Enterprise Software Systems - Definition and Examples

Running head: ENTERPRISE SYSTEMS
Enterprise Systems
Name of the Student
Name of the University
Author’s Note:

1
ENTERPRISE SYSTEMS
Executive Summary
The objective of the report is to understand about enterprise systems with relevant details.
This type of system is extremely effective and efficient for replacing several distinctive
information systems with one integrated system, which could easily provide support different
business activities for the diversified business functionalities. Information could easily flow
across the entire organization and the various business processes from logistics, human
resources, production, manufacturing and sales could be easily integrated into the
organization wide business procedures. The enterprise system can be eventually driven by the
respective software suites of ERP, which are a common centralized database and a collection
of different integrated software module. This report has clearly outlines about advantages of
enterprise systems with different architectures of ERP, after analysing strengths and
weaknesses.

2
ENTERPRISE SYSTEMS
Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Discussion of the Principal Advantages from Enterprise Systems..................................3
2.2 Description of the Role of ERP Systems in System Integration......................................6
2.3 Contrasting and Comparing Three Types of ERP Architectures and Analysis of the
Strengths and Weaknesses.....................................................................................................8
3. Conclusion............................................................................................................................12
References................................................................................................................................14

3
ENTERPRISE SYSTEMS
1. Introduction
An enterprise system can be referred to as a cross functional information system,
which is responsible for providing organization wide coordination as well as integration of
the major business procedures for ensuring that planning of the organizational resources is
being done effectively (Leon 2014). These software modules can provide support to the
business procedures under various functional areas and the respective database would store
data from and then feeds the data to several applications, so that they can support the internal
business activities. The most significant examples of business processes that are being
supported by the enterprise system involve accounts payable, cash management, forecasting,
time management, product pricing, general ledger, inventory management, payroll and billing
(Tarhini et al. 2015). This essay outlines a brief description on enterprise system, by
describing the main benefits, role of ERP in system integration and finally comparing three
types of ERP architectures with their strengths and weaknesses.
2. Discussion
2.1 Discussion of the Principal Advantages from Enterprise Systems
Enterprise software is referred to as the computer software that is needed for fulfilling
the requirements of a company and not only the individual users (Seethamraju 2015). These
companies involve businesses, governments, clubs, schools and many more. It is the integral
part of an information system and the collection of these software, together are termed as an
enterprise system. The major services demonstrated by the ES are usually business oriented
tool and technologies such as online shopping, cooperating product catalogues, automatic
billing system, online payment processing, business process management, IT service
management, business intelligence, enterprise forms automation and many more (Chofreh et
al. 2014).

4
ENTERPRISE SYSTEMS
Since a company comprises of similar departments as well as systems in common, an
enterprise system is available as the subsequent suite of different customizable programs
(Tian and Xu 2015). The high complexity of the tools and techniques of enterprise system
requires special capabilities and specified knowledge. The enterprise computing is the tool of
IT, which the businesses utilize for effective production operations as well as back office
support. The information technology tools cover database management, SCM, business
processing management and CRM (Shen, Chen and Wang 2016). The most significant
benefits of this enterprise system are provided in the following paragraphs:
i) Better Communication: The first vital benefit of ES is that it provides better
communication with the critical firm wide information (Costa et al. 2016). This particular
information is to be considered on the basis of business performances to managers in the
entire company promptly, so that it becomes easier to enable them in making effective
decisions and even at correct time. It is extremely important and significant to improve
communications in the organization for ensuring that better effectiveness is gained under
every possible circumstance (Kurbel 2016). The organizational managers would be highly
benefitted from the system and the existing issues and complexities would be resolved
completely.
ii) Reduction of Costs: The second important and significant advantage of enterprise
system is reduction of costs to a high level. Enterprise system is responsible for making the
process an integrated one and as a result, the expenses related to transaction processing, IT
support staff, software and hardware gets reduced to a high level (Ha and Ahn 2014).
iii) Improvement of the Quality and Efficiency of Services: Another vital and
noteworthy advantage of enterprise system for any specific organization is that it helps in
improvising the overall quality and efficiency of different services to the most effective

