Reading Material: Enterprise System Benefits

Enterprise System Benefits:

Operational benefits
Operational activities process day-to-day activities that involve acquiring and consuming
resources. The activities are usually repeated periodically, such as daily, weekly and monthly.
Information technology has a long history of use in cutting costs and raising output by
automating basic, repetitive operations. As mentioned above, there is evidence that investment in
information technology to streamline processes and automate transactions provides business
benefits by speeding up processes, substituting labour and increasing operation volumes. As ES
automate business processes and enable process changes, they would be expected to offer
benefits in terms of cost reduction, cycle time reduction, productivity improvement, quality
improvement and improved customer service.
Reading Material: Enterprise System Benefits

Cost reduction

• Labour cost reduction in customer service, finance, human resources, purchasing, IT

services and training.
• Inventory cost reduction in inventory turns, dislocation costs and warehousing costs.
• Administrative expenses reduction in printing and other business supplies.
Cycle time reduction

• Measurable cycle time reductions in three kinds of activities that support customers,
employees and suppliers.
• Customer support activities in order fulfilment, billing, delivery and customer enquiries.
• Employee support activities in month-end closing, requisition, HR and payroll and
learning.
• Supplier support activities in order processing, information exchanging and payment.
Productivity improvement

• Production per employee, production by labour hours, production by labour costs,

increased work volume with same workforce and reduced overtime.
Quality improvement

• Error rate, data reliability to data accuracy.

Customer service improvement

• Ease of data access and inquiries.