formulate arguments, and critically evaluate different alternatives to
issues or problems.
In this assignment, students must write a 1,500 to 2,000 word report
on the following enterprise systems issues:
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
In this study, enterprise system along with its importance in regard to organizational performance has been discussed. Apart from this, the concept of supply chain management and motivational forces which induce the organization to adopt supply chain management has been discussed. The concept of organizational change management has also been covered in this study. All the three concepts are very important from the organization point of view. All the three concepts help the organization to gain a competitive advantage in the competitive market.
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Enterprise system is one of the best information systems which increase efficiency, effectiveness as well as the productivity of the organization. In order to increase efficiency, effectiveness, and productivity organizations are increasingly investing a lot of money, time, and resources in enterprise system (Bi et al., 2014). It is also one of the best information systems which help the organization to gain a competitive advantage in the cut-throat competition. Enterprise system helps in improving the performance of the organization in various ways (Bi et al., 2014).
As it has been discussed above, enterprise system helps the organization to enhance its efficiency as well as effectiveness. Enterprise system increase efficiency as well as the effectiveness of the organization through integrating all the organization system into a single system. This single system provides all the relevant and important information to the organization whenever needed (Lasisi et al., 2017). Increase in efficiency of the organization leads the organization to produce the optimum level of output with minimum input within the limited given time. On the other hand increase in effectiveness of the organization help the organization to accomplish the set target with a minimum possible error. Effectiveness means completing the given task accurately without diverting from the original and right path. Hence with the help of enterprise system an organization can increase its efficiency and effectiveness which ultimately increases the performance of the organization (Lasisi et al., 2017).
Every organization irrespective of the financial capacity wants to cut the operational cost of the organization. If an organization is able to cut the operation cost effectively without compromising the quality of the product or services, it can be said that the performance or financial performance of the organization has been increased. Enterprise system also helps in cutting the operation cost of the organization which increases the rate of profit of the organization. The cost of the organization can be controlled through proper inventory management. Enterprise system helps in managing inventory effectively.
Enterprise system also helps the organization to gain a competitive advantage in the stiff competitive market. It is very important in today business world to gain a competitive advantage in order to outdo the competitors. Competitive advantage can be gained through cutting the operation cost of the organization, increasing the efficiency as well as the effectiveness of the organization (Ahmad and Mehmood, 2016).
Measuring the contribution of the enterprise system to organizational performance
Enterprise system is very important for the success of the organization in such a competitive business world. As it has been mentioned that it helps in improving the performance of the organization, its contribution to organizational performance can be measured in several ways. Enterprise system integrates the overall system of the organization into a single system which supports various processes of the organization such as finance, accounting, and supply chain management, sales and marketing (Almajali et al., 2016). Therefore, if the enterprise system can effectively reduce the operational cost of the organization, it can be said that enterprise system has been contributed to the performance of the organization. If the efficiency, as well as the effectiveness of the organization, has been increased with the help of enterprise system, it can be said that enterprise system has contributed to the performance of the organization. In the same way, if an organization gains a competitive advantage in the competitive market with the help of enterprise system, it can be said that enterprise system has been contributed to the performance of the organization (Almajali et al., 2016).
Supply chain management includes incorporated planning and process execution in order to improve the flow of the following information, material, finance in the areas which widely comprise planning, demand, production, management of the inventory, sourcing, storage, as well as logistic or transportation (Christopher, 2016). Specialized software, as well as the strategy of the business, is widely used in such activities in order to develop a competitive advantage. Supply chain management is one of the complex as well as expansive activities which depend on each and every partner of the business including supplier, manufacturers, distributors, dealers, and retailers in order to run effectively. In order to develop an effective supply chain management, the organization also requires risk management, proper collaboration, and coordination, change management (Christopher, 2016). All these help in developing communication and alignment among all the entities.
