The Latin idiom 'Scientia potential est' translates to the well-known and oft-repeated maxim -Knowledge is power. Though this phrase can appear trite and overused to some, the adage is truly applicable to each aspect of everyday life.
Knowledge allows individuals to make more informed decisions, improve problem-solving, and share expertise with others. In turn, those who have learned from the knowledge-bearer become more knowledgeable themselves.
Just as knowledge building and sharing are essential to navigate everyday life, improving access to expertise and data is critical in the business world. More businesses are implementing large-scale information systems that hold and share large quantities of internal data that helps employees and managers perform their roles.
One of the most utilized types of knowledge-sharing system is referred to as an enterprise information system or EIS.
Read ahead for a comprehensive overview of the different categories of enterprise systems and how they work to optimize knowledge management, streamline the supply chain, and improve business processes.
Enterprise Information System Growth:
- In 2019, the total business enterprise information software purchases by IT was valued at 456 billion dollars
- By 2021, the business software market will increase to approximately 95 billion dollars worldwide
- Enterprise information systems have proven to increase profit margins, optimize efficiency, and streamline internal processes for the vast majority of industries
What Are Enterprise Information Systems?
An enterprise information system is a large-scale technological platform that allows a business to merge and systemize all of its processes. The purpose of utilizing an information management system is to allow everyone in an organization to acquire business knowledge that helps them perform their unique roles.
An enterprise system combines various applications, procedures, and designs to streamline sales activities, accounting, inventory management, and other business functions. Many companies replace independent databases and systems with an EIS because of its integration capabilities and ability to provide a centralized way for everyone to access the same data.
As a result of implementing information technology, a business can increase efficiency and worker productivity while minimizing duplicate efforts and unreliable information.
To understand the advantages gained by employing this type of software system, it's important to know all of the various categories of an enterprise information system and how they work. These include-
1. Enterprise Resource Planning
Enterprise resource planning is a form of software that is utilized to manage everyday activities and tasks like accounting, compliance, project management, human resources, or supply chain management. ERP tools cover a wide range of operational start-to-finish processes found in different business units.
For example, an ERP may collect and support all of the data related to the entire sales process, allowing every involved sales team member to access the information needed to complete his/her related role. This includes collecting and managing all of the data gained from prospecting customers, closing the sale, and any follow up activity.
Because everyone has access to all of the data included in each step of a process, it's much easier for every employee to perform his/her role.
Any new inputted variable triggers an automatic update in the ERP system so nobody has to worry about accessing irrelevant or outdated information. Collaboration and communication improve across the organization, increasing operational efficiency.
2. Customer Relationship Management
A customer relationship management system (CRM) is a software tool that manages and monitors all of an organization's communications with clients and prospective clients. It is a cloud-based system that also assists in sales management and integrates with social media platforms.
It allows everyone involved in communicating with customers to increase their knowledge about consumer needs and purchasing patterns. This allows a company to optimize predictive analytics and sales forecasting to improve the quality of customer service and targeted marketing campaigns.
Other advantages of a CRM include its mobile phone integration capabilities, which allow remote workers or off-site managers to gain access to data from any location. It also serves as a strong foundation for email communications between employees and customers.
A CRM is one of the most popular software solutions across different industries because of its ability to increase employee productivity and meet consumer needs. It improves knowledge management by ensuring that everyone has access to the same customer data. This assists in providing a better customer experience and increasing profits.
3. Supply Chain Management
The supply chain refers to all of the workers, activities, machinery, data, and other related resources needed to manufacture and transport products from an organization to a consumer.
A supply chain management system monitors and controls all of the various supply chain processes to give a company a competitive edge. These activities may include raw material transport, production, distribution, and all of the information systems that manage them.
Automating these processes by utilizing an information system can enhance and optimize the flow of information among supply chain participants. It allows decision-makers to collaborate on their strategies and streamline the flow of products and tangibles across the chain. Aspects of this flow include manufacturing products, transporting them, and storing all supply chain-related materials.
This improves communication and productivity while ensuring a better quality of outcome for the customer. It also provides an audit trail of all activities in case an item is damaged, lost, or stolen.
Supply Chain Management Optimization:
- Most organizations valued monitoring performance on an enterprise system as the most essential way to streamline the supply chain
- Cost reduction monitoring has also saved billions of dollars for organizations across the country
- Data analysis, loT, and cloud computing are the top priorities for supply chain professionals and managers
In conclusion, here are the key takeaways to remember about enterprise information systems-
- An enterprise information system is a wide-scale business intelligence system that merges all of an organization's processes to ensure everyone has access to information that helps them perform their roles.
- Enterprise resource planning systems manage daily activities and departments such as human resources, payroll, accounting, or supply chain management.
- A customer relationship management system handles all of the various customer interactions and conversations while optimizing sales management.
- A supply chain management network monitors all of the supply chain activities from logistics to storage to manufacturing.