MIST 2610 Lecture Notes - Lecture 7: Business Process, Data Integrity, Process Design
5 Dec 2016
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Document Summary
What are the fundamental ways of achieving competitive advantage? (chapter 3) By making the primary and supportive activities in an organization more productive than those of competitors. Increased productivity is realized when business processes within the organization become more effective and efficient. True for commercial companies as well as for nonprofit organizations and government. Functional silos: systems designed to work independently of one another. Purchasing influences inventory, which influences production, which influences customer satisfaction, which influences future sales. Decisions that are appropriate for only single business function may me inefficient for an entire business process. Transition from functional systems to integrated cross functional systems is difficult. Integrated processing needs many departments to coordinate activities. Interorganizational systems are cross functional systems used by two or more related companies. Most organizations today have a mixture of functional and integrated systems. Functional systems provide tremendous benefits, but are limited because they operate in isolation. Data duplication results from each application having own database.
