Benefits Of Enterprise systems

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Benefits Of Enterprise systems Enterprise systems also commonly known as ES are comprehensive, large scale application-software packages, which use powers of present day information technology (IT) for supporting processes, reporting, data analysis and information flows. These IT powers include data storage, computational, and data transmission and are done between and within complex organizations. Enterprise systems can be briefly called as packaged enterprise application software (PEAS) systems and is a perfect combination of adjectives, like enterprise, packaged, and application. Enterprise system is a broad term and includes Enterprise resource planning (ERP), Supply Chain Management (SCM) and Customer Relationship Management (CRM). Enterprise systems are usually built on, software platforms like Oracles Fusion and SAPs NetWeaver and is typically, a relational database. There are many benefits of employing an enterprise system in an organization. Some of these benefits include: 1. Integrated organizational system. Enterprise system leads to the development of an integrated system within the organization. This helps in streamlining of organizational processes and workflow, resulting in improved efficiency. 2. 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 system.

3. Incorporation of best practices. The establishment of the enterprise systems in an organization results in the incorporation of best industry practices, leading to an overall improvement in the working of the organization. 4. Flow of information. There is proper sharing of information across all departments of an organization, leading to improved interdepartmental communication and better employee performance. 5. Improved customer satisfaction. As all employees have 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. 6. Reduced inventory costs The incorporation of concepts like SCM, CRM and ERP in enterprise system results in better planning, follow-up and forecasting of requirements. This results in a reduced inventory cost. 7. Improved collections. Improved visibility into accounts and fewer billing and delivery errors result in faster and improved collections. 8. Improved costing The application of enterprise systems 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. 9. Improved planning The management is able to get a consolidated picture of inventory, sales, and receivables. This helps them in making better plans for the working of the organization. Although the employment of enterprise system involves a huge cost, its benefits outweigh the cost incurred by an organization. Most big and small organizations of the world have employed the enterprise system and are reaping the advantages associated with it.

What Are Some Benefits and Challenges of Enterprise Systems?

By MICHAELJ, eHow Contributor

updated June 14, 2011

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What Are Some Benefits and Challenges of Enterprise Systems?

More and more organizations are seeking to integrate the core functions of their business with technological advances. Enterprise systems facilitate this integration process through a single software architecture that links all aspects of business to function as one unit. Organizations continue to reap the benefits of enterprise systems, but they also encounter challenges. Related Searches:

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1. Operational Benefits
Organizations implement enterprise systems with the purpose of synchronizing the functions of different departments. An integrated system reduces the time used in processing documents, such as payrolls and other external documents. Information visibility and transparency within an organization is a benefit that facilitates the different operations carried out by the various departments.

Managerial Benefits
Managers find it less hectic to oversee operations and to ensure that key business objectives are achieved through enterprise systems. Because they are able to access information from a centralized server, managers find that the decisionmaking process becomes more informed and yields better results.

Costs
Enterprise systems, such as Customer Relations Management and Enterprise Resource Planning, incur exorbitant costs. Purchasing the software architecture, implementing it, and training staff are some of the overheads incurred, in terms of both money and time. Enterprise systems do not always yield anticipates benefits, thus creating a risk of double losses. The maturity period required to see the benefits of these systems may be as lengthy as three years.

Storage Challenges
Generally, enterprise systems have a lifespan of 10 to 20 years, after which point they can be upgraded. Although this might seem like a long time, data within organizations accumulates exponentially and may prove too difficult to manage and store using a single software system. Data overflow and a subsequent slowdown in one department will certainly have a ripple effect in other functions of an organization.

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Types of Enterprise Systems

By Neil Kokemuller, eHow Contributor

updated March 14, 2011

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Enterprise systems are software-based business solutions used across a company.

Enterprise systems are software-based business methodologies that are implemented across all functions within an organization. Enterprise essentially refers to the scope of these solutions that are used company-wide. Several key 21st century business processes have evolved in large part because of the availability of enterprise-wide database software applications. Related Searches:

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1. Customer Relationship Management

Customer relationship management (CRM) is one of the more prominent business systems of the 21st century. CRM leverages database technology to track customer relationships more accurately, to enhance the total customer experience, and to deliver more targeted marketing campaigns. While marketing departments often spearhead CRM programs, all functions in the organization have more customercentric roles. CRM software solutions are key to getting a complete view of each customer for more customized relationship management.

Supply Chain Management

Supply chain management (SCM) is another 21st century business development that involves the collaboration of members of a supply chain to deliver the best value solution to the end customer. Built on software applications, SCM relies on close partnerships between manufacturers, wholesalers and retailers. SCM software is used for close monitoring and precise automation of inventory replenishment and management. Transportation and logistics is also key. In his November 2008 CIO article "Supply Chain Management Definition and Solutions," Thomas Wailgum

identifies five key SCM steps, including: planning, sourcing, making solutions, delivering them and coordinating returns.

Enterprise Resource Planning

Enterprise resource planning (ERP) is especially dependent on ERP software solutions. Wailgum points out in another CIO article from April 2008, "ERP Definition and Solutions," that ERP is not really about planning. The focus is on the integration of departments and functions across the company, making the word "enterprise" the key. ERP is a single-computer system that allows all functional areas in the company to collaborate in resource sharing. This is opposite of traditional approaches of separate resource budgets and processes, and it helps to reduce waste and resource inefficiencies.

