Enterprise Systems to Organizational Performance-Free-Samples

Question: Discuss about the Contributions made by enterprise systems to the organizational performance. Answer: Introduction An enterprise system is a cross- functional information system which assists in providing organization- wide integration and coordination of the important business processes and benefits in resource planning of an organization. The enterprise systems also help in ensuring seamless flow of information across the organization. These are the large- scale application software packages which assists in minimizing the costs related to information technology (Kokemuller, 2017). The focus of this report is on the contributions of enterprise systems to the organizational performance, the principle drivers behind the businesses adopting supply chain management system and the organizational change management considerations that are essential for the successful adoption of an enterprise system. Contribution of Enterprise Systems to Organizational Performance and Its Measurement The enterprise systems contribute to the organizational performance in a variety of ways. Enterprise system assists in creating a uniform organizational culture in the organization in which the business activities are performed with the help of similar processes and information. With the help of enterprise systems, the information related to performance is instantly provided to the managers which enable them to make correct decisions at the correct timing. The organizational performance is automatically improved when adequate information is available to the managers regarding organizational performance. Further, the business processes related to manufacturing, distribution and customer service are enhanced due to the availability of proper information. It is the enterprise system that integrates the internal business process of the organizations such as sales, finance, production, custom logistics, etc. the costs associated with transaction processing, hardware and software and IT su pport staff are also reduced to a great extent with the help of enterprise systems. Enterprise systems also assist in synchronizing the functions performed by different departments in an effective and efficient manner (Williams Schubert, 2010). Moreover, enterprise systems also minimize time required for the processing of various documents such as payrolls. Information visibility and transparency is facilitated within an organization. This further leads to ease in performing the operations by various departments which contributes towards the performance of the organization (Yang Su, 2009). However, the contributions made by the enterprise systems are difficult to measure. Still the contributions are visible in the form of better performance as compared to the competitors, increased sales, higher sales conversation and customer retention rates and better image of the organization in the public. Furthermore, with the help of enterprise systems, the organization acquires the capability to deal with the changing condition in an effective and flexible manner. The assessment of such contribution can be made with the help of models such as priori model which makes the use of five separate dimensions of success such as individual impact, system quality, satisfaction, information quality and organizational impact. Revised model can also be utilized for the purpose of measuring the contribution of enterprise systems to organizational performance. The progress of the organization is measured by such model by measuring the impact of enterprise system in four dimensions namely info rmation quality, organizational impact, system quality and individual impact. Principle Drivers behind the adoption of Supply Chain Management System by Businesses Supply chain management systems are being increasingly adopted by the businesses. Suppliers have attained greater importance in the organizations. Procurement is essential for businesses at every aspect which has subsequently increased the reliance of businesses on the suppliers (Monk Wagner, 2012). Supply chain management is useful for the purpose of effectively managing information, contracts, supplier relations and other applicable regulations. Supply chain management process is effectively established by a supply chain management system which in turn assists in deriving the optimum value from the expenses made by business through the analysis of suppliers relating to cost, risk and performance. Therefore, there are various principle drivers behind the adoption of supply chain management systems by businesses. Operations are improved with the help of quality techniques that are incorporated with the supply chain management system which in turn acts as a driver for adopting the system. Contractual obligations are effectively managed by supply chain management system which subsequently helps in maintaining continuous supply and avoiding delivery disruption. Moreover, the implementation of supply chain management systems effectively manages the legal liability which has the possibility of affecting the business. Such system identifies the risk factors in advance which allow risk mitigation through the application of supply chain methodologies. Supply chain management systems include inventory buffer bundles which are determined after proper analysis of past trends. This in turn minimizes the holding cost of the organization and assists in fulfilling the demands of the customers with requisite flexibility thereby ensuring effective management of inventories (Wang, Sedera Tan, 2009). Furthermo re, supply chain management systems reduce the costs to minimum by way of offering finest ways for shipping orders quickly. This helps the businesses in attaining success in no time. The profitability of the business is improved when supply chain management systems assist in ensuring optimum level of customer satisfaction by providing the required products