Enterprise Applications
What are enterprise applications?
Enterprise applications are designed to integrate
computer systems that run all phases of an
enterprise’s operations to facilitate cooperation and
coordination of work across the enterprise. The
intent is to integrate core business processes (e.g.,
sales, accounting, finance, human resources,
inventory and manufacturing).
Examples:
1. Enterprise resource planning (ERP): refers to a type
of software that organizations use to manage day-
to-day business activities such as accounting,
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procurement, project management, risk
management and compliance, and supply chain
operations.
2. Electronic customer relationship management
(e-CRM): involves the integration of Web channels
into the overall enterprise CRM strategy with the
goal of driving consistency within all channels
relative to sales, customer service and support (CSS)
and marketing initiatives.
3. Electronic supply chain management (e-SCM): is
collaborative use of technology to improve the
operations of supply chain activities as well as the
management of supply chains.
4. Knowledge management (KM): is the process by
which an enterprise gathers, organizes, shares and
analyzes its knowledge in a way that is easily
accessible to employees. This knowledge includes
technical resources, frequently asked questions,
training documents and people skills.
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Benefits
Of
Enterprise systems
[Link] management performance
[Link] accuracy and availability of information
[Link] planning
[Link] reports
[Link] effectiveness
[Link] customer service
[Link] access to management systems
[Link] competitiveness in the market
[Link] coordination
10. Scalability and accessibility
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Enterprise applications in
Developing countries
ERP software vendors are experiencing
global expansion. Asia/Pacific and Latin
American countries are taking the lead. The
Asia‐Pacific ERP market accounts for 9
percent of revenues, and Latin America for
3 percent. Economic expansion, especially
in Asian countries, is the major reason.
Second, fierce competition and pressures
from Western corporations force firms in
developing countries to vigorously pursue
information technology.
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Challenges of implementing ERP
systems:
A case study made by: Ezer Osei Yeboah-Boateng
and Kofi Asare Essandoh
Discussing the challenges of implementing ERP
systems that faces developing countries picked up
Ghana to conduct their studies and they used the
following methodology to collect data.
Methodology
A. Selection of Study Area and Sample
The study population consists of business owners and
managers, IT staff or officers and other key decision makers of
ICT based SMEs in Ghana. This sample is deemed to have
authority and responsibility various business decisions, such as
procurement, funding of IT projects, as well as the ability to
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comprehend emerging ICT technologies, end-user needs
assessment and functional processes.
B. Questionnaire Design
In view of the tech-savvy nature of the target samples, an
online survey was employed for data collection. The
questionnaire was structured to capture the SMEs profile,
drivers and barriers of ERP, as well as the factors (e.g.
technological, organizational and environmental) that influence
the adoption of ERP. All variables and constructs were
measured using 5-point Likert-type scales with anchors ‘1 =
extremely unimportant’ to ‘5 = extremely important’ for
drivers and barriers and ‘1 = strongly disagree’ to ‘5 = strongly
agree’ for factors. The data obtained was analyzed and
presented using a simple statistical tool called the Relative
Importance Index (RII). Subsequently, the indices of the
variables were ranked according to their relevance. The indices
ranging from 0.71 – 1.00 were classified as high, 0.41 – 0.60 as
medium and greater than 0.00 – 0.40 as being low.
Enrollment in local colleges, 2005
Table 1: Drivers enabling the Adoption of ERP
Dri
ver
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Red
ucti
on
in
CA
PEX
and
OP
EX
for
it
infr
astr
uct
ure
Imp
rov
ed
coll
abo
rati
on
and
inte
rac
tion
bet
we
en
em
plo
yee
s
and
cus
tom
er
and
sup
plie
rs
Red
ucti
on
in
7
tim
e
and
res
our
ces
on
IT
mai
nte
nan
ce
Bus
ines
s
con
tinu
ity
bac
kup
s
and
disa
ster
rec
ove
ry
Acc
ess
to
tec
hni
cal
exp
erti
se
and
kno
wle
dge
Scal
abil
ity
of
pro
ces
8
sing
loa
d
and
cap
acit
y
Fas
ter
dep
loy
me
nt
and
acc
eler
ate
d
tim
e to
mar
ket
Acc
ess
and
con
nec
tivit
y
Env
iro
nm
ent
al
and
eco
logi
cal
frie
ndli
nes
s
Notable points:
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Reduction in CAPEX and OPEX is the highest driver
followed by the improvement of interactions
between customers and suppliers.
Table 2: Barriers inhibiting the Adoption of ERP
Barrier Relative Level of Rank
importanc importanc
e index e
Lack of internal expertise and knowledge 0.84 HIGH 1ST
Poor internet access and connectivity 0.81 HIGH 2ND
Security of cloud services and data privacy 0.75 HIGH 3RD
Lack of trust 0.71 HIGH 4TH
Integration with in-house and existing systems 0.71 HIGH 4TH
Loss of control 0.69 MEDIUM 6TH
Differences in international statutory laws and 0.66 MEDIUM 7th
regulations
Delay in transfer and migration of data 0.63 MEDIUM 8TH
Lack of standards 0.59 MEDIUM 9th
Notable points:
Lack of internal expertise and knowledge is the
highest barrier so training must be provided
Poor internet access is very high so specialists
must interfere to fix the issue
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Integration with in house existing systems must
be addressed and studied to implement.
Table 3: Technological Factors influencing the Adoption of ERP
Technological factor Relative Level of Rank
importance importance
index
Existence of required IT infrastructure 0.73 HIGH 1st
Compatibility with existing systems 0.72 HIGH 2ND
Strength of in-built security systems 0.67 MEDIUM 3RD
Learning capability of Employees 0.66 MEDIUM 4TH
Limited technical knowledge about similar 0.62 MEDIUM 5TH
technologies
Notable points:
Learning capability and technical knowledge of
employees is low so training must be provided
The compatibility with existing systems is good
Table 4: Organizational Factors influencing the Adoption of
ERP
Organizational factor Relative Level of Rank
importance importance
index
Top management support and involvement 0.82 HIGH 1st
Relationship with providers, government and competitors 0.79 HIGH 2ND
Resistance towards new technologies 0.74 HIGH 3RD
Conformity with work culture and style 0.63 MEDIUM 4TH
Impact of organizational structure and size 0.63 MEDIUM 4TH
First adopters in our industry 0.55 MEDIUM 6TH
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Notable points:
Respondents suggested top management as the
most crucial factor towards the successful
adoption of ERP.
Learning capability of employees, uncertainty and
non-performance of cloud provider, existing
security systems, work culture and style,
organizational structure, firm size, nature of the
industry and market scope were regarded as
insignificant in the adoption process of the
sampled SMEs.
Relationship with government is very important
and legal procedures must be studied
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