Chapter 7 Electronic

Business Systems

James A. O'Brien, and George Marakas.

Management Information Systems with MISource
2007, 8th ed. Boston, MA: McGraw-Hill, Inc.,
2007. ISBN: 13 9780073323091
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
Give examples of how Internet and other
information technologies support business
processes within the business functions of
Accounting, Finance, Human resource
management, Marketing, Production, and
Operations management
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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

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Cross-Functional Systems
Cross the boundaries of traditional business
functions
Used to reengineer and improve vital
business processes all across the enterprise

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Enterprise Application Architecture

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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

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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

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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

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Enterprise Application Integration
EAI software connects cross-functional systems
Serves as middleware to provide
Data conversion
Communication between systems
Access to system interfaces

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How EAI Works

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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
real-time system that captures transactions
immediately

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Transaction Processing Systems

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The Transaction Processing Cycle

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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
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ECS Tools

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Functional Business Systems
A variety of types of information systems
that support the business functions of
Accounting
Finance
Marketing
Operations management
Human resource management

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IT in Business

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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

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Marketing Information Systems

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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
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Targeted Marketing
An advertising and promotion management
concept with five targeting components

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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

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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

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Manufacturing Information
Systems
Supports the production/operations functions
Includes all activities concerned with planning
and control of the processes producing goods
or services

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Computer-Integrated
Manufacturing

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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

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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

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 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

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 HRM Systems

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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

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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

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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

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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
Typically consists of
Order processing
Inventory control
Accounts receivable
Accounts payable
Payroll
General ledger systems
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Accounting Information Systems

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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

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Financial Management System
Example

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