1. How do enterprise systems contribute to organisational performance, and how do we measure such contributions?
2. What are the principal drivers behind businesses adopting a supply chain management system?
3. What are the organisational change management considerations necessary for successful adoption of an enterprise system?
It can be said that the contemporary organisations try to invest more and more in the different enterprise systems and this includes the Enterprise Resource Planning (ERP) system. This ERP system is considered critical for the growth and survival of organisational performance. It can be said that the ERP system helps in enhancing the organisational performance and thus establishing competitive advantage. It also plays an important role for the fulfilment of the vision and strategies of the organisation. It can be said that installing an enterprise system is not considered to be a mere computer project, but it is considered to be a risky and expensive investment that lays impact on the primary systems and processes of an organisation (Shao, Feng and Liu 2012). Moreover, it also affects the organisational procedures and structures, the legacy system and the personal tasks that play a vital role for different support tasks. There must be a significant body involved in the research and implementation and the challenges faced to remove the implementation process that are considered critical for the successful implementation of the ERP system. It can be said that the ERP system is connected with the process of control, BPM, CRM and TQM implementation. The organisations that have implemented the ERP benefit have been benefitted to a large extent than the other enterprises that did not utilise this system in an effective way.
It has been found that improving the chance for the success of the ERP system is considered to be the main focus for the success of organisational performance and there are several critical factors that play an important role in this case. The senior leaders of an organisation are considered to play the most vital part in this context. There must be proper and adequate support from the top management leaders that are needed in this particular phase of the ERP system. On the other hand, it can be said a positive relationship must exists between the IT acceptance and the senior leaders who plays an important role in this case. Further, there must be better relationship between the success of ERP, organizational culture and transformational leadership in every organisation. Sharing of relevant knowledge is also considered to be an important factor for the success of ERP. The enterprise systems are composed of different integrated modules and this helps the organisation across multiple units and also in case of organisational boundaries. There must be systematic acquisition, storage and dissemination of knowledge that is considered vital for the success of the organisation (Liang, You and Liu 2010).
It can be said that organisational support is considered to be critical and vital for improving the performance of the organisation. There are several factors under the organisational performance theory and thus it plays a critical role for assessing the performance and improving employee satisfaction through increased work effort and further contribution. In an enterprise system, the employees must be provided with adequate support and thus this will help them to enjoy the work that is done by them and thus measure the performance level. Therefore, organisational support also leads to provision of emotional reaction to the employees in an organisation and reduce their stress accordingly (Terziovski 2010).
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It can be said that supply chain management helps in maximizing the satisfaction of the consumers and thus maintaining competitive advantage. The main gaol of sustainable supply chain management is to increase the efficiency and the effectiveness of the organisation. There are certain drivers that help the organisations in the adoption of effective supply chain management. These inducements are considered to be internal and thus it includes the various organisational factors. The ability of the organisation to develop risk management ability and to avoid different types of threat is considered to be the most important driver for the success of an effective supply chain. Further, the internal driver also includes co-operation with the suppliers to find out environmental friendly way and equipment’s in order to reduce the different types of ecological exposure systems and processes. The level of personal commitment also triggers sustainable management of supply chain framework. On the other hand, the desire to cut down relevant costs is considered to be another internal driver or motivator for an eco-friendly supply chain. The organisations must have the capacity of reducing the costs in order to produce long run profitability. Therefore, this can be easily achieved through the process of market openings and thus adopting sustainable practices. Moreover, quality enhancement is considered to be another aspect that is preferred by different organisations and thus it helps in reducing the wastes and pollution from the environment (Alzawawi 2014).
On the other hand, there are certain external drivers that help in the integration of sustainable practices in the supply chain framework. This external driver includes the different aspects that are considered to be external to the organisation, but lays impact on the internal factors of the organisation. This includes the pressure of each organisation and thus they should try to obey and not disrespect the social wellbeing and the reputation of the organisation. It can be said that the external drivers have tried to obligate the companies and thus include social and economic wellbeing in the supply chain management system and practices. Therefore, it is the responsibility of the organisation to progress using different types of management tactics. The customers, government regulation, suppliers, internal stakeholders are considered to be the external drivers of the organisation. The organisation must try to adopt transparency after getting the requisite pressure that is considered to be beneficial to respond to the stakeholders and the investors. It is also necessary for the firm to assure that the products and services are provided in accordance with the environmental standards (Walker, Di Sisto, and McBain 2008).
Considerations for organisational change management and its necessity for adoption of an enterprise system
It is necessary to take into consideration the different factors that lay importance on the implementation of ERP system. In many organisations, change management is viewed to be a curse for the organisation. It is misunderstood and often devalued by the senior management officials who utilise the ERP system in providing instructions for the internal changes in an organisation. It can be said that a new ERP application will affect the organisation irrespective of its size. The change management practices help the organisation to prepare their employees for the impending transformation that will help in the effective functioning of the organisation. It is vital to understand the different components of organisational change management such as the core team buy in and acceptance of cultural considerations. It is necessary for proper communication practices within the ERP system and this is considered to be vital and effective for proper implementation of the system. There must be proper communication and the members must try to work in teams so that it becomes easier for them to deliver the message in the right way. On the other hand, language, culture and the trend of education plays an important role in delivering the message in the right way (Cascio 2018).
Organisational change management also helps to manage the different changes that are encountered by the people and the types and source of this change might vary according to different situations. It is vital and necessary for the change management system to analyse the source and the resistance of change that are applicable for the proper set of strategies and to understand the values of an organisation accordingly. Moreover, the change management initiatives also includes the employees to be involved in the entire process, attending the concerns of the employees and getting the necessary support from the organisational group accordingly. There must be a particular process for the orientation framework and it must consider the three important phases such as strategy implementation, knowledge evaluation and status evaluation that are considered to be critical and vital for an organisation. Moreover, provision of management support and change management influences the feelings of the individual towards the particular system and the individuals will have the right intention to adopt those systems accordingly. Therefore, it is necessary for an effective employee capacity to be used in the ERP system and this must be driven by employee motivation in the organisation (Kerzner and Kerzner 2017).
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