In their book, IT Doesn’t Matter – Business Processes Do , Howard Smith and Peter Fingar argue that it is the integration of information systems with business processes that leads to competitive advantage. The authors state that Carr’s article is dangerous because it gave CEOs and IT managers approval to start cutting their technology budgets, putting their companies in peril. True competitive advantage can be found with information systems that support business processes. Chapter 8 focuses on the use of business processes for competitive advantage. Electronic Data Interchange Electronic Data Interchange (EDI) provides a competitive advantage through integrating the supply chain electronically. EDI can be thought of as the computer-to-computer exchange of business documents in a standard electronic format between business partners. By integrating suppliers and distributors via EDI, a company can vastly reduce the resources required to manage the relevant information. Instead of manually ordering supplies, the company can simply place an order via the computer and the products are ordered.
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Order process wi t h EDI
Comparison of process with and without EDI (click to enlarge)
Information Systems for Business and Beyond (2019) pg. 152
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