Enterprise System Support the Business Strategy of Hewlett-Packard

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Table of Content

Abstract2
Introduction of Enterprise Systems3
Features of Enterprise Resource Planning3
Features of Supply Chain Management4
Features of Customer Relationship Management5
Hewlett-Packard Overview6
Current Situation of HP6
How Enterprise Systems Facilitate Business Strategies of HP8 Barriers on Implement of Enterprise Systems in HP and the Solutions12 Conclusion15
References16

Enterprise System Support the Business Strategy of Hewlett-Packard

Abstract
Today’s managers rely too much on reliable information to make critical decision on all aspects of their organization, especially on their business strategy. Business strategy not only determines the success, but also governs the business survival (Elliot et al, 2009). However, effective business strategy centers on aggressive, efficient use of information technology (Fiona et al, 2001). In the last few decades, huge investments were made in enterprise systems by organizations in different industries throughout many countries around the world; it enables the organizations to manage the efficient and effective use of resources. A lot of literatures have proven that the adoption and usage of enterprise systems have positively affected organizations’ productivity (Benjamin 2009). This report is to study how an enterprise system could support the business strategy of Hewlett-Packard (HP), and identify the barriers which faced by HP and suggest how they might be overcome it.

Introduction of Enterprise Systems
Enterprise systems are large-scale, packaged, business software used for integration data and processes across internal and external value chains, improving information and knowledge levels of an organization so as to support day-to-day business operations and decision-making (Shang & Seddon 2002). One the other hand, enterprise systems are to replace the poorly connected legacy software so as to reduce costs and error, to provide better quality and accuracy information as well as to easily access in timely for the organization. As stated by Hendricks et al (2007) and Davenport (2000), the three main enterprise systems are Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and Customer Relationship Management (CRM). ERP systems provide benefits in the area of transaction automation, SCM systems support more complicated planning capabilities, and CRM systems improve customer relationship management. These are to help organization create business value and increase competitive advantages (Benjamin 2009). Features of Enterprise Resource Planning

As mentioned by Aral et al (2006), ERP systems replace complex interfaces between different systems with standardized cross-functional transaction automation. It integrates all enterprise sub-systems and business functions such as sales and distribution, materials management, production planning, financial accounting, cost control and human resource management. Hence, it leads to improve the productivity, customer response times and speed up the delivery. On the other hand, all enterprise data are collected and stored centrally in real time; it ensures all levels of planning are based on same data sharing across the organizational units and geographically locations and realistically reflects the actually operating conditions of the organization. Managers can have a clear picture of the relative performance to make critical decision and business strategy (Benjamin 2009). Cisco Systems become the market leader in the global networking industry having used the ERP base on the use of electronic communications to build interactive, knowledge-based relationships with its customers, business partners, suppliers and employees (Pramod et al 2010). Features of Supply Chain Management

As stated by Dehning et al (2007), SCM systems is to coordinate and integrate the flow of information, materials and finances from the materials supplier to the manufacturer to the wholesaler to...
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