5
ENTERPRISE SYSTEMS
manner (Chang et al. 2015). As a result, the efficiency of customer services, distribution and
production is being improved majorly, after proper integration of the organizational internal
business procedures within sales, custom logistics, finance and many others.
iv) Creation of a Uniform Organizational Culture: The next vital and noteworthy
advantage of ES for an organization is successful creation of a uniform organizational
culture. In this particular culture, each and every user can utilize similar types of procedures
and relevant information for doing business in the most effective manner (Saade and Nijher
2016).
v) Easier Accessibility of Company Data: The fifth important and significant
advantage of ES is that it allow easy accessibility of the entire organizational data. It is
extremely helpful as the operational employees can easily collaborate effectively in the
regular work and the systems are being utilized in the most effective manner (Antero 2015).
The information regarding inventory levels, project status and employee performance metrics
directly from the online dashboard. This accessibility is completely available to certain
computers as well as mobile devices outside the organization. Such high flexibility could also
improvise the customer service experience.
vi) Reporting and Planning Capabilities: The systems could easily make it extremely
easier in generating detailed reports with calculations, graphics and statistics, which
managers could easily utilize for tracking performances and spotting potential problems. The
information is available in real time for taking actions regularly (Eden, Sedera and Tan 2014).
The managers could even utilize the capabilities of systems for assisting with planning. Work
force productivity as well as staffing levels could be helpful for planning the requirement of
hiring and training the employees.

6
ENTERPRISE SYSTEMS
vii) Higher Work Force Efficiency: The next significant and noteworthy benefit of
enterprise system in a company would be maintaining higher work force efficiency and
effectiveness (Lyytinen and Newman 2015). The repetitive tasks can be made automated
completely for freeing up the managers and employees for every vital responsibility. The
CRM systems could easily automate marketing after sending emails to the potential leads
regularly and also by measuring results from the efforts to help every interested customer
scheduled appointments (Bansal and Agarwal 2015). The human capital management ES
could also schedule employees and handle payroll duties, so that it becomes much easier to
assist on recruitment and selection.
viii) More Secured and Quality Data: Enterprise systems are responsible for
providing both quality and secured data and information. The respective administrators of
these systems could select the person having access to the data and type of data on the basis
of employee or manager (Ganesh et al. 2014). Data is often less at a risk for corruption or
loss and can ensure proper methodologies for merging information. The respective
organization, who offer such systems even make sure the privacy of data for reduction of the
likelihood of database crashes and hacks.
2.2 Description of the Role of ERP Systems in System Integration
ERP or enterprise resource planning could be referred to as the software for business
processing management, which allows a business in utilizing a specific system of different
integrated application for controlling the work and also automating several back-office
functionalities, connected to human resources, services and technologies (Hwang 2014). It is
the integrated management of main business procedures within real time and are being
facilitated by technologies as well as software. It is a specific suite of integrated application,
which the organization could use for collecting, storage, management as well as interpretation
of data from several business events. ERP is responsible for providing a constant updated

7
ENTERPRISE SYSTEMS
overview of important business processes with common database that is properly maintained
by a DBMS. These distinct systems are responsible for tracking business resource such as
production capacity, raw material and cash and even the status of different business
commitments, payroll, purchase order and general orders. Various applications, which make
up the entire system share information in different departments for providing data (Mahmud,
Ramayah and Kurnia 2017). ERP can even facilitate the flow of data within different
business functionss and also manage links to the outside stakeholders.
The software of ERP is responsible for streamlining as well as integrating different
processes, information flow and operations within a company for the core purpose of
synergizing different organizational resources like machine, money, materials and men
(Chofreh et al. 2016). These systems also integrate the processes and data of the company
into a specific unified system. The enterprise resource planning even utilizes several
components of hardware and software for achieving successful integration. The most
significant ingredient of maximum ERP system would be the utilization of a incorporated
database for the purpose of storing data for several system modules. Several companies in the
entire world have considered the fact that in a promptly altering business environment, it
becomes nearly impossible to generate as well as preserve a customized designing software
package that can provide each and every requirement and even remain upgraded (Pattanayak
and Roy 2015).
For the purpose of fulfilling all of these requirements of the companies, the business
professionals have subsequently designed as well as developed the software of ERP that
could easily offer the most integrated software system to every functional procedure in the
company (Lyytinen and Newman 2015). In spite of the fact that in the initial stage, enterprise
resource planning software originated within the respective manufacturing environment,
different solutions of ERP majorly cover every basic business function or process of a

