Chapter Four


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Chapter Four

  1. 1. Intro to Information Technology <ul><li>Wednesday, Nov 13 th </li></ul><ul><li>Final Exam : Dec 11th 7pm – 9pm </li></ul><ul><li>Chapter Four – Electronic Business Systems </li></ul><ul><li>Chapter Five – Electronic Commerce Systems </li></ul>
  2. 2. E-business Application Architecture
  3. 3. E-business Application Architecture <ul><li>This diagram illustrates the application components, interrelationships, and interfaces with </li></ul><ul><ul><li>customers </li></ul></ul><ul><ul><li>employees </li></ul></ul><ul><ul><li>business partners </li></ul></ul><ul><ul><li>other stakeholders in the E-business enterprise </li></ul></ul>
  4. 4. E-business Application Architecture <ul><li>It gives a good overview of </li></ul><ul><ul><li>interrelatedness </li></ul></ul><ul><ul><li>Interdependence </li></ul></ul><ul><ul><li>Integration </li></ul></ul><ul><li>Of the E-Business applications that are vital components of the successful operations and management of an E-business enterprise </li></ul>
  5. 5. Cross Functional Systems <ul><li>Cross Functional Business System </li></ul><ul><ul><li>These systems support business processes such as product development, production, distribution, order management, customer support, etc </li></ul></ul><ul><li>Cross Functional Enterprise System </li></ul><ul><ul><li>Cross the boundaries of traditional business functions </li></ul></ul><ul><ul><li>Reengineer and improve vital business processes all across the enterprise </li></ul></ul>
  6. 6. Cross Functional Systems <ul><li>Organizations view cross functional enterprise systems as strategic way to use IT to </li></ul><ul><ul><li>Share information resources </li></ul></ul><ul><ul><li>Improve efficiency and effectiveness of business processes </li></ul></ul><ul><ul><li>Help business attain strategic objectives </li></ul></ul>
  7. 7. Enterprise Resource Planning <ul><li>ERP is a cross functional enterprise system that serves as a framework to integrate and automate many of the business processes within </li></ul><ul><ul><li>Manufacturing </li></ul></ul><ul><ul><li>Logistics </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><li>Accounting </li></ul></ul><ul><ul><li>Human Resources </li></ul></ul>
  8. 8. Enterprise Resource Planning <ul><li>ERP software is a family of software that supports the business activities involved in back office processes </li></ul><ul><li>Example : ERP software for a manufacturing company will typically </li></ul><ul><ul><li>Track status of sales, inventory, shipping, and invoices </li></ul></ul><ul><ul><li>Forecast raw material and human resource materials </li></ul></ul>
  9. 9. Enterprise Resource Planning <ul><li>Companies began to implement ERP as a vital conceptual foundation for re-engineering their business processes, and as the software engine required to accomplish these new cross functional processes </li></ul><ul><li>Now ERP is a necessary part of an E-business enterprise that requires efficiency, agility, and responsiveness </li></ul>
  10. 10. Enterprise Resource Planning <ul><li>Companies are finding business value in two major ways </li></ul><ul><ul><li>ERP creates a framework for integrating and improving their back office systems that results in major improvements in customer service, production, and distribution efficiency </li></ul></ul><ul><ul><li>ERP provides vital cross functional information quickly on business performance to managers to significantly improve their ability to make better business decisions </li></ul></ul>
  11. 11. Customer Relationship Management <ul><li>It costs six times more to sell to a new customer than to an existing one </li></ul><ul><li>A typical dissatisfied customer will tell eight to ten people about their experience </li></ul><ul><li>A company can boost its profits by 85% by increasing its annual customer retention by only 5% </li></ul><ul><li>The odds of selling a product to a new customer are 15%; an existing customer 50% </li></ul>
  12. 12. Customer Relationship Management <ul><li>Businesses are turning to customer relationship management as a major customer-centric business strategy </li></ul><ul><li>CRM uses info technology to create a cross functional enterprise system that integrates and automates many of the customer serving processes in sales, marketing and product services that interact with a company’s customers </li></ul>