Business Intelligence
The phrase business intelligence (BI) has emerged in the 21st century to describe the use of software solutions and data to make more informed business decisions. BI tools are intended to remove reliance on so-called "hunches" often used in the past to make business decisions. In general, BI software is used to track organizational performance in decision-making, notes CIO. More specifically, BI applications are used in gathering, storing, analyzing and providing access to data used by decision-makers across the organization.

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What Are the Advantages & Disadvantages of Prototyping?

By Scott Cornell, eHow Contributor

updated May 10, 2011

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The product development process begins with an idea and ends with manufacturing. Between these two steps are the design, engineer and prototyping phases. Prototyping is the stage where companies test their products prior to manufacture. While this testing, and other factors of the stage, are benefits, there are also some drawbacks to the prototype phase. Related Searches:

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1. Advantage: Testing for Functionality

Just think of the manufacturing nightmare companies could have if they send their products to production without creating a test part. That's the biggest advantage of making prototype parts: to test for things like function, fit and durability. Making test parts helps engineers identify areas where a particular product can be improved or if it has any flaws. Analyzing prototypes helps dictate design changes.

Advantage: Speed/Materials
Another advantage of prototyping is the speed at which it can be done. Rapid prototyping systems, such as 3D printers, can create prototype parts in hours. This puts parts in the hands of designers and engineers quickly, so design changes can be made faster, sending products to market faster. Rapid prototyping systems are also able to make parts in virtually any material. 3D printers can create parts in all different types of plastic, while laser sintering systems can make parts in fully dense metals.

Disadvantage: Added Development Costs

Although prototyping systems are becoming smaller, more sustainable and more affordable, they still present an additional expense for companies. 3D printer companies like Objet Geometries, for example, have developed a small, portable, desktop rapid prototyping system in the "Objet24." Although it's cheaper than Objet's other systems, it still costs almost $20,000. Companies can outsource for their prototyping needs, but those costs add up as well.

Disadvantage: Accuracy
Prototyping helps companies print parts for functional testing prior to production. But despite advances in technology, many prototyping systems can't exactly create the design. For example, the Objet24 is a high-resolution 3D printer rapid prototyping system. But it creates parts to within 0.1 mm accuracy. While this is almost perfect in terms of part accuracy, it's still off from what the part's final dimensions will be. Prototyping systems also have difficulty creating parts with thin walls or fine patterns.

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Top 10 reasons why Business Intelligence Projects fail

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0 Comments by FerencMantfeld on 22nd March 2010 at 03:17 PM (10321 Views)

This is going to be a lengthy post, so go grab a cup of coffee or tea and take this mini-journey with me. We'll discuss the reasons why so many Business intelligence deployments are flawed and why a lot of BI projects are eventually abandoned or taken up very slowly.
Lack of upfront planning

A common assumption in BI projects is that "If we build it, they will come". Inconsistent implementations, lack of executive sponsorship, lack of cooperation and intra-departmental conflicts cause slow adoption and abandonment of BI

projects. The success of a BI Project is directly related to consideration of business, user & training requirements, because the value of a BI deployment is NOT that obvious that all users would be lining up to learn to use the system, despite the sales pitch that BI vendors make. Organizations should start with a solid business case for why they want BI, carefully considering requirements and strategically aligning BI with business problems. Too often, BI systems are built for the power user and thus only a handful of employees use it. Instead the BI systems should appeal to the mass majority of users and once these users have what they are looking for to make their lives simpler, the power user capabilities should be considered.
Lack of Business Support for the BI Initiative

This is closely related to the previous point (lack of upfront planning) and should really be a post in its own right. To this end, I searched for and found a blog topic on this from Peter Thomas, right here. It is a good read and goes into a lot more detail than I want to here and presents a few aspects I had not really considered. Thanks Peter!
License Fees are the focus instead of TCO

I have seen a failed, abandoned BI project that cost in the millions where the actual BI tool was sourced at no cost. As far as license fees go, you cannot beat zero cost. We BI Tool vendors cringe at this thought, especially considering all the open-source initiatives and the perception that companies like Microsoft are helping to create, which is that the BI component does not cost anything, you already get it with your database. Yeah, right! Nuff sed! TNSTAAFL When you take into consideration the infrastructure cost and the professional services cost, you are starting to get an idea of the true cost. But this is still not the true total cost. A particular well-known organization (a cosmetics company), used their BI tool to extract data to Excel and then the regional merchandisers and sales managers spent about 1 - 2 hours every day playing with Excel, fiddling with it to find out which products they should be promoting more, where (which stores and regions) and which products were costing them shelf space and they had to get rid of these one way or the other. Now when you take into account 30 merchandising managers / sales managers playing with Excel for 2 hours per day (25% of the business day using a standard antiquated measure of 8 hours in a business day), at an ultra-conservative cost of $80,000 / year per merchandiser, the annual cost to the business is:

30 * 80,000 * 25%, which is $600,000 / year. Over 5 years, this adds minimum $3 million to the bottom line (or takes it away actually). We have not taken into account the cost of the frustration that these users experience just to get their jobs done. How do you quantify stress in terms of dollars? So if this same business had a BI tool-set whereby this information was available on demand at the cost of a few mouse clicks and maybe a few seconds of processing time, the business would save themselves $3 million per year. A greater benefit would be that the merchandisers could be home for dinner with their families! how do you put a price on that? When we're looking at TCO, the license fees are usually the smallest component. To calculate ROI, we need to understand TCO but we also need to be able to quantify the benefits of a new technology or approach to calculate the value delivered.