Enterprise systems is a very self explanatory term which can be defined as a set of multiple components which helps an organization to run its business effectively and efficiently. Nowadays companies are increasing tremendously and becoming more and more connected with other companies and internally, which enables them to react instantaneously at any given situation. For example if you are running a huge business where you have ten different product lines and each product line has various departments like (marketing, finance, sales) and they all have to interact and share information with each other, this all could be made possible with the help of enterprise systems. The database collects information from all the departments and divisions of a firm and makes it available in a form which is useful for the company. Nowadays many huge firms are using enterprise systems, but they have some challenges along with the benefits. Some of the benefits are listed below:
Time saving- It saves a lot of time in performing many tasks like managing accounts, finance etc. Hundreds of calculations can be done within seconds which otherwise will take many days
Accuracy- It enables its users to exercise almost 100% accuracy in performing many tasks. The chance of miscalculation is very minimal compared with doing it manually. Moreover it also minimizes all type of bias which may be involved within the organization in performing certain tasks and calculations.
Operational benefits- operational benefits usually refers to cost reduction, improvement in productivity, better customer relationship, quality improvement and reduction in processing/production time.
Managerial benefits- it encompasses improved relation with the organization’s employees, better allocation of resources and employees, monitoring of different ongoing activities and also supports timely decision making.
Some of the challenges enterprise systems faces are...