Contribution of Enterprise Systems

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What are Enterprise Systems? Provide examples of organizational functions supported by enterprise systems

Enterprise Systems are a suite of integrated software modules that help companies to integrate information from many parts of the business by storing it in one database. The database collects data from many different divisions and departments in a firm, and from a large number of key business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources, making the data available for applications that support nearly all of an organization’s internal business activities. (Laudon, 2009)

How does effectively implementing and using enterprise systems contribute to achieving operational excellence?

Enterprise systems provide value both by increasing operational efficiency and by providing firm wide information to help managers make better decisions. Enterprise systems also help firms respond rapidly to customer requests for information or products. Because the system integrates order, manufacturing, and delivery data, manufacturing is better informed about producing only what customers have ordered, procuring exactly the right amount of components or raw materials to fill actual orders, staging production, and minimizing the time that components or finished products are in inventory. (Laudon, 2009)

What challenges are posed by enterprise applications?

Enterprise applications involve complex pieces of software that are very expensive to purchase and implement. It might take a large company several years to complete a large-scale implementation of an enterprise system or a system for supply chain management or customer relationship management. The total implementation cost of a large system, including software, database tools, consulting fees, personnel costs, training, and perhaps hardware costs, might amount to four to five times the initial purchase price for the software. Enterprise...
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