ISY2005 Enterprise Systems: Performance, SCM & Change Management

This report assesses the contribution of enterprise systems to organizational performance, measuring contributions through employee performance and business profits. It identifies the principal drivers behind businesses adopting supply chain management systems, highlighting key principles for effective implementation. Furthermore, the report discusses necessary organizational change management considerations for the successful adoption of an enterprise system, emphasizing the importance of top management support, project teams, clear planning, effective communication, and comprehensive training. The analysis concludes that enterprise systems significantly enhance business performance by improving efficiency, reducing costs, and facilitating better information management.

Running head: Enterprise system
Enterprise system

Enterprise system
Table of Contents
Introduction...........................................................................................................................................3
Contribution of enterprise system to organizational performance.........................................................3
Measuring contributions........................................................................................................................4
Principal drivers behind business adopting a supply chain management system...................................5
Necessary organizational change management considerations for successful adoption of an enterprise
system....................................................................................................................................................6
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8
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Introduction
The paper talks about the contribution on enterprise systems in the organization and how
effectively it has managed to contribute. It measures the contribution of these enterprise
systems by focusing on the performance of the employees. The report describes the principal
drivers that are involved in adopting the supply chain management. It gives the seven
fundamental principles that are generally considered in managing the supply chain. The
report further gives an overview about essential organizational change management
considerations that are successful in implementation of an enterprise system. More detail of
the task has been discussed below.
Contribution of enterprise system to organizational performance
Enterprise system is a software package that is used to record, analyse and maintain the
information of the organization at one place. It helps in enhancing the performance of the
business and it also provides support the organization to achieve the desired goals in less time
period. Enterprise systems provide an easy access to multiple things and have lessened the
burden of the organizations. These enterprise systems are designed by professional who are
well qualified and are aware about the latest technologies. It helps in enhancing the
performance of the business by providing a platform to work in the form of software
packages. The daily needs of organizations are fulfilled by this software on a regular basis
(Morris, Michael and Viswanath, 2012).
Contribution on an enterprise system is immense and high. It has developed the growth of the
organizations and is responsible for changing the working style of business. It has helped the
organization to work effectively and efficiently without much burden and also limiting the
time (Rice, 2013). Enterprise system has contributed successfully in managing the time for
the employees. Earlier the employees who used to spend long hours on one task are now
easily able to manage multiple tasks at the same time with the help of these software
packages. The influence of such contribution is largely considered keeping in mind the
performance of the organizations. Enterprise systems are designed for organizations are used
largely today almost by every organization (Maskell, Brian, Baggaley and Larry, 2011). This
shows that there is a demand for these software packages and are used on prior basis by the
companies. It enhances the performance of the business and maintains it reputation and
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financial position. These software packages are developed by professionals who are well
aware about the requirements and needs of the organizations and prepare the software as per
the needs of the business (Kallunki et al, 2011). The contribution of these systems has
brought revolution in the organizations. It has made easy to run and expand the business
internationally. The use of enterprise system has allowed the companies to maintain their
growth by increasing and enhancing profits (Briscoe, Tarique, and Schuler, 2012).
Measuring contributions
The success of enterprise system is emerging since it has been established. The contribution
made by enterprise packages are measured through the performance of the employees and
through the profits earned by the business. The employees are trained for using the software
and then are assigned tasks to accomplish the desired goals and objectives (Robert and
Henderson, 2012). The contribution of enterprise system is measured with the success of not
only the organization as a whole but also observing the individuals performance. The words
assistance, teamwork and coordination dominate the current workplace, yet little has
transformed in how performance is predicted (Lee et al, 2010). The best organization works
to adjust competition on the individual front with the prerequisite for participation,
underlining the accomplishments of big commerce patrons in performance audits and
crosswise across different units. The execution of the new government performance system
offers a different opportunity for organizations to improve performance and drive towards big
business commitment. This will help the general society can begin to move the truth of the
requirements of the workforce into the performance system and drive toward more
substantial, better results from a general organizational viewpoint. The accomplishment of
any enterprise can be estimated in various ways. Likewise, this achievement is impacted by
numerous components and factors. One of the key variables of modern ventures achievement
is their feasible performance. Enterprise effective performance will be upheld by estimation
and checking of the execution of its employees (Shepherd and Günter, 2010). Subsequently,
the consideration of the owners and managers is gone for expanding upper hand through
appeal and nature of the items, and also focused costs. It intends to persistently enhance
procedures and advances. The nature of the procedures and advancements can be enhanced
continually and increment their adequacy. Significant for the general performance of the
undertaking is that employee’s performance and effectiveness. An essential inquiry at that
point turns into a productivity of appraisal frameworks, which are utilized to measure and
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assess the execution of representatives. These systems give a premise of data to staff
performance (Drucker, 2012).
Principal drivers behind business adopting a supply chain management system
Supply chain management is a procedure and approach of managing the flow of goods and
services from its initial to its end. It takes care about the raw materials used in making the
product and then what all process it goes through until it becomes a final product. SRM is a
unique, effective and complex undertaking that depends on various partner- from providers to
makers and past to conduct business well (Christopher, 2016). Supply chain management
helps in developing and increasing efficiency and effectiveness. Apart from this, SPM also
