Introduction to e-Business Systems

1. 5 Introduction to e-Business Systems

2. Learning Objectives 5 • 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.

3. Learning Objectives (continued) 5 • Identify the following cross-functional system concepts, and how they can provide significant business value to a company: • Cross-functional enterprise systems • Enterprise application integration • Transaction processing systems • Enterprise collaboration systems

4. Section I 5 • Functional Business Systems

5. IT in Business 5 • “Business managers are moving from a tradition where they could avoid, delegate, or ignore decisions about IT to one where they cannot create a marketing, product, international, organization, or financial plan that does not involve such decisions.”

6. Marketing Systems 5 • Marketing Information Systems provide information technologies that support major components of the marketing function. • Interactive Marketing • Customer focused marketing process • Based on using Internet, intranets, & extranets to establish two-way communications between customers or potential customers and the business • Customers become involved in product development, delivery, & service issues

7. Marketing Systems (continued) 5 • Targeted marketing • Five targeting components • Community • Content • Context • Demographic/psychographic • Online behavior

8. Marketing Systems (continued) 5 • Sales Force Automation • The sales force is connected to marketing websites on the Internet, extranets, & the company intranet • Increases productivity of sales force • Speeds up the capture & analysis of sales data • Allows management to provide improved delivery information & better support of the sales force.

9. Manufacturing Systems 5 • Support the production/operations function • Assists firms in planning, monitoring, & controlling inventories, purchases, & the flow of goods and services

10. Manufacturing Systems (continued) 5 • Computer-Integrated Manufacturing (CIM) • Simplify • Automate • Integrate • Supports the concepts of flexible manufacturing systems, agile manufacturing, & total quality management • Computer-Aided Engineering (CAE) • Computer-Aided Design (CAD) • Material Requirements Planning (MRP)

11. Manufacturing Systems (continued) 5 • Computer-Aided Manufacturing (CAM) • Automate the production process • Manufacturing Execution Systems (MES) • Performance monitoring systems for factory floor operations

12. Manufacturing Systems (continued) 5 • Process Control • The use of computers to control an ongoing physical process • Machine Control • The use of a computer to control the actions of a machine. • Also called numerical control

13. Human Resource Systems 5 • Human Resource Information Systems • Support • Planning to meet the personnel needs of the business • Development of employees to their full potential • Recruitment, selection, & hiring • Job placement

14. Human Resource Systems (continued) 5 • Human Resource Information Systems (continued) • Performance appraisals • Employee benefits analysis • Training and development • Health, safety, & security

15. Human Resource Systems (continued) 5 • HRM and the Internet • Allows companies to process most common HRM applications over their intranets. • Allows companies to provide around-the-clock services to their employees. • Allows companies to disseminate valuable information faster. • Allows employees to perform HRM tasks online.

16. Human Resource Systems (continued) 5 • Staffing • Supported by information systems that record and track human resources to maximize their use • Training and Development • Help human resource managers plan and monitor employee recruitment, training, and development programs

17. Accounting Systems 5 • Record and report business transactions and other economic events • Online Accounting Systems

18. Accounting Systems (continued) 5 • Six widely used accounting systems • Order processing • Captures & processes customer orders and produces data needed for sales analysis and inventory control • Inventory Control • Processes data reflecting changes in items in inventory. • Helps provide high-quality service while minimizing investment in inventory & inventory carrying costs

19. Accounting Systems (continued) 5 • Accounts Receivable • Keeps records of amounts owed by customers from data generated by customer purchases and payments • Accounts Payable • Keeps track of data concerning purchases from, and payments to, suppliers

20. Accounting Systems (continued) 5 • Payroll • Receives and maintains data from employee time cards and other work records • General Ledger • Consolidates data received from accounts receivable, accounts payable, payroll, & other accounting information systems

21. Financial Management Systems 5 • Supports financial managers in decisions concerning • The financing of the business • The allocation & control of financial resources within the business.

