1 Introduction to e-Business Systems 5. 2 Learning Objectives Give examples of how Internet and other information technologies support business processes.

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Introduction Introduction to to

e-Business Systemse-Business Systems

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Learning ObjectivesLearning Objectives

• Give examples of how Internet and Give examples of how Internet and other information technologies other information technologies support business processes within support business processes within the business functions of ..the business functions of ..– Accounting,Accounting,– Finance,Finance,– Human resource management,Human resource management,– Marketing, andMarketing, and– Production and operations Production and operations

management.management.

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Learning Objectives (continued)Learning Objectives (continued)

• Identify the following cross-functional Identify the following cross-functional system concepts, and how they can system concepts, and how they can provide significant business value to provide significant business value to a company:a company:– Cross-functional enterprise systemsCross-functional enterprise systems– Enterprise application integrationEnterprise application integration– Transaction processing systemsTransaction processing systems– Enterprise collaboration systemsEnterprise collaboration systems

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Section ISection I

• Functional Business SystemsFunctional Business Systems

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IT in BusinessIT in Business

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

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Marketing SystemsMarketing Systems

• Marketing Information Systems provide Marketing Information Systems provide information technologies that support information technologies that support major components of the marketing major components of the marketing function.function.– Interactive MarketingInteractive Marketing

• Customer focused marketing processCustomer focused marketing process• Based on using Internet, intranets, & extranets to Based on using Internet, intranets, & extranets to

establish two-way communications between establish two-way communications between customers or potential customers and the businesscustomers or potential customers and the business

• Customers become involved in product Customers become involved in product development, delivery, & service issuesdevelopment, delivery, & service issues

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Marketing Systems (continued)Marketing Systems (continued)

– Targeted marketingTargeted marketing• Five targeting componentsFive targeting components

– CommunityCommunity– ContentContent– ContextContext– Demographic/psychographicDemographic/psychographic– Online behaviorOnline behavior

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– Sales Force AutomationSales Force Automation• The sales force is connected to marketing The sales force is connected to marketing

websites on the Internet, extranets, & the websites on the Internet, extranets, & the company intranetcompany intranet

• Increases productivity of sales forceIncreases productivity of sales force• Speeds up the capture & analysis of sales Speeds up the capture & analysis of sales

datadata• Allows management to provide improved Allows management to provide improved

delivery information & better support of the delivery information & better support of the sales force.sales force.

55 Marketing Systems (continued)Marketing Systems (continued)

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Manufacturing SystemsManufacturing Systems

• Support the production/operations Support the production/operations functionfunction

• Assists firms in planning, Assists firms in planning, monitoring, & controlling monitoring, & controlling inventories, purchases, & the flow of inventories, purchases, & the flow of goods and servicesgoods and services

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Manufacturing Systems (continued)Manufacturing Systems (continued)

• Computer-Integrated Manufacturing (CIM)Computer-Integrated Manufacturing (CIM)– SimplifySimplify– AutomateAutomate– IntegrateIntegrate

• Supports the concepts of flexible Supports the concepts of flexible manufacturing systems, agile manufacturing systems, agile manufacturing, & total quality manufacturing, & total quality managementmanagement– Computer-Aided Engineering (CAE)Computer-Aided Engineering (CAE)– Computer-Aided Design (CAD)Computer-Aided Design (CAD)– Material Requirements Planning (MRP)Material Requirements Planning (MRP)

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• Computer-Aided Manufacturing Computer-Aided Manufacturing (CAM)(CAM)– Automate the production processAutomate the production process

• Manufacturing Execution Systems Manufacturing Execution Systems (MES)(MES)– Performance monitoring systems for Performance monitoring systems for

factory floor operationsfactory floor operations

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• Process ControlProcess Control– The use of computers to control an The use of computers to control an

ongoing physical processongoing physical process

• Machine ControlMachine Control– The use of a computer to control the The use of a computer to control the

actions of a machine.actions of a machine.– Also called numerical controlAlso called numerical control

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Human Resource SystemsHuman Resource Systems

• Human Resource Information Human Resource Information SystemsSystems– SupportSupport

