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Chapter - 7
e-Business Systems
eBusiness Systems
• eBusiness is the use of
–Internet, other networks and Information
Technologies to support
• eCommerce
• Enterprise Communication & Collaboration and
• Web-enabled business processes
– both within an enterprise and with its customers
and other business partners
Cross-Functional Enterprise Systems
• Many companies today use IT to develop integrated
cross-functional enterprise systems that cross the
boundaries of traditional business functions in order
to reengineer and improve vital business processes
across the enterprise
• Organization view CF-ES as a strategic use of IT to
– Share information resources
– Improve the effectiveness & efficiency of business
processes
– Develop strategic relationships with customers,
suppliers and other business partners
Enterprise architecture create UNITY
Cross-Functional Enterprise System
• Shift from functional mainframe-based legacy
system to client/server application
– ERP, SCM, CRM
• SAP, PeopleSoft, Oracle
New product development process in a manufacturing company
Enterprise Application Architecture
• EAA presents an overview of the major cross-
functional enterprise applications and their
interrelationships
A conceptual
framework to
visualize
components,
processes and
interfaces of
major e-business
application and
their
interrelationships
Enterprise Application Architecture
• Enterprise Resource Planning (ERP)
– Concentrates on the efficiency of internal production,
distribution, and financial processes
• Customer Relationship Management (CRM)
– Focuses on acquiring and retaining profitable customers via
marketing, sales, and services
• Partner Relationship Management (PRM)
– Aims at acquiring and retaining partners who
can enhance the selling and distribution of products and
services
• Supply Chain Management (SCM)
– Focuses on developing the most efficient and effective sourcing
and procurement processes
• Knowledge Management (KM)
– Focuses on facilitating internal group collaboration and decision
support
Enterprise Application Integration
• EAI software connects cross-functional systems
• Serves as middleware to provide
– Data conversion
– Communication between systems
– Access to system interfaces
• Ex: When an order is complete, have the order application tell the
accounting system to send a bill and alert shipping to send out the
product.
How EAI works
Transaction Processing Systems
• Cross-functional information systems that process data
resulting from the occurrence of business transactions
– Transactions are events that occurs as part of doing
business
• sales, purchases, deposits, withdrawals, refunds, and
payments
– Transaction processing activities initiate chain effect
and are those core business processes without which
business operation will grind to a halt
– Online transaction processing (OLTP) is a real-time
system that captures & process transactions
immediately
• Quick service ->adds value -> superior customer experience
Syntellect’s OLTP cable pay-per-view system
Transaction Processing Cycle
Inquiry
Processing
Data
Entry
Document
and Report
Generation
Data Base
Maintenance
Transaction
Processing
• Batch
• Online/Real-
Time
Five stage cycle
1. Data Entry
– Capture of business data
– Proper recording & editing
– Quick and correct capture of data
2. Transaction Processing
– Batch processing
– Real-time processing
• Fault tolerant capabilities
Transaction Processing Cycle
3. Database Maintenance
– Database update for correct and up-to-date data
– Ex. Credit sales Customer Balance & Inventory
4. Document and Report Generation
– Produce documents for reference and sharing
– Ex. Purchase orders, paychecks, sales receipts, invoices,
customer statements, Transaction Processing error report
5. Inquiry Processing
– Database tools and internet are used to make inquiries and
receive responses concerning a transactional activity
– Ex. Checking Status of Sales order, Inventory Stock
Transaction Processing Cycle
• EC systems are cross-functional information systems
that enhance communication, coordination and
collaboration among business teams and workgroups
• Goal of ECS is to enable us to work together more easily and
effectively by helping us in
– Communication: Share information
– Coordination: Organize individual work & resources
– Collaboration: Work together cooperatively
• Systems may include
– Networked PC workstations
– Servers
– Databases
– Groupware and application packages
Enterprise Collaboration System
Enterprise Collaboration System
Send & Share data, text, voice,
multimedia, documents
Functional Business Systems
• There are as many ways to use information
technology as there are business processes to
be performed, business problems to be solved
and business opportunities to be pursued.