  13. 13. Customer Relationship Management <ul><li>Create an IT framework that integrates all of these processes with the rest of a company’s business processes </li></ul><ul><li>Consist of a family of software modules that perform the business activities </li></ul><ul><li>Provides tools that enable a business and its employees to provide fast, convenient, dependable, and consistent service to its customers </li></ul>
  14. 14. Customer Relationship Management <ul><li>CRM systems typically include </li></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><ul><li>Track customer contacts and other business and life cycle events of customers </li></ul></ul></ul><ul><ul><li>Direct Marketing and Fulfillment </li></ul></ul><ul><ul><ul><li>Automate tasks such as qualifying leads, managing responses, scheduling sales contacts, and providing information to prospects and customers </li></ul></ul></ul>
  15. 15. Customer Relationship Management <ul><li>CRM systems typically include continued… </li></ul><ul><ul><li>Customer Service and Support </li></ul></ul><ul><ul><ul><li>Helps customer service managers quickly create, assign, and manage service requests </li></ul></ul></ul><ul><ul><ul><li>Help desk software assists customer service reps in helping customers who are having problems by providing relevant service data and suggestions for resolving problems </li></ul></ul></ul>
  16. 16. Customer Relationship Management <ul><li>Business benefits of CRM Systems </li></ul><ul><ul><li>Ability to identify and target best customers </li></ul></ul><ul><ul><li>Allows real-time customization and personalization of products and services based on customer wants, needs, buying habits, and life cycles </li></ul></ul><ul><ul><li>Keeps track of when a customer contacts the company regardless of contact point </li></ul></ul>
  17. 17. Customer Relationship Management Sales Cross-Sell Up-Sell TeleSales Store Front and Field Service Marketing and Fulfillment Customer Service and Support Retention and Loyalty Programs Customer Contact Management
  18. 18. Customer Relationship Management <ul><li>Business benefits of CRM Systems continued… </li></ul><ul><ul><li>Enables the company to provide consistent customer experience and superior service and support across all contact points </li></ul></ul><ul><li>These benefits provide strategic business value to a company and major customer value to its customers </li></ul>
  19. 19. Enterprise Application Integration <ul><li>Interconnects several E-business application clusters </li></ul><ul><li>Enables users to model the business processes involved in the interactions that should occur between business applications </li></ul><ul><li>EAI software can integrate a variety of enterprise application clusters by letting them exchange data according to business process rules </li></ul>
  20. 20. Enterprise Application Integration <ul><li>EAI software can integrate the front and back office applications of an e-business so they work together in a seamless integrated way </li></ul><ul><li>This is a vital capability that provides real business value to an e-business enterprise that must respond quickly and effectively to business events and customer requests </li></ul><ul><li>Integrates access to all customer and product data customer reps need to access quickly </li></ul>
  21. 21. Front Office Applications <ul><li>CRM Application </li></ul><ul><li>Customer Service </li></ul><ul><li>Field Service </li></ul><ul><li>Sales Order </li></ul><ul><li>Product Config </li></ul>Back Office Applications <ul><li>ERP Application </li></ul><ul><li>Distribution </li></ul><ul><li>Manufacturing </li></ul><ul><li>Scheduling </li></ul><ul><li>Finance </li></ul>Enterprise Application Integration Enterprise Application Cluster Enterprise Application Cluster Customers Suppliers Business Partners
  22. 22. Supply Chain Management <ul><li>E-Commerce customer value imperative </li></ul><ul><ul><li>What the customer wants, when and where its wanted, at the lowest possible cost </li></ul></ul><ul><li>Supply chain </li></ul><ul><ul><li>The interrelationships with other businesses needed to build and sell a product, the network of business relationships </li></ul></ul>
  23. 23. Supply Chain Management <ul><li>SCM Software </li></ul><ul><ul><li>Significantly reduce costs, increase efficiency, and improve supply chain cycle time </li></ul></ul><ul><ul><li>Help improve inter-enterprise coordination among supply chain process players for more effective distribution and and channel networks among business partners </li></ul></ul>