to the customers at the required time (Knolmayer, Mertens Zeier, 2012). Therefore, supply chain management systems are adopted by businesses. Organizational Change Management Considerations That Are Necessary For the Successful Adoption of Enterprise System The implementation of enterprise systems leads to changes in the entire organization. The routine tasks of the employees are altogether changed (Sykes, Venkatesh Johnson, 2014). Therefore, for the successful adoption of enterprise system, certain organizational change management considerations are necessary. Organizational change management acts as a framework for the purpose of managing the consequences of changes in the organizational structure, culture and the introduction of new business processes in a business (De Massis, Wang Chua, 2018). Success of the enterprise system is facilitated when an appropriate communication strategy is utilized that is capable of supporting key messages to the associated audiences. Moreover, employee engagement and involvement should be facilitated within the organization in order to prepare it for capturing the issues and opportunities that are presented in the way. This can be ensured with the help of organizational readiness assessments. Employee engagement will proof to be expensive for the organization but will provide several benefits in the future. Furthermore, appropriate training should be delivered after proper planning. This will help the workforce in their phase of switching to the enterprise systems. For this, a needs assessment is required to be conducted. The adoption enterprise systems may not proof to be successful in case when an organization fails to develop an effective training strategy. Project leaders are required to present their exceptional leadership skills in ord er to guide and deploy the change all across the organization. The adaptive work can be effectively performed by people if they are provided proper leadership (Sedera,Gronau Sumner, 2015). Organizational change management considerations to be kept in mind also include various other factors. The risks and opportunity to which an organization is exposed should be assessed and managed on time by way of formulating plans that suggests actions required to be taken. This must also involve the ways with the help of which opportunities can be maximized and risk can be minimized while managing change in the organization (Mattiske, 2012). Stakeholders should be involved in the process with the help of a communication plan which facilitates the communication of required information at the correct timing (Kumar, Loonam, Allen Sawyer, 2016). A guiding union should be formulated for leaders that support a shared vision. The leaders will be responsible for the preparation of terms of priorities, resources and adjusted goals for their respective areas after properly understanding the change. The organizational structure should then be planned in a manner such that it supports the ant icipated future state of the organization. The workforce should be properly prepared and equipped as their jobs will get affected due to the introduction of enterprise systems. Therefore, the workforce must be provided a training regarding the manner of performing the jobs after enterprise systems. Conclusion Therefore, it can be concluded that an enterprise system is a cross- functional information system which assists in providing organization- wide integration and coordination of the important business processes and benefits in resource planning of an organization. The effectiveness and efficiency of organizational performance is significantly improved with the help of enterprise systems. Such contributions of enterprise systems to organizational performance can be measured with the help of profits, customer retention rates and various models such as revised model and priori model. The principle drivers behind the adoption of supply chain management systems by the businesses have also been highlighted in the report. Moreover, this report also focused on the necessary organizational change management considerations which assist in managing the business processes in an effective manner. References Davis, B. 2017. Mastering Organizational Change Management. J. Ross Publishing, Incorporated. De Massis, A., Wang, H. and Chua, J.H., 2018. Counterpoint: How heterogeneity among family firms influences organizational change.Journal of Change Management, pp.1-8. Knolmayer, G. F., Mertens, P. and Zeier, A. 2012. Supply Chain Management Based on SAP Systems: Order Management in Manufacturing Companies. Springer Science Business Media. Kokemuller, N. 2017. Types of Enterprise Systems, [Online]. Available at: https://bizfluent.com/info-8061463-types-enterprise-systems.html [Accessed on: 1 April 2018]. Kumar, V., Loonam, J., Allen, J.P. and Sawyer, S., 2016. Exploring enterprise social systems organisational change: implementation in a digital age. Mattiske, C. 2012. Managing Organizational Change. AudioInk. Monk, E. and Wagner, B. 2012. Concepts in Enterprise Resource Planning. Cengage Learning. Sedera,D., Gronau, N. and Sumner, M. 2015. Enterprise Systems. Strategic, Organizational, and Technological Dimensions: International Workshops. Springer. Sykes, T.A., Venkatesh, V. and Johnson, J.L., 2014. Enterprise system implementation and employee job performance: Understanding the role of advice networks.MIS quarterly,38(1). Wang, W., Sedera, D. and Tan, F.T., 2009, July. Measuring CRM and SCM benefits: a preliminary measurement model. Proceedings of Pacific Asia Conference on Information Systems 2009. Williams, S.P. and Schubert, P., 2010, January. Benefits of enterprise systems use. InSystem Sciences (HICSS), 2010 43rd Hawaii International Conference on(pp. 1-9). IEEE. Yang, C. and Su, Y.F., 2009. The relationship between benefits of ERP systems implementation and its impacts on firm performance of SCM.Journal of Enterprise Information Management,22(6), pp.722-752.