The Unintegrated vs. Integrated Approach:
An Unintegrated Business Approach
Companies often function as collections of independent departments or divisions, where each division makes purchases from vendors and sales to customers independently from the other divisions, and there are few, if any, information flows across departments. |
An Integrated Business Approach
When information is integrated across company departments, then many efficiencies can be realized which will decrease costs, increase revenues, and ultimately, increase profits. |
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Plus, the Integrated Approach adds the following advantages:
Purchases
- Leverage
- Economies of Scale
- Economies of Scope
- Inventory Management
- Other Efficiencies
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Divisional Operations
- Productivity
- Economies of Scale
- Other Efficiencies
Divisional Interactions
- Complementarities
- Economies of Scope
- Other Efficiencies
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Product Sales
- Product Lifecycle Optimization
- Product Mix Optimization
- Revenue Enhancement
- Revenue Management
- Customer Relations
- Customer Satisfaction
- Repeat Sales
- Returns
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