2 Learning Objectives Electronic Business (E-Business) Systems Appreciate the possible changes to organizational processes that occur when e-business introducedUnderstand major approaches to transfer of electronic data during business events processingRecognize the complexities that are introduced as electronic document management moves us steadily toward the paperless officeUnderstand the complexities surrounding EDI that are introduced when linking two different organizations’ computer systems for joint business event data processingAppreciate the challenges faced by organizations when they pursue direct business links with customers via the Internet or other networksAppreciate the business advantages gained through effective use of electronic businessElectronic Business(E-Business)Systems
3 E-Business and the AIS Wheel E-Business is a part of every aspect of accounting
4 Electronic BusinessElectronically linking business processes, individuals and organizationsByproduct: elimination of sales staff, normally intermediary between two parties to transactionsTransactions completed more quickly, more efficiently, and more effectively
5 Batch ProcessingKnown as periodic mode because master data is updated periodically (e.g., nightly)Delay occurs between business event and updating master dataBusiness event occursRecord business event dataUpdate master dataGenerate outputsThe disadvantage of periodic mode systems is that the only time the master data are up to date is right after the processing has been completed.As soon as the next business event occurs, the master data are no longer up to date.
7 Online Transaction Entry Entering business events at time and place the business event occursComputer input device used to enter data at sourceInput document is eliminatedPrice data is retrieved from the systemSource documents are printed by the systemEvent information in accumulated on tape or disk
9 Online Real-time Processing Transaction occurrence/recording in transaction filesUpdate master files essentially instantaneouslyAlso known as “immediate mode”Generate reports periodically or on an as needed basisSupport queries to generate unique reports for key decisions
11 Online Transaction Processing RT system that performs all or part of processing at data terminal locationUpdating of master data may be immediate or delayedCan have memorandum update in RT and full batch update at night (referred to as remote batch)Common applications are ATMs and online reservation systems
14 Methods of Conducting E-Business —generally requires human translation and data entryElectronic Document Management—capture and storage of document images instead of paperElectronic Data Interchange—computer-to-computer exchange of business data in structured formats that allow direct processing of those electronic documents by the receiving computer system.
15 EDI Components1. An originating application prepares an electronic business document, such as a purchaseorder (PO).7. At the destination organization, an application processes the business data.
16 EDI Components2 and 6. An application’s electronic business document must be translated from standard message format to the structured EDIformat that will be recognized by the receiving computer.
18 EDI Components3 and 5. Establish a method to communicate electronic message. EDI service bureaus or the Internet are may be used, saving time and money over other methods.
19 EDI Components4. Rather than connecting each trading partner, an organization can use a VAN. An organizationcan connect to the VAN when it wants, leave its outgoing messages and, at the same time, pick up incoming messages from its “mailbox.”
20 Internet Commerce Circles 1 and 7 Circles 2 and 5 Circles 4 and 6 Customer connects to vendor in client-server configurationCircles 2 and 5Connection to Internet through direct connection or service providerCircles 4 and 6Assurance services provide limited assurance that web site reliable and secureCircle 3The Internet