BUS 237 Introduction to Business
Technology Management final exam
study review actual solution Simon
Fraser University
,2 basic ways to gain competitive advantage through systems: - --1. Changing the product
2. Business Process
Porter's Value Chain - --
Functional Systems - --Facilitate the work of a single department or business function. May also be
called functional silos because they work independent of others.
Cross-functional systems - --These systems integrate data and business processes across different
departments and systems
Inter-organizational systems - --Are systems that are used by 2 or more related companies. ex. e-
commerce applications.
Problems with isolated functional systems: - --- Data duplication/inconsistency
- Disjointed processes
- Limited info/lack of integration
- Isolated decision lead to overall inefficient activities
- Increased expense
Ways to improve business without technological change: - --1. Adding resources
2. Adding specialization
3. Changing/eliminating unproductive activities
Business Process design - --This is the idea that businesses should not just automate or improve a
existing functional systems. Instead it is making changes by integrating functional systems.
, Enterprise Application Integration (EAI) - --Is an approach to combining functional systems, it uses layers
of software as a bridge to connect FS. A customized EAI interface is created for each FS, which allow
them to pull whatever information they want from each system.
Enterprise Resource Planning (ERP) - --There is one central database and there is a set of standard
business processes built on top of it.
- ERP uses a prebuilt software, so the company must get rid of its functional systems before it adopts it
- Primary users are manufacturing companies
Challenges of business process design: - --- Process design projects are expensive and difficult
- May take a long time
- Employees resist change
- Ultimate outcome is uncertain
Challenge of implementing Business Process changes: - --- Process is often very complex and require
many people to agree.
- Hard to convince the organization that the changes are worth the effort.
- Many employees resist this change
Industry Standard Process - --Processes built into business applications from companies such as oracle or
SAP
Benefits of industry standard process: - --- Integrate activities across departments
- Save costs of tailor-made process design
- enables the company to benefit immediately from tried and tested cross-departmental processes
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