1Chapter   5                       Introduction                            to                    e-Business SystemsMcGraw-...
2                    Learning ObjectivesGive  examples of how Internet and other  information technologies support busine...
3                    Learning Objectives (continued)Identify  the following cross-functional system  concepts, and how th...
4                             Section I                    Functional Business SystemsMcGraw-Hill/Irwin            Copyrig...
5                    IT in Business“Business   managers are moving from a  tradition where they could avoid, delegate, or...
6                    Marketing SystemsMarketing   Information Systems provide  information technologies that support majo...
7                    Marketing Systems (continued)   Targeted    marketing       Five targeting components        Commu...
8                    Marketing Systems (continued)   Sales   Force Automation       The sales force is connected to mark...
9                     Manufacturing SystemsSupport            the production/operations functionAssists firms in plannin...
10                    Manufacturing Systems (continued) Computer-Integrated        Manufacturing (CIM)    Simplify    A...
11                    Manufacturing Systems (continued)Computer-Aided   Manufacturing (CAM)   Automate the production pr...
12                    Manufacturing Systems (continued)Process  Control   The use of computers to control an ongoing    ...
13                    Human Resource SystemsHuman   Resource Information Systems   Support    Planning to meet the pers...
14                    Human Resource Systems (continued)Human    Resource Information Systems  (continued)     Performan...
15                    Human Resource Systems (continued)HRM     and the Internet   Allows companies to process most comm...
16                    Human Resource Systems (continued)   Staffing       Supported                by information system...
17                    Accounting SystemsRecord   and report business transactions and  other economic eventsOnline      ...
18                    Accounting Systems (continued)Six  widely used accounting systems   Order processing     Captures...
19                    Accounting Systems (continued)   Accounts   Receivable       Keeps records of amounts owed by     ...
20                    Accounting Systems (continued)   Payroll       Receives and maintains data from         employee t...
21             Financial Management SystemsSupports   financial managers in decisions  concerning   The financing of the...
22                    Financial Management Systems (continued)Major   financial management system  categories   Cash Man...
23                    Financial Management Systems (continued)   Investment     Management       Helps the financial man...
24                    Financial Management Systems (continued)   Capital   Budgeting       Involves evaluating the profi...
25                    Financial Management System (continued)   Financial   Forecasting & Planning       Evaluate the pr...
26                      Section II          Cross-Functional Enterprise SystemsMcGraw-Hill/Irwin      Copyright © 2004, Th...
27   Cross-Functional Enterprise ApplicationsIntegrated combinations of information subsystems that share information res...
28                    Cross-Functional Enterprise Applications (continued) Enterprise        Application ArchitectureMcGr...
29                    Cross-Functional Enterprise Applications (continued)   Focused    on accomplishing fundamental     ...
30    Enterprise Application Integration (EAI)Software   enables users to model the business  processes involved in the i...
31                    Enterprise Application Integration (continued)Business   value   Integrates front-office and back-...
32             Transaction Processing Systems Cross-functional  information systems that process  data resulting from the...
33                    Transaction Processing Systems (continued)   Online   transaction processing systems       Real-ti...
34                    Transaction Processing Systems (continued)Transaction        Processing Cycle    Data entry      ...
35                    Transaction Processing Systems (continued)   Database     maintenance       Corporate databases ar...
36                    Transaction Processing Systems (continued)   Inquiry    processing       Inquiries and responses c...
37                    Transaction Processing Systems (continued)McGraw-Hill/Irwin                Copyright © 2004, The McG...
38           Enterprise Collaboration SystemsCross-functional   e-business systems that  enhance communication, coordinat...
39                    Enterprise Collaboration Systems (continued)Tools  for Enterprise Collaboration   Electronic commu...
40                    Enterprise Collaboration Systems (continued)   Electronic   conferencing       Data & voice confer...
41                    Enterprise Collaboration Systems (continued)   Collaborative  work management       Calendaring & ...
42                    Discussion QuestionsWhy    is there a trend toward cross-functional  integrated enterprise systems ...
43                    Discussion Questions (continued)Referring  to the Charles Schwab & Co.  example, what are the most ...
44                    Discussion Questions (continued)How   can Internet technologies be involved in  improving a process...
45                    Discussion Questions (continued)Which   of the 14 tools for enterprise  collaboration do you feel a...
46   Real World Case 1 – Cypress Semiconductor & FleetBostonHow   does the use of Internet technologies to  support the m...
47                      Real World Case 1 (continued)Why   do IT-based targeted marketing  programs sometimes produce neg...
48                    Real World Case 1 (continued)How    can customer segmentation and targeted  marketing programs that...
49      Real World Case 2 – Johnson ControlsWhy  is the exchange of “tribal knowledge”  important in product design?How ...
50                    Real World Case 2 (continued)Why   is it important to provide visibility  throughout a supply chain...
51                    Real World Case 2 (continued)What   is the business value of JCI’s B2B  portal?Can   collaboration...
52 Real World Case 3 – Union Pacific, Corporate Express, & Best                            BuyHow    could an enterprise ...
53                     Real World Case 3 (continued)What   major challenges are faced by  businesses that implement EAI i...
54   Real World Case 4 – Baxter InternationalWhat   key HR applications are provided by  Baxter’s Web-based HR system?Wh...
55                    Real World Case 4 (continued)What   business value does Baxter derive from  their Web-based HR appr...
56                    Real World Case 4 (continued)How    could viewing employees as customers or  clients change how HR ...
57      Real World Case 5 – IBM CorporationWhy   have many companies been reluctant to  support instant messaging in the ...
58                    Real World Case 5 (continued)What    do you see as the major disadvantages of  using instant messen...
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Chap005 MIS

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Chap005 MIS

  1. 1. 1Chapter 5 Introduction to e-Business SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  2. 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. 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. 4 Section I Functional Business SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  5. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 26 Section II Cross-Functional Enterprise SystemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  27. 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. 28 Cross-Functional Enterprise Applications (continued) Enterprise Application ArchitectureMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  29. 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. 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. 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. 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. 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. 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. 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. 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. 37 Transaction Processing Systems (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  38. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.
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