Benefits of Enterprise Systems in the Organization-Free-Samples

Question: How do enterprise systems contribute to organisational performance, and how do we measure such contributions? Answer: Introduction Enterprise system are large- scale application software packages that assist an organization in information flows, business processes, data analytics and reporting. Enterprise system enables an organization to significantly reduce its information technology cost along with the minimization of manual input of data. These systems have the capability of replacing multiple independent systems that are responsible for processing data for the purpose of supporting specific business processes or functions (Nordmeyer, 2018). This report focuses on the contributions made by enterprise systems towards the performance of the organization, measurement of such contributions, principle drivers behind the adoption of supply chain management system by businesses and the necessary organizational change management considerations for the successful adoption of an enterprise system. Contribution of Enterprise Systems to Organizational Performance and Its Measurement Enterprise systems contribute towards the performance of the organization in a variety of ways. Enterprise systems assist in communicating the critical firm- wide information on the performance of business to the managers of the organization instantly which enables them in making right decisions at the right time thereby enhancing the performance of the organization. Moreover, it helps in improving the efficiency and quality of production, distribution and customer service by way of integration of internal business processes of the company in finance, sales, custom logistics, production, etc (Papajorgji Petraq, 2015). Also, the performance of the organization automatically improves when a uniform organizational culture is created where similar information and processes are used by everyone for performing business activities. Enterprise systems help in reducing the cost involved in hardware, software, transaction processing and IT support staff. When the costs of the organization are reduced, its performance significantly increases (MANGIN, HOVELAQUE BIRONNEAU, 2015). Furthermore, the functions of the different departments are synchronized in an effective way with the help of implementation of enterprise systems in the organization. The time required for the processing of documents such as payrolls is reduced to a great extent. Enterprise systems enable transparency and information visibility within an organization which in turn facilitates various operations performed by different departments thereby contributing towards the organizational performance (Michael, 2017). The measurement of the contributions of enterprise systems to the organizational performance is difficult due to its complex nature (Ifinedo, 2006). Various measurement models can be used for assessing the contributions such as a priori model which uses five separate dimensions of success: information quality, system quality, individual impact, satisfaction and organizational impact. Another model is the revised model which has four quadrants namely organizational impact, individual impact, system quality and information quality. The measurement of these dimensions provides the snapshot of organizations experience of the enterprise system (Gable, Sedera Chan, 2003). Moreover, the contributions of enterprise systems to the organizational performance can be measured in higher and repeated sales, better public image, higher customer retention rates and sales conversation rates. The position of the organization in comparison to the competitors, flexibility and efficiency in responding to the changing conditions can also be used for measuring the contribution of enterprise systems to the performance of organization (Hendricks, Singhal Stratman, 2007). Principle Drivers behind the adoption of Supply Chain Management System by Businesses Nowadays, businesses have increased their reliance on the suppliers. Each and every aspect of the business requires procurement. In other words, all the requirements of an organization is tied to the suppliers which creates the need for managing supplier relations, contracts, information and following various regulations (Olson Kesharwani, 2009). Business require a supply chain management system (SCM) for the purpose of establishing an efficient supply chain management process with the view to realize the best value from the amount spend by them through supplier analysis of risk, cost and performance. There are a number of reasons which drives businesses to adopt supply chain management systems. Some of them are following: Supply chain management system assists the business in managing its contractual obligations for assuring that a continuous supply is maintained and delivery disruptions by the service company are avoided. Quality techniques are incorporated within the business with the help of supply chain management system which further assists in improving operations. Therefore, quality assurance drives business to adopt SCM systems. Inventory buffer levels are included within the supply chain management systems that have been determined after the complete analysis of historical trends. This helps in effective management of inventories by the company by way of minimizing the holding costs and providing required flexibility for meeting the demands of the customers. Optimal way for shipping are determined with the help of SCM systems along with the reduction in costs to the lowest possible levels. It allows the businesses to ship their orders quickly and accurately which is the key for the success of the businesses. This drives the businesses to adopt SCM systems (Lan Unhelkar, 2006). Businesses are exposed to a number of legal liabilities and risks which can be managed with the effective implementation of supply chain management systems. It helps in identifying the critical risk factors in a business or with their suppliers. The potential for failures is ascertained and the risk is mitigated by the management through the supply chain methodologies. The linkage of supply chain management systems with all the business software systems improves the collaboration with the partners. SCM systems provide businesses with an opportunity to share information to the shareholders and keep them informed. Other tasks such as forecasts, reporting, quotation, order statuses and other transportation plans are accelerated through these collaborations in real time which acts as a driver for the adoption of SCM systems by businesses. Higher levels of customer satisfaction is ensured by supply chain management system by way of getting right products in the hands of top buyers of the organization at the right time. This optimization leads to high revenue and improved profitability for the business. Necessary Organizational Change Management Considerations for the Successful Adoption of Enterprise System Organizational change management can be defined as a framework that manages the outcome of new business processes, cultural changes or organizational structure changes within an enterprise (Goksoy Asli, 2015). The entire organization is affected as a result of implementation of new enterprise system. The day to day tasks of the employees may change due to enterprise system. For the successful adoption of enterprise system, various organizational change management considerations are necessary. Assessment and management of risk and opportunity- this area identifies and manages organizational and people related risk. Plans are built along with the required actions for the maximization of opportunities, mitigation of risk and managing change throughout the project. Mobilizing and aligning leaders- this area involves the formulation of guiding coalition for leaders with a common vision. The change is understood by the leaders and they accordingly prepare the terms of priorities, adjusted goals and resources for their areas. Engaging and communicating with the stakeholders- this area provides avenues for involvement. Understanding and feedback. The development of a communication plan takes place for the communication of right information at the right time. Designing and developing the future organization- this area designs an organizational structure that supports the anticipated future state. Preparing and equipping the workforce- this area addresses how the jobs of people get affected and the manner of their working. The following components of the organizational change management with respect to employees will assist in the successful adoption of enterprise systems. Employee engagement- enterprise systems can be successfully adopted when proper organizational readiness assessments are conducted for ensuring that all the opportunities and issues are captured across the organization. The involvement and engagement of employees is though expensive but results in quantifiable benefits in the long run (Alballaa Al-Mudimigh, 2011). Communications- the development and delivery of a communication strategy is a must that support key messages to the linked audiences for the success of the project. Training- a needs assessment should be conducted with the help of developing a training strategy that supports plan and delivers appropriate training. The change management plans should be put in place for addressing workforce transition to the enterprise system. Failing in developing a training strategy can result in serious implications on the successful adoption of enterprise system. Leadership-excellent leadership skills are required to be demonstrated by the project leaders of change initiatives for the purpose of guiding and deploying change throughout the organization. Leadership will allow mobilizing people for doing their adaptive work (Davenport, Harris Cantrell, 2004). Conclusion Enterprise systems are large- scale application software packages that assist an organization in information flows, business processes, data analytics and reporting. Therefore, it can be concluded that enterprise systems significantly contributes towards the organizational performance by improving the efficiency and quality of production, distribution, customer service and reducing the cost. Various models and criteria such as priori model and revised model can be used for the measurement of such contributions. Moreover, this report highlights the principle drivers that encourage the businesses to adopt supply chain management system. Also, the important organizational change management considerations have been highlighted in this report such as communication, training, employee engagement, etc. with the help of which the outcome of the new business processes can be effectively managed within the organization. References Alballaa, H. and Al-Mudimigh, A.S., 2011. Change management strategies for effective enterprise resource planning systems: a case study of a Saudi company.International Journal of Computer Applications (09758887),17(2). Davenport, T.H., Harris, J.G. and Cantrell, S., 2004. Enterprise systems and ongoing process change.Business Process Management Journal,10(1), pp.16-26. Gable, G., Sedera, D. and Chan, T., 2003. Enterprise systems success: a measurement model.ICIS 2003 Proceedings, p.48. Goksoy and Asli. 2015. Organizational Change Management Strategies in Modern Business. IGI Global. Hendricks, K.B., Singhal, V.R. and Stratman, J.K., 2007. 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