Enterprise systems, according to the text, are: 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. (Laudon & Laudon, 2011)Let’s say, for example, the financial department of an organization needs to audit all of the orders fulfilled by the Sales and Marketing department. With an integrated enterprise system, there is no need to request the information and wait for it to be sent to the financial department from the distribution center. Both departments are linked by a central database that they can both access at any given time. This reduces the time between requesting the data and utilizing it for the department’s needs. If the Sales and Marketing department does not keep the Distribution department aware of what is being sold, then prompt delivery of the product cannot be guaranteed. These enterprise systems also increase the security of the database. Having separate databases for each department will increase the chance for lost data. The needs of each department can be considered separate, but when looking at it from an organizational perspective, each department is a part of a larger entity. This entity cannot survive without the cooperation of each of its departments working together.
• How does effectively implementing and using enterprise systems contribute to achieving operational excellence?
As stated in the above answer, a properly implemented enterprise system creates a more accessible, secure, and usable database. An organization that allows each department to access the information needed to run smoothly and effectively can save time and productivity. If compared to a system of separate departments and databases, we can see the benefits of the enterprise system. Any department, with the proper access, can
Bibliography: Laudon, K. C., & Laudon, J. P. (2011). Key System applications . In K. C. Laudon, & J. P. Laudon, Essentials of MIS (pp. 270 - 30). Prentice Hall.