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Discuss the benefits and challenges of enterprise systems and explain why a firm would want to build one.

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Phillip Holland eNotes educator | Certified Educator

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There are many reasons why a business would want to use an enterprise system. The firm uses an enterprise system to manage IT needs throughout the business. It can be used to automate the customer service experience, thus guaranteeing that each client receives the same level of support. It can also be used to secure and encrypt customer data. Enterprise systems provide real-time access to data so that decisions can be made on the fly in order to adjust for business needs. Enterprise systems can also be used in supply chain management in order to manage inventory and deliver products to customers in a timely manner. Enterprise systems can also be used to provide accurate information to investors in order to keep the business in compliance with federal regulations. Enterprise systems have many uses, but most of these fall into the category of improving the customer experience and saving labor hours that can be put to use elsewhere. The systems allow the businesses to run more efficiently.

There are some challenges to this system. Like any computer system, it is only as good as its programming and the data fed into it. Improper management of inventory numbers can cause errors in managing supply chains. Data breaches are still possible even with encryption technology. Enterprise systems have proven to be invaluable tools to large businesses; however, the human element is still needed in order to maintain them and make adjustments as needed.

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