Chapter 7

Question 1

How can Information Systems affect competitive advantage?

Answer 1

• Making the primary and secondary activiites in an organization more productive than those of the competitiors.

Question 2

What are business functions and functional systems?

Answer 2

Question 3

What are the primary activities in the value chain model?

Answer 3

• Marketing and sales
• Inbound Logistics
• Operations of manufacturing
• Outbound logistics
• Service and support

Question 4

What are the secondary activities in the value chain model?

Answer 4

• Human resources
• Accounting and infrastructure
• Procurement and Technology

Question 5

What are functional silos?

Answer 5

Systems desinged to work independently of one another.

Question 6

Define cross-functional systems.

Answer 6

• Functional Systems that are inter-related in reality.
• Inter-organized systems are cross-functional systems used by 2 or more related companies.

Question 7

Seperate Functional Systems Diagram.

Answer 7

With Functional silos, the manager must query seperate functional systems and integrate the data manually

Question 8

What are some problems with functional systems?

Answer 8

• Becuase of isolation;
  
  • Data duplication results because each application has its own database.
  • Limited data available at any one source.
  • Inefficient decisions based on limited knowledge.

Question 9

Explain Enterprise Application Integration (EAI).

Answer 9

An approach of combining functional systems, which uses layers of software as a bridge to connect different functional systems together.

Question 10

Define Enterprise Resource Planning (ERP).

Answer 10

Designed to have one central database combined with a set of standard processes built on top of the database to ensure integration between a functional area.

Question 11

What is an ERP System?

Answer 11

• Supports primary activities as well as human resoirces and accounting support processes.
• Provides software; predesigned databases, procedure, and job descriptions for an organization.

Question 12

What are CRM Systems?

Answer 12

• Customer Relationship Management.
• Stores all customer data in a single database.
• Integrates marketing, customer acquisition, relationship management and loss/churn.

Question 13

What are SRM Systems?

Answer 13

• Supply Chain Management (CRM) Systems.
• Inter-organizational systems that enable efficient handling of flow of goods from suppliers to customers.
• Network of organizations & facilities that transform raw materials into products delivered to customers.