8
ENTERPRISE SYSTEMS
company, irrespective of the organizational charter or business. A specified module of ERP
subsequently involves warehouse management, human resource management, financials,
manufacturing, DSS, CRM and SCM. Such distinct solutions are eventually often
inappropriately quoted as the back office solutions, which indicate that different customers
and other public are not getting involved directly. The role of ERP in system integration is
extremely important as the modules of this particular software are enterprise wide software
and cross functional software solutions (Bansal and Agarwal 2015). These functional
departments, which are being involved in the production and operations could be easily and
promptly integrated in one particular system. Different modules of accounting, strategic
management, marketing and human resources are also involved in this particular enterprise
resource planning software for better integration of systems.
Different aspects of ERP could eventually serve varying process kinds of the
business. The solution of ERP comprises of several advantages, on the basis of business type
served by it, which include industry solutions and business solutions (Antero 2015). The
industry solutions are being designed for people, who are working in the distinct industries
such as education, communication, health care and finances. The business solutions of ERP
software are being designed for the businesses, which work for a broader variety of areas.
Information technology combines a larger number of elements into a single unit. The most
significant tools of ERP include finance, human resources and manufacturing. Different tools
of ERP enable organizations for successfully maintain the financial information related to
cash, budgets accounts and assets (Saade and Nijher 2016). This particular software could
even assist an organization in controlling various external and internal factors, affecting it. As
a result, proper implementation of the module of enterprise resource planning is extremely
vital for better integration of systems and also to ensure that automation of processes is being
done under every circumstance.

9
ENTERPRISE SYSTEMS
2.3 Contrasting and Comparing Three Types of ERP Architectures and Analysis of the
Strengths and Weaknesses
This software requires to be customized for satisfying the respective organizational
requirements in the best possible method. As a result, the overall performance of the system
gets deteriorated and issues related to process and information integration gets increased to a
high level (Tian and Xu 2015). For the purpose of gaining highest advantage from enterprise
system, the companies should change the method of working as per the business processes of
software and not customizing the software properly. There are several popular types and
examples of ERP software, which are responsible for providing maximum advantages to the
respective user or company in managing their business processes and operations
(Seethamraju 2015). Three popular types of enterprise resource planning systems include
SAP R/3, JD Edwards Enterprise One and Oracle E Business Suite. The details of these 3
types of ERP are as follows:
i) SAP R/3: This is the first and the foremost type of ERP that is quite popular for the
users. SAP R/3 is a specific integrated software system, which provides support for both
smaller and larger companies. It is highly customizable for meeting the respective needs of
the business. The architecture used by this particular ERP system is a client server
architecture, which could easily run on several platforms like OS 400, Windows Server and
UNIX (Leon 2014). Moreover, the implementation of SAP R/3 could be done with the help
of several database packages like DB2, SQL server and Oracle. The software is targeted
maximum for the small and medium sized businesses and also offers the previously built
modules for customer relationship management, warehousing, reporting and purchasing.

10
ENTERPRISE SYSTEMS
Figure 1: Architecture of SAP R/3
(Source: Chofreh et al. 2014)
The above provided image demonstrates about the architecture of SAP R/3. It is being
segregated into 3 layers, which are database layer, application layer and presentation layer.
The major strengths of this ERP system include higher flexibility and feature oriented;
however the weaknesses of the system include high expenses and huge complexity.
ii) Edwards Enterprise One: It is an Oracle based ERP system that offers previously
designed modules, which focus on the standardized based process engineering as well as
deeper understanding of business requirements and processes (Shen, Chen and Wang 2016).
The available modules in this sector involve CRM, project management, capital asset

11
ENTERPRISE SYSTEMS
management, ordering systems and finance management. The high level modules could be
added for the industries like construction, real estate and food production.
Figure 2: Architecture of JD Edwards Enterprise One
(Source: Costa et al. 2016)
The architecture of this particular ERP system integrates with database systems, third
party solutions, reporting tools and web application servers. The main strengths of JD
Edwards Enterprise One include lack of complexity and high security and the weaknesses
include high costs and lack of support to every business process.
iii) Oracle E Business Suite: This particular ERP system is responsible for supporting
different distributed organizations for offering modules of operational and financial
information, profit analysis, budgeting and dynamic planning (Ha and Ahn 2014). It is a
highly customizable suite, which could support complicated business requirements. The
software also runs on a broader range of various database systems as well as hardware
architectures.

12
ENTERPRISE SYSTEMS
Figure 3: Architecture of Oracle E business Suite
(Source: Chang et al. 2015)
The architecture is divided into 3 features of client, web server and data server. The
strengths of the ERP system include automated system, better time management, schedule
and productivity and the weakness include lack of cloud integration and lack of customer
support.
3. Conclusion
Therefore, a conclusion could be drawn that enterprise systems are required for
automation of the internal back office business procedures of an organization. It even helps in
communication with the business partners, suppliers and customers. For successful
implementation of enterprise system, the companies require to recognize the business
procedures to be automated and then map the procedures with that of ERP systems.

