Digital Dynamics Situation: After three years as a successful web design firm in

Question

Digital Dynamics Situation: After three years as a successful web design firm in Southern California, Digital Dynamics has decided to add two new business ventures: a group that specializes in supplying qualified employees to high-tech firms and a training division that offers online courses in advanced web design and e-commerce skills. As a senior systems analyst, you have been asked to study the situation and make recommendations.

a. Should Digital Dynamics adopt ERP? What specific advantages would ERP offer?

b. How could the concept of supply chain management apply to a company

Explanation / Answer

a)yes. digital dynamics should adopt ERP system.

Firms use

, also known as enterprise

resource planning (ERP) systems, to integrate business processes in

manufacturing and production, finance and accounting, sales and marketing,

and human resources into a single software system. Information that was

previously fragmented in many different systems is stored in a single

comprehensive data repository where it can be used by many different parts

of the business.

b)

Firms use

supply chain management (SCM) systems to

help manage relationships with their suppliers. These systems help suppliers, purchasing firms, distributors,

and logistics companies share information about orders, production, inventory levels, and

delivery of products and services so that they can source, produce, and deliver goods and services efficiently.

The ultimate objective is to get the right amount of their products from their source to their

point of consumption in the least amount of time and at the lowest cost. These systems increase firm

profitability by lowering the costs of moving and making products and by enabling managers to make

better decisions about how to organize and schedule sourcing, production, and distribution.

Supply chain management systems are one type of

interorganizational system because they

automate the flow of information across organizational boundaries. You will find examples of other

types of interorganizational information systems throughout this text because such systems make it

possible for firms to link electronically to customers and to outsource their work to other companies.

c) yes , companies should use separate portals for employees, customer and suppliers. as this would provide separate access to organisation and make communication smooth and fast and secure.

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