• Planning to meet the personnel needs of Planning to meet the personnel needs of the businessthe business

• Development of employees to their full Development of employees to their full potentialpotential

• Recruitment, selection, & hiringRecruitment, selection, & hiring• Job placementJob placement

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Human Resource Systems (continued)Human Resource Systems (continued)

• Human Resource Information Human Resource Information Systems (continued)Systems (continued)

• Performance appraisalsPerformance appraisals• Employee benefits analysisEmployee benefits analysis• Training and developmentTraining and development• Health, safety, & securityHealth, safety, & security

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• HRM and the InternetHRM and the Internet– Allows companies to process most Allows companies to process most

common HRM applications over their common HRM applications over their intranets.intranets.

– Allows companies to provide around-Allows companies to provide around-the-clock services to their employees.the-clock services to their employees.

– Allows companies to disseminate Allows companies to disseminate valuable information faster.valuable information faster.

– Allows employees to perform HRM Allows employees to perform HRM tasks online.tasks online.

55 Human Resource Systems (continued)Human Resource Systems (continued)

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– StaffingStaffing• Supported by information systems that Supported by information systems that

record and track human resources to record and track human resources to maximize their usemaximize their use

– Training and DevelopmentTraining and Development• Help human resource managers plan and Help human resource managers plan and

monitor employee recruitment, training, and monitor employee recruitment, training, and development programsdevelopment programs

55 Human Resource Systems (continued)Human Resource Systems (continued)

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Accounting SystemsAccounting Systems

• Record and report business Record and report business transactions and other economic transactions and other economic eventsevents

• Online Accounting SystemsOnline Accounting Systems

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Accounting Systems (continued)Accounting Systems (continued)

• Six widely used accounting systemsSix widely used accounting systems– Order processingOrder processing

• Captures & processes customer orders and Captures & processes customer orders and produces data needed for sales analysis produces data needed for sales analysis and inventory controland inventory control

– Inventory ControlInventory Control• Processes data reflecting changes in items Processes data reflecting changes in items

in inventory.in inventory.• Helps provide high-quality service while Helps provide high-quality service while

minimizing investment in inventory & minimizing investment in inventory & inventory carrying costsinventory carrying costs

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– Accounts ReceivableAccounts Receivable• Keeps records of amounts owed by Keeps records of amounts owed by

customers from data generated by customers from data generated by customer purchases and paymentscustomer purchases and payments

– Accounts PayableAccounts Payable• Keeps track of data concerning purchases Keeps track of data concerning purchases

from, and payments to, suppliersfrom, and payments to, suppliers

55 Accounting Systems (continued)Accounting Systems (continued)

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– PayrollPayroll• Receives and maintains data from Receives and maintains data from

employee time cards and other work employee time cards and other work recordsrecords

– General LedgerGeneral Ledger• Consolidates data received from accounts Consolidates data received from accounts

receivable, accounts payable, payroll, & receivable, accounts payable, payroll, & other accounting information systemsother accounting information systems

55 Accounting Systems (continued)Accounting Systems (continued)

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Financial Management SystemsFinancial Management Systems

• Supports financial managers in Supports financial managers in decisions concerningdecisions concerning– The financing of the businessThe financing of the business– The allocation & control of financial The allocation & control of financial

resources within the business.resources within the business.

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Financial Management Systems (continued)Financial Management Systems (continued)

• Major financial management system Major financial management system categoriescategories– Cash ManagementCash Management

• Collects information on all cash receipts Collects information on all cash receipts and disbursements on a real-time or and disbursements on a real-time or periodic basisperiodic basis

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– Investment ManagementInvestment Management• Helps the financial manager make buy, Helps the financial manager make buy,

sell, or hold decisions for each type of sell, or hold decisions for each type of security security

• Helps the financial manager develop the Helps the financial manager develop the optimum mix of securities in order to optimum mix of securities in order to minimize risk and maximize returnminimize risk and maximize return

55 Financial Management Systems (continued)Financial Management Systems (continued)

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– Capital BudgetingCapital Budgeting• Involves evaluating the profitability and Involves evaluating the profitability and

financial impact of proposed capital financial impact of proposed capital expendituresexpenditures

