CMIS 351 Lesson 6 Competitive Advantage and Business

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Training and Development Manager CMIS 351 Flashcards on CMIS 351 Lesson 6 Competitive Advantage and Business, created by Adriana Vincelli-Joma on 19/12/2019.
Adriana Vincelli-Joma
Flashcards by Adriana Vincelli-Joma, updated more than 1 year ago
Adriana Vincelli-Joma
Created by Adriana Vincelli-Joma almost 5 years ago
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How organizations gain competitive advantage through IS? -IS makes primary and support activities in organization more productive than competitors -increased productivity = more effective/efficient business processes
How functional systems relate to value chain -value chain consists of primary and support activities -organizational processes involve primary and support activities (also called business functions) -functional systems facilitate the work of business functions Primary activities -Operations Systems and Manufacturing Systems - inbound logistics, operations/manufacturing, outbound logistics, service and support -Sales Systems - marketing and sales Support activities -HR systems - human resources -Accounting systems - accounting and infrastructure
Basic types of functional systems 1. functional silos: inter-related but designed to work independently of one another 2. cross-functional systems: operate across departmental boundaries 3. inter-organizational systems: cross-functional systems used by two or more related companies
Problems associated with functional systems -operate in isolation *data duplication (each application has own database) *potential lack of data integrity -business processes disjointed across functions *produces lack of integrated enterprise info -inefficient decisions based on limited knowledge -increased costs to organization
How industry standard best practices support cross-functional systems -industry standard processes: built into business applications from companies such as Oracle and SAP -when organization licenses cross-functional software, primary benefit is inherent processes in software -licensing integrated application saves time, expense, and agony of process design -enables organization to benefit immediately from tried and tested cross-departmental processes
How ERP and CRM relate to business processes ERP: -integration of all organization's principal processes -supports all primary business processes as well as human resource and accounting support processes -integrates sales, order, inventory, manufacturing, customer service, human resources, accounting, and other activities CRM: -maintains data about customers and all interacting with organization -supports business processes of attracting, selling, managing, delivering, and supporting customers
E-commerce and supply chain management SCM: -inter-organizational systems that enable companies to efficiently handle flow of goods from suppliers to customers -supply chain: network of organizations and facilities that transforms raw materials into products delivered to customers E-commerce -dramatically reduced costs of buying and selling
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