How suitable are enterprise systems to medium size manufacturers

Abstract

Enterprise system (ES) is an information system that integrates all departments and functions across a company into a single computer system that can serve all those different departments' particular needs (Sutherland, 2003) . An ES supports thousands of business activities from accounting to manufacturing and from sales to services (Davenport, 2000b). ES started out as a back-office system, which automated business transactions that customers had never seen (Davenport, 2000b) . Such back-office system rarely provides competitive advantage to a company (Davenport, 2000b) . Until more recently, ESs have moved into the front office to optimise supply chain and automate sales force as well as customer service (Davenport, 2000b) . Such evolution is due to the more comprehensive packages or the bolt-on systems (Davenport, 2000b). The objective of an ES is to integrate the key processes of an organisation such as logistics, sales, marketing, service, manufacturing, operations, procurement, finance, product development, technology development and human resources, thereby allowing business to operate with high levels of customer service and productivity, and at the same time lowering costs and stock level (Wallace & Kremzar, 2001). Also, an ES provides an organisation with an integrated, enterprise-wide information system that facilitates efficient response to any changes in market demand (Fabian, 1998). ES allows all users access to a common database, reduces the data input process, supports the sharing of information within an organisation and promotes efficient communication between the organisation and the external environment. Nowadays, organisations are implementing ES either to take advantage of a new configuration or to create a foundation for a reengineered organisation (Schaaf, 1999).