• Allows financial managers to analyze long-Allows financial managers to analyze long-term expenditure proposals for plant and term expenditure proposals for plant and equipmentequipment


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– Financial Forecasting & PlanningFinancial Forecasting & Planning• Evaluate the present and projected Evaluate the present and projected

financial performance of the companyfinancial performance of the company• Help determine financing needs and Help determine financing needs and

analyze alternative methods of financinganalyze alternative methods of financing• Explore what-if and goal-seeking Explore what-if and goal-seeking

questionsquestions


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Section IISection II

• Cross-Functional Enterprise SystemsCross-Functional Enterprise Systems

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Cross-Functional Enterprise ApplicationsCross-Functional Enterprise Applications

• Integrated combinations of Integrated combinations of information subsystems that share information subsystems that share information resources and support information resources and support business processes across the business processes across the functional unitsfunctional units

• A strategic way to use IT to share A strategic way to use IT to share information resources & improve information resources & improve efficiency & effectivenessefficiency & effectiveness

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Cross-Functional Enterprise Applications Cross-Functional Enterprise Applications (continued)(continued)

• Enterprise Application ArchitectureEnterprise Application Architecture

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Cross-Functional Enterprise Cross-Functional Enterprise Applications (continued)Applications (continued)

– Focused on accomplishing fundamental Focused on accomplishing fundamental business processes in concert with the business processes in concert with the company’s customer, supplier, partner, company’s customer, supplier, partner, & employee stakeholders& employee stakeholders

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Enterprise Application Integration (EAI)Enterprise Application Integration (EAI)

• Software enables users to model the Software enables users to model the business processes involved in the business processes involved in the interactions that should occur between interactions that should occur between business applications.business applications.

• Also provides middleware thatAlso provides middleware that– Performs data conversion & coordinationPerforms data conversion & coordination– Provides application communication & Provides application communication &

messaging servicesmessaging services– Provides access to the application interfacesProvides access to the application interfaces

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Enterprise Application Integration (continued)Enterprise Application Integration (continued)

• Business valueBusiness value– Integrates front-office and back-office Integrates front-office and back-office

applications to allow for quicker, more applications to allow for quicker, more effective response to business events effective response to business events and customer demandsand customer demands

– Improves customer and suppler Improves customer and suppler experience with the business because experience with the business because of its responsiveness.of its responsiveness.

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Transaction Processing SystemsTransaction Processing Systems

• Cross-functional information Cross-functional information systems that process data resulting systems that process data resulting from the occurrence of business from the occurrence of business transactionstransactions– Transactions – events that occur as part of Transactions – events that occur as part of

doing businessdoing business• SalesSales• PurchasesPurchases• DepositsDeposits• WithdrawalsWithdrawals• RefundsRefunds• Payments Payments

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Transaction Processing Systems (continued)Transaction Processing Systems (continued)

– Online transaction processing systemsOnline transaction processing systems• Real-time systems that capture and Real-time systems that capture and

process transactions immediatelyprocess transactions immediately– Adds value to product or service through Adds value to product or service through

superior customer servicesuperior customer service

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• Transaction Processing CycleTransaction Processing Cycle– Data entryData entry

• The capture of business dataThe capture of business data

– Transaction processingTransaction processing• Two basic waysTwo basic ways

– Batch processing where transaction data are Batch processing where transaction data are accumulated & processed periodicallyaccumulated & processed periodically

– Real-time processing where data are Real-time processing where data are processed immediately after a transaction processed immediately after a transaction occursoccurs

55 Transaction Processing Systems (continued)Transaction Processing Systems (continued)

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– Database maintenanceDatabase maintenance• Corporate databases are updated to Corporate databases are updated to

reflect the day-to-day business reflect the day-to-day business transactionstransactions

– Document and report generationDocument and report generation• A variety of documents and reports are A variety of documents and reports are

producedproduced


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– Inquiry processingInquiry processing• Inquiries and responses concerning the Inquiries and responses concerning the

results of transaction processing activityresults of transaction processing activity

