---
title: "Electronic organization and EMS"
subject: "Information System"
chapter: 3
key: "semester_8/information_system:electronic-organization-ems"
source: https://www.bctengineer.com/q/semester_8/information_system/electronic-organization-ems
site: BCT Engineering
---

# Electronic organization and EMS

Information System · Chapter 3: Enterprise Management Systems

- Asked in: 2072 Magh, 5 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/information_system/electronic-organization-ems
- Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-3

## Question

What do you understand by Electronic Organization (digital firm)? Discuss the concept of Enterprise management systems?

## Short answer

A digital firm digitises core processes and relationships for real-time operation. Enterprise management systems integrate ERP, CRM and SCM on a shared database to manage cross-functional processes, providing a single data source and process-oriented, extended enterprise support.

## Answer

#### 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.

```text
 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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What defines a digital firm?
   A. It only has a website
   B. It uses computers only for typing
   C. Nearly all significant business relationships and core processes are digitally enabled through networks
   D. It has no employees
   Answer: C. A digital firm carries out core processes and relationships digitally and in near real time. (Key point: Digital firm)

2. Which is a characteristic of a digital firm?
   A. Strict silos between departments
   B. Business only in office hours
   C. Slow, paper-based decisions
   D. Customers served online 24/7 and information flows freely between departments and partners
   Answer: D. Digital firms have free information flow, online service and fast decisions. (Key point: Characteristics)

3. What is the relationship between EMS and the digital firm?
   A. EMS (ERP, CRM, SCM, analytics) on a shared database enables the digital firm to operate
   B. EMS is unrelated to digital firms
   C. EMS replaces the network entirely
   D. EMS is a paper filing system
   Answer: A. EMS is the integrated set of enterprise applications that lets the digital firm run. (Key point: EMS concept)

4. What does process orientation mean in EMS?
   A. Organizing around individual departments
   B. Organizing around cross-functional processes like order-to-cash instead of departments
   C. Avoiding automation
   D. Using only one department's data
   Answer: B. EMS uses processes such as order-to-cash and procure-to-pay. (Key point: Process orientation)

## Related in Information System

- [Enterprise management system and benefits](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aems-with-example-benefits) — Information System, chapter 3
- [Enterprise systems architecture](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aenterprise-systems-architecture-motivation) — Information System, chapter 3, asked 2×
- [Traditional IS vs enterprise systems](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Atraditional-is-vs-enterprise-systems) — Information System, chapter 3
- [Justify EMS expenditure; push-pull SCM](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aems-expenditure-push-pull-scm) — Information System, chapter 3
- [Knowledge management vs expert systems](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Akm-vs-expert-systems) — Information System, chapter 4
- [Enterprise and executive DSS](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aenterprise-executive-dss) — Information System, chapter 4

## Related in other subjects

- [Organization vs management; scientific approach](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aorg-vs-management-scientific) — Organization and Management, chapter 2
- [Advantages of digital over analog systems](https://www.bctengineer.com/question.md?key=semester_5%2Fdata_communication%3Adigital-vs-analog-advantages) — Data Communication, chapter 1, asked 5×
- [Org structure definition; line organization pros/cons](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aorg-structure-define-line) — Organization and Management, chapter 5
- [Analog and digital communication systems](https://www.bctengineer.com/question.md?key=semester_5%2Finstrumentation_ii%3Aanalog-digital-comm-systems) — Instrumentation II, chapter 5