  24. 24. Schedule Make Deliver Transportation Planning Demand Planning Order Commitment Advance Scheduling Manufacturing Planning Distribution Planning Internetworked Supply Chain Management Supply Chain Life Cycle SCM Functional Processes SCM Integrated Solution
  25. 25. Online Transaction Processing <ul><li>Transaction processing systems </li></ul><ul><ul><li>Cross functional info systems that process data resulting from the occurrence of business transactions </li></ul></ul><ul><li>Transactions </li></ul><ul><ul><li>Events that occur as a part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments </li></ul></ul>
  26. 26. Online Transaction Processing <ul><li>Transaction processing activities are needed to capture and process data involved in transactions </li></ul><ul><li>Online transaction processing systems </li></ul><ul><ul><li>Real-time systems that capture and process transactions immediately </li></ul></ul><ul><ul><li>Can help provide superior service to customers and other trading partners </li></ul></ul>
  27. 27. Online Transaction Processing <ul><li>Transaction Processing Cycle </li></ul><ul><ul><li>Data Entry </li></ul></ul><ul><ul><ul><li>Capture of business data </li></ul></ul></ul><ul><ul><li>Transaction processing </li></ul></ul><ul><ul><ul><li>Batch processing is where data is collected and processed periodically over time </li></ul></ul></ul><ul><ul><ul><li>Real-time processing is where data is processed immediately after a transaction occurs </li></ul></ul></ul><ul><ul><ul><li>All OTP systems use real-time processing </li></ul></ul></ul>
  28. 28. Online Transaction Processing <ul><li>Transaction Processing Cycle continued.. </li></ul><ul><ul><li>Database maintenance </li></ul></ul><ul><ul><ul><li>Databases must always be correct and up-to-date </li></ul></ul></ul><ul><ul><ul><li>Transaction processing systems update corporate databases to reflect changes made in day-to-day processing </li></ul></ul></ul>
  29. 29. Online Transaction Processing <ul><li>Transaction Processing Cycle continued.. </li></ul><ul><ul><li>Document and Report Generation </li></ul></ul><ul><ul><ul><li>Purchase orders </li></ul></ul></ul><ul><ul><ul><li>Pay cheques </li></ul></ul></ul><ul><ul><ul><li>Sales receipts </li></ul></ul></ul><ul><ul><ul><li>Invoices </li></ul></ul></ul><ul><ul><ul><li>Customer statements </li></ul></ul></ul>
  30. 30. Online Transaction Processing <ul><li>Transaction Processing Cycle continued.. </li></ul><ul><ul><li>Inquiry processing </li></ul></ul><ul><ul><ul><li>Make inquiries and receive responses concerning the results of transaction processing activities </li></ul></ul></ul><ul><ul><ul><li>Check on status of an order </li></ul></ul></ul><ul><ul><ul><li>Get account balances </li></ul></ul></ul><ul><ul><ul><li>Amount of stock in inventory </li></ul></ul></ul>
  31. 31. Database Maintenance <ul><li>Transaction </li></ul><ul><li>Processing </li></ul><ul><li>Batch </li></ul><ul><li>Online/Realtime </li></ul>Data Entry Document and Report Generation Inquiry Processing 1 2 3 4 5
  32. 32. Functional E-Business Systems <ul><li>Systems that support the business functions of </li></ul><ul><ul><li>Accounting </li></ul></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Operations management </li></ul></ul><ul><ul><li>Human resource management </li></ul></ul>
  33. 33. Functional E-Business Systems <ul><li>Marketing Info Systems </li></ul><ul><ul><li>Interactive Marketing </li></ul></ul><ul><ul><ul><li>Customer focused marketing process </li></ul></ul></ul><ul><ul><ul><li>Two way transaction between business and customer </li></ul></ul></ul><ul><ul><ul><li>Encourages customers to become involved in product development, delivery and service issues </li></ul></ul></ul><ul><ul><ul><li>Enabled by various Internet technologies such as chat rooms, discussion forums, email, etc </li></ul></ul></ul>
  34. 34. Functional E-Business Systems <ul><li>Marketing Info Systems continued… </li></ul><ul><ul><li>Targeted marketing </li></ul></ul><ul><ul><ul><li>Appeal to people in specific communities </li></ul></ul></ul><ul><ul><ul><li>Banners or billboards can be placed on websites other than the companies home page </li></ul></ul></ul><ul><ul><ul><li>Ads are only placed on related sites </li></ul></ul></ul><ul><ul><ul><li>Aimed at specific demographics of people </li></ul></ul></ul><ul><ul><ul><li>Track person’s online behavior to target each visitor personally </li></ul></ul></ul>
