BISY2005: Enterprise Systems Essay - Drivers, Performance & Adoption

This essay delves into the realm of Enterprise Systems, exploring the key drivers that propel businesses to adopt them, such as efficiency gains, faster operations, sustainability, enhanced customer satisfaction, and robust data integration. It meticulously examines how these systems contribute to organizational performance by streamlining processes, improving data usability, managing supply chain gaps, enhancing quality, and boosting human resource efficiency. Furthermore, the essay addresses the critical organizational change management considerations essential for the successful implementation of Enterprise Systems, including managing employee resistance, providing comprehensive training, fostering effective communication, promoting cultural adaptability, and establishing robust assessment and accountability mechanisms. The analysis highlights the multifaceted benefits and challenges associated with Enterprise Systems, providing a comprehensive understanding of their role in modern business operations and the strategies required for their effective deployment.

ENTERPRISE SYSTEMS

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Contents
Introduction...........................................................................................................................................1
Principal drivers behind businesses adopting Enterprise Systems.........................................................1
Enterprise system contributing to organisational performance..............................................................3
Organisational change management considerations necessary for successful adoption of an Enterprise
system....................................................................................................................................................5
Conclusion.............................................................................................................................................6
References.............................................................................................................................................6

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Introduction
Enterprise system has played a major role in the success of the organisation especially in the
time when most of the businesses have shifted on the online platforms for their operations.
Enterprise system is understood as the overall combination of software and hardware that
businesses utilise to systematize and do their operations. The biggest benefit of using
enterprise system is that it allows a company to handle multiple tasks without many
challenges (Seddon, Calvert and Yang, 2010). This it allows the company and management to
fulfil the reporting needs. These help them in improving their performance and resolve many
of the issues and problems that they are facing. This report is going to discuss principle
drivers behind the businesses adopting enterprise systems. It also illustrates the way in which
enterprise system contributes to the performance of the organisation and the ways in we
measure these contributions. At last, organisational change management considerations
necessary for successful adoption of the enterprise system is provided within the report.
Principal drivers behind businesses adopting Enterprise Systems
There are different benefits of using enterprise systems and it has become essential for the
management to use it gaining competitive advantage over the rivals. Some of the principle
drivers are as follows:
 Efficiency: Since the competition has become cut throat hence it has become essential
for the management to makes sure that there is efficiency in the work process.
Enterprise system reduces the numbers of mistakes that might happen due to the
human errors. It also enhances the efficiency as it streamlines all the operations and
indicates about any issues in the operational mechanism that can create challenges for
the company (Smolnik, et al. 2011). For example handling the manufacturing unit
with the help of systems like the once used by Toyota i.e. “Kanban” can allow the
company to manage the efficiency of the production unit which plays a critical role in
the lean manufacturing which is again a major concern for the company.
 Faster operations: Since these systems are faster and it makes the operations faster
hence it enables an organisation to meet the demands in the market. In today’s time
when every company tries to remain ahead of others this pushes company to adopt
enterprise system. For example supply chain management system helps an
organisation to remove the flaws in the whole supply chain process and hence making
the overall system faster (Ahmad and Cuenca, 2013).

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 Sustainability: The sustainability in the organisation is going to be the biggest
challenge that organisation is facing. In this environment it is critical for the
management to make sure that resources are utilised in a planned manner so that they
can be used for longer period of time. Since manual handling of operations might lead
to improper handling of resources hence it becomes essential that enterprise system
may be incorporated within the organisation. In this regards enterprise resource
planning is an effective system (Williams and Schubert, 2010).
 Customer satisfaction: In the modern day business consumer satisfaction is the only
thing that can give them competitive advantage over the rivals. More the customer
satisfaction achieved by the company more is the chance that they can be successful
in the market (Dezdar and Ainin, 2011). For example a company that is able to
address the queries of the customers is able to satisfy the needs of the consumers. For
this Customer Relationship Management can be highly effective as it allows the
company to make sure that without even the availability of the human resources these
systems are able to handle the queries of the customers.
 Data integration: In today’s time companies have businesses in different parts of the
world especially they have different functional units in different parts of the world
and hence a lot of the data is generated at different places (Maurer, Berente and
Goodhue, 2012). Every piece of data is important hence it is critical for the
management to make sure that they integrate data from wherever it is generated.
Getting access to such a huge amount of data all at once from anywhere around the
world cannot be easier without the help of data management software. These
enterprise systems allow gathering, manipulating and utilisation of data. In the time
when the data allows the company to make effective decisions as it is the decision that
gives a competitive advantage over the rivals. Decisions these days need to be on the
basis of all the data that is available with the firm.
Enterprise system contributing to organisational performance
Enterprise systems have a major role in the success of the organisation. This is because it
streamlines the operations and hence has a greater impact on the performance of the overall
organisation. The ways in which enterprise system contribute to organisational performance
are as follows:

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 Arranges data in usable format: Since data is available all across the business units
and are generated from different sources hence it is not easy to convert them into the
usable formats by manual operations. In the multinational firms, this is even the
bigger problem as data are generated at different parts of the world and accessing
them from other parts of the world that too immediately can be done with the help of
enterprise systems. This enhances the organisational performance of the overall
performance as data can be used for making strategies by understanding the trends,
consumer demands, what customers are doing and the challenges that is faced by the
company in its operations (Kanellou and Spathis, 2011). It is also the fact that data
that is collected from different sources are distributed and are not in the form that can
be used. Enterprise systems allow the companies to convert these data in the form of
graphs and other forms that can be used by the organisation to make effective
decisions without any confusion hence enhancing the organisational performance.
This contribution can be measured by checking the range of decisions that proved to
be successful for the company due to significant data they received from any
operations.
 Managing the supply chain gap: Since in today’s time there is huge fluctuation in the
demand and the nature has become very unpredictable hence it is critical that
companies can know what can be possible future demand. This is essential for
managing the demand and supply gap which is critical in today’s business
environment. In this use of supply chain management system as well as inventory
management system is very much critical. As the help in improving the efficiency of
the supply chain management and also allows keeping up the sufficient inventory for
future unexpected demands. At the same time maintaining the production unit with
the help of specialised enterprise system will also allow the company to manage the
production quantity and quality (Ahmad and Mehmood, 2016). This will improve the
overall performance of the organisation. This contribution can be measured by
evaluating the data about the amount of reduction in supply chain issues in a certain
period of time.
 Streamline the process: Since the business environment is getting complex day by day
hence managing operations can be difficult for the management. In this regards the
major role is played by the enterprise systems. This is because these systems are
capable of arranging all the operations in a manner so that they can enhance the
performance of all their business units. For example the ‘Kanban’ system allows the

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Toyota to improve the way in which they are dealing with the production mechanism.
By streamlining the process there is effective utilisation of process hence it would be
easier for the firms to make sure that they are meeting all the deadlines (Petter,
DeLone and McLean, 2012). This will also allow the organisation to enhance the pace
with which they are dealing with the operations. This contribution to the performance
can be measured by evaluating the reduction in the wastage of the resources.
 Quality enhancement: Since the machines works without getting tired hence it allows
companies to carry on with its operations without significantly losing their quality of
their products. It is seen that quality is the major of the companies and with manual
operations it is difficult to achieve. In this regards it is essential that organisations
look for improving the quality. With the help of software it is easier to make more
control over the organisational process hence improving the overall quality of the
operations (Kallunki, Laitinen and Silvola, 2011). This enhances the overall
operations of the company. This can be measured by checking the quality issues that
arise within the firm in a given period of time and the quality that is improved in all
the operations.
 Performance of Human resource: With the utilisation of Enterprise systems a
company is able to improve the performance and efficiency of the human resource
within the firm. Better the performance of the human resource better is the outcomes
and performance of the overall organisation. This can be measured with the help of
performance management system based on the particular pre-defined criteria
(Haddara and Zach, 2011).
Organisational change management considerations necessary for successful adoption of
an Enterprise system
In any organisation there are certain things that are going on for years and hence when any
enterprise system has to be adopted within the organisation it is critical that all the change
management considerations have to be taken care. Change management considerations have
to be done according to the enterprise system that has to be adopted so as to remove all the
barriers in the successful adoption of the enterprise system.
 Resistance of people: It is to be understood that people working within the
organisation develops a particular culture within the organisation and in this regards it
becomes critical for the management to make sure that people resistance is managed.

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Many a times adoption of such Enterprise systems results in job-cuts hence people
resist changes. Company before adopting enterprise system will have to take
employees into confidence (Duan and Da Xu, 2012).
 Training: It is to be understood that for successful adoption of enterprise system it is
critical that people are trained as per the requirements of the enterprise system. This is
also important in terms of the fact that Enterprise system can be used within the firm
efficiently if better training is provided to them. Training also needs to be provided to
the employees so that their remains no skill gap that could lead to their inefficiency
(Zhu, et al. 2010). This is also necessary for safeguarding people from improper
utilisation of enterprise systems especially in terms of safeguarding organisation from
any kind of data protection threats. Training about data safety and protecting
enterprise system from any kind of external attack needs to be given.
 Communicate: It is critical for the management to communicate with their
stakeholders about the reasons why they are adopting the enterprises system. Along
with this they also need to be communicated about the challenges they might face
when the system will be adopted and things that company anticipates from the
employees when they adopt it (Yeoh and Koronios, 2010).
 Cultural adaptability: It is important for an organisation to change its culture before
actually adopting any enterprise system. This is essential for them in the long term.
The cultural adaptability is essential for the organisations that aim to adopt any
particular enterprise system. This is because any organisations adopting enterprise
system has to have technology culture where everybody is ready to learn new
technologies and is able to be ready for working as a team so that implementation and
stages to follow becomes easier.
 Assessment & Accountability: In order to improve the adoption process, it is essential
that firm need to have a team of people that are responsible for assessment and
accountability of the whole process so as to make things simpler.

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Conclusion
From the above based report, it can be concluded that Enterprise systems helps a company in
making the operations easier and effective. Efficiency, Faster operations, Sustainability,
Customer satisfaction and Data integration are some of the principle drivers that are forcing
the firms to adopt the enterprise system. Arranging data in usable format, managing the
supply chain gap, Streamlining the process, Quality enhancement and improved performance
of Human resource are some of the ways in which enterprise system improves the
organisational performance. Resistance of people, Training, Communicate, Cultural
adaptability and Assessment & Accountability are some of the change management
considerations necessary for successful adoption of Enterprise system.

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References
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