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Key Topics
Requirement
This essay assesses a student’s ability to assess information, 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 enterprise system?
Solution
Executive Summary
In this paper/ assignment, an essay has been written on the three topics first one is about enterprise system, second is about supply chain management, and the third one is about change management. Due to globalization and advancement in technology many organization is implementing enterprise system in its operation. To gain the strategic advantage in the global market many organization are adopting supply chain management software also. Beside this many organization is focusing on managing the change after implementing the new system in the business operation for the successful implementation of the new enterprise system in the organization.
In this assignment, all the above-mentioned points have been articulated. The assignment is divided into three task, and a proper conclusion has been provided at the end of this assignment.
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Introduction
In this assignment, detail about enterprise system has been mentioned. How enterprise system is helping the organization in performing it various operation in an effective manner. What are the principle reason who pushed the organization to adopt the enterprise system in its operation is mentioned in an articulated form in this assignment.
Enterprise system
Due to advancement in technology and day by day improvement in technology various software has been introduced by the information technology industry and corporation. In order to stay in the globalized world and to compete in the stiff competition prevailing in the global market demand adoption of the information technology assistance. Through adopting the assistance of information technology in its operation many organization gains the strategic and competitive advantage in the market. IT has been proved as an edge to success in the global market (Sykes et al., 2014)i.
Enterprise system is the large-scale application software. Enterprise system is the software which supports the business operation and process in functioning its task effectively and efficiently. Enterprise system or Venture frameworks are huge scale application programming bundles that help business forms, data streams, detailing, and information investigation in complex associations, undertaking assets arranging (ERP) frameworks, endeavor planning system, and. client or customer relationship administration software.
Task 1
Enterprise system is contributing to organizational performance.
Enterprise system is contributing in many ways to the organization. ES system is enabling the organization to achieve the organizational goals in an effective manner. Many software like enterprise resource planning helps the organization in maintaining the data of the whole organization effectively.
For example, if any customer places an order, then sometimes it is not possible for the sales personnel to tell the customer about the inventory immediately. Sometimes sales personnel might not be in a position to tell that whether the desired product is in inventory or need to be produced. So to overcome this issues many organization adopted ERP system in its operation which helps in determining the stocks available in the inventory immediately.
Besides this many other enterprise system software are available in the market such as SAP and PeopleSoft which is been used by many organization for managing the accounting and financial aspect of the organization in an effective manner.
Due to adopting the ES in the operation organizational performance has been increased as the software used by the organization enables the organization to perform a various task in an effective and efficient manner within less time.
Benefits of Enterprise System are many which are contributing to the organizational performance in many ways and some are as follows.
Enterprise Recourse panning software Enhance the quality and productivity of client administration, generation, and dissemination by incorporating the organization's interior business forms in deals, back, production, custom logistics, etc. (Sedera et al., 2015)ii. In maintaining the supply chain ERP's contribution is a lot as it enhances the efficiency of maintaining the supply chain management in an effective manner which reduces the ordering as well as inventory maintenance cost.
The contribution of enterprise system can be measured
Enterprise system Contribution can be measured by observing the performance of the organization over the year. Most successful organizations use to work to balance the competition and individual development. It can be observed that the organization who adopted the ES in its operation uses to maintain the balance between the competition and to the individual growth.
Inculcating the enterprise contribution into the performance measurement system is very dynamic and challenging. Many organization now also focus on an individual performance but they tell their employees that you need to work in a team but you are appraised individually (Soja et al., 2016)iii.
So with the of enterprise system, many organization are able to manage the individual as well as organizational performance in the best manner.
As enterprise system is contributing a lot to the organization by enhancing its operational efficiency in best possible manner (Shen et al., 2016)iv. So it can be said that by observing the trends and organizational overall performance over the years after the adoption of the enterprise system in its operation its contribution can be measured.