• As a business professional, you should know
types of information systems that support
various business functions
• Understanding use and effect of IT in business
Marketing System
• Marketing is promotion & sale of product and services
• Marketing Information Systems provide information
technologies that support major components of
marketing function
• Interactive marketing is possible with the internet web
sites where customers can become partners in creating,
marketing, purchasing and improving products and
services
• Sales force automation use mobile computing and
internet technologies to automate many information
processing activities for sales support & management
• CRM use Marketing IS to provide and obtain data
essential for marketing function
• Marketing IS helps managers in product planning, pricing,
advertising, sales promotion & targeted marketing
strategy
Interactive marketing
• Interactive Marketing
– A customer-focused marketing process
– Using the Internet, intranets, and extranets
– To establish two-way transactions between a business
and its customers or potential customers
• Goal
– Enable companies to use network profitably
– to attract and retain customers to make them
partners with business
– To get customers to help in creating, purchasing, and
improving products and services
• Internet technologies:
– chat and discussion groups, web forms &
questionnaires, IM and e-mail
Targeted Marketing
• Community
– customized ads to appeal to specific virtual communities of
sporting enthusiasts, arts and crafts hobbyists
• Content
– ads placed on a variety of selected websites, aimed at a
specific audience
• Context
– ads placed on web pages that are relevant to a product or
service like vacation & car rentals, Bus & hotel
• Demographic/Psychographic
– web marketing aimed at specific types of people like
unmarried, married, middle income, class, student
• Online behavior
– Tracking technique is used like cookie
– promotions tailored to each visit to a site by an individual
• An advertising and promotion management
concept with five targeting components
Targeted Marketing
Sales Force Automation
• Sales force automation is a technique of using software
to automate the business tasks of sales
– order processing, contact management
– inventory monitoring and control
– order tracking, customer management
– sales forecast analysis
• Outfit sales force with notebook computers, web
browser and sales contact software
– Connect them to marketing websites and the company
intranet
• Goals
– Increase personal productivity & more lead conversion
– Speed up capture and analysis of sales data
– Gain strategic advantage
Manufacturing Information System
• Supports the production/operations functions
– Includes all activities concerned with planning and control
of the processes producing goods or services
• Computer Integrated Manufacturing simplify, automate
and integrate manufacturing & operation
• Flexible & agile manufacturing to respond to customer
requirement
• Total quality management
• Manufacturing Execution System for monitoring,
reporting and adjustment of equipment & process
– Shop floor control, machine/robotics/process control
• Engineering System
Voltas- Mobility in Manufacturing
Computer Integrated Manufacturing
Human Resource System
• HRM is effective and efficient use of human resources
• HRM function includes recruitment, placement, evaluation,
compensation and development of organization’s employees
• HRIS are designed to support
– Planning to meet personnel needs
– Development of employees to their full potential
– Control of all personnel policies and programs
– Maintain personnel records
– Analyze the use of personnel
– Recruitment, selection & hiring
– Job placement, performance appraisal, employee benefit analysis
– Training & development
– Health, safety and security
HRM and the Internet
• Recruiting employees using
– the corporate website
– commercial recruiting services
• Posting messages in selected Internet
newsgroups
• Communicating with job applicants via e-mail
HRM and Corporate Intranets
– Process common HRM transactions
– Allow around-the-clock HRM services
– Disseminate information faster than through
previous company channels
– Collect information from employees online
• Updating employee information
• Submitting expenses reports
• Leave and travel approvals
– Allow managers to perform HRM tasks with little
HRM department intervention
– Training through video and document
Employee Self-Service
• Intranet applications can allow employees to
– View benefits
– Enter travel and expense reports
– Verify employment and salary information
– Access and update personal information
– Enter time-sensitive data
Accounting Information System
• The oldest and most widely used information system in
business
– Records & reports business transactions & economic events
• Operational Accounting system consists of
– Order processing, Inventory control, Accounts receivable
– Accounts payable, Payroll, General ledger systems
• Managerial Accounting system consists of
– Cost accounting reports
– Produce Financial budgets and projected financial
statements
– Comparative Analytical reports
• Online Accounting System
AIS for transaction processing & financial reporting
Financial Management System
• Supports business managers and professionals
