Electronic organization and EMS

Electronic organization (digital firm)

A digital firm (electronic organization) is an organization in which nearly all significant business relationships - with customers, suppliers, partners and employees - and core business processes are digitally enabled and carried out through networks. Key assets (data, knowledge, finances) are managed digitally, and decisions and responses happen in near real time.

Characteristics:

• Core processes run on integrated information systems and networks.
• Information flows freely between departments and partners.
• Customers are served online, 24/7 (e-commerce, mobile apps).
• Flat structure, fast decision making and flexible teams.
• Heavy use of ERP, CRM, SCM, email and collaboration tools.
• Examples: Amazon, online banks, Daraz.

Enterprise management systems (EMS)

An EMS is the integrated set of enterprise applications - ERP, CRM, SCM and analytics - that manages all the major functions and cross-functional processes of an organization through a shared database and common platform. It enables the digital firm to operate.

 Customers <- CRM \
 Suppliers <- SCM -- Common DB -- ERP -> Management
                  /

Concept highlights:

• Integration of functions into a single system.
• One data source and a consistent view for all users.
• Process orientation (order-to-cash, procure-to-pay) instead of department orientation.
• Real-time information for planning and control.
• Extension to partners via extranets and e-commerce.
• Benefits: lower cost, faster operations, better service and decisions.