What are the four major systems defining the digital firm?

• • Digital Firm

Digital Firm

What is the Digital Firm? 

The Digital Firm is a general term for organizations that have enabled 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. The purpose of these technology platforms is to digitally enable seamless integration and information exchange within the organization to employees and outside the organization to customers, suppliers, and other business partners.

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Significant business relationships are digitally enabled and mediated

• Core business processes are accomplished through digital networks and span the entire organization

• Key corporate assets are managed digitally

• Internal and external environments are quickly recognized and dealt with

Pros and Cons of Digital Firm:

It’s an advantage for an organization to utilize the current technologies to optimize their resources and obtain the highest productivity and profit. Although there are many advantages of digital firm such as increase flexibility, empowerment, teamwork, and lower costs, by in the perspective of a management psychology student, management of digital firm must also concern on the welfare and job satisfaction of employees.

However, there are some disadvantages of managing the digital firm. Many digital firms face serious complaints from their employees about their health and high rates of medical claims. If employees seat in front of computer or screen for long hours, they were easily faces health problem such as back injuries caused by awkward seating posture, carpel tunnel syndrome caused by repetitive typing and psychological stress caused by work overload. And, these health problems will end up with high turnover rate. Thus, safety and health of employees cannot be neglected while managing the digital world.