in making decisions concerning
– The financing of a business
– The allocation and control of financial
resources within a business
• Cash and investment management, capital
budgeting, financial forecasting, financial
planning
Financial Management System

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Chapter 7 e business systems

  • 2. eBusiness Systems • eBusiness is the use of –Internet, other networks and Information Technologies to support • eCommerce • Enterprise Communication & Collaboration and • Web-enabled business processes – both within an enterprise and with its customers and other business partners
  • 3. Cross-Functional Enterprise Systems • Many companies today use IT to develop integrated cross-functional enterprise systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes across the enterprise • Organization view CF-ES as a strategic use of IT to – Share information resources – Improve the effectiveness & efficiency of business processes – Develop strategic relationships with customers, suppliers and other business partners Enterprise architecture create UNITY
  • 4. Cross-Functional Enterprise System • Shift from functional mainframe-based legacy system to client/server application – ERP, SCM, CRM • SAP, PeopleSoft, Oracle New product development process in a manufacturing company
  • 5. Enterprise Application Architecture • EAA presents an overview of the major cross- functional enterprise applications and their interrelationships A conceptual framework to visualize components, processes and interfaces of major e-business application and their interrelationships
  • 6. Enterprise Application Architecture • Enterprise Resource Planning (ERP) – Concentrates on the efficiency of internal production, distribution, and financial processes • Customer Relationship Management (CRM) – Focuses on acquiring and retaining profitable customers via marketing, sales, and services • Partner Relationship Management (PRM) – Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services • Supply Chain Management (SCM) – Focuses on developing the most efficient and effective sourcing and procurement processes • Knowledge Management (KM) – Focuses on facilitating internal group collaboration and decision support
  • 7. Enterprise Application Integration • EAI software connects cross-functional systems • Serves as middleware to provide – Data conversion – Communication between systems – Access to system interfaces • Ex: When an order is complete, have the order application tell the accounting system to send a bill and alert shipping to send out the product.
  • 9. Transaction Processing Systems • Cross-functional information systems that process data resulting from the occurrence of business transactions – Transactions are events that occurs as part of doing business • sales, purchases, deposits, withdrawals, refunds, and payments – Transaction processing activities initiate chain effect and are those core business processes without which business operation will grind to a halt – Online transaction processing (OLTP) is a real-time system that captures & process transactions immediately • Quick service ->adds value -> superior customer experience
  • 10. Syntellect’s OLTP cable pay-per-view system
  • 11. Transaction Processing Cycle Inquiry Processing Data Entry Document and Report Generation Data Base Maintenance Transaction Processing • Batch • Online/Real- Time
  • 12. Five stage cycle 1. Data Entry – Capture of business data – Proper recording & editing – Quick and correct capture of data 2. Transaction Processing – Batch processing – Real-time processing • Fault tolerant capabilities Transaction Processing Cycle
  • 13. 3. Database Maintenance – Database update for correct and up-to-date data – Ex. Credit sales Customer Balance & Inventory 4. Document and Report Generation – Produce documents for reference and sharing – Ex. Purchase orders, paychecks, sales receipts, invoices, customer statements, Transaction Processing error report 5. Inquiry Processing – Database tools and internet are used to make inquiries and receive responses concerning a transactional activity – Ex. Checking Status of Sales order, Inventory Stock Transaction Processing Cycle
  • 14. • EC systems are cross-functional information systems that enhance communication, coordination and collaboration among business teams and workgroups • Goal of ECS is to enable us to work together more easily and effectively by helping us in – Communication: Share information – Coordination: Organize individual work & resources – Collaboration: Work together cooperatively • Systems may include – Networked PC workstations – Servers – Databases – Groupware and application packages Enterprise Collaboration System
  • 15. Enterprise Collaboration System Send & Share data, text, voice, multimedia, documents
  • 16. Functional Business Systems • There are as many ways to use information technology as there are business processes to be performed, business problems to be solved and business opportunities to be pursued. • As a business professional, you should know types of information systems that support various business functions • Understanding use and effect of IT in business
