ISY2005 Enterprise Systems: Adoption, Performance & Change Report

This report examines the impact of enterprise systems on organizational performance, focusing on how these systems contribute to efficiency and customer satisfaction. It discusses methods for measuring the performance and success of ERP systems, including tangible benefits like improved information access and reduced errors, as well as intangible improvements such as higher sales and customer retention rates. The report also explores the principal drivers behind businesses adopting supply chain management systems, emphasizing customer satisfaction, cost reduction, and improved financial performance. Finally, it addresses the organizational change management considerations necessary for successful enterprise system adoption, highlighting the importance of employee buy-in, training, and cultural alignment. This document is available on Desklib, where students can access a wealth of study resources including past papers and solved assignments.

Running head: ENTERPRISE SYSTEM
ENTERPRISE SYSTEM
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Executive summary
This report discusses the impact of Enterprise system in the business sector of the leading
companies of the world. Most of the companies now are using ERP systems in their business.
This report has analyzed the ways in which the enterprise systems contribute to the
organizational performance. It aims to document the methods of measuring the performances
and success of the ERP systems in the organizations. This report has discussed the
principal drivers behind businesses adopting a supply chain management system for
improving their customer satisfaction. It has concluded with organizational change
management considerations necessary for successful adoption of an enterprise system.

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Table of Contents
Introduction:...............................................................................................................................3
Enterprise systems contribute to organizational performance:..................................................3
Measuring performance:........................................................................................................5
Principal drivers:........................................................................................................................5
Change management:.................................................................................................................6
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

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Introduction:
This report discusses the importance of using technological assistance from different
systems in improving the performance of an organization. Information technology in today’s
world has become the most necessary resources for operating as well as managing the
organizations. These technological guidance touches every facet of the modern firms starting
from the customers’ services to security, effective operation and communication. Due to this
reason, various departments have been emerged in the enterprises such as application
developers, information security experts, data architects and business intelligence analysists.
In order to operate successfully, the modern companies are seeking various ways to
incorporate technologies in their business. In doing so the companies are leaning towards the
utilization of large scale software packages such as the ERP systems to control all
complicated operations of the business. In addition to this, the companies rely on the capacity
of the supply chain management system for better efficiency.
Enterprise systems contribute to organizational performance:
There are numerous ways that the Enterprise systems can benefit greatly to the
organizational performance. First of all, the enterprise systems can store all the business data
in usable format. Though this the companies can improve their customer experience. Though
the ERP systems, the enterprises can store the history and other information of the customers
and quickly retrieve when needed. Secondly, ERP systems allow the business to automate
their customer service process which helps the employees to give a consistent experience to
the customers. This also helps in responding the customer requests about the products
quickly. It can forecast for new products and track the products easily. Thirdly, apt use of the
ERPs allows to scale the IT capabilities of the business. Through this, the companies which
need to store the additional data as well as want access to the additional processing power,

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get access by using cloud and other internet based enterprise systems. For doing this the
companies do not need to invest in the IT hardware which helps to company to reduce or
control costs but meet the needs of the customers.
In addition to this, the ERP systems help the enterprises to maximize the reliability of
IT infrastructure in caparison to the small-scale IT solutions. Through this the systems of the
organization will have better uptime and no downtime. By making sure that the IT systems
are able to collect data as well as operating efficiently, the companies can make their
customers experience strong and consistent. Fifthly, having access to the real-time data about
the business operations, is a very unique as well as vital characteristic of the ERP systems
(Tarhini, Hussain and Takwa 2015). This is due to the fact that the business environment in
these days is fast changing. Therefore, waiting for data during several months is not feasible
for the enterprises. A high level access to information permits the leadership for accessing
and improving upon the processes of the company more efficiently in compared to the other.
Sixthly, the enterprise systems help the companies to reduce the overall cost of running their
businesses.
This however, enables the organizations to gain more of their budget free for
increasing the customer service capabilities in one hand and invest in the other assets on the
other. This improves the customer experience and have less effect in the bottom line of the
business. Seventhly, the ERP systems help in streamlining the supply chain management
(Ahmadi et al. 2015). This enable the companies to deliver their products to their customers
more reliably as well as at a very low cost. Regulations have been reality in the business but
in this modern world, regulations have become progressively stringent as well as enforced.
The regulations demand that the investors receive a significant amount of data regarding the
operation of the company, including the data about assets, properties as well as inventory
managements. The enterprise systems can be used for ensuring compliance with

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progressively burdensome federal regulations without taking personnel away from their vital
customer service functions (Ranjan, Vijay and Pralay 2016). Finally, ERPs are essential in
securing the data of the customers which has become mandatory of the companies now days.
Measuring performance:
Measuring the contribution of enterprise system is important but remains neglected in
many organizations. For evaluating the contribution first the companies assess the most
visible factors, such as the new systems running without hampering the function of the
company or impairing related operations. In the planning process, the companies usually
project measurable results focusing on cost saving and improving revenue which are
measured in the context of ERP systems (Ptak and Eli 2016). Through measuring the tangible
benefits such as providing better information to the employees. The reduction in the errors
are also tangible. The managers of the companies measure the improves through the
generalized improvements. For instance, higher sales, more repeated sales, higher sales
conversion rates, high customer retention rates and an improved public image. Beside this,
there are some internal indicators which are highly visible but nearly impossible to quality
(Monczka et al. 2015). As the ERP systems have become routine part of the daily operations,
the employees cane delivers the services as expectations.
Principal drivers:
The principal drivers behind businesses adopting a supply chain management system
mainly focus on the customer satisfaction thus achieve success in the competitive market.
The companies aim to satisfy their customers in every possible manner (Mangan, Chandra
and Chandra 2016). Thus they focus on delivering the correct product along with correct
quality to its customers. In addition to this, the companies try to deliver products at right the
location at the right time. Supply chain management systems therefore help the companies to
prepare ground for customer satisfaction in all-encompassing manner.

