Chapter-4-Enterprise-Information-systems-ERP-CRM-SCM

Chapter-4-Enterprise-Information-systems-ERP-CRM-SCM - By...

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By Edward Qiu Chapter 4: Enterprise Information Systems: ERP, CRM and SCM Enterprise Systems Traditionally companies are organised around four distinct functional areas: Marketing and Sales, Supply Chain Management, Accounting and Finance, and Human Resources. They are interrelated and In order for efficient business processes to take place, different functional areas within a company need to share data. Business have used information systems to support business processes, however they have utilized different applications on separate computing platforms over generations and can create tremendous inefficiencies as data cannot be readily shared between systems. Enterprise Systems (Enterprise wide information systems) that companies use integrate information across operations on a company wide basis; rather than store information separately, they provide a central repository. Supporting business practices Information systems can be used to increase competitive advantage streamline i.e. billing processes They can be either: internally focussed systems or externally focused systems Internally focused systems support business process WITHIN an organisation i.e. where value is added in the form of work being done, information is generated Externally focused systems coordinate business process with customers, suppliers, business partners and entities outside the organisation. Systems that operate across organisational boundaries are called inter organisational systems (IOS) They are used to streamline information flow from one company’s operation to another (i.e. from company to customer) Competitive advantage can be accomplished by integrating multiple business processes in ways that enable a firm to meet a wide range of customer needs (i.e. information
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