Final answer:
True, the primary goal of enterprise systems is to reduce costs and improve information flow in organizations. They enhance efficiency, especially crucial in today's information economy, and are vital for both large and small firms.
Step-by-step explanation:
True, one of the main reasons for having enterprise systems is indeed to cut costs and improve the ability to pass information throughout the organization. By enabling the central management of data and resources, these systems can increase efficiency and streamline the flow of information. This is particularly relevant in today's information age, where the ability to rapidly process and disseminate information is crucial. As businesses grow, the complexity of managing various plants and operations also intensifies, making the role of enterprise systems pivotal for both large and small firms.
Telecommunications have significantly contributed to this by lowering the costs of long-distance economic connections and by facilitating the delivery of information-based products and services. Furthermore, the digital transformation of goods like music and books into downloadable files has altered the production landscape, highlighting the importance of efficient information management. Therefore, in the context of improving productivity and responding to the shifts towards an information economy, enterprise systems play a vital role.
While at the time of the Industrial Revolution rigid hierarchies and bureaucracies were critical in mass production contexts, the modern economy increasingly requires flexible and integrated systems to maintain productivity and remain competitive. Thus, in sum, enterprise systems are essential in today's businesses for cost reduction and efficient communication flow.