22. Financial Management Systems (continued) 5 • Major financial management system categories • Cash Management • Collects information on all cash receipts and disbursements on a real-time or periodic basis

23. 5 Financial Management Systems (continued) • Investment Management • Helps the financial manager make buy, sell, or hold decisions for each type of security • Helps the financial manager develop the optimum mix of securities in order to minimize risk and maximize return

24. 5 Financial Management Systems (continued) • Capital Budgeting • Involves evaluating the profitability and financial impact of proposed capital expenditures • Allows financial managers to analyze long-term expenditure proposals for plant and equipment

25. 5 Financial Management Systems (continued) • Financial Forecasting & Planning • Evaluate the present and projected financial performance of the company • Help determine financing needs and analyze alternative methods of financing • Explore what-if and goal-seeking questions

26. Section II 5 • Cross-Functional Enterprise Systems

27. Cross-Functional Enterprise Applications 5 • Integrated combinations of information subsystems that share information resources and support business processes across the functional units • A strategic way to use IT to share information resources & improve efficiency & effectiveness

28. Cross-Functional Enterprise Applications (continued) 5 • Enterprise Application Architecture

29. Cross-Functional Enterprise Applications (continued) 5 • Focused on accomplishing fundamental business processes in concert with the company’s customer, supplier, partner, & employee stakeholders

30. Enterprise Application Integration (EAI) 5 • Software enables users to model the business processes involved in the interactions that should occur between business applications. • Also provides middleware that • Performs data conversion & coordination • Provides application communication & messaging services • Provides access to the application interfaces

31. Enterprise Application Integration (continued) 5 • Business value • Integrates front-office and back-office applications to allow for quicker, more effective response to business events and customer demands • Improves customer and suppler experience with the business because of its responsiveness.

32. Transaction Processing Systems 5 • Cross-functional information systems that process data resulting from the occurrence of business transactions • Transactions – events that occur as part of doing business • Sales • Purchases • Deposits • Withdrawals • Refunds • Payments

33. Transaction Processing Systems (continued) 5 • Online transaction processing systems • Real-time systems that capture and process transactions immediately • Adds value to product or service through superior customer service

34. 5 Transaction Processing Systems (continued) • Transaction Processing Cycle • Data entry • The capture of business data • Transaction processing • Two basic ways • Batch processing where transaction data are accumulated & processed periodically • Real-time processing where data are processed immediately after a transaction occurs

35. Transaction Processing Systems (continued) 5 • Database maintenance • Corporate databases are updated to reflect the day-to-day business transactions • Document and report generation • A variety of documents and reports are produced

36. Transaction Processing Systems (continued) 5 • Inquiry processing • Inquiries and responses concerning the results of transaction processing activity

37. Transaction Processing Systems (continued) 5

38. Enterprise Collaboration Systems 5 • Cross-functional e-business systems that enhance communication, coordination, & collaboration • Communicate – share information with each other • Coordinate – coordinate individual work efforts & use of resources with each other. • Collaborate – work together cooperatively on joint projects and assignments

39. Enterprise Collaboration Systems (continued) 5 • Tools for Enterprise Collaboration • Electronic communication • E-mail • Voice mail • Fax • Web publishing • Bulletin boards • Paging • Internet phone systems

40. Enterprise Collaboration Systems (continued) 5 • Electronic conferencing • Data & voice conferencing • Videoconferencing • Chat systems • Discussion forums • Electronic meeting systems • Synchronous. Team members can meet at the same time and place in a “decision room” setting

41. 5 Enterprise Collaboration Systems (continued) • Collaborative work management • Calendaring & scheduling • Task & project management • Workflow systems • Knowledge management

42. Discussion Questions 5 • Why is there a trend toward cross-functional integrated enterprise systems in business? • Referring to the example on Dell Computer, what other solutions could there be for the problem of information system incompatibility in business besides EAI systems?

43. Discussion Questions (continued) 5 • Referring to the Charles Schwab & Co. example, what are the most important HR applications a company could offer to its employees via a Web-based system? • How do you think sales force automation affects salesperson productivity, marketing management, and competitive advantage?

44. 5 Discussion Questions (continued) • How can Internet technologies be involved in improving a process in one of the functions of business? • What are several e-business applications that you might recommend to a small company to help it survive and succeed in challenging economic times?

45. 5 Discussion Questions (continued) • How can Internet technologies be involved in improving a process in one of the functions of business? • What are several e-business applications that you might recommend to a small company to help it survive and succeed in challenging economic times?

46. 5 Discussion Questions (continued) • Which of the 14 tools for enterprise collaboration do you feel are essential for any business to have today? Which do you feel are optional? • Referring to the General Electric example, how do enterprise collaboration systems contribute to bottom-line profits for a business?

47. References 5 • James A. O'Brien; George M. Marakas. Management Information Systems: Managing Information Technology in the Business Enterprise 6th Ed., Boston: McGraw-Hill/ Irwin,2004