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Enterprise systems are business
systems. a. Features: -
o Enterprise computing considers the firm as a whole and integrates key business
processes into single software systems so that information can flow seamlessly
through the enterprise. As a result co-ordination and efficiency of functions should
be improved (e.g. sales/stock control/accounts/production/logistics all working
from the same data).
o Decision making based on the same information should be improved. An enterprise
view is taken of business strategy and processes, technology, and communication
networks.
q Are mostly predefined and perform structured tasks e.g. recording cash received
and paid out..
o These systems also summarizes information for use by the higher management.
o These systems are characterized by high input and output levels and are considered
strategic for the survival of the enterprise.
b. Business and technological reasons: -
The global market is highly competitive so organizations must look to methods to improve
their business performance. The business reasons for moving are:-
o Need to reduce the operations costs of the business as automation results in
reduced costs.
o Need for competitive advantage which comes with the new systems.
o Need to increase market and improve sales through e-commerce which is viable
through the new systems.
In parallel the technological reasons for moving include
o Increased processing power which has led to increased output.
o Increased t use of client/server and desktop systems which has also given the
business a competitive advantage.
o Reduction in data storage costs and elimination of paper work.
o Expanded public communication networks thus enable the business to
communicate with their clients easily.
o Complex enterprise software packages are now available which increase the
efficiency of operation of the business.
c. Key elements: -
o The ability to integrate key legacy with client/server systems, internet, intranet and
various other intercommunication systems is one key element.
o The availability of consultancy services with appropriate experience, custom
software developers,
o Local or global communication service providers are all essential elements as well.
o Availability of cash to support the venture.
d. Organisational problems: -
o Enterprise systems require significant organisational change in the ownership of
information bringing to the fore personnel problems.
o A change to more complicated technology from traditional legacy systems, large
initial costs with difficult decisions on the quantification of long-term benefits.
o Management has to take a long term view when the business world changes like
shifting sand, which is very difficult.
o The may be resistance from the employees who may view the change as a chance to
lose their jobs.
o Lack of qualified personnel to man the new system could also pose a major
problem.
gregorymasila answered the question on February 15, 2018 at 15:59
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