Principles drivers behind businesses adopting a supply chain management system
There are various principles drivers which induce the businesses or the organizations to adopt a supply chain management. The first and foremost driver which induces the organization to adopt supply chain management is cutting the overhead expenses. In order to cut the overhead expenses of the business, the organization adopted supply chain management. An effective supply chain management helps the organization to reduce the overhead cost of the organization (Hugos, 2018). The overhead cost of the business can be reduced through controlling the cost of shipping, storing as well as retrieving them with the help of supply chain management. It also improves the utilization of space through proper and effective inventory management. It helps in using multiple suppliers which avoids delays in receiving the order as well as reduces the price because the use of multiple suppliers increases competition on price among them.
The other driver which induces the organization to adopt supply chain management is the need for effective coordination as well as communication with the suppliers, shipping companies, vendors, and the customers. Supply chain management helps in improving coordination and communication between the business, suppliers, vendors, customers, and the shipping companies (Hugos, 2018). It is very important to have proper coordination and effective communication between the business and the suppliers, customers, vendors, shipping companies in order to run the business effectively and efficiently.
One of the main objectives of any business is to maximize the profit in the market and sustain for a long time in the market. Profit maximization is the major purpose of any organization, and for the same purpose, the business operates in the market. Therefore, another driver which induces the business to adopt the supply chain management is profit margin (Hugos, 2018). As it has been mentioned above that supply chain management helps in reducing the overhead cost of the organization; it will lead to increase in the profit margin. Therefore, in order to increase the profit margin organization also goes for adopting supply chain management.
Apart from all these timely delivery of goods and services to the customer also induces the business to adopt supply chain management. Customers are being considered as a king and all the business in the market operates to provide quality goods and services to the customer so that the customer can be satisfied with the goods and services of the business and purchase the goods and services of the business again and again. If the organization does not deliver goods and services to the customer on a timely basis, the customer will shift to the competitors (Mangan et al., 2016). Supply chain management helps the organization to deliver the goods and services to the customer on a timely basis.
Organization change management one of the popular frameworks which help the organization in managing the impact of the processes of the new business, change in the culture of an organization, or change in the structure of an organization. In a simple term, it can be said that organizational change management talks about a human side of change management (Hornstein, 2015).
It is very important to manage change within the organization in order to avoid losses and complexity. If an organization can effectively deal with change within the organization, it can gain strategic as well as competitive advantage in the market. Change is a necessary evil for the organization which cannot be avoided because it helps the organization to be ahead of the competitors (Hornstein, 2015). If an organization is not effectively deal with change, in the long run, it will be out of business or market.
Organizational change management consideration necessary for successful adoption of an enterprise system
The enterprise system affects the whole organization despite the size of the organization. The main focus of the organizational change management is to prepare, motivate, and encourage the human resource of the organization to impede transformation which otherwise cannot be well accepted (Kaufman, 2017).
The human resource of the organization also needs to be aware that why the organization needs an enterprise system and what are the benefits of an enterprise system to the organization. The top management is responsible for making the human resource of the organization aware of the benefits of the enterprise system to the organization so that they can readily accept the enterprise system in the organization without any issue (Kaufman, 2017).
Adoption of an enterprise system in the organization affects everyday activities of the human resource; therefore, the top management of the organization needs to prepare the human resource of the organization to learn about the enterprise system so that change in the organization can be effectively managed with the help of organizational change management system (Clegg and de Matos, 2017).
The human resource of the organization cannot hold what they do not know or understand, it is important for the human resource of the organization to be familiar with the features of the enterprise system and the application of the enterprise system through a well-planned and executed organizational change management program (Clegg and de Matos, 2017).
It can be concluded that enterprise system is one of the most important information systems which help the organization to gain the competitive advantage in the market. Enterprise system helps the organization in various ways. It increases the efficiency and effectiveness of the organization. In the same way, effective supply chain management is necessary for the organization. It helps the organization in reducing the overhead cost which increases the profit margin of the organization. Change is a necessary evil in the organization. The organization should effectively manage the change in order to gain competitive advantage. Organizational change management deals with the people side of the change management. In short, all the three concepts are very important from the organization point of view in order to gain competitive and strategic advantage and to sustain in the market for a long time.
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Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain management. John Wiley & Sons.
Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), pp.291-298.
Kaufman, H., 2017. The limits of organizational change. Routledge.
Clegg, S. and de Matos, J.A. eds., 2017. Sustainability and organizational change management. Routledge.