Question

Describe the problems caused by lack of information systems integration.

Answer 1

Value optimization requires interorganizational information sharing and coordination. Without or lack of information system integration causes insufficient data sharing across business processes and activities extending back to the suppliers and forward to customers. The productivity of the business can be decreased dramatically. •Greater inefficiencies due to longer wait times for information. For instance, without automated link to current inventory data, the customer sales representative can’t tell customer in a timely manner whether the item ordered is available in the warehouse, is scheduled to be manufactured, and if scheduled for manufactured, when it would be available. The customer sales representative needs to make multiple phone calls to check the availability in the warehouse or the production schedule if it has not manufactured yet. Long wait times for the information will make the business process inefficient. •Increase human errors due to manual exchange of data.

In information system, there will be only one record for each customer and one credit limit. The central database would be used by all functions in the organization. So the database permits an organization to operate its business processes in a consistent manner throughout the organization. Without or lack of information system, each of the processes is disaggregated. The disaggregated processes need manual exchange of date. During the exchange, data would be error or accuracies. •Increase costs due to a large number of manual management. For example, without information system integration, a customer service process would be referred to the following processes: warehouse, factory, accounting, marketing, credit department, even the purchasing or vendor