Answer to Question #185412 in Management for Victor Campbell

Question

How do enterprise systems help businesses achieve operational excellence? Explain the challenges posed by enterprise applications in any given firm or industry and discuss how these challenges can be addressed

Answer 1

1.Enterprise software is based on a suite of integrated software modules and a common central database. The database collects data 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. Enterprise systems, support organizational centralization by enforcing uniform data standards and business processes throughout the company and a single unified technology platform. The firm-wide data generated by enterprise systems help managers evaluate organizational performance.

2. a) What are the challenges posed by enterprise applications?

Enterprise applications are difficult to implement. They require extensive organizational change, large new software investments, and careful assessment of how these systems will enhance organizational performance. Enterprise applications cannot provide value if they are implemented atop flawed processes, or if firms do not know how to use these systems to measure performance improvements. Employees require training to prepare for new procedures and roles. Attention to data management is essential.

b) Enterprise applications create new interconnections among myriad business processes and data flows inside the firm (and in the case of supply chain management systems, between the firm and its external supply chain partners). Employees require training to prepare for new procedures and roles. Attention to data management is essential. Management must understand the impact that implementing enterprise applications will have on every facet of the business. Executives must not underestimate the time and costs of implementation, not just on the organization but also on customers, suppliers, and business partners.