Enterprise Systems
Enterprise systems (ES) are large-scale organizational systems that built around with enterprise system software (ESS) packages. These packages comprise sets of application software modules with integrated architectures that facilitate data, processes and information technologies integration, and are often used by organizations as their primary engine in supporting business functions (Shang & Seddon, 2002). Common modules of ESS include enterprise resources planning (ERP) systems, supply chain management (SCM) systems, customer relationship management (CRM) systems, product life cycle Management (PLM) systems, and e-Procurement Systems.
According to the existing practitioner and academic literature, ES is one of an important technology investment options for organizations over the last two decades for their potential to improve business performances (Akkermans et al., 1999; Davenport, 1998). Benefits brought by the use of ES in business are multidimensional, ranging from support for strategic goals to operational improvements through decision-making enhancement (Ross & Vitale, 2000).
Information integration is also one of the key benefits brought by ES. As it can be used for replacing the former functionally oriented and the often poorly connected legacy software packages, intensive cost savings in infrastructure supports can be achieved. The integration of the operational processes through ES applications has also brought positive impacts to firm performances. The vigorous business values that ES has brought upon have then become the reason why enterprises are eager to invest on further ES developments (Davenport, 2000).
ERP, CRM and SCM systems are commonly integrated in an ES. ERP application suites exploit the integrative capacity of the corporate communication network to link traditional business functions, such as finance, accounting, operations, production, warehousing, and sales into a single system, employing a shared database, eliminating multiple data entry and ensuring, for example, that current stock availability and customer account details are available when processing an incoming order. With the ERP serves as the system’s backbone, SCM and CRM then extend data exchange to supplier and partner organizations, and customer, often via the internet with a Web interface (Chang, 2006). Figure 1 represents the extension of ERP to SCM and CRM within an ES.
Figure 1. Application of enterprise systems: Enterprise resources planning (ERP), supply chain management (SCM) and customer relationship management (CRM) (Developed from Chang, 2006)