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But there is a drawback to customizing an ERP system: organizations have to maintain the changes themselves 😉 Whenever an update to the ERP system comes out, any organisation that has created a custom process will be required to add that change to their ERP 🙌 It will be necessary to keep a list of all changes, and also have the system retested every upgrade 🔥 This decision is one that organizations will need to make: Do they take the ERP system’s best practice processes or do they develop their own? The best decision is to customize only those processes that are vital to the company’s competitive advantage. [1]
To stay relevant in today’s changing environment, it is essential to have accurate and up-to date information. Many information systems are used by organizations to support their day-to-day operations. An organisation’s most common functional systems include human resources, finance and accounting, marketing and sales, manufacturing, and operations. These functions include information systems, which can play various roles. In human resources, this could include recruitment and training, and in operations, some tasks might include order management, customer service, and order management. Business processes are simply the way that organizations accomplish different tasks. This is why it’s so important. Important to analyse business Processes that will determine how the information systems can be used to support them. Conchita Burkhart, Gaozhou China (last edit 43 days ago) [2]
In modern organizations, there are four types of information system. Transaction processing systems (TPS), which include order or payroll processing, are operational-level systems that monitor the transactions necessary for business operations. Management-level systems (MIS and DSS) provide the management control level with reports and access to the organisation’s current performance and historical records. Management information systems (MIS), which are mainly condensed from TPS, do not provide a lot of analytical power. When management decisions involve unique and rapidly changing information, decision-support systems (DSS), they can support them. These systems have advanced data analysis and analytical capabilities that are superior to MIS. They often use information both from internal and external sources. Executive support systems, or ESS, support strategic decision making at the highest level of management by providing the most relevant data via graphs and charts that can be accessed through portals. While they lack analytical abilities, they are able to use advanced graphics software and access many external and internal information sources. Elizabeth Howard, Rizhao (China) on March 2, 2020 edited this article. [3]
Without substantial investment in information technology, entire sectors of the economy would be nearly impossible to imagine. Without information systems, e-commerce companies like Amazon, eBay and Google would be impossible to exist. Today’s service industries – finance, insurance, and real estate, as well as personal services such as travel, medicine, and education – could not operate without information systems. Information systems are essential for retail companies like Walmart, as well as manufacturing businesses such as General Electric to thrive and survive. As offices and telephones used to be the basis of commerce in the twentieth century. Information technology has become a vital part of modern business. Marysol Shearer was a great source of insight. [4]
The term “process” has been used many times before. But what does this actually mean? The process refers to a set of actions that must be completed in order for a task to achieve a particular goal. The business process is therefore one that is focused on reaching a particular goal. Businesses go through processes every day to achieve their goals. Business will be more successful if their processes are better. Many businesses view their business processes as a way to achieve competitive advantage. Unique processes can help a business stand out. The ability to eliminate cost can help a business lower their costs or make more profits. Participation in a business environment means that you are familiar with the business process. One or more business processes are used in everything, from making Subway sandwiches to creating a spacecraft. A business process, in the context of information systems is an ensemble of activities that are performed by humans and/or information systems to achieve a particular outcome. Kimberly Lewis (Monrovia Liberia) modified the above text on September 3, 2021. [5]
Article references
- https://bus206.pressbooks.com/chapter/chapter-9-info-systems-strategic-advantage/
- https://sites.google.com/site/bus141wikisite/home/chapter-2-business-processes-information-and-decision-making/how-do-information-systems-support-business-processes
- https://paginas.fe.up.pt/~acbrito/laudon/ch2/summary.htm
- https://www.lbtc.co.uk/information-technology-blog/information-systems-transforming-business/
- https://opentextbook.site/informationsystems2019/chapter/chapter-8-business-processes-information-systems-introduction/