55 Transaction Transaction ProcessingProcessing Systems (continued) Systems (continued)

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Enterprise Collaboration SystemsEnterprise Collaboration Systems

• Cross-functional e-business systems that Cross-functional e-business systems that enhance communication, coordination, & enhance communication, coordination, & collaborationcollaboration– Communicate – share information with each Communicate – share information with each

otherother– Coordinate – coordinate individual work Coordinate – coordinate individual work

efforts & use of resources with each other.efforts & use of resources with each other.– Collaborate – work together cooperatively on Collaborate – work together cooperatively on

joint projects and assignmentsjoint projects and assignments

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Enterprise Collaboration Systems (continued)Enterprise Collaboration Systems (continued)

• Tools for Enterprise CollaborationTools for Enterprise Collaboration– Electronic communicationElectronic communication

• E-mailE-mail• Voice mailVoice mail• FaxFax• Web publishingWeb publishing• Bulletin boardsBulletin boards• PagingPaging• Internet phone systemsInternet phone systems

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Enterprise Collaboration Systems (continued)Enterprise Collaboration Systems (continued)

– Electronic conferencingElectronic conferencing• Data & voice conferencingData & voice conferencing• VideoconferencingVideoconferencing• Chat systemsChat systems• Discussion forumsDiscussion forums• Electronic meeting systemsElectronic meeting systems

– Synchronous. Team members can meet at the Synchronous. Team members can meet at the same time and place in a “decision room” same time and place in a “decision room” settingsetting

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– Collaborative work managementCollaborative work management• Calendaring & schedulingCalendaring & scheduling• Task & project managementTask & project management• Workflow systemsWorkflow systems• Knowledge managementKnowledge management

55 Enterprise Collaboration Systems (continued)Enterprise Collaboration Systems (continued)

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Discussion QuestionsDiscussion Questions

• Why is there a trend toward cross-Why is there a trend toward cross-functional integrated enterprise functional integrated enterprise systems in business?systems in business?

• Referring to the example on Dell Referring to the example on Dell Computer, what other solutions Computer, what other solutions could there be for the problem of could there be for the problem of information system incompatibility in information system incompatibility in business besides EAI systems?business besides EAI systems?

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Discussion Questions (continued)Discussion Questions (continued)

• Referring to the Charles Schwab & Co. Referring to the Charles Schwab & Co. example, what are the most important example, what are the most important HR applications a company could offer HR applications a company could offer to its employees via a Web-based to its employees via a Web-based system?system?

• How do you think sales force How do you think sales force automation affects salesperson automation affects salesperson productivity, marketing management, productivity, marketing management, and competitive advantage?and competitive advantage?

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• How can Internet technologies be How can Internet technologies be involved in improving a process in involved in improving a process in one of the functions of business?one of the functions of business?

• What are several e-business What are several e-business applications that you might applications that you might recommend to a small company to recommend to a small company to help it survive and succeed in help it survive and succeed in challenging economic times?challenging economic times?

55 Discussion Questions (continued)Discussion Questions (continued)

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• How can Internet technologies be How can Internet technologies be involved in improving a process in involved in improving a process in one of the functions of business?one of the functions of business?

• What are several e-business What are several e-business applications that you might applications that you might recommend to a small company to recommend to a small company to help it survive and succeed in help it survive and succeed in challenging economic times?challenging economic times?


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• Which of the 14 tools for enterprise Which of the 14 tools for enterprise collaboration do you feel are essential for collaboration do you feel are essential for any business to have today? Which do any business to have today? Which do you feel are optional?you feel are optional?

• Referring to the General Electric example, Referring to the General Electric example, how do enterprise collaboration systems how do enterprise collaboration systems contribute to bottom-line profits for a contribute to bottom-line profits for a business?business?


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ReferencesReferences

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

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1 Introduction to e-Business Systems 5. 2 Learning Objectives Give examples of how Internet and other information technologies support business processes.

Documents

valuable information

marketing function

marketing websites

human resource management

business functions

agile manufacturing

significant business

operations management