the measurement of its contribution. The essay also
provides an overview of organizational change management that needed to be considered for the
successful adoption of the Enterprise System.
Discussion:
Principal Drivers Behind Business Adopting the Enterprise Systems
According to Rice (2013), during the later part of the 1990s, the Enterprise Systems
market became quite saturated since most of the large scale organizations implemented the
Enterprise System. As a response to the existing competition in the industry, the vendors of the
Enterprise System included other applications as part of the offerings of the Enterprise System.
The product portfolio included functionalities such as the supply chain management (SCM), data
warehousing, customer relationship management (CRM) and the artificial intelligence (Wang et
al. 2013). For achieving this, the Enterprise System vendors either ensure in-house building of
the new functionalities or partnered or acquired with vendors belonging to the specialized

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enterprise application. The future of the Enterprise System application would have lesser focus
on the transaction processing in order to include the managerial support system as the standard
offering.
Dlodlo, N. and Dhurup (2013) stated that the principal drivers behind the business for
adopting the enterprise systems includes organizational size, IT maturity, organizational
ownership, profit making organizational status and the global reach of the organization.
Organizational size implies that the size of organization acts as the driver in the
implementation of the Enterprise System. It is measured by the size of the revenue. In doing so,
the vendors made sure that the customers did not just have resources but bigger ideas. To
incorporate the Enterprise System, the vendors agreed on the fact that both the smaller and the
larger organizations have same complexity but varied only varied on size.
Information technology (IT) maturity represents the term used for describing the IT/IS
adoption in the organizations. It has been found that the adoption of Enterprise system remains
positively associated with IT maturity of organization. The IT mature organizations represents
the ones who takes care of the needs of the Enterprise System needs and now extends to the
CRM or SCM. They are also keen on understanding the IT valuation. Besides, they represent the
stage where the company plans in developing the IT backbone in either the Enterprise system or
the proprietary system.
Ownership of the organization and status of profit making represents the ownership
and the status of profit making acted as drivers in the adoption of Enterprise System by the
business (Ortbach, Brockmann and Stieglitz 2014). For instance, the implementation of the
Enterprise System in business owned by the individuals is personal. However, in case of public