13
ENTERPRISE SYSTEMS
Furthermore, the companies might even find out that if the business processes of the systems
can provide support to the business process methodology. There are several types of ERP
software that are being offered by various software vendors and the most popular software
include SAP R/3, Oracle manufacturing, PeopleSoft, iRenaissance, MFG/ Pro and Triton.
The above provided report has properly described about enterprise systems with relevant
details related to benefits, role of ERP in system integration and comparing 3 kinds of ERP
architectures.

14
ENTERPRISE SYSTEMS
References
Antero, M.C., 2015. A Multi-case Analysis of the Development of Enterprise Resource
Planning Systems (ERP) Business Practices. Morten Friis-Olivarius The Associative Nature
of Creativity.
Bansal, V. and Agarwal, A., 2015. Enterprise resource planning: identifying relationships
among critical success factors. Business Process Management Journal, 21(6), pp.1337-1352.
Chang, B., Kuo, C., Wu, C.H. and Tzeng, G.H., 2015. Using fuzzy analytic network process
to assess the risks in enterprise resource planning system implementation. Applied Soft
Computing, 28, pp.196-207.
Chofreh, A.G., Goni, F.A., Ismail, S., Shaharoun, A.M., Klemeš, J.J. and Zeinalnezhad, M.,
2016. A master plan for the implementation of sustainable enterprise resource planning
systems (part I): concept and methodology. Journal of cleaner production, 136, pp.176-182.
Chofreh, A.G., Goni, F.A., Shaharoun, A.M., Ismail, S. and Klemeš, J.J., 2014. Sustainable
enterprise resource planning: imperatives and research directions. Journal of Cleaner
Production, 71, pp.139-147.
Costa, C.J., Ferreira, E., Bento, F. and Aparicio, M., 2016. Enterprise resource planning
adoption and satisfaction determinants. Computers in Human Behavior, 63, pp.659-671.
Eden, R., Sedera, D. and Tan, F., 2014. Sustaining the momentum: archival analysis of
enterprise resource planning systems (2006–2012). Communications of the Association for
Information Systems, 35(1), p.3.
Ganesh, K., Mohapatra, S., Anbuudayasankar, S.P. and Sivakumar, P., 2014. Enterprise
resource planning: fundamentals of design and implementation. Springer.

15
ENTERPRISE SYSTEMS
Ha, Y.M. and Ahn, H.J., 2014. Factors affecting the performance of Enterprise Resource
Planning (ERP) systems in the post-implementation stage. Behaviour & Information
Technology, 33(10), pp.1065-1081.
Hwang, Y., 2014. User experience and personal innovativeness: An empirical study on the
Enterprise Resource Planning systems. Computers in Human Behavior, 34, pp.227-234.
Kurbel, K.E., 2016. Enterprise resource planning and supply chain management.
SPRINGER-VERLAG BERLIN AN.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Lyytinen, K. and Newman, M., 2015. A tale of two coalitions–marginalising the users while
successfully implementing an enterprise resource planning system. Information Systems
Journal, 25(2), pp.71-101.
Mahmud, I., Ramayah, T. and Kurnia, S., 2017. To use or not to use: Modelling end user
grumbling as user resistance in pre-implementation stage of enterprise resource planning
system. Information Systems, 69, pp.164-179.
Pattanayak, S. and Roy, S., 2015. Synergizing business process reengineering with enterprise
resource planning system in capital goods industry. Procedia-Social and Behavioral
Sciences, 189, pp.471-487.
Saade, R.G. and Nijher, H., 2016. Critical success factors in enterprise resource planning
implementation: A review of case studies. Journal of Enterprise Information
Management, 29(1), pp.72-96.
Seethamraju, R., 2015. Adoption of software as a service (SaaS) enterprise resource planning
(ERP) systems in small and medium sized enterprises (SMEs). Information systems
frontiers, 17(3), pp.475-492.

16
ENTERPRISE SYSTEMS
Shen, Y.C., Chen, P.S. and Wang, C.H., 2016. A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, pp.127-139.
Tarhini, A., Ammar, H., Tarhini, T. and Masa’deh, R.E., 2015. Analysis of the critical
success factors for enterprise resource planning implementation from stakeholders’
perspective: A systematic review. International Business Research, 8(4), pp.25-40.
Tian, F. and Xu, S.X., 2015. How Do Enterprise Resource Planning Systems Affect Firm
Risk? Post-Implementation Impact. Mis Quarterly, 39(1).