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7-1 Learning Objectives – Chapter 7 Electronic Business Systems

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7-1 Learning Objectives – Chapter 7 Electronic Business Systems

  1. 1. Learning Objectives – Chapter 7 Electronic Business Systems <ul><li>Define each of following system: </li></ul><ul><li>ERP(enterprise resource planning) </li></ul><ul><li>SCM (supply chain management) </li></ul><ul><li>CRM (customer relationship management) </li></ul><ul><li>Describe one example of how this type of system can be utilized as a strategic information system? </li></ul>7-
  2. 2. History of IS within Organizations 7-
  3. 3. 7-
  4. 4. Problems of Functional Systems 7-
  5. 5. Electronic Business * <ul><li>E-Commerce (Chapter 8) the buying and selling , marketing and servicing, delivery and payment of products, services, and information over the Internet, intranets, extranets, and other networks between customers, suppliers, and other business partners. </li></ul><ul><li>E-Business – includes E-commerce plus the on-line exchange of information. </li></ul><ul><ul><li>Collaboration and communication </li></ul></ul><ul><ul><li>Web-enabled business processes </li></ul></ul>7-
  6. 6. Enterprise Application Architecture * 7-
  7. 7. System Software 7- Enterprise Customers Vendors Products $ Resources $ CRM Kana Siebel SAP Oracle Clarify Pivotal ERP Baan Oracle SAP SCM Baan i2Tech Manugistics Oracle SAP
  8. 8. Enterprise Architecture (1) <ul><li>Facilitate change management by linking strategic requirements to systems that support them and by linking the business architecture to application architecture. </li></ul><ul><li>Enable strategic information to be consistently and accurately derived from operational data </li></ul><ul><li>startsmarts and zero delta... </li></ul>7-
  9. 9. Enterprise Architecture (2) <ul><li>Promote data sharing in hopes of reducing data redundancy and maintenance costs </li></ul><ul><li>Improve productivity through component and service development, management and reuse </li></ul><ul><li>Reduce software development cycle time by providing tools, models, catalogs of services, etc </li></ul>7-
  10. 10. Enterprise Architecture (3) <ul><li>Rigorous and standardized way to evaluate commercial products and services </li></ul><ul><li>Construct the extended enterprise where customers and business partners interact electronically. </li></ul><ul><li>Unify regulatory and legal compliance efforts </li></ul><ul><li>Gain discipline around common IT security practices </li></ul>7-
  11. 11. THE CONNECTED CORPORATION <ul><li>General audience and purpose of SCM, CRM and ERP </li></ul>
  12. 12. THE CONNECTED CORPORATION <ul><li>Data points where SCM, CRM, and ERP integrate </li></ul>
  13. 13. THE CONNECTED CORPORATION <ul><li>At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system </li></ul>
  14. 14. CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH <ul><li>Forecasts for CRM Spending (in billions) </li></ul>
  15. 15. CUSTOMER RELATIONSHIP MANAGEMENT’S EXPLOSIVE GROWTH <ul><li>CRM Business Drivers </li></ul>
  16. 16. Customer Relationship Management Systems (CRM) <ul><li>CRM uses technology to create a cross-functional enterprise system. Integrates and automates many of the processes in sales, marketing and customer service that interact with customers. </li></ul><ul><li>Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers </li></ul><ul><li>Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers </li></ul>7-
  17. 17. 7-
  18. 18. Analytical CRM 7-
  19. 19. Operational CRM supports customer life cycle 7-
  20. 20. Customer Service and Operational CRM
  21. 21. USING IT TO DRIVE ANALYTICAL CRM <ul><li>Personalization – when a Web site knows enough about a persons likes and dislikes that it can fashion offers that are more likely to appeal to that person </li></ul><ul><li>Analytical CRM relies heavily on data warehousing technologies and business intelligence to glean insights into customer behavior </li></ul><ul><li>These systems quickly aggregate, analyze, and disseminate customer information throughout an organization </li></ul>
  22. 22. USING IT TO DRIVE ANALYTICAL CRM <ul><li>Analytical CRM information examples </li></ul><ul><ul><li>Give customers more of what they want </li></ul></ul><ul><ul><li>Value their time </li></ul></ul><ul><ul><li>Overdeliver </li></ul></ul><ul><ul><li>Contact frequently </li></ul></ul><ul><ul><li>Generate a trustworthy mailing list </li></ul></ul><ul><ul><li>Follow up </li></ul></ul>
  23. 23. CUSTOMER RELATIONSHIP MANAGEMENT’S SUCCESS FACTORS <ul><li>CRM success factors include: </li></ul><ul><ul><li>Clearly communicate the CRM strategy </li></ul></ul><ul><ul><li>Define information needs and flows </li></ul></ul><ul><ul><li>Build an integrated view of the customer </li></ul></ul><ul><ul><li>Implement in iterations </li></ul></ul><ul><ul><li>Scalability for organizational growth </li></ul></ul>
  24. 24. ERP application components 7- Enterprise resource planning – integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make decisions by viewing information on all business operations
  25. 25. Costs of implementing a new ERP * 7-
  26. 26. BASICS OF SUPPLY CHAIN <ul><li>Organizations must embrace technologies that can effectively manage supply chains </li></ul>
  27. 27. INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN <ul><li>IT’s primary role is to create integrations or tight process and information linkages between functions within a firm </li></ul>
  28. 28. Electronic Data Interchange * <ul><li>EDI - The automatic electronic exchange of standard business documents between computers of different organizations. </li></ul>7-
  29. 29. Marketing Information Systems 7-
  30. 30. HRM Systems 7-
  31. 31. Accounting Information Systems * 7-
  32. 32. Financial Management System Examples 7-

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