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Chapter 7

Chapter 7. Electronic Business Systems. 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

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Chapter 7

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  1. Chapter7 Electronic Business Systems

  2. 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

  3. 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.

  4. What is E-Business? • 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 a networked enterprise and with its customers and business partners.

  5. Case #1: Data-Driven Hospitality • Customers are more satisfied when they have a problem and the hotel staff takes care of it than if the stay goes flawlessly. • The hospitality industry is a people business. It doesn’t do any good to have great customer information that’s only in the reservations system and available to the call center. It must be common across all systems.

  6. Case #1: Data-Driven Hospitality OnQ – Customers Really Matter: • Custom-built customer relationship management information system • Integrated to cover 22 million guests, all properties, eight brands • Provide employees with a clearer idea of who customer are and what their past Hilton experiences have been so they can provide constant improvement

  7. Case #1: Data-Driven Hospitality OnQ Challenges: • Presenting deep customer history data clearly enough for inexperienced front desk employees • Supporting a diverse mix of brands

  8. Case #1: Data-Driven Hospitality • What are the benefits and drawbacks of the OnQ system at Hilton? • What does Hilton have to do to create a competitive advantage through OnQ? Provide some specific examples. • Is it possible to have too much information about a customer? Explain.

  9. Case #1: Data-Driven Hospitality • What are several reasons why CRM software applications are so expensive? Why do they seem to take so long to implement?

  10. Cross-Functional Enterprise Systems Definition: • Information systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterprise

  11. Cross-Functional Information Systems

  12. Enterprise Application Architecture

  13. Enterprise Application Integration (EAI) Definition: • Software that integrates a variety of enterprise application clusters by letting them exchange data according to rules derived from the business process models developed by users

  14. Enterprise Application Integration

  15. EAI Example

  16. Transaction Processing Systems (TPS) Definition: • Cross-functional information systems that process data resulting from the occurrence of business transactions • Transactions – events that occur as part of doing business • Online Transaction Processing Systems (OLTP) – real-time systems that capture and process transactions immediately

  17. Transaction Processing Cycle • Data Entry – capture of business data • Transaction Processing • Batch – transaction data are accumulated over a period of time and processed periodically • Real-Time – data are processed immediately after a transaction occurs

  18. Transaction Processing Cycle • Database Maintenance – updating corporate databases of an organization to reflect changes resulting from day-to-day business transactions • Document and Report Generation – including transaction documents, transaction listings and error reports • Inquiry Processing – making inquiries and receiving responses concerning the results of transaction processing activities

  19. Transaction Processing Cycle

  20. Enterprise Collaboration Systems (ECS) Definition: • Cross-functional information systems that enhance communication, coordination, and collaboration among the members of business teams and workgroups

  21. ECS Goals • Communicate – share information • Coordinate – coordinate individual work efforts and share resources • Collaborate – work together cooperatively on joint projects and assignments

  22. ECS Tools

  23. Case #2: Business Case for EAI EAI Benefits: • Share data among legacy systems • Improve data quality and accuracy • Align systems more closely with business processes • Improve customer service • Cut costs

  24. Case #2: Business Case for EAI EAI Challenges: • Specific IT skills required • Extensive coordination among multiple departments

  25. Case #2: Business Case for EAI • Why has EAI recently “become a critical part of the IT strategy at many organizations,” and a high-ranking project of top IT executives? Use GE Power and Corporate Express as examples. • What is the major difference in the business value of the EAI projects at GE Power and Corporate Express?

  26. Case #2: Business Case for EAI • What are some of the challenges in developing and implementing EAI systems? How can companies meet these challenges? • Why is there a need for enterprise application integration systems in business? Will this continue to be the case in the future? Why or why not?

  27. Functional Business Systems Definition: • Information systems that support the business functions of accounting, finance, marketing, operations management, and human resource management

  28. Functional Business IS

  29. Marketing Systems

  30. Interactive Marketing Definition: • Customer-focused marketing process that is based on using the Internet, intranets, and extranets to establish two-way transactions between a business and its customers or potential customers Goal: • Use networks to attract and keep customers who will become partners with the business in creating, purchasing, and improving products and services

  31. Targeted Marketing Definition: • Tool for developing advertising and promotion strategies to strengthen a company’s e-commerce initiatives, as well as its traditional business venues

  32. Targeted Marketing Components

  33. Targeted Marketing Components • Community – customize advertising to appeal to people of specific virtual communities • Content – advertising placed on a variety of selected websites • Context – advertising placed on web pages that are relevant to the content of a product or service

  34. Targeted Marketing Components • Demographic/Psychographic – web marketing efforts aimed at specific types or classes or people • Online Behavior – promotion efforts tailored to each visit to a site by an individual

  35. Sales Force Automation Definition: • Information systems that improve the delivery of information and support to salespeople with the goal of improving sales productivity and marketing responsiveness

  36. Manufacturing Systems Definition: • Information systems that support the production/operations function that includes all activities concerned with the planning and control of the processes producing goods and services

  37. Manufacturing Systems

  38. Computer-Integrated Manufacturing (CIM) Objectives: • Simplify production processes, product designs, and factory organization as a vital foundation to automation and integration • Automate production processes and the business functions that support them with computers, machines, and robots • Integrate all production and support processes using computer networks, cross-functional business software, and other information technologies

  39. CIM Systems • Computer-aided manufacturing (CAM) - Information systems that 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

  40. Human Resource Systems

  41. HRM and the Internet • Recruiting employees through recruiting services and databases on the World Wide Web • Posting messages in selected Internet newsgroups • Communicating with job applicants via e-mail

  42. HRM and Corporate Intranets • Process common HRM applications • Allow HRM department to provide around-the-clock services • Disseminate valuable information faster than through previous company channels • Collect information from employees online • Allow managers and other employees to perform HRM tasks with little intervention by the HRM department

  43. Accounting Information Systems

  44. Common Business Accounting Systems • Order Processing – Captures and processes customer orders and produces data for inventory control and accounts receivable • Inventory Control – Processes data reflecting changes in inventory and provides shipping and reorder information • Accounts Receivable – Records amounts owed by customers and produces customer invoices, monthly customer statements, and credit management reports

  45. Common Business Accounting Systems • Accounts Payable – Records purchases from, amounts owed to, and payments to suppliers, and produces cash management reports • Payroll – Records employee work and compensation data and produces paychecks and other payroll documents and reports • General Ledger – Consolidates data from other accounting systems and produces the periodic financial statements and reports of the business

  46. Financial Management Systems

  47. Financial Management Systems • Capital Budgeting – evaluating the profitability and financial impact of proposed capital expenditures • Financial Planning – evaluating the present and projected financial performance of a business

  48. Case #3: Improving Supply-Chain Results • Supply chains are, by definition, a kludge of systems, comprising software for manufacturing, warehousing, inventory control, planning, shipping, and logistics. • They also involve intimate relationships with suppliers and partners, and, on the front end, an increasing dependence on the input of customers.

  49. Case #3: Improving Supply-Chain Results Benefits of SCM • Cut costs • Increase sales with efficient and effective supply chains

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