Task 2
Supply chain management
Supply chain management is the process of maintaining the inventory in best effective manner. It involves integrating and coordinating the flow of goods from the manufacturing line to the wholesaler to the retailer and finally to the ultimate consumer. Managing the supply chain management in best an effective manner will give a strategic advantage to the organization (Christopher 2016)v. Effective management of the supply chain will enable the organization to reduce the inventory management cost, ordering cost and handling cost of the supply chain.
Principal motivation behind adopting the supply chain management system
The main motivational factor behind adopting the supply chain management system in the organization is as follows
• The supply chain management system can lower down the overhead expenses
• In order to improve the communication and coordination with the vendors, shipping companies and with the customer
• In order to raise the profit margin and level of the organization
• Timely delivery of the product to the ultimate customer.
The customer is considered as the king of the market and if the customer is happy then only they will make any organization as a happy. So satisfying the customer by delivering the products and services on time is the key to win their heart. The main motivating force which pushed the organization to adopt the supply chain management in its operation is to make their customer delighted and meanwhile to reduce the inventory cost (Stadtler, Hartmut 2015)vi.
The supply chain management system will improve the collaboration, communication, and coordination with the transportation, shipping companies with the vendors and with the distributors at large. As it will enable to provide the goods and services to a customer on prompt resulting in making the customer delighted. It will also help in reducing the inventory cost at large.
Every organization is trying to deliver its product to the potential customer on time, as it will make the customer loyal and delighted. Winning the heart of the customer and meanwhile reducing the inventory cost is the key to success in the global world.
Effective supply chain management will enable the organization to stay in the stiff competition in the global world. It will give a strategic as well as the competitive advantage to the organization.
Every organization is striving it’s hard to reduce the inventory cost and ordering plus handling coast of the materials. As well as every organization is working hard to make their customer delighted, so basically, these are the only motivating or driving force which is pushing the organization to implement the supply chain management in its business operation (Hugos et al., 2018)vii.
Major benefits of the supply chain management software which pushed the organization to adopt the supply chain management system software in its business operation are as follows.
Supply chain software will lead to higher efficiency rate, it will enable the organization to reduce the cost effects, it will raise the level of output, enhance the business level of profit, enrich the cooperation, eliminates the delay in the process, and it will also enhance the network of the supply chain.
As it was found that supply chain management software brought the remarkable progress and change in the overall business operation. Many organization is looking forward to lowering down their overhead cost so this can be easily possible only after adopting the supply chain management software in the business operation. As it will improve the management of the inventory system, also eliminates the ruined resources through adjusting the storage space efficiently. It also improves the relationship with distributors and vendors (Coyle et al., 2016)viii. So all this will enable the organization to gain strategic advantage in the global market.
At end it can be very well said that there are various motivating factors which are pushing the organization to implement the supply chain management system software in its business operation such as factors of reducing the overhead cost, making the customer delighted, improving the relationship with the distributors and with the vendors (Cook, Niall 2017)ix.
Task 3
Organizational change management consideration for implementing the Enterprise System successfully
Managing the change in an organization is important. If an organization is able to manage the change in an effective manner then it will give the organization the strategic advantage at the global level.
Managing the change is the need of the hour as it keeps the organization alive and ahead of other. Updating the system from time to time is essential and if an organization fails to adopt the change management then it will lead to having organizational failures.
While implementing the enterprise system in the business operation organization need to focus on changes which will come after implementing the enterprise system in the business operation. As after implementing the enterprise system in the business operation will definitely lead to change the operational activity of the organization (Doppelt, Bob 2017)x.
In order to implement the enterprise system in the organization management need to focus on the employee skills and ability to accept the change. The potential of the professional to adjust to the change due to a new system of the enterprise should be addressed.
Various consideration is to be focused on the organization in order to implement the successful enterprise system in the organization. Such as proper and required training of the professional in order to make them competent to accept the change in best manner. Beside this implementing the best and effective communication system in the organization in a way to make all the professional awareness of the change in the process due to implementing the new system in the operation.
