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Chapter 4

ITM 102 Chapter Notes - Chapter 4: Enterprise Resource Planning, Human Resource Management, Application Service Provider

Information Technology Management
Course Code
ITM 102
Ross Mc Naughton

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Chapter 4 - Enterprise Systems
Building and Understanding of the Value Chain
-The value chain is a connected series of activities, each of which adds value or sup-
ports the addition of value to the firm’s good or services.
-Five core components:
-Inbound Logistics
-the receiving, warehousing, and inventory control of raw materials re-
quired to create a product or service.
-the value-creating and often proprietary activities that transform the raw
inputs into the final product.
-Outbound Logistics
-the activities required to get the finished product to the customer, includ-
ing packaging, warehousing, and order fulfillment.
-Marketing and Sales
-all activities associated with getting buyers to purchase the product, in-
cluding working with distributors, retailers or online channels, marketing,
advertising, and pricing.
-Service Activities
-those that maintain and enhance the product’s value, including customer
support, repair services, and warranty and recall.
-Primary activities directly related to the production and distribution of the organization’s
products and services.
-Support activities are value chain activities that an organization conducts to support
the creation of business value by the primary activities.
-Firm infrastructure (administration)
-Technology development
-Human resource management
Information Systems that Support Business Activities
-Functional information systems
-focus on the activities of the functional department to improve its efficiency and
-accounting, marketing, human resources, financial, manufacturing IS
-Workflow management systems

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Chapter 4 - Enterprise Systems
-represents the steps, organizational resources, input and output data, and tools
needed to complete a business process.
-supports activities that several departments of the organization may carry out.
-benefits include less misplaced or stalled work, managers can focus more time
on business decision rather than on tracking work, more analysis and tighter
control of the processes.
-Business rule is a statement that defines or constrains some aspect of the busi-
-Transaction processing systems
-transaction is an exchange of goods or services between two or more parties
that creates a relationship between the parties.
-enables transaction activities and capture the key data created by the transac-
-ACID: Atomicity, Consistency, Isolation, Durability
-ACID allow organizations to create systems that can handle large numbers of
simultaneous transactions.
-Management information and document management systems
-Periodic reports include financial statements or monthly sales reports.
-Exception reports monitor when and why exceptions occur of key values, de-
fined as critical to the operation.
-Demand reports are generated based on user requests.
-Executive information systems (EIS) designed to provide summary information
about business performance to those making high-level strategic decisions.
-Document management systems when organizations begin to recognize data
management needs that revolve around business documents.
-Knowledge management systems
-Explicit knowledge includes anything that can be written down, stored, and codi-
-Tacit knowledge includes the know-how that people have through learning and
-Groupware: Communication tools, conferencing tools, collaborative manage-
ment tools.
-Decision support systems
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