Chapter 7 part 1 Flashcards
(16 cards)
How do information systems vary by scope?
Modern organizations use four types of information systems that vary according to the scope of the organization unit:
- Personal
- Workgroup
- enterprise
- inter-enterprise
Personal Information system
- single-user
- procedures informal
- problems isolated
- easy to manage change
Workgroup Information system
- 10-100 users
- procedures understood within group
- problem solutions within group
- somewhat difficult to change
Enterprise Information system
- 100-1,000 users
- procedures formalized
- problem solutions affect enterprise
- difficult to change
Inter-enterprise Information system
- 1,000+ users
- Procedures formalized
- problem solutions affect multiple organizations
- difficult to change
Information Silos
Condition that exists when data are isolated in separated information systems. They come in existence as units at one organization level to create IS that meet their particular needs only.
Data Integrity Problem
when an organization has inconsistent duplicated data
Problems of information silos (silos creates these issues)
- data are duplicated
- data inconsistency
- data isolated
- business processes disjointed
- lack of integrated enterprise information
- Inefficiency: decisions made in isolation
- Increased cost for organization
Consequence of Silos Problems
- Organizational inefficiencies
- Increased expenses
Solution for Silos Problems
- integrate the data into a single database
- revise applications
What is ERP Software?
Enterprise Resource Planning
system that integrates all departments + functions across an organization into a single computer system.
Def needed: A suit of application, a database and a set of inherent processes for consolidating business operations into a single, consistent computing platform.
Why organizations need ERP?
helps facilitate communications among departments
What is a decentralized
Systems? (Silos)
an interconnected information system where no single entity is the sole authority.
Problems with decentralized
Systems
- numerous disparate IS are developed individually over time
- integration of data becomes time + money consuming
- data inconsistencies + duplication
- lack of timely info leads to customer dissatisfaction loss of revenue + reputation
- high inventory, material and HR cost
Difference between ERP and CRM?
The objective:
- ERP = consoling business operations into a single, consistent computer platforms.
- CRM = for managing customer information.
Ultimate Goal: Customer satisfaction
- data is maintained at a central location + shared with various departments.
- Departments have access to info of other departments
- Eliminates the duplication + redundancy in data
- Provides info across departments in real time
- provides control over various business processes (tracks)
- Increases productivity, better inventory management, promotes quality, reduced material cost, effective HRM, reduced overhead cost and increase profits.