In order to implement the successful enterprise system in the organization management and organization should must consider the change management. According to Foster 2007, he argued that 90 percent of the organization that applied change management to ERP implementations believed that enterprise system will provide a strong impact on the organizational performance.
So before implementing the ERP system in the operation organization must need to focus on the change which will come after the adoption of the enterprise system in the organization. Some consideration which organization needs to focus is as follows.
Time of implementing the enterprise system, skills and capabilities of the professional working in the organization to accept the change. Cause and effects of implementing the enterprise system in the organization. The potential impact of implementing the new system in the business operation etc. are to be considered by the organization.
For example, if the cost of implementing the new enterprise system in the organization is more then it benefits then the organization should not implement the new system in its business. But if the benefits are more and then the cost included implementing the new system in the organization then the organization should adopt and implement the new system in its business operation.
Time consideration is also very important, an organization should consider the relevant time to implement the new system in its operation.
Considering the resistance to change by the current professional in the organization is also important. Making them comfortable in adjusting with the change in the process by providing the proper training is essential (Armstrong et al 2014)xi.
So after implementing the new system in the organization, management needs to consider various factor for its successful implementation of the system. some consideration is considering to provide the proper training to the employees in order to make them comfortable and to accept the change in effective manner (Hayes, John 2014)xii. Improving the communication system in the organization in a way to make all the objectives and goals of the organization very clear.
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In the end, it can be concluded that enterprise system is contributing a lot to the organization. Enterprise system enhances the work performance and enables the organization to achieve its goals and objectives in an effective manner.
The supply chain also plays a vital role in making the organization to earn more profit and to make a more loyal customer. It is proved as the tool to win in the global market.
Managing the change is essential. In order to implement the successful enterprise system in the organization managing the change is required. After implementing the new system proper training and guidance should be provided to the professional for the success of the new system in the organization.
References
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1 Sykes, Tracy Ann, Viswanath Venkatesh, and Jonathan L. Johnson. "Enterprise system implementation and employee job performance: Understanding the role of advice networks." MIS Quarterly 38, no. 1 (2014).
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2 Sedera, Darshana, Norbert Gronau, and Mary Sumner, eds. Enterprise Systems. Strategic, Organizational, and Technological Dimensions: International Workshops, Pre-ICIS 2010, St. Louis, MO, USA, December 12, 2010, Pre-ICIS 2011, Shanghai, China, December 4, 2011, and
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Pre-ICIS 2012, Orlando, FL, USA, December 16, 2012, Revised Selected Papers. Vol. 198. Springer, 2015.
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3 Soja, Piotr, and Heinz Roland Weistroffer. "Motivations for enterprise system adoption in transition economies: insights from Poland." Enterprise Information Systems 10, no. 5 (2016): 563-580.
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4 Shen, Yung-Chi, Pih-Shuw Chen, and Chun-Hsien Wang. "A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach." Computers in Industry 75 (2016): 127-139.
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5 Christopher, Martin. Logistics & supply chain management. Pearson UK, 2016.
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6 Stadtler, Hartmut. "Supply chain management: An overview." In Supply chain management and advanced planning, pp. 3-28. Springer, Berlin, Heidelberg, 2015.
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7 Hugos, Michael H. Essentials of supply chain management. John Wiley & Sons, 2018.
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8 Coyle, John J., C. John Langley, Robert A. Novack, and Brian Gibson. Supply chain management: a logistics perspective. Nelson Education, 2016.
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9 Cook, Niall. Enterprise 2.0: How social software will change the future of work. Routledge, 2017.
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10 Doppelt, Bob. Leading change toward sustainability: A change-management guide for business, government, and civil society. Routledge, 2017.
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11 Armstrong, Michael, and Stephen Taylor. Armstrong's handbook of human resource management practice. Kogan Page Publishers, 2014.
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12 Hayes, John. The theory and practice of change management. Palgrave Macmillan, 2014.
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