The Importance Of Enterprise Systems

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Enterprise systems
An enterprise system (ES) serves as a decision-making system with an enterprise. Enterprise systems can replace numerous independent systems that process data to support particular business functions. “These systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise. Enterprise systems increases businesses’ operational efficiency, they provide firm-wide information to support decision making and they enable rapid responses to consumers’ requests” (Lecture, IS1105, Ucc, October 2017, 2017). Enterprise resource planning (ERP), supply chain management (SCM) and customer relationship management (CRM) …show more content…

“ERP is recognized as a necessary ingredient that many companies need in order to gain the efficieny, agility, and responsiveness requires to succeed in today’s dynamic business emvironment” (O' Brien, 2005, p.216). ERP improves interdepartmental communication and ensures that production costs are reduced to influence the final cost of products. This has resulted in the ERP system becoming the backbone of most organisations by providing managers with an integrated view of the entire process of business. ERP gives a company a real-time view of its business processes and inventory management. It also tracks business resources (cash, employees, raw materials) and the status of commitments made by businesses (purchase orders, employee payroll) in every department that has entered data into the system (O' Brien, 2005, …show more content…

To achieve the goal of efficiently managing the process of forecasting demand, controlling inventory, enhancing business relationships with its stakeholders and receiving feedback, many companies are turning to Internet technologies to Web-enable their supply chain processes (O' Brien, 2005, p.223). A supply chain is the collection of people, tasks, equipment, data and other resources required to produce and move products from a vendor to a customer. A supply chain management system coordinates the tasks involved in the supply chain process. The factors in the supply chain process consist of the product manufacturer, the wholesaler, the distributor and the retailer. The objectives of a supply chain management system are to increase customer value and to establish a solid advantage over the competition (Smallbusiness.chron.com, 2017). An upstream supply chain includes firms’ suppliers and suppliers’ suppliers who are involved in the search and extraction of raw materials. A downstream supply chain has direct contact with customers and includes organizations and processes responsible for delivering products to customers. (R.search.yahoo.com, 2017)
The following case study discusses the supply chain management practices of H&M, the second-largest retailer by sales, and how it responds quickly to changing fashion trends by renewing its lines to compete with other large

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