increases profitability and outcomes with minimizing costs of the firm positively. Moreover,
SPM also helps in gaining competitive benefits and further it helps in striving with
competitors in the international market. Aside this, SPM reduces overhead expense, waste
and shipping delays in an effective manner. In addition, SPM software is created in way to
improve and enhance collaboration, cooperation and communication with transportation,
vendors and shipping organizations (Sarkis, Zhu and Lai, 2011).
The principles involved behind business adopting a supply change management focuses on
the needs of the customers and effectively running of business. These principles are to be
followed in an appropriate manner. The fundamental principal drivers behind business
adopting supply chain management helps in running the business smoothly (Christopher,
2016). These fundamental principles are discussed below:
 Many customers need the service of particular groups to fit in the network of
production and to serve the fragments gainfully.
 Modify the coordination system to the organization’s necessities and productivity of
many different customers.
 Listen to advertise flags and regulate engaging requests in appropriate way over the
production network, guaranteeing reliable gauges and ideal allotment of asset.
 Distinguish item nearer to the customer and speed change in the inventory system.
 Handle source of supply with influence to moderate the aggregate cost of acquiring
materials and organizations.
 Adopting spreading of channels over execution measures to check aggregate
accomplishment in achieving the end-client viably and effectively.
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Necessary organizational change management considerations for successful adoption of
an enterprise system
While executing an Enterprise Resource Planning (ERP) system, top administration regularly
faces an undesirable state of mind from potential clients – for some reason, they oppose the
usage procedure (Monczka et al, 2015). The top administration should, accordingly and
actively manage this issue rather than responsively facing it. Enterprise system offers
tremendous advantages to organizations in proficiency, profitability and cost diminishment.
In any case, enterprise system executions are confusing, with many experiencing trouble and
even disappointment. Change management may be recognized as a basic achievement aspect
in the usage of ERP system (Gibbons and Henderson, 2012). These investigation studies
twelve fruitful ERP execution contextual analyses to figure out which parts of progress
administration methodologies are regular to effective ERP usage. The regular segments
distinguished include, effective announcement, top management support, effective
training/knowledge transfer, project champions, and clear systematic plans. A few
investigations proposed that individuals Challenges (delicate issues) are harder to oversee
than the specialized issues. It is contended that effective change administration is brought
about through the execution of progress administration techniques. Diverse creators have
distinctive perspectives on the extent of the change administration order, however, they all
incorporate exercises also and they present thoughts that assist end-clients to learn and
adequately utilize the ERP (Van Weele, 2010).
Given below are the necessary and successful organizational change management
strategies for successful adoption of an enterprise system
1. Support of top management: The support of top management must be included in
every step and over the levels of the companies.
2. Project Teams: Team work was considered to be an important supporting tool in
management. The support of project teams in the change management process is very
crucial.
3. Project Champion: Project championship is a critical zone for managing the work of
the organization successfully as it has the strong influence on the process of change in
the organization.
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4. Planning clearly and systematically: The presence of clearly planning for change is
must.
5. The participation of staff must be broad in the process of implementing ERP.
6. Communication must be effective: Effective communication is very important at all
levels of an organization.
7. Feedback: One of the important things in change process management is the
feedback. It helps in finding and identifying the source of individual’s resistance.
8. Transferring effective Training/Knowledge: Training is crucial in critical success
factor while implementing in ERP system. Everyone using ERP systems must be
trained about how they work and how they relate to the process of the business.
9. Incentives: Incentives help in developing strong feelings towards accepting and
adopting new and fresh systems.
Conclusion
On the above mentioned event it is concluded that enterprise system has raised the
performance of the business. The report highlights the areas where the contribution of ERP
has been immense and how well it has managed to ease the organization. The nine strategies
discussed above helps the organization in knowing how beneficial the use of ERP is and the
amount of success it can give to the organization. As discussed an enterprise system is a
software package that gives the organization an easy access to manage its information over
the system. They do not have to be dependent on anybody as all the information is present in
the software. The report gives a full access to how an enterprise system can very well manage
the functioning of business without being dependent on others. The principals of enterprise
system discussed give an insight about the working of ERPs. Hence, the report covers all the
necessary information related to the ERP software and its usage in the organizations.
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References
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Christopher, Martin. Logistics & supply chain management. Pearson UK, 2016.
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Drucker, Peter. The practice of management. Routledge, 2012.
Gibbons, Robert, and Rebecca Henderson. What do managers do?: Exploring persistent
performance differences among seemingly similar enterprises. Harvard Business School,
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Kallunki, Juha-Pekka, Erkki K. Laitinen, and Hanna Silvola. "Impact of enterprise resource
planning systems on management control systems and firm performance." International
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Lee, DonHee, Sang M. Lee, David L. Olson, and Soong Hwan Chung. "The effect of
organizational support on ERP implementation." Industrial management & data systems 110,
no. 2 (2010): 269-283.
Maskell, Brian H., Bruce Baggaley, and Larry Grasso. Practical lean accounting: a proven
system for measuring and managing the lean enterprise. CRC Press, 2011.
Monczka, Robert M., Robert B. Handfield, Larry C. Giunipero, and James L.
Patterson. Purchasing and supply chain management. Cengage Learning, 2015.
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Rice, A. L. The enterprise and its environment: A system theory of management organization.
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Sarkis, Joseph, Qinghua Zhu, and Kee-hung Lai. "An organizational theoretic review of
green supply chain management literature." International Journal of Production
Economics 130, no. 1 (2011): 1-15.
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Shepherd, Craig, and Hannes Günter. "Measuring supply chain performance: current research
and future directions." In Behavioral Operations in Planning and Scheduling, pp. 105-121.
Springer, Berlin, Heidelberg, 2010.
Van Weele, Arjan J. Purchasing & supply chain management: analysis, strategy, planning
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