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CMIS U6
| Question | Answer |
|---|---|
| How do organizations gain competitive advantage using IS? | By enhancing products/services and improving business processes |
| How can IS enhance products or services? | By improving or differentiating products and services |
| Example of IS enhancing products/services | Zipcar uses IS to track vehicles and manage rentals |
| How can IS improve business processes? | By reducing costs, improving efficiency, retaining customers, and creating barriers for competitors |
| Examples of IS improving business processes | Online ordering systems, automated inventory systems, and customer service systems |
| What are primary activities in the value chain? | Activities directly involved in producing goods or services |
| Examples of primary activities | Production, sales, delivery, and customer service |
| What are support activities in the value chain? | Activities that support primary activities and improve efficiency |
| Examples of support activities | HR, accounting, IT, and infrastructure |
| What are functional systems? | Systems that support a single department within an organization |
| Examples of functional systems | Marketing systems, accounting systems, and HR systems |
| What is a major problem with functional systems? | They often operate separately from one another |
| What are functional silos? | Departments becoming isolated and not sharing information properly |
| Problems caused by functional silos | Duplicated data, inconsistent information, communication problems, and lack of data integrity |
| Example of functional silos | Sales and accounting having different customer information |
| What are interorganizational systems? | Systems shared between two or more related companies |
| Who do interorganizational systems help organizations coordinate with? | Suppliers, distributors, and customers |
| Example of an interorganizational system | Supply Chain Management (SCM) systems |
| What are marketing and sales systems used for? | Advertising, customer tracking, and sales management |
| What are accounting systems used for? | Payroll, budgeting, and financial reporting |
| What are human resources systems used for? | Employee records, hiring, and benefits |
| What are manufacturing/production systems used for? | Production, inventory, and operations |
| Why do organizations use industry standard best practices? | To integrate departments and standardize processes |
| Examples of companies providing standardized systems | Oracle and Microsoft |
| Advantages of industry standard best practices | Save time, reduce costs, already tested, and faster implementation |
| Disadvantages of industry standard best practices | May not fit existing processes perfectly and can reduce differentiation |
| What are cross-functional systems? | Systems that integrate processes across multiple departments |
| What does ERP stand for? | Enterprise Resource Planning |
| What is an ERP system? | A system that supports many or all business processes across the organization |
| What departments/functions can ERP integrate? | Sales, inventory, manufacturing, HR, accounting, and customer service |
| What do ERP systems provide? | Standardized software, databases, procedures, and job descriptions |
| What type of organizations commonly use ERP systems? | Manufacturing organizations |
| What does CRM stand for? | Customer Relationship Management |
| What is a CRM system? | A system that supports processes involving customers |
| What does CRM help organizations do? | Attract customers, manage relationships, improve sales, and support customers |
| Why is CRM important? | It stores customer data in one place to improve customer understanding and service |
| What is the purpose of CRM systems? | To maximize the customer base and improve customer service |
| What does SCM stand for? | Supply Chain Management |
| What is an SCM system? | A system that manages the flow of goods from suppliers to customers |
| What does SCM improve? | Inventory management, shipping, supplier coordination, and efficiency |
| Who is the ultimate source of money in the supply chain? | The customer |
| What are e-commerce systems? | Systems that allow organizations to sell products and process payments online |
| Examples of e-commerce systems | Online stores and online ordering systems |
| What is the relationship between functional systems and cross-functional systems? | Functional systems support one department while cross-functional systems integrate multiple departments |
| Why are cross-functional systems important? | They improve communication, coordination, and efficiency across the organization |