An enterprise system is a system that allows enterprise-wide or cross-functional requirements, rather than a single department or a group within the organization. The way an enterprise system works is by allowing different parts of the company that usually don’t have the ability to communicate to each other normally. Enterprise systems also help with marketing, sales, finance, accounting, human resources, manufacturing, and production.
The one challenging thing about enterprise systems is that they have to be heavily configured for every company because if not, the enterprise system has a high risk of failure. One thing that anyone should know when they’re thinking about implementing an enterprise system is that enterprise systems do not just increase the efficiency of a company. Enterprise systems allow managers to have the company’s information in real-time to evaluate the company’s performance at any given moment.
Enterprise applications can do a large amount of things for a company, but they can’t handle everything on their own. Some examples of what enterprise applications can do are: reduce supply costs, change order-to-deliver ratios, give increased response to customer needs, and raise profits. Like mentioned before, enterprise applications can do many things, but it cannot handle everything on its own. For instance, it can’t keep track of outside occurrences such as somebody stealing an item from the store. The enterprise system would mark this lack of an item as a “sold” item even though there was no profit from the loss of the item.