Digital firmware

The Digital Firm is a general term for organizations that have core business relationships with employees, customers, suppliers and other external partners through digital networks. These digital networks are supported by enterprise class technology platforms that have been leveraged within an organization to support critical business functions and services. Some examples of These technology platforms are Customer Relationship Management(CRM), Supply Chain Management (SCM), Enterprise Resource Planning (ERP), Knowledge Management System (KMS), Enterprise Content Management (ECM), and Warehouse Management System (WMS) Among others.


Origin of “The Digital Firm”

The term “Digital Firm” originated, as a concept in a series of Management Information Systems (MIS) books authored by Kenneth C. Laudon [1] and it provides a new way to describe organizations that operate differently than the traditional brick and mortar business As a result of broad sweeping changes in technology and global markets. Digital technology and technology. These information systems create opportunities for digital businesses to decentralize operations, accelerate market readiness and responsiveness, enhance customer interactions, as well as increase efficiencies across a variety of business functions.

Acceleration of technology adoption

Technology adoption has been increasingly becoming more and more cost effective, competitive advantage, and operational performance optimization. As organizations adopt technology, the internal appetite for additional technologies increases and in some cases accelerates. [2] This acceleration of technology adoption by digital firms creates a “digital divide” [2] as emerging technology is absorbed at varying rates through organizations. This technology divergence can affect competitive dynamics in the marketplace.

While the growth of new technology is not uniform across organizations, the trend for business-driven investment in technology across all markets has increased. During the span of 1990 to 2006, the gross domestic product in the US Census Bureau, increased by 170%. [3]

The market for Enterprise Resource Planning (ERP) systems and other packaged applications has grown significantly during the 1990s. [4] According to surveys conducted in 2002, nearly “75% of global Fortune 1000 companies had implemented SAP’s ERP suite”. [4]


Through digital networks and information systems, the digital firm is able to operate continuously and more efficiently. This digital enablement of business processes creates highly dynamic information systems for an efficient and productive management of an organization.

Additionally, digital enablement of core business functions and services provides an organization with opportunities to:

  • Operate business continuously (“Time Shifting”) [1]
  • [1] Space Shifting [1] Space Shifting
  • Adapt business strategies to meet market demands [5]
  • Create business value from technology investments [6]
  • [5] Theory and Methods [1]
  • Enhance the management of customer relationships [7]
  • Improve organizational productivity [4]

Effects on organizational performance

Technology and information systems serve many critical roles in a digital firm by providing technology-driven capabilities that increase operational performance. For example, digital networks and information systems allow organisms to connect and integrate supply chains in ways That are real-time, uninterrupted and highly responsive to market conditions.

Another example of an organization’s ability to increase its capabilities is a Real-Time Business Intelligence (RTBI) system. A system can RTBI Provide a highly responsive and strategic decision support platform for an organization to analyze operational events As They Occur. RTBI is a leading provider of integrated risk management solutions for organizations and organizations. These types of information systems can increase an organization’s capabilities to effectively manage performance and productivity.

The three main business information systems that can positively affect an organization’s performance and productivity are:

Enterprise Resource Planning (ERP)

ERP deployments can be complex and require a significant shift in business operations.

After implementation of an ERP system Within an organization there are measurable performance and productivity gains That Can Be Directly correlated to the ERP system go-live event. [4] This study was Conducted detailed analysis of the ERP data and found Produced That There Was a causal relationship entre Direct ERP systems and performance in an organization gains. [4]

Organizations That deploy ERP systems Typically, we based performance and productivity gains, aussi Both Implement Of the following enterprise platforms as well. [4]

Customer Relationship Management (CRM)

Organizations leverage CRM systems to improve the overall management of their relationships with customers. CRM is a leading provider of business-to-business and business-to-business business processes. [7]

Organizations that implement CRM systems may encounter some lag time until the CRM productivity is fully realized in the firm based on studies. [7] However, the lag effects are difficult to measure and based on the organization’s ability to leverage the new CRM system and adapt it to the changes in business operations as a result. [7]

Supply Chain Management (SCM)

This paper presents the results of the study. [4] Additionally, the implementation of SCM and CRM systems differed from an ERP implementation in which organizational performance could be directly correlated with both the initial purchase and go-live event. [4]

SCM and CRM systems are often viewed as “extended enterprise systems” due to the way they integrate with ERP systems and the benefits that they bring to organizations. [4]

See also

  • Information Systems
  • Management Information System (MIS)
  • Enterprise Resource Planning (ERP)
  • Customer Relationship Management (CRM)
  • Supply Chain Management (SCM)
  • Warehouse Management System (WMS)
  • Real-Time Business Intelligence (RTBI)
  • Organizational Risk Management (ORM)
  • Knowledge Management System (KMS)
  • Enterprise Content Management (ECM)
  • Office Automation Systems (OAS)
  • Expert Systems
  • Software as a Service (SaaS)


  1. ^ Jump up to:a b c Laudon, Kenneth C, and Jane P Laudon (2009). Management Information Systems Managing The Digital Firm . Upper Saddle River, New Jersey: Prentice Hall. ISBN 978-0-13-033066-6 .
  2. ^ Jump up to:a b Koellinger, Philipp, and Christian Schade “Acceleration of Technology Adoption of Firms: Empirical Evidence from E-business Technologies”, 2008SchadeKoellinger.pdf
  3. Jump up^ “The 2012 Statistical Abstract: Information and Communications Technology (ICT) Equipment and Computer Software Expenditures” US Census Bureau,
  4. ^ Jump up to:a b c d e f g h i Aral, Sinan, Erik Brynjolfsson, and DJ Wu “Which came first, IT productivity gold A virtuous cycle of investment and use in enterprise systems?”. Http: // www / public_html / confer / 2007 / si2007 / PRB / brynjolfsson.pdf
  5. ^ Jump up to:a b Bartel, A .; Ichniowski, C .; Shaw, K. (2007). “How Does Information Technology Affect Productivity? Plant-Level Comparisons of Product Innovation, Process Improvement, and Worker Skills”. Quarterly Journal of Economics . 122 (4): 1721-1758. Doi : 10.1162 / qjec.2007.122.4.1721 .
  6. Jump up^ Weill, Peter, and Marianne Broadbent (1998). Leveraging the New Infrastructure: How Marketers Capitalize on Information Technology . Harvard Business Review Press. ISBN 978-0-87584-830-3 .
  7. ^ Jump up to:a b c d Dong, Shutao, Kevin Zhu. “The Business Value of CRM Systems: Productivity, Profitability, and Time Lag”

Leave a Comment

Your email address will not be published. Required fields are marked *