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NEW WAYS IN MANUFACTURING ENGINEERING 200819.-21.June 2008, Preov, Slovak RepublicDocument management system as source of competitive advantageRanko SIMI, Berislav BOLFEK, Antun STOIAbstract: Trends of globalisation and market economy seek from the companies application of new technologies and new business models through which they will supply the customers with competitive products. Document management system (DMS), as the logistic process, influences competitiveness of business enterprises so this work describes functioning of DMS taking into account todays standards and total economic effects of DMS implementation in pharmaceutical industry. Key words: document management system, competitive advantage1 INTRODUCTIONOverall social and economic changes and development of informatics-communication technologies influence company strategic behavior. Globalisation trends daily change rules and business terms: companies in the same time compete and cooperate to achieve competitive advantage. Competitive advantage is necessary for satisfied customers who will receive higher value in delivered products for higher income what the owners request from management and such requirements can be fulfilled with organization of production, higher application and as low as possible production costs. Surely, always is present the effort to reduce production costs but the procedures for accomplishment are always questionable. Systematic business document management system which will shorten the time for document entering the business system or sending internal document to production business processes, is one of the ways to reduce total expenses as competitive advantage. 2 COMPETITIVE EFFICIENCY AND ADVANTAGES OF BUSINESS ENTERPRISES Conditions in which companies now operate characterize rapid changes in business environment, tough competition and customers high demands. In such unstable conditions short term reactions of the company can be higher flexibility, acceleration of development, production, all other business processes, etc. Competitive advantage should be opposed to stiff competition, and creation of competitive advantage is the main task of company top management 1. Competitive advantages are created through consistent business strategy which, in the same time, gives the answers to the questions how to manage the growth and development of the company with the aim of long term profitable operation 2. M. Porter in 1985 recognized the following strategies which can provide viable competitive advantage 3: Low cost strategy; Differentiation; Focusing.None of stated strategies can be implemented today without application of informatics-communication technologies. Their influence to stated strategies is shown in Table 1. 4.Influence of information technology on competition advantage strategy Table1Competitive advantage strategyIT influenceLow costsReduction of business expensesJust-in-time operationthinner organizational structureDifferentiation Quality as differentiationBetter level of service to customersFocusingFocusing within existing marketsCreating new products and marketsDevelopment and application of information communication technologies represent radical changes in traditional models, business policies, business discretion and even business strategies. Porters generic strategies providing competitive advantage in the application of ICT can be expanded with the following strategies 5 6: investment strategy, association strategy, innovation strategy, operational efficiency strategy, time strategy, input barrier strategy 3 BUSINESS DOCUMENTS MANAGEMENT SYSTEMSDocuments are included in business key areas in every organization, whether it is economy, public administration, non-profit organization or some other organization. Also, the documents carry business information, link all business functions, they are constituent part of business processes and depending on document applied format, form of document distribution depends the efficiency of business processes. Risks of applying unsuitable DMS are high costs involved in finding entries and information, impossibility to respect requirement in accordance with set standards, incorrect data in system, faulty decisions and reduced competitiveness 7, but competitiveness is not the question of success but survival 1. Today the following functionalities are expected from information business document management system: Document capture; Centralised storing, organization and locating documents; Controlled searching and access to documents by the number of distributed users; Document workflow through previously defined route adjusted with individual business processes; Tracking activities of document during its lifespan; Versioning document (handling different versions of the same document); Archiving.Technology is important for successful bu
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