Sunday 19 October 2014

Benefits of Enterprise Information System to the organization




     Enterprise information system means any kind of information system which improves the functions of an enterprise business processes by integration. This typically offering high quality of service, dealing with large volume of data and capable of supporting some large and possibly complex organization or enterprise. 
     Enterprise information systems can replace multiple independent systems that may or may not interact with other systems and that process data to support particular business functions or processes. For example, enterprise resource planning supports the entire sales process that includes pre-sales activities, sales and orders, inventory sourcing, deliveries, billing and customer payments. Enterprise resource planning, supply chain management and customer relationship management systems are each examples of enterprise systems.
   The enterprise resource planning system integrates software applications just as a company integrates business processes, such as purchasing, finance, human resources and inventory management. A supply chain refers to the collection of people, tasks, equipment, data and other resources required to produce and move products from a vendor to a customer. The customer relationship management systems were developed to address the need to raise a sales department‘s productivity and make the management of a company’s customers an effective way to increase sales.
     One of the benefits from Enterprise Information System is when organizations are able to utilize their capabilities in order to exploit the technological possibilities of the Enterprise Information systems, in addition to their willingness to change their business routine. Besides that, enterprise information systems lead to the development of an integrated system within the organization. This help in streamlining the organizational processes and workflow, resulting in improved efficiency. This system also can improved customer information satisfaction. As all employees as access to requisite information, the workflow improves, resulting in on-time delivery of desired goods and services to the customers. The resultant improved quality and reduced delivery times help in developing high customer satisfaction.
   Further benefit is improved data entry. Due to the integration of all systems in an organization, there is little or no entry of redundant data and processes throughout the systems. Using enterprise information system, it leads to incorporation of best practices. The establishment of the enterprise systems in an organization result in the incorporation of best industry practices, leading to an overall improvement in the working organizations. Last but not least Enterprise information system provides flow of information. There is proper sharing of information across all departments of an organization, leading to improved interdepartmental communication and better employee performance.
   In conclusion, using Enterprise Information System is the best solution to run business or organization. This system not only provides advance technology but also help organization to work in effectiveness and efficiency. The application of Enterprise system helps in the proper racing of actual costs of all activities. This helps in performing activity based costing, which is ultimately beneficial to the organization. Although the employment of enterprise system involves a huge cost, its benefits outweigh the cost incurred by an organization. Nowadays, most big and small organizations of the world have employed the enterprise system and reaping the advantages associated with it. You can refer to this journal for further information about Enterprise Information System ; Cas.uah.edu/guptaj/m680/erpbenefits.pdf


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