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Chapter 4

Chapter 4

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Ryerson University
Information Technology Management
ITM 100
Ron Babin

thMonday October 25 2010 Chapter 4 Enterprise SystemsValue Chain The value chain is a connected series of activities each of which adds value or supports the addition of 1value to the firms goods and servicesEvery action an organization takes from securing the necessary raw materials input to making the goods or service process to completing a transaction with a customer output is either a primary activity or support activityA transaction is an exchange of goods or services value between two or more partiesPrimary Activities Primary activities are directly related to the production and distribution of the organizations products and services that create business value for the organization and its customersExample primary activities include inbound logistics obtaining raw materials operations creating the product outbound logistics shipping the product and marketing sales and service selling the productSupportive Activities Support activities are value chain activities that an organization conducts to support the creation of business value Support includes 1 Firm infrastructure which we will call administration 2 Technology development 3 Human resource HR management 4 procurementInformation Systems that Supports Business ActivitiesFunctional Information Systems FISfocus on departmental activities to improve efficiency and effectivenessWorkflow Management Systems WMSA workflow represents the steps resources input and output data and tools needed to complete a business processA workflow management system WMS or business process management BPM focuses on a business process from beginning to endWMS enables modelling the steps of the business process to show the flow of work along with the state of the componentsTransaction Processing Systems TPSA TPS brings together the common components of ITA TPS must control the flow of both the activities and data involved in the transactionTPS must incorporatethe logic for controlling and enabling transactionsthe business rules of the organizationnecessary errorhandling logicManagement Information Systems MISBusinesses use captured and stored data to create information which is used for decision making
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