Benefits Of Enterprise systems
Enterprise systems also commonly known as ES are comprehensive, large scale application-software packages, which use powers of present day information technology (IT) for supporting processes, reporting, data analysis and information flows. These IT powers include data storage, computational, and data transmission and are done between and within complex organizations. Enterprise systems can be briefly called as packaged enterprise application software (PEAS) systems and is a perfect combination of adjectives, like “enterprise”, “packaged”, and “application”. “Enterprise system‒ is a broad term and includes Enterprise resource planning (ERP), Supply Chain Management (SCM) and Customer Relationship Management (CRM). Enterprise systems are usually built on, software platforms like Oracle’s Fusion and SAP’s NetWeaver and is typically, a relational database. There are many benefits of employing an enterprise system in an organization. Some of these benefits include:
1. Integrated organizational system.
Enterprise system leads to the development of an integrated system within the organization. This helps in streamlining of organizational processes and workflow, resulting in improved efficiency.
2. Improved data entry.
Due to the integration of all systems in an organization, there is little or no entry of redundant data and processes throughout the system.
3. Incorporation of best practices.
The establishment of the enterprise systems in an organization results in the incorporation of best industry practices, leading to an overall improvement in the working of the organization.
4. Flow of information.
There is proper sharing of information across all departments of an organization, leading to improved interdepartmental communication and better employee performance.
5. Improved customer satisfaction.
As all employees have access to requisite information, the workflow improves, resulting in on-time delivery of desired goods and services to the customers. The resultant improved quality and reduced delivery times help in developing high customer satisfaction.
6. Reduced inventory costs
The incorporation of concepts like SCM, CRM and ERP in enterprise system results in better planning, follow-up and forecasting of requirements. This results in a reduced inventory cost.
7. Improved collections.
Improved visibility into accounts and fewer billing and delivery errors result in faster and improved collections.
8. Improved costing
The application of enterprise systems helps in the proper racing of actual costs of all activities. This helps in performing activity based costing, which is ultimately beneficial to the organization.
9. Improved planning
The management is able to get a consolidated picture of inventory, sales, and receivables. This helps them in making better plans for the working of the organization.
Although the employment of enterprise system involves a huge cost, its benefits outweigh the cost incurred by an organization. Most big and small organizations of the world have employed the enterprise system and are reaping the advantages associated with it.
