2Electronic Business Systems Chapter 7Electronic Business Systems
3Learning ObjectivesIdentify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a companyEnterprise application integrationTransaction processing systemsEnterprise collaboration systems
4Learning ObjectivesGive examples of how Internet and other information technologies support business processes within the business functions ofAccountingFinanceHuman resource managementMarketingProductionOperations management
5Enterprise Business Systems E-business means using the Internet, other networks, and IT to supportElectronic commerceEnterprise communications and collaborationWeb-enabled business processesE-commerce is the buying, selling, and marketing of products, services, and information over the Internet and other networks
6Case 1: Hilton’s Data-Driven Hospitality OnQ is part of Hilton Hotel Corp.’s customer-relationship-management strategyGive employees a clearer idea of who the customers areTrack customer experiencesCombine with frequent-guest program to build loyalty across eight hotel brandsMeasure of success is “share of wallet”About 70 percent of OnQ is custom coded
7Case Study QuestionsWhat are the benefits and drawbacks of the OnQ system at Hilton?What does Hilton have to do to create a competitive advantage through OnQ?Is it possible to have too much information about a customer?
8Cross-Functional Systems Cross the boundaries of traditional business functionsUsed to reengineer and improve vital business processes all across the enterprise
10Enterprise Application Architecture Provides a conceptual frameworkHelps visualize the basic components, processes, and interfaces of major e-business applicationsFocuses on accomplishing fundamental business processes in concert withCustomersSuppliersPartnersEmployees
11Enterprise Application Architecture Enterprise Resource Planning (ERP)Concentrates on the efficiency of internal production, distribution, and financial processesCustomer Relationship Management (CRM)Focuses on acquiring and retaining profitable customers via marketing, sales, and servicesPartner Relationship Management (PRM)Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services
12Enterprise Application Architecture Supply Chain Management (SCM)Focuses on developing the most efficient and effective sourcing and procurement processesKnowledge Management (KM)Focuses on facilitating internal group collaboration and decision support
13Enterprise Application Integration EAI software connects cross-functional systemsServes as middleware to provideData conversionCommunication between systemsAccess to system interfaces
15Transaction Processing Systems Cross-functional information systems that process data resulting from the occurrence of business transactionsTransactions include sales, purchases, deposits, withdrawals, refunds, and paymentsOnline transaction processing (OLTP) is a real-time system that captures transactions immediately
18Enterprise Collaboration Systems (ECS) EC systems are cross-functional information systems that enhance team and workgroupCommunicationCoordinationCollaborationSystems may includeNetworked PC workstationsServersDatabasesGroupware and application packages
20Functional Business Systems A variety of types of information systems that support the business functions ofAccountingFinanceMarketingOperations managementHuman resource management
21Case 2: Advertising & Marketing Changes The Internet is causing a paradigm shift in advertisingAdvertisers are moving away from TV, newspapers, and magazine adsSoaring profits from selling online targeted ads are boosting company valuesThe Web is the first global advertising mediumBroadbandEncourages uses to spend more time surfingAllows more creative ad formats
22Case Study QuestionsWhy are companies like Chrysler now looking more favorably at the Internet as a great medium for their advertising dollars?What has happened to change their view?How do Google’s online ad revenue sources and strategy differ from Yahoo’s?Which online ad strategy is superior for attracting advertising from small companies?For attracting large companies?
23Case Study QuestionsIf you were in Julie Roehm’s position at Chrysler, how would you distribute Chrysler’s advertising dollars among online and traditional TV and print media?
25Marketing Systems Marketing systems are concerned with Planning, promotion, and sale of existing products in existing marketsDevelopment of new products and new marketsBetter attracting and serving present and potential customers
27Interactive Marketing A customer-focused marketing processUses the Internet, intranets, and extranetsEstablishes two-way transactions between a business and its customers or potential customersGoalProfitably use networks to attract and keep customersGet customers to help create, purchase, and improve products and services
28Targeted MarketingAn advertising and promotion management concept with five targeting components
29Targeted Marketing Components Community: customized ads to appeal to specific virtual communitiesContent: ads placed on a variety of selected websites, aimed at a specific audienceContext: ads placed on web pages that are relevant to a product or serviceDemographic/Psychographic: web marketing aimed at specific types or classes of peopleOnline behavior: promotions tailored to each visit to a site by an individual
30Sales Force Automation Outfit sales force with notebook computers, web browsers, and sales contact softwareConnect them to marketing websites and the company intranetGoalsIncrease personal productivitySpeed up capture and analysis of sales dataGain strategic advantage
31Manufacturing Information Systems Supports the production/operations functionsIncludes all activities concerned with planning and control of the processes producing goods or services
33CIM ObjectivesSimplify production processes, product designs, and factory organizationAutomate production processes and the business functions that support themIntegrate all production and support processes usingNetworksCross-functional business softwareOther information technologies
34CIM Systems Computer-aided manufacturing (CAM) Automate the production processManufacturing execution systems (MES)Performance monitoring information systems for factory floor operationsProcess controlControl ongoing physical processesMachine controlControls the actions of machines
35Human Resource Management (HRM) Information systems designed to supportPlanning to meet personnel needsDevelopment of employees to their full potentialControl of all personnel policies and programs
37HRM and the InternetRecruiting employees using the corporate website and commercial recruiting servicesPosting messages in selected Internet newsgroupsCommunicating with job applicants via
38HRM and Corporate Intranets Corporate intranet usesProcess common HRM transactionsAllow around-the-clock HRM servicesDisseminate information faster than through previous company channelsCollect information from employees onlineAllow HRM tasks to be performed with little HRM department interventionTraining
39Employee Self-Service Intranet applications can allow employees toView benefitsEnter travel and expense reportsVerify employment and salary informationAccess and update personal informationEnter time-sensitive data
40Accounting Information Systems The oldest and most widely used information system in businessRecords and reports business transactions and economic eventsProduces financial statementsForecasts future conditions
41Accounting Information Systems Typically consists ofOrder processingInventory controlAccounts receivableAccounts payablePayrollGeneral ledger systems
45Case 3: Improving Supply-Chain Results Supply chains are a kludge of systemsInternal manufacturing, warehousing, inventory control, planning, shipping, and logisticsRelationships with suppliers and partnersIncreasing dependence on customer inputNow being replace with two state-of-the-art, major software typesSupply-chain executionSupply-chain planning
46Case Study QuestionsWhat is the business value of SCM systems for Brunswick and Whirlpool?Does the business value of SCM depend upon what type of business a company is in?How does Brunswick’s approach to SCM differ from that of Whirlpool?Is one approach superior to all others?
47Case 4: The Business Case for EAI EAI involves using software to connect a variety of applications into a cohesive unitHelps align systems more closely with business processesEAI ProjectsCostly and complex ($200,000 to $400,000)Technical staff need lots of training
48Case Study QuestionsWhy has EAI recently “become a critical part of the IT strategy at many organizations,” and a high-ranking project of top IT executives?Use Baxter International, GE Power, and Corporate Express as examplesWhat is the major difference in the business value of the EAI projects at Baxter International, GE Power, and Corporate Express?
49Case Study QuestionsWhat are some of the challenges in developing and implementing EAI systems?How can companies meet these challenges?