E-Business

ERP -Changing Management Process

Information technology is recasting the process of management, providing powerful new capabilities to help managers plan, organize, lead, and control. For instance, it is now possible for managers to obtain information on organizational performance down to the level of specific transactions from just about anywhere in the organization at any time. Product managers at Frito-Lay Corporation, the world's largest manufacturer of salty snack foods, can know within hours precisely how many bags of Fritos have sold on any street in America at its customers, stores, how much they sold for, and what the competition's sales volumes and prices are.

Many companies now use information technology for enterprise resource planning. Enterprise Resource Planning (ERP) is a business management system that integrates all facets of the business, including planning, manufacturing, sales, and finance so that sharing information can more closely coordinate their efforts. ERP software models and automates many basic processes, such as filling an order or scheduling a shipment, with the goal of integrating information across the company and eliminating complex, expensive links between computer systems in different areas of the business. For instance, when a sales representative in Brussels enters a customer order, the data flows automatically to others in the company who need to see it. The factory in Hong Kong receives the order and begins production. The warehouse checks its progress on-line and schedules the shipment date. The warehouse can check its stock of parts and replenish whatever the factory has depleted. Updated sales and production data automatically flow to the accounting department. Corporate headquarters in London can view up-to-the-minute data on sales, inventory, and production at every step of the process. ICE-U will provided an extensive discussion of ERP and its new role in the business enterprise. This new intensity of information makes possible far more precise planning, forecasting, and monitoring than ever before.

Redefining Organizational Boundaries

Networked information systems can enable transactions such as payments and purchase orders to be exchanged electronically among different companies, thereby reducing the cost of obtaining products and services from outside the firm. Organizations can also share business data, catalogues, or mail messages through such systems. These networked information systems can create new efficiencies and new relationships between an organization, its customers, and suppliers, redefining their organizational boundaries. For example, the Ford Motor Company, General Motors (GM) and DaimlerChrysler just initialed what will be one of the largest networked links to suppliers in the world. These companies purchase over $250 Billion a year from various suppliers. Through this electronic link, the suppliers will monitor production and ship parts and materials exactly when needed, preceded by an electronic shipping notice, electronic invoice and electronic tracking information. These companies and their suppliers have thus become linked business partners with mutually shared responsibilities. The information system linking these companies and their suppliers is Business to Business (B2B) Commerce. Systems linking a company to its customers, distributors, or suppliers are termed inter-organizational systems because they automate the flow of information across organizational boundaries. Such systems allow information or processing capabilities of one organization to improve the performance of another or to improve relationships among organizations.

This is how business is starting to be done now and will be business standard of the future. Call us we can help you get there!

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