Digital firm

The Digital Firm is an organization that has enabled core business relationships 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. The Digital Firm is an organization that has enabled core business relationships 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. The term 'Digital Firm' originated, as a concept in a series of Management Information Systems (MIS) books authored by Kenneth C. Laudon 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 firms place an emphasis on the digitization of business processes and services through sophisticated technology and information systems. These information systems create opportunities for digital firms to decentralize operations, accelerate market readiness and responsiveness, enhance customer interactions, as well as increase efficiencies across a variety of business functions. Technology adoption has been increasing as digital firms continually look to achieve greater levels cost savings, competitive advantage, and operational performance optimization. As organizations adopt technology, the internal appetite for additional technologies increases and in some cases accelerates. This acceleration of technology adoption by digital firms creates a 'digital divide' as emerging technology is absorbed at varying rates across organizations. This technology divergence can affect competitive dynamics in the market place between firms that achieve operational benefits from the technology and firms which have yet to adapt. While the growth of new technology consumption is not uniform across organizations, the trend for business-driven investment in technology across all markets has and continues to increase. During the span of 1990 to 2006, the gross U.S. domestic investment in information and communications technology, as measured by the U.S. Census Bureau, increased by 170%. The market for Enterprise Resource Planning (ERP) systems and other packaged applications started to grow substantially during the 90's to the point that the ERP market alone accounts for approximately $25 billion. According to surveys conducted in 2002, nearly '75% of global Fortune 1000 firms had implemented SAP’s ERP suite'.