One person wanted something that another person had, so they found a way to trade one thing for another. Right there, we can see the benefits of such a system. Each person involved had gotten involved out of free choice rather than being forced into it. And because each person was not forced into it, each was able to make the best choice that he could, and learn from any mistakes that he may have made. Enterprise systems (ES) are large-scale application software packages that support business processes, information flows, reporting, and data analytics in complex organizations. These systems are designed to manage large volumes of critical data. These systems are typically designed to provide high levels of transaction performance and data security. Vendors in this space include IBM, Oracle, HP and more.
How does effectively implementing and using enterprise systems contribute to achieving operational excellence?
Enterprise systems provide value both by increasing operational efficiency and by providing firm wide information to help managers make better decisions. Enterprise systems also help firms respond rapidly to customer requests for information or products. Because the system integrates order, manufacturing, and delivery data, manufacturing is better informed about producing only what customers have ordered, procuring exactly the right amount of components or raw materials to fill actual orders, staging production, and minimizing the time that components or finished products are in inventory. Organizations need to use enterprising systems effectively to achieve operational excellence. The enterprise systems need to be designed and setup correctly from the beginning. If the enterprise software does not support the organizations’ way of doing business it