Introduction to Information Systems

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Chapter 7
Discussion Questions
2. Why there is a strong trend toward cross-functional integrated enterprise system in the business use of information technology? Cross-functional enterprise system is a group of people with different functional expertise working towards a common goal. It can be the people from finance, marketing, operations and human resources. Typically, it includes people from all levels of an organization. Cross-functional enterprise systems often function as self-directed enterprise system responding to broad, but not specific directives. Cross functional enterprise systems include Enterprise resource planning (ERP), Customer Relationship management (CRM) and supply chain management (SCM). Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. Customer relationship management (CRM) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. Supply chain management (SCM) is the combination of art and science that goes into improving the way your...
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