Lecture Management information systems - Chater 7: Electronic business systems

After you have mastered the material in this chapter, you will be able to: Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company; give examples of how Internet and other information technologies support business processes within the business functions of: Accounting, finance, human resource management, marketing, production, operations management;...

Electronic Business Systems

Chapter

7

Chapter

7

1 Identify the following cross-functional

enterprise systems, and give examples

of how they can provide significant

business value to a company:

• Enterprise application integration

• Transaction processing systems

• Enterprise collaboration systems

Learning Objectives

Learning Objectives

information technologies support

business processes within the business functions of accounting, finance, human resource management, marketing, and

production and operations management

What is E-Business?

networks and information technologies to support electronic commerce, enterprise communications and collaboration, and

Web-enabled business processes, both

within a networked enterprise and with its customers and business partners

Case #1: Data-Driven Hospitality

have a problem and the hotel staff takes care of it than if the stay goes flawlessly

business It doesn’t do any good to have great customer information that’s only in the reservations system and available to

Case #1: Data-Driven Hospitality

OnQ – Customers Really Matter:

• Custom-built customer relationship

management information system

• Integrated to cover 22 million guests, all

properties, eight brands

• Provide employees with a clearer idea of who

customer are and what their past Hilton

experiences have been so they can provide

constant improvement

Case #1: Data-Driven Hospitality

OnQ Challenges:

clearly enough for inexperienced front

desk employees

Case #1: Data-Driven Hospitality

the OnQ system at Hilton?

competitive advantage through OnQ?

Provide some specific examples

information about a customer? Explain

Case #1: Data-Driven Hospitality

software applications are so expensive? Why do they seem to take so long to

implement?

Cross-Functional Enterprise Systems

Definition:

boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterprise

Cross-Functional Information Systems

Enterprise Application Architecture

Enterprise Application Integration (EAI)

Definition:

enterprise application clusters by letting them exchange data according to rules

derived from the business process

models developed by users

Enterprise Application Integration

Enterprise Application Integration

EAI Example

Transaction Processing Systems (TPS)

Definition:

• Cross-functional information systems that

process data resulting from the occurrence of

business transactions

doing business

– real-time systems that capture and process

transactions immediately

Transaction Processing Cycle

• Data Entry – capture of business data

over a period of time and processed periodically

after a transaction occurs

Transaction Processing Cycle

databases of an organization to reflect changes resulting from day-to-day business transactions

transaction documents, transaction listings and error reports

receiving responses concerning the results of

transaction processing activities

Transaction Processing Cycle

Enterprise Collaboration Systems (ECS)

Definition:

enhance communication, coordination,

and collaboration among the members of business teams and workgroups

ECS Goals

• Communicate – share information

• Coordinate – coordinate individual work

efforts and share resources

• Collaborate – work together cooperatively

on joint projects and assignments

ECS Tools

ECS Tools

Case #2: Business Case for EAI

EAI Benefits:

• Share data among legacy systems

• Improve data quality and accuracy

• Align systems more closely with business

processes

• Improve customer service

Case #2: Business Case for EAI

EAI Challenges:

departments

Case #2: Business Case for EAI

part of the IT strategy at many

organizations,” and a high-ranking

project of top IT executives? Use GE

Power and Corporate Express as

examples

Case #2: Business Case for EAI

developing and implementing EAI systems? How can companies meet these challenges?

application integration systems in business? Will this continue to be the case in the future? Why or why not?

Functional Business Systems

Definition:

business functions of accounting, finance, marketing, operations management, and human resource management

Functional Business IS

Marketing Systems

Interactive Marketing

Definition:

• Customer-focused marketing process that is

based on using the Internet, intranets, and

extranets to establish two-way transactions

between a business and its customers or

potential customers

Goal:

