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Ch 7 E business Systems

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Barbara Andress

on 31 December 2013

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Transcript of Ch 7 E business Systems

e-Business Systems
Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company:

Enterprise application integration

Transaction processing system

Enterprise collaboration system
Learning Objectives
Give examples of how Internet and other information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production and operations management.
Learning Objectives
Section 1
e-business is much broader than e-commerce, using the Internet for any type of business activity
E-business is the use of the Internet and other networks and information technologies to support electronic commerce, enterprise communications and collaboration, and web-enabled business processes both within an internetworked enterprise and with its customers and business partners
I. Introduction
Reengineer/improve business activities by crossing boundaries of traditional business functions
Enterprise Application Architecture
businesses use the Internet and other networks for e-commerce, collaboration, and business process to establish interrelationships with each other and with customers, employees, business partners, and other stakeholders of an internetworked e-business enterprise.
II. Cross-Functional Enterprise Applications
The New Product Development Process
II. Cross-Functional Enterprise Applications
What is Marriott’s philosophy? What does this mean in real-world terms?
Why is this a challenge?
What was (one of) the biggest challenge(s)? How did Marriott solve this?
Marriott Hotels: Toward a Single View of the Customer
Interrelationships of Cross-Functional Enterprise Applications
II. Cross-Functional Enterprise Applications
Can integrate the front-office and back-office applications of a business so they work together in a seamless, integrated way
Enterprise Application Integration Software
EAI improves customer and supplier experience with the business because of its responsive
How EAI Works
What industry is Philips involved in? What does this mean?
How widespread is the Philips organization? Why is this a challenge?
What benefits will the new system provide?
What challenges must the new system overcome to get the benefits?
Philips Medical Systems: Reaping the Benefits of Enterprise Integration
Cross-functional information systems that process data resulting from the occurrence of business transactions
Handles/records daily business activities (transactions)
Transaction – anything that occurs during daily business of which a record must be kept
Online transaction Processing Systems – capture and process transactions immediately, in real time
IV. Transaction Processing Systems (TPS)
The Transaction Processing Cycle
IV. Transaction Processing Systems
Transaction Processing Cycle – 5 activities:
Data Entry – capture business data
Transaction Processing
Batch Processing – record data, the process it periodically in “batches”
Real-time (Online) Processing – capture and process the data immediately after it occurs
IV. Transaction Processing Systems
Database Maintenance – Databases must be updated so they are always correct and up-to-date
Document and Report Generation – T-P systems produce a variety of reports
Inquiry Processing – users may query and receive reports about transactions
IV. Transaction Processing Systems
Businesses use the Internet and other networks for e-commerce, collaboration, and business process to:
establish interrelationships with each other
with customers, employees, business partners,
other stakeholders of an internetworked e-business enterprise
Enterprise Application Architecture
A cycle of data entry, transaction processing, database maintenance, report generation, and inquiry processing associated with handling a transaction and its effects from beginning to end.
Cross-functional IS help users to:
Communicate – share information
Coordinate – organize work efforts and resources
Collaborate – work together on projects
V. Enterprise Collaboration Systems (ECS)
Internet technologies like Web browsers and servers, hypermedia documents and databases, and intranets and extranets provide the hardware, software, data, and network platforms for many of the groupware tools for enterprise collaboration that business users want
Tools for Enterprise Collaboration
Tools for Enterprise Collaboration
Electronic Communication Tools
Instant Messaging
Voice Mail
Web Publishing
V. Enterprise Collaboration Systems (ECS)
Tools for Enterprise Collaboration
Electronic Conferencing Tools
Data Conferencing
Voice Conferencing
Discussion Forums
Chat Systems
Electronic Meeting Systems
V. Enterprise Collaboration Systems (ECS)
Tools for Enterprise Collaboration
Collaborative Work Management Tools
Calendaring and Scheduling
Task and Project Management
Workflow Systems
Document Sharing
Knowledge Management
V. Enterprise Collaboration Systems (ECS)
According to the case, what service industry is interested in virtual worlds?
What interest do they have in these virtual worlds (what can be supplied here)?
What challenges must be overcome in using virtual worlds? What relation does this have to Business?
What benefits do the virtual worlds provide?
Exploring Virtual Worlds as Collaboration Tools
Section 2
Functional business systems
Any one of a variety of types of information systems (transaction processing, management information, decision support, and so on) that support the business functions of accounting, finance, marketing, operations management, and human resource management.
I. Introduction
Functional Business Information Systems Support Major Functional Areas
IS that aid in planning, promotions and sale of existing products in existing markets
Interactive Marketing – customer-focused two-way transactions between a firm and its (potential) customers
Sales Force Automation – connect the sales force to the Internet, intranets, and extranets
II. Marketing Systems
Targeted Marketing – advertising/promotion concept that includes:
Community – the group of people interested in the product
Content – the message aimed at the community
Context – relevant/related to the target audience
Demographic/Psychographic – aimed only at specific types/classes of people
Online Behavior – track a person’s online behavior so the advertising can be targeted to the individual
II. Marketing Systems
Marketing IS Support Major Components of the Marketing Functio
Major Components of Targeted Marketing
II. Marketing Systems
What slowed the sales process for adidas?
Why is real-time access to inventories important?
What was the solution to this problem?
How expensive was the solution?
Wireless Sales Force Automation Drives Sales for adidas America
Support the production/operations function
Computer-Integrated Manufacturing
Goal: to create flexible, agile, manufacturing processes that efficiently produce highest quality products
3 Objectives:
Simplify (reengineer) production processes
Automate – with computers, machines, robots
Integrate – tie together all production and support processes with networks, cross-functional software, and other IT
III. Manufacturing Systems
Computer-Aided Manufacturing – automate the production process
Manufacturing Execution Systems –monitor performance
Process Control – control ongoing physical processes
Machine Control – use of computers to control machines
III. Manufacturing Systems
Manufacturing IS Support Computer-Integrated manufacturing
III. Manufacturing Systems
Human Resource Information Systems (HRIS) support:
Planning to meet personnel needs
Development employee to their full potential
Control personnel policies and programs
HRM and the Internet – Internet is a major force for change in HRM
HRM and Corporate Intranets – Intranets allow firms to provide services to customers and employees
IV. Human Resource Systems
IV. Human Resource Systems
Why was this question difficult for Chiquita?
Why was this question difficult for their Information Systems to answer?
What benefits does the new systems provide?
Chiquita Brands: Finding Out How Many Employees They Have
The oldest and most widely used IS in business; emphasize legal/historical record keeping accurate financial statements
6 operational accounting systems:
Order Processing – capture/process orders, create data for inventory control and accounts receivable
Inventory Control – process data reflecting changes in inventory, provides shipping/reorder information
Accounts Receivable – record amounts owed by customers, produce customer invoices/statements and credit management reports
V. Accounting Systems
6 operational systems:
Accounts Payable – record purchases from, amounts owed to, and payments to suppliers, and produce cash management reports
Payroll – record employee work and compensation data, produce paychecks and payroll documents
General Ledger – consolidate data from other accounting systems, produce periodic financial statements and reports

