--- title: "Traditional IS vs enterprise systems" subject: "Information System" chapter: 3 key: "semester_8/information_system:traditional-is-vs-enterprise-systems" source: https://www.bctengineer.com/q/semester_8/information_system/traditional-is-vs-enterprise-systems site: BCT Engineering --- # Traditional IS vs enterprise systems Information System · Chapter 3: Enterprise Management Systems - Asked in: 2072 Asoj, 8 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/information_system/traditional-is-vs-enterprise-systems - Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-3 ## Question What are the differences between traditional Information Systems and Enterprise Systems? Explain with examples. ## Short answer Traditional IS are separate, function-specific systems with duplicated data, while enterprise systems are integrated suites on a single shared database. For example, a sales order in traditional setup requires re-entry in stock and accounts, but ERP updates all from one entry. ## Answer **Traditional information systems** are separate systems built for individual departments or functions (e.g. separate payroll, inventory, accounts, sales), often with their own databases. **Enterprise systems** are integrated systems (ERP, CRM, SCM) that cover all major business processes on a single common database. ```text Traditional: [Sales] [Stock] [Accounts] (islands, own data) Enterprise: [Sales][Stock][Accounts] \ | / Common database ``` | Basis | Traditional IS | Enterprise Systems | |---|---|---| | Scope | One department/function | Whole organization | | Data | Separate files/databases, duplicated | Single shared database | | Integration | Weak; manual or custom interfaces | Strong, built-in between modules | | Data consistency | Often inconsistent | One version of truth | | Information | Delayed, departmental reports | Real-time, cross-functional reports | | Processes | Function oriented | Process oriented (order-to-cash) | | Development | Often custom built | Mostly packaged software, configured | | Cost and time | Lower per system; high total maintenance | High initial cost, long implementation | | Flexibility | Easy to change locally | Needs organisation-wide change management | | Decision support | Limited | Strong, enterprise-wide analytics | | Partners | Little link to suppliers/customers | Extended to suppliers and customers | | Examples | Stand-alone payroll or library program | SAP, Oracle ERP, Odoo, Salesforce CRM | Example: in a traditional setup, a sales order entered by the sales department must be re-entered by the store and again by accounts. In an ERP, a single entry updates stock, accounting and delivery at once. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. How do traditional information systems differ from enterprise systems in data? A. Traditional systems use separate, often duplicated databases; enterprise systems use a single shared database B. Traditional systems share one database; enterprise systems have many C. Both use separate databases per department D. Enterprise systems store no data centrally Answer: A. Traditional IS are departmental islands with own data; enterprise systems share one database. (Key point: Scope and data) 2. Enterprise systems are oriented around which kind of structure? A. Individual functions only B. Processes that cross departments, such as order-to-cash C. Individual users only D. Hardware devices Answer: B. Traditional IS are function oriented while enterprise systems are process oriented. (Key point: Process orientation) 3. Which statement about development and cost is correct? A. Enterprise systems are always custom built cheaply and quickly B. Traditional systems have the highest initial cost C. Enterprise systems are mostly packaged and configured, with high initial cost and long implementation D. Enterprise systems need no change management Answer: C. ERP packages have high initial cost and long implementation; traditional systems are often custom and cheaper per system. (Key point: Development and cost) 4. In a traditional setup versus an ERP, what happens to a sales order? A. In ERP it must be entered separately in each module B. Traditionally one entry updates all departments C. In both cases it is never recorded D. Traditionally it is re-entered by store and accounts; in ERP one entry updates stock, accounting and delivery Answer: D. ERP single entry updates all related modules at once. (Key point: Example) ## Related in Information System - [Enterprise systems architecture](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aenterprise-systems-architecture-motivation) — Information System, chapter 3, asked 2× - [Enterprise and executive DSS](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aenterprise-executive-dss) — Information System, chapter 4 - [Enterprise management system and benefits](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aems-with-example-benefits) — Information System, chapter 3 - [MIS vs DSS information and processing](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Amis-vs-dss-information-processing) — Information System, chapter 4 - [Knowledge management vs expert systems](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Akm-vs-expert-systems) — Information System, chapter 4 - [Strategic information system and benefits](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Astrategic-is-benefits) — Information System, chapter 1, asked 2× ## Related in other subjects - [Microwave vs traditional systems and need of S-parameters](https://www.bctengineer.com/question.md?key=semester_7%2Frf_and_microwave_engineering%3Amicrowave-distinction-s-parameter-need) — RF and Microwave Engineering, chapter 1 - [Project vs traditional management; external environment](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-vs-traditional-mgmt-external-env) — Project Engineering, chapter 1 - [Types of information systems; decision support](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-types-decision-making) — Organization and Management, chapter 9 - [Short note: Organizing information systems](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Anote-organizing-information-systems) — Organization and Management, chapter 9