Module 2 ITM206: Introduction to Business Process and ERP Systems

Enterprise Systems
By
Institution
Enterprise Systems
Large organizations typically have various information systems that help perform different functions, business processes, and organizational levels. Some organizations are also coming up with enterprise systems which are also called enterprise resource planning (ERP) systems, which provide firm-wide integration (Amcis2013.aisnet.org, 2016). Enterprise systems bring together key business processes of the whole firm into one software system. Consequently, allowing information to flow seamlessly throughout the entire organization.
With the integration of the entire operations of an organization into one system, enterprise systems can be used to support organizational structures which were initially impossible or even create an organizational culture that is more disciplined (Business-finance.yoexpert.com, 2016). A good example of a company that I personally saw benefiting in this fashion is Pavetex, a Swiss company that manufactures roof tiles that are mainly used for insulation of private homes. Upon introducing the new ERP system, it was able to realize lots of benefits since the system was centrally run and managed hence giving access to subsidiaries and mobile sales force. Since all data is stored in one system, there are no incidences of data redundancy. When compared to the previous situation, the accessibility of data became more reliable, and there was an increase in the systems available.
Enterprise systems allow for a firm-wide knowledge-based management process. Other than automating many essential business transactions including paying suppliers, taking orders or even changing employee employment status, these systems allow for an improvement in decision making and management reporting (eHow, 2016). A good example of a company that I personally saw benefiting in such a manner is Zeihl-Abegg which is one of the top manufacturers of elevator engines and ventilators. Before the introduction of the new enterprise system, there was no reuse of component from previous orders and the life of employees was very difficult. The new enterprise system allowed for components from previous orders to be reused in the order process. Also, expensive development resources that were in the product design phase are no longer being wasted anymore.
References
Amcis2013.aisnet.org,. (2016). Enterprise Systems. Retrieved 5 February 2016, from http://amcis2013.aisnet.org/index1c82.html?option=com_conten...