  • 17. Marketing System • Marketing is promotion & sale of product and services • Marketing Information Systems provide information technologies that support major components of marketing function • Interactive marketing is possible with the internet web sites where customers can become partners in creating, marketing, purchasing and improving products and services • Sales force automation use mobile computing and internet technologies to automate many information processing activities for sales support & management • CRM use Marketing IS to provide and obtain data essential for marketing function • Marketing IS helps managers in product planning, pricing, advertising, sales promotion & targeted marketing strategy
  • 18. Interactive marketing • Interactive Marketing – A customer-focused marketing process – Using the Internet, intranets, and extranets – To establish two-way transactions between a business and its customers or potential customers • Goal – Enable companies to use network profitably – to attract and retain customers to make them partners with business – To get customers to help in creating, purchasing, and improving products and services • Internet technologies: – chat and discussion groups, web forms & questionnaires, IM and e-mail
  • 19. Targeted Marketing • Community – customized ads to appeal to specific virtual communities of sporting enthusiasts, arts and crafts hobbyists • Content – ads placed on a variety of selected websites, aimed at a specific audience • Context – ads placed on web pages that are relevant to a product or service like vacation & car rentals, Bus & hotel • Demographic/Psychographic – web marketing aimed at specific types of people like unmarried, married, middle income, class, student • Online behavior – Tracking technique is used like cookie – promotions tailored to each visit to a site by an individual
  • 20. • An advertising and promotion management concept with five targeting components Targeted Marketing
  • 21. Sales Force Automation • Sales force automation is a technique of using software to automate the business tasks of sales – order processing, contact management – inventory monitoring and control – order tracking, customer management – sales forecast analysis • Outfit sales force with notebook computers, web browser and sales contact software – Connect them to marketing websites and the company intranet • Goals – Increase personal productivity & more lead conversion – Speed up capture and analysis of sales data – Gain strategic advantage
  • 22. Manufacturing Information System • Supports the production/operations functions – Includes all activities concerned with planning and control of the processes producing goods or services • Computer Integrated Manufacturing simplify, automate and integrate manufacturing & operation • Flexible & agile manufacturing to respond to customer requirement • Total quality management • Manufacturing Execution System for monitoring, reporting and adjustment of equipment & process – Shop floor control, machine/robotics/process control • Engineering System Voltas- Mobility in Manufacturing
  • 24. Human Resource System • HRM is effective and efficient use of human resources • HRM function includes recruitment, placement, evaluation, compensation and development of organization’s employees • HRIS are designed to support – Planning to meet personnel needs – Development of employees to their full potential – Control of all personnel policies and programs – Maintain personnel records – Analyze the use of personnel – Recruitment, selection & hiring – Job placement, performance appraisal, employee benefit analysis – Training & development – Health, safety and security
  • 25. HRM and the Internet • Recruiting employees using – the corporate website – commercial recruiting services • Posting messages in selected Internet newsgroups • Communicating with job applicants via e-mail
  • 26. HRM and Corporate Intranets – Process common HRM transactions – Allow around-the-clock HRM services – Disseminate information faster than through previous company channels – Collect information from employees online • Updating employee information • Submitting expenses reports • Leave and travel approvals – Allow managers to perform HRM tasks with little HRM department intervention – Training through video and document
  • 27. Employee Self-Service • Intranet applications can allow employees to – View benefits – Enter travel and expense reports – Verify employment and salary information – Access and update personal information – Enter time-sensitive data
  • 28. Accounting Information System • The oldest and most widely used information system in business – Records & reports business transactions & economic events • Operational Accounting system consists of – Order processing, Inventory control, Accounts receivable – Accounts payable, Payroll, General ledger systems • Managerial Accounting system consists of – Cost accounting reports – Produce Financial budgets and projected financial statements – Comparative Analytical reports • Online Accounting System
  • 29. AIS for transaction processing & financial reporting
  • 30. Financial Management System • Supports business managers and professionals in making decisions concerning – The financing of a business – The allocation and control of financial resources within a business • Cash and investment management, capital budgeting, financial forecasting, financial planning