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One of the chief aims of the organizations these days is reducing all kinds of costs so
that they van increase their profit. The retailers therefore depend on the supply chains for fast
delivering expensive products and avoiding holding costly inventories in their stores longer
than necessary. The manufacturers similarly depend on their supply chains to reliably deliver
necessary materials to their assembly plants to avoid material shortages that would shut down
their production. Both the manufacturers as well as the retailers depend on their supply chain
managers for designing the networks which meet their own customer service goals at the least
total cost. Well-organized and effective supply chains enable a firm to be more competitive in
the market place.
Every firm desire to improve their financial position. This is one of the most
important drivers why the firm’s vales their supply chain mangers. Thus the firms get
benefits tie reduce the supply chain costs as well as in controlling them (Kumar et al. 2016).
The organizations take steps to decrease the use of fixed assets for example the warehouses,
plats along with the transportation vehicles. In doing so, the firms take help from the supply
chain management. These systems can redesign the networks thus reduce the investment in
constructing the fixed assets. The corporations also need to increase and continue their cash
flow in the business which become one chief driver for using the supply chain management
systems (Kanaane et al. 2015). These sped up the product flows to the customers thus help
the firms to gain success.
Change management:
The change management process of an organization is important for the successful
implementation of the ERP systems. The implementation of new systems like the ERP
software needs to be evaluated by the management of the organizations. The change
management related process starts before the ERP systems are actually implemented (Jacobs
et al. 2014). The first step is related to the implementation of the change management related

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approach before the ERP system is implemented. The possibilities related to the
implementation of these systems need to be evaluated with the management. The benefits that
the company will be able to enjoy from this new software also needs to be discussed with the
employees. The culture of the company needs to be evaluated based on the implementation of
the new software (Esteves 2014). The organizational culture will be evaluated based on a
variety of factors including, language, demographics, education, work personalities and skill-
levels. The successful implementation of the ERP software requires a complete buy-in from
the employees of the organization who are involved in the process of decision-making. The
entire management of the organization needs to be on board before the decision related to this
implementation process is taken. This decision requires the effort from the entire team,
mainly from the top management (Altamony et al. 2016). The employees need to be taken
into consideration before the actual implementation is done. The most important step of the
change management process is the participation of all the employees of the organization who
are going to use the process.
Conclusion:
Therefore, it can be concluded that the management needs to convince the employees
about the benefits of the ERP process. The last and most important step is the training that is
provided to the employees regarding the usage of this software for increasing the
profitability. The examples of training resources and tools are workshops, readiness
assessments, white papers, live demos, live Q & A, free trials. Thus the companies will be
able to succeed in the competitive market.

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References:
Ahmadi, Sadra, Elpiniki Papageorgiou, Chung-Hsing Yeh, and Rodney Martin. "Managing
readiness-relevant activities for the organizational dimension of ERP
implementation." Computers in Industry 68 (2015): 89-104.
Altamony, Hamzah, Z. Al-Salti, A. Gharaibeh, and T. Elyas. "The relationship between
change management strategy and successful enterprise resource planning (ERP)
implementations: A theoretical perspective." International Journal of Business Management
and Economic Research 7, no. 4 (2016): 690-703.
Esteves, Jose Manuel. "An empirical identification and categorisation of training best
practices for ERP implementation projects." Enterprise Information Systems 8, no. 6 (2014):
665-683.
Jacobs, F. Robert, Richard B. Chase, and Rhonda R. Lummus. Operations and supply chain
management. New York, NY: McGraw-Hill/Irwin, 2014.
Kanaane, Roberto, Getulio Akabane, Helena Peterossi, and Daniele Cristina Naves Endler.
"Organizational change management in a strategic perspective." American Journal of
Management 15, no. 2 (2015): 88.
Kumar, Vikas, John Loonam, Jonathan P. Allen, and Steve Sawyer. "Exploring enterprise
social systems & organisational change: implementation in a digital age." (2016): 97-100.
Mangan, John, Chandra Lalwani, and Chandra L. Lalwani. Global logistics and supply chain
management. John Wiley & Sons, 2016.
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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Ptak, Carol A., and Eli Schragenheim. ERP: tools, techniques, and applications for
integrating the supply chain. Crc Press, 2016.
Ranjan, Shree, Vijay Kumar Jha, and Pralay Pal. "Literature review on ERP implementation
challenges." International Journal of Business Information Systems21, no. 3 (2016): 388-402.
Tarhini, Ali, Hussain Ammar, and Takwa Tarhini. "Analysis of the critical success factors for
enterprise resource planning implementation from stakeholders’ perspective: A systematic
review." International Business Research 8, no. 4 (2015): 25.