Online Accounting Systems – interactive, directly involved in processing business transactions
V. Accounting Systems
Support decisions concerning:
Financing a business – determine financing needs
Allocation and control of financial resources

Capital Budgeting – evaluate profitability and financial impact of proposed capital expenditures

Financial Planning – evaluate present and projected financial performance
VI. Financial Management Systems
Note How Accounting Systems Are Related to Each Other
V. Accounting Systems
e-Business Systems
Key Term: Accounts Payable
Key Term: General Ledger
Key Term: Payroll
Key Term: Order Processing
Key Term: Inventory Control
Key Term: Accounts Receivable
Key Term: Transaction Processing Cycle
Key Term: Batch Processing
Key Term: Real-Time
Key Term:
Computer-Aided Manufacturing
Key Term: Manufacturing Execution Systems
Key Term: Process Control
Key Term: Machine Control
Key Term:
Manufacturing Information Systems
Key Term: Computer-Integrated Manufacturing
Key Term:
Cross-Functional Enterprise Systems
Key Term:
Enterprise Application Architecture
Key Term:
Key Term: Enterprise Application Integration
Key Term: Enterprise Collaboration Systems

Key Term:
Financial Management Systems
Key Term:
Functional Business System
Key Term: Human Resource Information Systems
Key Term: Online HRM systems
Key Term:
Interactive Marketing
Key Term:
Sales Force Automation

Key Term:
Marketing Information Systems

Key Term:
Online accounting
Key Term: Online Transaction Processing Systems

Key Term: Targeted Marketing
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