Enterprise system is an integrated enterprise-wide information system that coordinates key internal processes of the firm. Set of integrated modules for applications such as sales and distribution, financial accounting, investment management, materials management, production planning, plant maintenance, and human resources that allow data to be used by multiple functions and business processes.
Enterprise systems also commonly known as ES are comprehensive, large scale application-software packages, which support processes, reporting, data analysis and information flows. The common central database collects data from and feeds the data into numerous applications that can support nearly all of an organization’s internal business activities. When new information is entered by one process, the information is made available immediately to other business processes. Organizations implementing enterprise software would have to adopt the business processes embedded in the software and, if necessary, change their business processes to conform to those in the software.
These enterprise systems have cross-organizational capabilities as opposed to department or group-specific programs. They allow for collaboration and communication across the organization through collection of data that is accessible and usable by multiple departments. Enterprise systems have a major impact on a business whether it fails or works
A software product designed to integrate computer systems that run all phases of an enterprise’s operations to facilitate cooperation and coordination of work across the enterprise. The goal is to integrate core business processes (such as sales, accounting, finance, human resources, inventory and manufacturing). The ideal enterprise system could integrate the key business processes of an entire firm into a single software system that allows information to flow seamlessly throughout the organization.
Large organizations can benefit from enterprise systems as they can
gather information from various locations. It is important that the enterprise systems should be implemented in a proper manner or else it could turn out to be risky. Companies that are opting for enterprise systems should be careful about the right choice of software. Selection of software depends upon the organizational. Due to the rapid growth in the technology and customer oriented industry there is a huge demand of software in the market. It is essential for an organization to deliver the client’s project on time, but due to lack of efficiency of the employees and the long process that is involved in the development leads to failure. These enterprise systems make the work of the employees easier and leads to proper delivery of the projects.
An organization can use enterprise system to support and coordinate activities within the organization structure and to create more disciplined organization structure compared to the typical arrangement of information system. The information supply in the enterprise system is structured around cross-functional business process and it will improve the management reporting and decision making. An enterprise system can help the organization to determine which products are most or least profitable.
Enterprise systems are categorized into three main types:
1. Management (CRM): Through CRM you can track the customer experience and can deliver better services to the customer that would satisfy the needs of the customer. It is a key to relationship where you get to know your customer.
2. Supply Chain Management (SCM): It is being developed to provide the best solutions to the end users. It is the software that helps you to have close monitor of the management.
3. Enterprise Resource Planning (ERP): The main function of ERP is to combine all functional areas that would be easily accessible to all the employees of the enterprise.
There are many benefits of employing an enterprise system in an organization. Some of these benefits include:
1. Integrated organizational system. Enterprise systems help to create a more uniform organizational culture where everyone uses similar type of processes and information to do business, leading to a development of an integrated system within the organization and resulting in improved efficiency.
2. Incorporation of best practices. The establishment of the enterprise systems in an organization results in the incorporation of best industry practices, leading to an overall improvement in the working of the organization.
3. Flow of information. There is proper sharing of information across all departments of an organization, leading to improved interdepartmental communication and better employee performance.
4. Improve the quality and efficiency of customer service, production and distribution. By having access to requisite information, the workflow improves, resulting in on-time delivery of desired goods and services to the customers. The result is improved quality and reduced delivery times help in developing high customer satisfaction.
5. Communicate the critical information on the business performance to managers all across the organization quickly, so as to enable them to make better decisions and at the right time.
6. Improved planning. Managers are able to get a consolidated picture of inventory, sales, and receivables. This helps them in making better plans for the working of the organization. Because they are able to access information from a centralized server, managers find that the decision-making process becomes more informed and yields better results.
A few disadvantages of enterprise systems are:
1. Implementing this software can be very expensive.
2. It is often proved to be difficult and time consuming before implementation. 3. Maintenance should be taken care of.
Although the employment of enterprise system involves a huge cost, its benefits outweigh the cost incurred by an organization. Most big and small organizations of the world have employed the enterprise system and are reaping the advantages associated with it.