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Chapter
7 Electronic Business Systems
McGraw-Hill/Irwin
Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives 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 systems Enterprise collaboration systems
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 Production Operations management
Enterprise Business Systems
E-business means using the Internet, other networks, and IT to support Electronic commerce Enterprise communications and collaboration Web-enabled business processes
E-commerce is the buying, selling, and
marketing of products, services, and information over the Internet and other networks
Cross-Functional Systems Cross the boundaries of traditional business functions Used to reengineer and improve vital business processes all across the enterprise
Enterprise Application Architecture
Enterprise Application Architecture
Provides a conceptual framework Helps visualize the basic components, processes, and interfaces of major e-business applications
Focuses on accomplishing fundamental
business processes in concert with
Customers Suppliers Partners Employees
Enterprise Application Architecture
Enterprise Resource Planning (ERP) Concentrates on the efficiency of internal production, distribution, and financial processes
Customer Relationship Management (CRM)
Focuses on acquiring and retaining profitable customers via marketing, sales, and services
Partner Relationship Management (PRM)
Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services
Enterprise Application Architecture
Supply Chain Management (SCM) Focuses on developing the most efficient and effective sourcing and procurement processes
Knowledge Management (KM)
Focuses on facilitating internal group collaboration and decision support
Enterprise Application Integration
EAI software connects cross-functional systems Serves as middleware to provide Data conversion Communication between systems Access to system interfaces
How EAI Works
Transaction Processing Systems
Cross-functional information systems that process data resulting from the occurrence of business transactions Transactions include sales, purchases, deposits, withdrawals, refunds, and payments Online transaction processing (OLTP) is a realtime system that captures transactions immediately
Transaction Processing Systems
The Transaction Processing Cycle
Enterprise Collaboration Systems (ECS)
EC systems are cross-functional information systems that enhance team and workgroup Communication Coordination Collaboration
Systems may include
Networked PC workstations Servers Databases Groupware and application packages
ECS Tools
Functional Business Systems
A variety of types of information systems that support the business functions of
Accounting Finance Marketing Operations management Human resource management
IT in Business
Marketing Systems Marketing systems are concerned with Planning, promotion, and sale of existing products in existing markets Development of new products and new markets Better attracting and serving present and potential customers
Marketing Information Systems
Interactive Marketing Interactive Marketing A customer-focused marketing process Uses the Internet, intranets, and extranets Establishes two-way transactions between a business and its customers or potential customers
Goal Profitably use networks to attract and keep customers Get customers to help create, purchase, and improve products and services
Targeted Marketing An advertising and promotion management concept with five targeting components
Targeted Marketing Components
Community: customized ads to appeal to specific virtual communities Content: ads placed on a variety of selected websites, aimed at a specific audience Context: ads placed on web pages that are relevant to a product or service Demographic/Psychographic: web marketing aimed at specific types or classes of people Online behavior: promotions tailored to each visit to a site by an individual
Sales Force Automation
Outfit sales force with notebook computers, web browsers, and sales contact software Connect them to marketing websites and the company intranet
Goals Increase personal productivity Speed up capture and analysis of sales data Gain strategic advantage
Manufacturing Information Systems
Supports the production/operations functions Includes all activities concerned with planning and control of the processes producing goods or services
Computer-Integrated Manufacturing
CIM Objectives Simplify production processes, product designs, and factory organization Automate production processes and the business functions that support them Integrate all production and support processes using Networks Cross-functional business software Other information technologies
CIM Systems Computer-aided manufacturing (CAM) Automate the production process
Manufacturing execution systems (MES)
Performance monitoring information systems for factory floor operations
Process control Control ongoing physical processes
Machine control Controls the actions of machines
Human Resource Management (HRM)
Information systems designed to support Planning to meet personnel needs Development of employees to their full potential Control of all personnel policies and programs
HRM Systems
HRM and the Internet
Recruiting employees using the corporate website and commercial recruiting services Posting messages in selected Internet newsgroups Communicating with job applicants via e-mail
HRM and Corporate Intranets
Corporate intranet uses Process common HRM transactions Allow around-the-clock HRM services Disseminate information faster than through previous company channels Collect information from employees online Allow HRM tasks to be performed with little HRM department intervention Training
Employee Self-Service Intranet applications can allow employees to View benefits Enter travel and expense reports Verify employment and salary information Access and update personal information Enter time-sensitive data
Accounting Information Systems
The oldest and most widely used information system in business Records and reports business transactions and economic events Produces financial statements Forecasts future conditions
Accounting Information Systems
Typically consists of Order processing Inventory control Accounts receivable Accounts payable Payroll General ledger systems
Accounting Information Systems
Financial Management Systems
Supports business managers and professionals making decisions concerning The financing of a business The allocation and control of financial resources within a business
