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Introduction

BUSN2012 Information Management Report 12 April 2006 1. Introduction "An organisation which recognises the importance of information and more specifically, Information Systems as being synonymous with success may gain a competitive advantage over an organization that doesn't because...." The purpose of this report is to take this statement into consideration and to provide evidence, in relation to a specific industry, which will support it. 1.1 Introduction to Information Systems According to Ratzan (2004) Information systems are systems that use information technology to capture, transmit, store, retrieve, manipulate, or display information used in one or more business processes. The oval surrounding information systems is light because information systems can sometimes be seen as business processes themselves. Firms consist of interdependent groups of business processes and compete in a business environment. 3 Ratzan (2004) believes the layers in Figure 1.1 illustrate why the term information system must be defined along with the terms information technology and business process. Information systems are systems that use information technology to capture, transmit, store, retrieve, manipulate, or display information used in one or more business processes. Figure1.1 Firms consist of groups of business processes and compete in a business environment. More specifically: Information technology is the hardware and software that make information systems possible. Hardware is the devices and other physical things involved in processing information, such as computers, workstations, physical networks, and data storage and transmission devices. Software is the computer programs that interpret user inputs and tell the hardware what to do. Software includes operating systems, end-user software such as word processors, and application software related to specialized business tasks such as recording credit card transactions or designing automobiles. 4 An information system is a system that uses information technology to capture, transmit, store, retrieve, manipulate, or display information used in one or more business processes. For example, a department store's bar-code system for collecting data at the point of sale is part of a larger purchasing and distribution system that includes purchasing decisions and physical movement of goods to the stores. ...read more.

Middle

2004). 10 Traditional SCM uses traditional media and channels to link business partners in linear, inefficient relationships. The growth of e-commerce over the internet has facilitated new relationships for connecting new supply chain partners, thus significantly increasing quality and quantity of inter-organisational information flows (Warkentin et al. 2000). A proper implementation of e-SCM enhances customer service by reducing technological structures that exist in a traditional organisation setup, whereby departments operate as independent islands (Madu, CN & Madu AA,2003). e-SCM involves different functions and phases that are interdependent on the activities of the others. It is used to improve a company's value chain in terms of producing and distributing products in the right quantity and quality, at the right place and time to maximize consumer satisfaction (Folinas et al. 2004). 11 4. Production Flow Management Using the internet as a communication channel with SCM infrastructure, the economies of information has changed. New forms of affiliation and transaction between organisations allow better transfer of information, even with diverse and geographically disperse partners. e-SCM allows co-ordination of activities between partners instead of focusing on engineering and improving individual functional processes. Delivery time can then be significantly reduced through better co-ordination of suppliers' activities, improved lead-time for sourcing items (Madu, CN & Madu, AA 2003). With operation efficiency, companies can reduce cost to offer products and services at a reasonable price to customers. 4.1 Reducing Bureaucratic Structure With standardisation of information transmission in e-SCM, new business relationships with important new information flows are made possible. The process of disintermediation using the internet platform allow, "Direct channel" opportunities (Warkentin et al. 2000). Companies like Dell and Amazon have created huge markets by selling their products directly to consumers, bypassing traditional intermediaries. This new relationship not only allows significant cost savings, also improve purchasing experience through direct communication with customers, enabling customised products to be delivered (Madu, CN & Madu, AA 2003). ...read more.

Conclusion

With quality data management, efficient and effective production process, respond time or feedback information to customer inquiries is quickened. Moreover, companies can gain deeper knowledge of customer preferences and habits by analysing the transaction history of a customer. This enhanced communication between customer, company and business partners adds value to the customers and improve turnaround time of companies. 19 6.2 Decision Making and Planning Organisations are facing increasingly complex and competitive environment. Technological innovation and capabilities are major challenges that are important for business success (Tornatzky & Fleishcer, 1990; Veliyath & Fitzgerald, 2000). Successful enterprise systems enable timely and accurate information exchange and data collection that are essential for decision-making, allow improved co-ordination and communication with business partners, facilitate customer service improvement and help reduce administrative costs (Zhuang & Lederer, 2003). With proper knowledge management such as knowledge acquisition, application and sharing of information, companies can decide and plan for different areas of an organisation, from company overall objective such as global optimum goals to departmental functional applications like designing new products, running promotions and marketing campaigns, deciding the level of inventory, predicting profit margins, forecasting sales based on current and future trend, with the knowledge of its internal and external capabilities, as well as customer requirements in the changing market environment. 20 7. Conclusion At present organisations rely on integrated cross-functional systems to be innovative, productive, efficient and effective. This report discussed electronic enterprise systems such as e-SCM, e-ERP and e-CRM, with its respective deliverables, in helping companies collaborating internal and external systems. e-CRM is now incorporated onto e-SCM and e-ERP, focusing on customer preferences and requirements, to deliver flexible and innovative products and services efficiently and effectively. In today's turbulent market environment, companies need to adopt BRP to re-design and re-engineer its business process to achieve dramatic and sustaining improvements. BRP will only succeed if the organisational structure of companies is flattened, following application of enterprise systems such as e-SCM. The aim of adopting enterprise systems is of course to deliver key business values to customers, companies and business partners. ...read more.

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.