What is an Enterprise System?
Enterprise systems (ES) are referred to as large-scale application software packages which reinforce business processes, reporting, information inflows, as well as data analytics within the complex organizations. Whereas ES are generally packaged enterprise application software (PEAS) systems, they are considered as bespoke, custom advanced systems established to support particular organizational requirements. The enterprise systems falls under various categories including enterprise planning systems, customer relationship management software, and enterprise resources planning (ERP) systems. Even if business intelligence and data warehousing systems are enterprise-broad package application software commonly sold by ES retailers, they don’t directly support implementation of business processes, but they instead exclude from this terminology. Otherwise, this assignment is aimed at providing essential and sufficient explanation and information concerning enterprise systems (Seddon, Calvert & Yang, 2010).
How the Enterprise Systems Work
The enterprise system operates in a variety of ways. In several countries, for example, the US, the enterprise system operates in accordance to some five main principles. These include; the profit motive, right to private property, the right to choose a business, customer sovereignty and competition. These principles can be explained individually in the way they operate.
The main reason to start an enterprise company is basically to make money. This can be done by earning more money than is spent. The amount of money that is left after the subtraction of the expenses from the business income is thus referred to as the profit. Organizations basically try hard to keep their costs down and increase the income from the business (Vernadat, 2007).
Right to private property
A private property is basically a home, a piece of land, a family, a car owned by the individual or a group. It is different from public property, public building and many more which make provision of the government services for the citizens. In the U.S economic system, for example, the people’s right to own or sell property is guaranteed by the law. In the setting up of the computer systems for the customers, one has no right to make an interference with the telephone, electrical or the computer systems of other persons.
Right to choose a business
In many countries, it is up to a person to make a decision as to whether or not they venture into computer services or even other types of businesses.They as well make a decision of the amount of fees they need to charge and the working hours as well. They are however controlled by the law which prevents the business owner from harming or cheating their consumers and employees(Vernadat, 2007). They will however be left to feel free to run their business as they deem fit.
At the end, it is consumers who make a determination as to whether a business will succeed or fail. The consumers have the final say. The consumers have the right to choose whether they can spend their money on either product X or Y. If they prefer one over the other, then the owner has no right to stand in their way.
Just as one is free to start a particular business, so is someone else. The rivalry that exists between the sellers who are in the same field is termed as competition. If your business is profitable, there are chances that another person may enter into the same field. Thus, the competition will exist for the same product (Vernadat, 2007).
Current Use of Enterprise Systems
Enterprise systems (ES) are confirmed to be industry-specific and customizable software package which integrate business and information process within an organization. Based on this, ES has attracted the interest of explorers hence resulting to a proliferation concerning implementation of literature. Recently, ES has been employed in various firms thus leading to great transparency and accountability. For instance, this software has promised the seamless integration of the entire information circulating within the company’s accounting and financial information, supply chain information, human resource information as well as customers’ details (Hendricks, Singhal & Stratman, 2007).
To be specific, the application of SE has lead to increase of sales in the largest vendor, Germany’s SAP through making it to score from 500 million dollars to 3.3 billion dollars from 2013 to 2014, hence making it emerge as the fastest growing software firm in global view. This is due to the fact that it has aided various management tasks within the organization including planning, controlling, and directing immense daily activities. For instance, SE employs an integrated database hence being able to bring about resolutions concerning multi-module application model in the general information system. Afar from point elucidation that depend on multiple databases which stresses IT resources, ES explanations standardizes usage of single application during the process of monitoring the whole business (Seethamraju, 2007).
Common Attitudes and Personal Attitudes towards Enterprise Systems
Generally, it has been confirmed that almost all individuals are endowed with common attitude concerning enterprise attitudes. At this juncture, implementation and management of Enterprise systems is considered being expensive particularly when used by small and medium-sized businesses (SMBs). Accordingly, these miniature firms are unable to gather enough money and resources for facilitating effectual and effective performance of this software. Exemplarily, companies require the right individuals to ensure that their information is secured, hence subjecting majority of companies to pressure since they cannot afford to recruits consultants who dedicate themselves to this area (Shang & Seddon, 2002).
Moreover, the cost of installing the ES for various corporations and the expense associated with getting license are extremely high. The firms also face cost particularly when the enterprise systems are unable to integrate with organizational legacy systems. This is a situation where the legacy systems are older that computer or applications systems that the enterprise has been employing for a long duration. Since the initial applications and computer systems are contained with essential information, then for the enterprise system to work with inheritance application, the company shall be forced to buy new servers, applications or computers (Seddon, Calvert & Yang, 2010).
Personally, I also consider ES to be contained with some assaults which will affect efficiency and effectiveness of the organization primarily in the long-tem view. Indeed, ES are confirmed to have a lifespan of 10-20 years where they can be effectual, after which they require to be upgraded. Despite this appearing as a longer duration, organizational data usually accumulates exponentially and this may prove some difficulties during management and storage predominantly while using single software system. To be specific, information overflow and succeeding slowdown within a single department shall certainly be comprised with ripple impact in other tasks of the company (Hendricks, Singhal & Stratman, 2007).
Fundamental Advantages and Disadvantages of Enterprise System
The Enterprise systems plays significant role in large companies hence leading to productivity and also heightening efficiency of the organization. Foremost, these systems are confirmed to aid companies to conduct crucial tasks, including determining the best means of manufacturing products, tracking orders, and also supporting incorporation of revenues, costs and profits. Secondly, they also act as large-scale application facilitating the companies to incorporate and organize their business operations. Actually, these systems can ascertain that all the company’s departments are able to share crucial information with each other.
Moreover, the organizations are chanced to implement enterprise systems with purpose of synchronizing the tasks of various departments (Hendricks, Singhal & Stratman, 2007). At this point, an integrated system helps in reduction of the time employed while processing documents including payrolls as well as external documents. Additionally, managers’ tasks for overseeing operations are being eased since the system ensures that major business goals are attained through ES. Since the managers are able to get information from centralized server, then the process of making decision becomes more informed thus yielding better outcomes (Seddon, Calvert & Yang, 2010).
On the other hand, the ES is also considered to be affected by various challenges. Firstly, the tailoring of the ES based on the organizational preferences can be tricky. It is very unusual that firms shall accept enterprise systems the way they are. Eventually, consultants or employees can spend a huge amount of time while programming or conversing to the enterprise system’s technical support so as to satisfy the clients’ needs. Moreover, the company needs to encounter extra costs so as to provide comprehensive training to employees who are using ES. Similarly, this system requires the company to change policies and operations that are not in line with ES hence leading to complication of company’s activities and also subjecting the firm to higher expenses (Soja, 2008).
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