Chapter-4-Enterprise-Info-Systems-Kongwei-Yings-conflicted-copy-2015-01-18

Chapter-4-Enterprise-Info-Systems-Kongwei-Yings-conflicted-copy-2015-01-18

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ENTERPRISE INFORMATION SYSTEMS: ERP, CRM AND SCM Enterprise Systems: Information systems that allow companies to integrate information across operations on a company-wide basis. → It provides a central repository common to all corporate users. This allows personnel to share information seamlessly no matter where the data are located or who is using the application. → They can help companies find innovative ways to increase accurate on-time shipments, avoid (or at least anticipate) surprises, minimise costs, and ultimately increase customer satisfaction and the overall profitability of the company. Internally focuses system : supports functional areas, business processes, and decision making within an organisation. → At each stage, value is added in the form of the work performed by people associated with that process, and new, useful information is generated. New, useful information is carried and added every step of the way. Externally focused system : coordinate business processes with customers, suppliers, business partners, and others who operate outside an organisation's boundaries. Value is added by work performed, and new, useful information is generated and exchanged between organisations. Inter-organisational system (IOS) : A system that communicates across organisational boundaries. Purpose is to streamline the flow of information from one company's operations to another. Using IOS, one company can create information and transmit it electronically to another company. Value Chain : flow of information through a set of business activities. The information flows through functional areas that facilitate the internal activities of the business. Value System : Companies connect their internal value chains to form a value chain system, in which information flows from one company's value chain to another company's value chain. It comprise upstream and downstream information flows. An upstream information flow consists of information that is received from another organisation. Supply chain management applications operate on the upstream information flows, integrating the value chains of a company and its suppliers. Whereas a downstream information flow relates to the information that is produced by a company and sent along to another organisation. Customer relationship management applications concentrate on the downstream information flows. Integrating the value chains of a company and its distributors or customers. Functional areas can be broken down into core and support activities. Support activities make core activities possible. Core activities : functional areas within an organisation that process inputs and produce outputs. inbound logistics (assoc. with receiving and stocking raw materials, parts
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and products) operations and manufacturing (processing or manufacturing processes that transform raw materials and/or component parts into end products) .
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