  35. 35. Functional E-Business Systems <ul><li>Marketing Info Systems continued… </li></ul><ul><ul><li>Sales Force Automation </li></ul></ul><ul><ul><ul><li>Outfitting the sales force with notebook computers, web sites, and software </li></ul></ul></ul><ul><ul><ul><li>Increases personal productivity of sales people </li></ul></ul></ul><ul><ul><ul><li>Speeds up capture and analysis of sales data from the field to headquarters </li></ul></ul></ul>
  36. 36. Marketing Information Systems Interactive Marketing Sales Force Automation Customer Relationship Management Sales Management Market Research and Forecasting Advertising and Promotions Product Management
  37. 37. Functional E-Business Systems <ul><li>Manufacturing Systems </li></ul><ul><ul><li>Computer Integrated Manufacturing </li></ul></ul><ul><ul><ul><li>Simplify production processes, product designs, and factory organization </li></ul></ul></ul><ul><ul><ul><li>Automate production processes and the business functions that support them with computers, machines, and robots </li></ul></ul></ul><ul><ul><ul><li>Integrate all production and support processes using computers, telecommunications netowrks and other info technologies </li></ul></ul></ul>
  38. 38. Functional E-Business Systems <ul><li>Manufacturing Systems </li></ul><ul><ul><li>Process Control </li></ul></ul><ul><ul><ul><li>Use of computers to control an ongoing physical process </li></ul></ul></ul><ul><ul><li>Machine Control </li></ul></ul><ul><ul><ul><li>Use of a computer to control the actions of a machine </li></ul></ul></ul><ul><ul><li>Robotics </li></ul></ul><ul><ul><ul><li>These devices control their own activities </li></ul></ul></ul><ul><ul><ul><li>Used to increase productivity and cut costs </li></ul></ul></ul>
  39. 39. Engineering Systems <ul><li>CAD </li></ul><ul><li>CAE </li></ul><ul><li>Computer- </li></ul><ul><li>Aided </li></ul><ul><li>Process </li></ul><ul><li>Planning </li></ul>Manufacturing Execution Systems <ul><li>Shop Floor </li></ul><ul><li>Scheduling </li></ul><ul><li>Machine Control </li></ul><ul><li>Process Control </li></ul><ul><li>Robotic Control </li></ul>Computer Integrated Manufacturing Manufacturing Resource Planning <ul><li>Production </li></ul><ul><li>Forecasting </li></ul><ul><li>Production </li></ul><ul><li>Scheduling </li></ul><ul><li>Quality Control </li></ul>Remote Worker Supplier Extranet Intranet
  40. 40. Functional E-Business Systems <ul><li>Human Resource Systems </li></ul><ul><ul><li>Planning to meet the future needs of the organization </li></ul></ul><ul><ul><li>Development of employees to their full potential </li></ul></ul><ul><ul><li>Control of all personnel policies and programs </li></ul></ul>
  41. 41. <ul><li>Manpower </li></ul><ul><li>Planning </li></ul><ul><li>Labor Force </li></ul><ul><li>Tracking </li></ul><ul><li>Labor Cost </li></ul><ul><li>Analysis </li></ul><ul><li>Turnover </li></ul><ul><li>Analysis </li></ul><ul><li>Recruitment </li></ul><ul><li>Workforce </li></ul><ul><li>Planning </li></ul><ul><li>Skill assessment </li></ul><ul><li>Performance </li></ul><ul><li>evaluation </li></ul><ul><li>Payroll </li></ul><ul><li>control </li></ul><ul><li>Benefits </li></ul><ul><li>Administration </li></ul><ul><li>Compensation </li></ul><ul><li>effectiveness </li></ul><ul><li>Benefits </li></ul><ul><li>Analysis </li></ul><ul><li>Contract </li></ul><ul><li>costing </li></ul><ul><li>Salary forecast </li></ul><ul><li>Succession </li></ul><ul><li>planning </li></ul><ul><li>Performance </li></ul><ul><li>appraisal plans </li></ul><ul><li>Training </li></ul><ul><li>effectiveness </li></ul><ul><li>Career </li></ul><ul><li>matching </li></ul>Staffing Training & Development Compensation Administration Strategic Systems Tactical Systems Operational Systems
  42. 42. Functional E-Business Systems <ul><li>Accounting Systems </li></ul><ul><ul><li>Online Accounting Systems </li></ul></ul><ul><ul><li>Order Processing </li></ul></ul><ul><ul><li>Inventory Control Systems </li></ul></ul><ul><ul><li>Accounts Receivable </li></ul></ul><ul><ul><li>Accounts Payable </li></ul></ul><ul><ul><li>Payroll </li></ul></ul><ul><ul><li>General Ledger </li></ul></ul>
  43. 44. Functional E-Business Systems <ul><li>Financial Management Systems </li></ul><ul><ul><li>Cash management </li></ul></ul><ul><ul><li>Online investment Management </li></ul></ul><ul><ul><li>Capital Budgeting </li></ul></ul><ul><ul><li>Financial forecasting and planning </li></ul></ul>
  44. 45. Capital Budgeting Financial Information Systems Financial Planning Cash Management Investment Management