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Unit 2: Information Systems in the Enterprise

The word enterprise can have various connotations. The term may be used to mean virtually Notes
anything, by virtue of it having become the latest corporate-speak buzzword.

Task Discuss various challenges of enterprise systems.

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Caution Frequently the term enterprise is used only to refer to very large organizations.

Self Assessment

Fill in the blanks:
10. ........................... can integrate the key business processes of an entire firm into a single
software system that allows information to flow seamlessly throughout the organization.

11. The distinction between ES and IS is that “ES” refers to ..........................., whereas an IS is a
social system that uses IT.
12. Enterprise Information System is generally any kind of computing system that is of
“...........................................”.

2.5 Strategic Uses of Information Systems

Organizations are now investing heavily in information systems and information technology.
However, there is a general dissatisfaction with the benefits that accrue from this investment.
Argues that information systems and technology can be centrally instrumental in achieving
corporate goals but only where the organization has a clearly defined corporate and competitive
strategy, and understands the information needs that underpin these strategies. It demonstrates
the interrelationships between strategy and information systems.
An effective strategy is not necessarily one that promises maximum efficiency or least total cost,
but rather one that fits the needs of the organization and strives for consistency between the
organization’s capabilities and the competitive advantage being sought by the organization.
The successful application of strategy in the contemporary global environment requires an
organization to have an effective strategic management process. In turn, an effective strategic
management process increasingly depends on the effective application of advances in information
technology.

2.5.1 Firm-Level Strategy and Information Technology

Think of a picture puzzle with all its separate pieces scattered on the table. Separately, the pieces
don’t make a very pretty picture. But if you fit them together, they make quite a beautiful piece
of art. So too for businesses. Separately, the various units of a business don’t function well and
certainly aren’t successful on their own. But if you fit them all together, so they work in
conjunction, you can create a successful business. Information technology can help you do this.
What does a business do better than anyone else? Does it make the best jeans in the world? Do
they produce the best movies? Does it deliver flowers faster and fresher than any of the
competition? Whatever its main product or service is, that’s its core competency. Successful
companies can use information technology to improve their core competencies by sharing
information across business units. They can also use technology to expand their core competencies
by using knowledge stored in their information systems.

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