• Use networks to attract and keep customers

who will become partners with the business in creating, purchasing, and improving products

and services

Targeted Marketing

Targeted Marketing

Definition:

promotion strategies to strengthen a

company’s e-commerce initiatives, as well

as its traditional business venues

Targeted Marketing Components

Targeted Marketing Components

• Community – customize advertising to

appeal to people of specific virtual

Targeted Marketing Components

• Demographic/Psychographic – web

marketing efforts aimed at specific types

or classes or people

• Online Behavior – promotion efforts

tailored to each visit to a site by an

individual

Sales Force Automation

Definition:

delivery of information and support to

salespeople with the goal of improving

sales productivity and marketing

responsiveness

Manufacturing Systems

Definition:

production/operations function that

includes all activities concerned with the planning and control of the processes

producing goods and services

Manufacturing Systems

Computer-Integrated Manufacturing (CIM)

Objectives:

and factory organization as a vital foundation to automation and integration

business functions that support them with

computers, machines, and robots

using computer networks, cross-functional

business software, and other information

technologies

CIM Systems

Information systems that automate the

production process

performance monitoring information systems for factory floor operations

processes

Human Resource Systems

Human Resource Systems

HRM and the Internet

services and databases on the World

Wide Web

newsgroups

HRM and Corporate Intranets

• Process common HRM applications

• Allow HRM department to provide

around-the-clock services

• Disseminate valuable information faster than

through previous company channels

• Collect information from employees online

• Allow managers and other employees to

perform HRM tasks with little intervention by the

Accounting Information Systems

Common Business Accounting Systems

customer orders and produces data for

inventory control and accounts receivable

changes in inventory and provides shipping and reorder information

by customers and produces customer invoices, monthly customer statements, and credit

management reports

Common Business Accounting Systems

amounts owed to, and payments to suppliers,

and produces cash management reports

compensation data and produces paychecks

and other payroll documents and reports

Financial Management Systems

Financial Management Systems

• Capital Budgeting – evaluating the

profitability and financial impact of proposed capital expenditures

• Financial Planning – evaluating the

present and projected financial performance of a business

Case #3: Improving Supply-Chain Results

of systems, comprising software for

manufacturing, warehousing, inventory

control, planning, shipping, and logistics

with suppliers and partners, and, on the

front end, an increasing dependence on

the input of customers

Case #3: Improving Supply-Chain Results

Benefits of SCM

supply chains

Case #3: Improving Supply-Chain Results

Types of SCM:

particular segments along the supply

chain such as warehouse management or transportation management

companies decide which products to build and when, based on forecasts, orders,

capacity, and resources

Case #3: Improving Supply-Chain Results

1 What is the business value of SCM systems

for Brunswick?

2 Does the business value of SCM depend upon

what type of business a company is in?

Explain.

3 How does Brunswick’s approach to SCM differ

from that of the other companies? Is one

Case #4: Swarming Collaboration

which large numbers of geographically

dispersed people quickly self-organize in

a peer-to-peer network to deal with a

problem or opportunity

control or hub

Case #4: Swarming Collaboration

Benefits of Swarming:

• Allows large organizations to match the agility of

smaller competitors

• Tap resources previously overlooked

• Prospective customers become collaborators

Case #4: Swarming Collaboration

swarming collaboration? Use Lowe Worldwide and HP as examples

swarming?

Case #4: Swarming Collaboration

and experience their demo of working in

a shared workspace Would this

support workgroup collaboration?

Swarming collaboration? Why or why

not?

• Major e-business applications are integrated

cross-functional enterprise systems such as

enterprise resource planning (ERP), customer

relationship management (CRM), and supply

chain management (SCM).

• Enterprise application integration (EAI) systems

interconnect other information systems so that

business professionals can more easily access the information resources they need to support the needs of customers, suppliers, and business partners.

• Transaction processing involves the basic

activities of data entry, transaction processing, database maintenance, document and report

generation, and inquiry processing.

• Functional business information systems

support the business functions of marketing,

production/operations, accounting, finance, and human resource management through a variety

• Marketing information systems support

traditional and e-commerce processes and

management of the marketing function.

• Computer-based manufacturing information

systems help a company achieve

computer-integrated manufacturing, and thus simplify

automate, and integrate many of the activities

needed to quickly produce high-quality products

to meet changing customer demands.

support human resource management in organizations including staffing, training

and development, and compensation

administration

report and analyze business transactions