BUS 237 Chapter Notes - Chapter 7: Enterprise Application Integration, Business Process, Data Integrity

22 views11 pages
Chapter 7 Competitive Advantage and
BSN process
WAYS OF ACHIEVING COMPETITIVE ADVANTAGE
Two basic ways to develop competitive advantage through systems:
1. To enhance the product of service through information systems
2. Through BSN processes. Organizations look to technology to help retain
customers, reduce costs, an create entry barriers for competitors.
Information systems can affect competitive advantage by making the primary
and support activities in an organization more productive than those of
competitors. Increased productivity is realized when BSN processes w/n the
organization become more effective, efficient or both.
Some systems are designed to improve personal productivity and other are
designed to support business activities for more than 1 person
BUSINESS FUNCTIONS AND FUNCTIONAL SYSTEMS
Porter Value Chain Model
Primary activities Marketing and Sales
Inbound logistics
Operations or Manufacturing
Outbound logistics
Service and Support
Support Activities Human Resources
Accounting and Infrastructure
Procurement and Technology
Business Functions — are all the primary and support activities
[accounting, finance, human resources, marketing and sale,
operations, procurement ect.]
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 11 pages and 3 million more documents.

Already have an account? Log in
Functional systems — are systems that facilitate the work of a single
department or business functions – they support BSN functions
The problem with functional applications is there isolation – These
systems are called  functional silos – because there are designed to
work independently of one another [the accounting department uses the
accounting system, marketing =marketing system ect]
Funciton Examples of information systems
Marketing and
sales
Product management
Lead tracking
Sales forcasting
Customer management
Operations Order entry
Order management
Inventory management
Customer service
Manufactoring Inventory
Planning
Scheduling
Manufacturing operations
Human Resources Payroll
Recruiting
Assessment
Development and training
Human resource planning
Accounting and
Finance
General ledger
Financial reporting
Accounts receivable
Cost management
Treasury management
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 11 pages and 3 million more documents.

Already have an account? Log in
The isolation of these systems that should be linked together lead to
Cross-departmental/ cross-functional systems
Systems that integrate data and business processes across
different departments and systems –
Interoganizational Systems — Are information system that not only
have crossed functional boundaries but also organizational boundaries
– They are systems used by two or more related companies.
[supply chian management systems, and e-commerce applications ]
WHY FUNCTIONAL SYSTEMS ARE CHANGING
Major problems with Functional Silos
1. Data duplication[because each application has its own DB]
Data inconsistency[changes in one system may take days to reach
other systems]
Duplication leads to potential lack of data integrity
2. Disjointed processes
[business process =disjointed, sending data from 1 system to the other is
problematic]
3. Limited info and lack of integrated info
[consequence from disjointed processes – when there is a question about
an order many system need to be queried]
4. Isolated decisions leads to inefficient overall activities
[ not efficient because it can only make decision on data they have]
5. Increased expense
[All of 1-4 lead to higher costs]
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 11 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class