Chap005 MIS
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,728
On Slideshare
1,728
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
71
Comments
0
Likes
4

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. 1Chapter 5 Introduction to e-Business SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. 2 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 3. 3 Learning Objectives (continued)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 systemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 4. 4 Section I Functional Business SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 5. 5 IT in Business“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.”McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 6. 6 Marketing Systems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 issuesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 7. 7 Marketing Systems (continued) Targeted marketing Five targeting components Community Content Context Demographic/psychographic Online behaviorMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 8. 8 Marketing Systems (continued) 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 9. 9 Manufacturing SystemsSupport the production/operations functionAssists firms in planning, monitoring, & controlling inventories, purchases, & the flow of goods and servicesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 10. 10 Manufacturing Systems (continued) 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)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 11. 11 Manufacturing Systems (continued)Computer-Aided Manufacturing (CAM) Automate the production processManufacturing Execution Systems (MES) Performance monitoring systems for factory floor operationsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 12. 12 Manufacturing Systems (continued)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 controlMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 13. 13 Human Resource Systems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 placementMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 14. 14 Human Resource Systems (continued)Human Resource Information Systems (continued) Performance appraisals Employee benefits analysis Training and development Health, safety, & securityMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 15. 15 Human Resource Systems (continued)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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 16. 16 Human Resource Systems (continued) 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 programsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 17. 17 Accounting SystemsRecord and report business transactions and other economic eventsOnline Accounting SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 18. 18 Accounting Systems (continued)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 costsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 19. 19 Accounting Systems (continued) 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, suppliersMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 20. 20 Accounting Systems (continued) 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 systemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 21. 21 Financial Management SystemsSupports financial managers in decisions concerning The financing of the business The allocation & control of financial resources within the business.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 22. 22 Financial Management Systems (continued)Major financial management system categories Cash Management Collects information on all cash receipts and disbursements on a real-time or periodic basisMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 23. 23 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 returnMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 24. 24 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 equipmentMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 25. 25 Financial Management System (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 questionsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 26. 26 Section II Cross-Functional Enterprise SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 27. 27 Cross-Functional Enterprise Applications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 & effectivenessMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 28. 28 Cross-Functional Enterprise Applications (continued) Enterprise Application ArchitectureMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 29. 29 Cross-Functional Enterprise Applications (continued) Focused on accomplishing fundamental business processes in concert with the company’s customer, supplier, partner, & employee stakeholdersMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 30. 30 Enterprise Application Integration (EAI)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 interfacesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 31. 31 Enterprise Application Integration (continued)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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 32. 32 Transaction Processing Systems 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  PaymentsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 33. 33 Transaction Processing Systems (continued) Online transaction processing systems Real-time systems that capture and process transactions immediately Adds value to product or service through superior customer serviceMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 34. 34 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 occursMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 35. 35 Transaction Processing Systems (continued) 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 producedMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 36. 36 Transaction Processing Systems (continued) Inquiry processing Inquiries and responses concerning the results of transaction processing activityMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 37. 37 Transaction Processing Systems (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 38. 38 Enterprise Collaboration Systems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 assignmentsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 39. 39 Enterprise Collaboration Systems (continued)Tools for Enterprise Collaboration Electronic communication E-mail Voice mail Fax Web publishing Bulletin boards Paging Internet phone systemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 40. 40 Enterprise Collaboration Systems (continued) 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” settingMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 41. 41 Enterprise Collaboration Systems (continued) Collaborative work management Calendaring & scheduling Task & project management Workflow systems Knowledge managementMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 42. 42 Discussion Questions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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 43. 43 Discussion Questions (continued)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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 44. 44 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 45. 45 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 46. 46 Real World Case 1 – Cypress Semiconductor & FleetBostonHow does the use of Internet technologies to support the marketing function at Cypress Semiconductor improve business and customer value?What are the benefits and potential challenges of FleetBoston’s use of IT to support their targeted marketing programs?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 47. 47 Real World Case 1 (continued)Why do IT-based targeted marketing programs sometimes produce negative business results?How can negative business results be avoided?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 48. 48 Real World Case 1 (continued)How can customer segmentation and targeted marketing programs that focus on customer profitability avoid “ignoring customers with low current returns but high potential”?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 49. 49 Real World Case 2 – Johnson ControlsWhy is the exchange of “tribal knowledge” important in product design?How do Web-based systems support such collaborations?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 50. 50 Real World Case 2 (continued)Why is it important to provide visibility throughout a supply chain?How is JCI attempting to provide this visibility?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 51. 51 Real World Case 2 (continued)What is the business value of JCI’s B2B portal?Can collaboration systems improve the quality of the products that are designed, as well as reducing the cost and time of the design process?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 52. 52 Real World Case 3 – Union Pacific, Corporate Express, & Best BuyHow could an enterprise application integration system help a firm to better serve its customers?How could enterprise application systems improve a company’s business interactions with its suppliers?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 53. 53 Real World Case 3 (continued)What major challenges are faced by businesses that implement EAI initiatives?How can companies meet those challenges?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 54. 54 Real World Case 4 – Baxter InternationalWhat key HR applications are provided by Baxter’s Web-based HR system?What are some other Web-based HR applications they might implement?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 55. 55 Real World Case 4 (continued)What business value does Baxter derive from their Web-based HR approach?What value do their employees receive from such HR systems?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 56. 56 Real World Case 4 (continued)How could viewing employees as customers or clients change how HR services are provided to employees by Web-based HR systems?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 57. 57 Real World Case 5 – IBM CorporationWhy have many companies been reluctant to support instant messaging in the workplace?What are the advantages of instant messaging over e-mail and voice mail for enterprise collaboration?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 58. 58 Real World Case 5 (continued)What do you see as the major disadvantages of using instant messenger instead of e-mail or voice mail?Do you recommend that companies encourage and support the use of IM tools for enterprise collaboration?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.